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[Hamburger]

dont mind off topic for question on commercial property as i really need an answer:

 

1) presently sole proprietor rent from land lord and the rent goes into expenses in the profit & loss book.

 

2) if sole proprietor buys a commercial property, how is the expenses (rent) calculated? By the monthly installment or not regarded as rent at all?????

[Alpha78]

  On 9/25/2014 at 4:15 AM, L23 said:

Do you know that you have to pay levies to govt for the 'grants' you took if you are moving on to get another from the govt ?

Unless you are moving on to buy a PC.

 

Yes you are right on that part. Do you know that the first batch owners of ECs are able to sell their units at 2x of purchase price, including levy on previous property? Similar private condos in the neighbourhood also command similar selling price as the EC, but their purchase price are 20 to 30% higher?

 

In the long run, when an EC is privatised, there is little difference between PC or EC in the same neighbourhood. The main catch is whether the price difference at the point of purchase is attractive enough for the buyer to be strapped in by the EC rules.

[Hamburger]

  On 9/25/2014 at 4:28 AM, Hamburger said:

dont mind off topic for question on commercial property as i really need an answer:

 

1) presently sole proprietor rent from land lord and the rent goes into expenses in the profit & loss book.

 

2) if sole proprietor buys a commercial property, how is the expenses (rent) calculated? By the monthly installment or not regarded as rent at all?????

 

so any guru knows???? TIA

[Kusje]

  On 9/25/2014 at 12:59 PM, Hamburger said:

 

so any guru knows???? TIA

 

Read the FRS or check with your accountant.

 

http://caa.isca.org.sg/wp-content/uploads/2010/08/Practice-Guidance-2-Depreciation-of-Freehold-Buildings-21.pdf

[Hamburger]

  On 9/25/2014 at 3:00 PM, Kusje said:

 

Read the FRS or check with your accountant.

 

http://caa.isca.org.sg/wp-content/uploads/2010/08/Practice-Guidance-2-Depreciation-of-Freehold-Buildings-21.pdf

 

sole proprietor do own account, no accountant to ask....

[Kusje]

  On 9/25/2014 at 3:07 PM, Hamburger said:

 

sole proprietor do own account, no accountant to ask....

 

Not sure how accurate but try reading this.

 

http://www.guidemesingapore.com/taxation/accounting/treatment-of-fixed-assets-singapore-standards

 

I only took a financial accounting course 4 years back. Returned everything to the teacher already.

 

#EDIT#

 

Of course, most accurate will be from the FRS itself.

 

http://www.asc.gov.sg/frs/frsEffectiveon01012014.htm#

Edited September 25, 2014 by Kusje

[Hamburger]

  On 9/25/2014 at 3:22 PM, Kusje said:

 

Not sure how accurate but try reading this.

 

http://www.guidemesingapore.com/taxation/accounting/treatment-of-fixed-assets-singapore-standards

 

I only took a financial accounting course 4 years back. Returned everything to the teacher already.

 

#EDIT#

 

Of course, most accurate will be from the FRS itself.

 

http://www.asc.gov.sg/frs/frsEffectiveon01012014.htm#

 

thanks bro, read but still feels its a bit vague.

[Tjkbeluga]

  On 9/20/2014 at 4:59 AM, Othello said:

 

very chalet feel, I like at 1 point, 2 bedded 300+k nia. cheap cheap

 

Good to 包二奶.

[xherion]

  On 9/25/2014 at 11:59 PM, Hamburger said:

 

thanks bro, read but still feels its a bit vague.

 

Isn't that the case for all accounting rules? hehe

[ShepherdPie]

  On 9/20/2014 at 3:08 AM, Othello said:

 

IMG-20140919-WA0000.jpg

last yr population increase 80k. . how does the equation work out ?

 

I think mass mkt will hold with 10% drop.

T2 type of investment will drop.. so bravo again for T2..

[Kusje]

  On 9/25/2014 at 11:59 PM, Hamburger said:

 

thanks bro, read but still feels its a bit vague.

 

Go to iras website and send them a query via their form or email.

 

It will take a few days for them to reply but they will eventually reply (worked for me in my previous job).

[Porker]

  On 9/25/2014 at 4:28 AM, Hamburger said:

dont mind off topic for question on commercial property as i really need an answer:

 

1) presently sole proprietor rent from land lord and the rent goes into expenses in the profit & loss book.

 

2) if sole proprietor buys a commercial property, how is the expenses (rent) calculated? By the monthly installment or not regarded as rent at all?????

Isn't that considered a purchase? Add to book value and then write down based on whichever depreciation method your auditor advised on.

[Jman888]

  On 9/25/2014 at 12:59 PM, Hamburger said:

 

so any guru knows???? TIA

 

.

 

read here.

 

http://www.iras.gov.sg/irasHome/uploadedFiles/Businesses/For_sole-proprietors_self-employed/Before_filing/Starter%20Guide%20for%20the%20Self-Employed_English.pdf

[Hamburger]

  On 9/30/2014 at 2:30 AM, Jman888 said:

 

.

 

read here.

 

http://www.iras.gov.sg/irasHome/uploadedFiles/Businesses/For_sole-proprietors_self-employed/Before_filing/Starter%20Guide%20for%20the%20Self-Employed_English.pdf

Capital claim is the key word.....thanks.bro.

[ShepherdPie]

  On 9/30/2014 at 3:36 AM, Hamburger said:

Capital claim is the key word.....thanks.bro.

 

hmm.. you shld also consider the write-off..

 

cos' unless your purchase < profit for the year..you dont enjoy the full benefit of the tax reduction unlike rental .. correct me if i am wrong.. *cracking my head now with F7*

[WoShiNewbie]

  On 9/25/2014 at 3:54 AM, Alpha78 said:

Sure or not? When you sign on the dotted line for a Private Condo, it's just the option to purchase and progressive payments. You get the "title deed" only after the TOP is issued, and when the full payment for the property is made (by cash or from bank loan). So MOP should still be counted from the date of TOP?

 

For people who are not speculators and can afford to live in the EC for 10 years after TOP, after 5th year MOP is met and the owner can go buy a second property. So he can still make use of all the grants given for the EC, to have a lower purchase price.

 

So ultimately, the key consideration is factoring in the new/resale prices of private condos nearby the EC, and based on the furnishing given by the developer, whether the price is discounted sufficiently as compared to private condo.

 

There's no MOP for Private Condos but its regulated under Seller's Stamp Duty which kicks off once you signed on the dotted line for the purchase. Sale of your property within 1st year of ownership will be 16% SSD, 2nd year of ownership will be 12%, 3rd year of ownership will be 8%, 4th year of ownership will be 4% and finally 5th year of ownership will be 0%!!!

 

Title deed is given to you only when you have paid fully for the property so your statement about issued after TOP is wrong.

 

Yes, owners can proceed to purchase a 2nd property after MOP is met for EC but do take note that there's Additional Buyer's Stamp Duty payable. For Singaporeans, it will be extra 7% on top of the usual 3% which adds up to a total of 10%.

 

Do take note that good things seldom come cheap and cheap things seldom come good. With the heavily discounted price for EC, how well do you expect your fittings and furnishings to be? In terms of proximity to amenities and MRT, priority is seldom given to ECs and thats because our precious govt knows which plot of land is more valuable and more developers will be biding aggressively for it.

 

So at the end of the day, it still boils down to affordability. CHEERS!

Edited September 30, 2014 by WoShiNewbie

[WoShiNewbie]

  On 9/25/2014 at 5:53 AM, Alpha78 said:

 

Yes you are right on that part. Do you know that the first batch owners of ECs are able to sell their units at 2x of purchase price, including levy on previous property? Similar private condos in the neighbourhood also command similar selling price as the EC, but their purchase price are 20 to 30% higher?

 

In the long run, when an EC is privatised, there is little difference between PC or EC in the same neighbourhood. The main catch is whether the price difference at the point of purchase is attractive enough for the buyer to be strapped in by the EC rules.

Personally, I have helped my clients gotten 2x of their purchase price for private condos as well. It all depends on your foresight and the condition of the property market at that time.

 

What I wanna emphasize highly is, ECs will only be able to show its full potential in capital appreciation only after 13yrs of ownership (counting from the date you signed on the dotted line) as compared to private condos being transacted at least thrice during these 13 years if you do not want to incurr any Seller's Stamp Duty. So do you think the 20-30% premium difference in pricing for private condos are worth it for accumulating 3x the profits as compared to earning that miserable amount of grant from the government? I will leave it for you to do the maths yourself.

 

CHEERS!!!

[Wt_know]

even without MOP and 10 years to acquire private status to sell to foreigner, potential rental yield to let out whole unit, etc

the material use ... the location ... the overall design (subjective) is already 20% cheaper than private condo

hence, the 20% is not actual saving, right?

you pay what you get ...

 

  On 9/30/2014 at 5:22 PM, WoShiNewbie said:

Personally, I have helped my clients gotten 2x of their purchase price for private condos as well. It all depends on your foresight and the condition of the property market at that time.

 

What I wanna emphasize highly is, ECs will only be able to show its full potential in capital appreciation only after 13yrs of ownership (counting from the date you signed on the dotted line) as compared to private condos being transacted at least thrice during these 13 years if you do not want to incurr any Seller's Stamp Duty. So do you think the 20-30% premium difference in pricing for private condos are worth it for accumulating 3x the profits as compared to earning that miserable amount of grant from the government? I will leave it for you to do the maths yourself.

 

CHEERS!!!

 

Edited September 30, 2014 by Wt_know