Tax en bloc speculators too
05:55 AM Jan 21, 2011
Letter from Jacinta Lee
I NOTE that the Government's recent measures are aimed at putting an end to speculation and cooling the property market. I ask the authorities to also look into curbing the "condo raiders" who buy into old condominiums such as mine which have en bloc potential.
In my condominium, seven units have been bought up by a family of speculators who wish to make a profit should it go en bloc (three previous attempts have failed).
This family obviously regards my condo as their future cash cow and are just waiting for the ripe opportunity. Having lived in my condominium for many years, I resent the idea of people trying to make a profit from my home or banding together to increase the numbers for an en bloc in such a calculated fashion.
Although the laws are more stringent now, and there is in effect a tax on selling within one to four years of buying a property, I would urge the authorities to levy an en bloc tax of 20 per cent on owners who snap up more than two units in any condominium destined for an en bloc sale and who do not live in it.
As a collective sale takes about two years to come to fruition, this en bloc stamp duty could be levied over four years retrospective to the signing of the agreement.
The authorities should also make sellers sign a declaration to honestly list all family members or partners who have bought units in the same condominium over the four years prior to the start of the collective sales process. This will enable the tax to be levied on all joint speculators.
URL http://www.todayonline.com/Voices/EDC110121-0000175/Tax-en-bloc-speculators-too
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