Property Taxes! Are these taxes lower for condos? Are they lower for townhouses? If you’re seriously planning on owning a new home, these are some issues you should consider when it comes to buying a condo or townhouse for your own stay. There’s often the debate of whether or not buying a condo or a townhouse will save you the most on property taxes.
This seems like a legitimate debate, but for those who are not sure about taxes between both property types, this article will help you to understand the differences between the two.
Townhouses and condos have distinct differences
Understanding the differences between a condo and a townhouse is great for knowing the distinctions between both properties and how they are sold to you. The purchase of Park Colonial Condo Singapore will provide you ownership of a particular area within the condo building. With a townhouse you’ll own the full plot of land as well as maybe having sole ownership of the property around the house, per the bylaws that has been drafted by the authority. With both properties you can own with sharing ownership of common areas, especially in a condo. If you own a Park Colonial Condo @ Woodleigh MRT, you take up co-ownership of the communal spaces that’s outside of your residential unit space. It also makes a difference on the way you’re taxed for the property.
What are the factors that affects property tax?
The amount of property taxes that you must pay at the end of the year stems from two main factors. First of all, determination of your assessed home value is a factor. An assessor, assesses the necessary things that are taxable like acreage, number of bedrooms, number of baths, square footage, and even comparable condos or townhouses in the immediate area that you live in. These things are determinant of how much you’ll pay in yearly property taxes. The second factor is the mill levy, which is the tax rate for the area that you live in. It is also expressed in a determined percentage. The mill levy of your area is focused on number of parks, public schools, and local emergency aid like police precincts, fire departments, etc. The more in-town amenities that your town has, you will have a higher mill levy.
Are condo or townhouse property taxes lower?
Due to the factors which includes size, number of bedrooms and square footage and more, you will typically pay lower taxes on both a townhouse and a condo. These taxes are lower than that of the detached single-family home. Both condos and townhouses have lesser space than a single-family home. Living in a condo, taxpayers will share their due tax for land and other common areas, including the lobby, hallways and stairs. People living in townhomes may or may not be solely responsible for paying land taxes but are certainly solely responsible for paying taxes on the townhome. On average townhouses and condo taxes are lower than single-family homes, but within the same taxable range.
Although there are differences between the two property types, both condos and townhouses are at nearly the same amount tax wise. Condos usually offers you more amenities than living in a townhouse. A townhouse generally gives you more sole ownership of outdoor space. No matter how you look at it, the fact that these spaces are lesser than the average single-family home, taxes are lesser when assessed due to the size of space among other essential components.
Taxes have changed since Singapore Budget Day
As you may have known in the past few days, the local buyer stamp duty taxes have already increased by 1% from the earlier 3% as we are more familiar with. It affects property of all types with the purchase price of more than a million dollar in valuation. Meaning if you’re intending to buy Park Colonial now and that the selling price is above $1 million then you’ll be liable to pay for the extra 1% wef immediately.
There won’t be room for negotiation with the authorities as they have already announced the new policy and pushed it through in the parliament during the Singapore budget day 2018.
By having the extra 1% stamp duty taxes, it is only a minimal increment for general home buyers unless it is of a really big-ticket purchase costing individual a cool $10 million or more. Otherwise, the amount of increase will not look too big and fortunately, the newest condo development by Chip Eng Seng at Woodleigh MRT will have many apartment units below $1 million which is not affected by the new ruling.
So, if you’ve been out searching for an investment property, Park Colonial Condo Singapore could be one of the first few choices in the pipeline for you to arrange a viewing with.