Decoupling Versus 99-1 Strategy | Differences & Similarity

Decoupling Versus 99-1 Strategy- Both Strategies can help you save a lot of money from stamp duties, likely in the range of $100k or more. No Kidding! However, it can only be used for Private Condo and not for HDB.

📌What is Property Decoupling?

It is mainly used when a Singaporean couple already owns one private property & they wish to buy second investment unit to collect passive rental income The reason why they are doing decoupling is because they don’t want to pay ABSD, which is a hefty 12%.

Decoupling Versus 99-1

📌What are the things to take note?

Let’s talk about the fees involved first. There are 2 main fees you need to pay

  • The legal fees, which is in the range of $5.5 – 6K
  • Buyer’s Stamp Duty. This amount payable is based on the 50% of the property (i.e. for out-going spouse’s share).
Decoupling Versus 99-1

📌 3 things to note for Decoupling

  1. You must check your home value because the stamp duty is based on market value
  2. Buyer to ensure he/she has enough cash/ CPF/ approved loan to cover out-going spouse’s share
  3. After you have signed the decoupling papers at the law firm, you can proceed to book your 2nd private property anytime without incurring ABSD

📌 Decoupling Versus 99-1- What is the difference?

99-1 is similar in structure to decoupling. It is used mainly when the Singaporean couple is buying their 1st private property and they need to combine both spouses incomes to take maximum loan.

They are planning for future Decoupling when they are ready to buy their 2nd private property. The “1% owner” will likely be the “out-going” spouse. The “buyer spouse” will be paying buyer stamp duty only on the 1% share

In fact, 99-1 strategy is an adapted version of Decoupling. The main purpose is to save on the buyer stamp duty and additional buyer stamp duty.

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Dennis Lim

Dennis has more than a decade of experience investing in real estate. Like many fellow Singaporeans, he grew up in a HDB flat with dreams to live in a condominium. Through careful financial planning & hardwork, this became a reality when he was 30. He now owns 3 private properties in Singapore and has helped hundreds of Singaporeans to achieve their goal of upgrading their homes in land-scarce Singapore.

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