Paying lesser property tax on multiple properties

Property tax is something we have to pay when we own any property. The owner-occupied property incurs less tax than one that is not owner-occupied. 

Let's you own Property A, for which IRAS has assessed the Annual Value at $18,000, then:  

• If it is owner-occupied, the first $8,000 is tax-free. The next $10,000 @ 4% will incur $400.  
• But if it is non owner-occupied, then the tax is $18,000 @ 10% = $1,800.

And if you also own Property B, for which the Annual Value is $24,000, then:

• If it is owner-occupied, the first $8,000 is tax-free. The next $16,000 @ 4% will incur $640.
• But if it is non owner-occupied, then the tax is $24,000 @ 10% = $2,400.

Clearly, it makes sense to be paying property tax on Property B (which has a higher Annual Value) as owner-occupied, and Property A as non owner-occupied.  The total property tax is then $640 + $1,800 = $2,440.  The reverse would have incurred total property tax of $400 + $2,400 = $2,800.

Getting the switching done is pretty straightforward and fuss-free. Just proceed to IRAS website to effect the change. IRAS will automatically refund the excess if you have overpaid. Totally fuss-free.

Above is my simplistic understanding. The taxation levels are actually different if you own higher-end properties. Check out IRAS website for official information.

 

Working in the Age of COVID-19

There was a time when we were slogging away in the office, going to work when the sun could barely be discerned, and leaving work only when the moon has already kicked the sun away, we looked forward to a time when we could be working from home instead. We envied those whose occupation allowed them that flexibility.

And now, may of us find ourselves going through this experience, whether you want to or not. Difficult times. And suddenly, many things have become possible. So how has the experience been?  It's been 6 months.

Some positives ...

• I don't need to spend 1 hour going to work, and 1 hour coming home. That's 2 hours per day saved. That's 2/24 return (or 10/168 if you want to be mathematically correct for a 5-day work week). Not bad. If only I could monetise that.
• I no longer have to spend $25 to take a Grab ride home when I was too tired to do the BMW thing. That's Bus, MRT, Walk by the way.
• In the morning, I can take the time saved to (a) play 45 min of badminton for $3.50, (b) go for a 5 km walk around the neighbourhood (curtailed because of Dengue risk!), or spend a lazy morning to read papers and sip my cuppa of kopi, or snooze just a wee bit longer.
• Lunch, tea-breaks and toilet breaks are convenient, any time. Just stock up the kitchen! Helps that wifey loves to bake.
• I can 'listen' to news or whatever entertainment on my TV (it's actually an excuse for background noise), listen to a free Coursera course video (absorption isn't too good though), and read my office e-mails to clear work.  
• Meetings have become shorter. Sometimes a 15 min Skype call was all it took.
• Presentations have become easier. No longer do you have to stand and present with minimal reference materials to back you up. You can have all the info you need opened up on the screen to refer to!

A couple of friends shared their experiences ...

• One told me he run down for a swim at his condo's pool over lunch, and still have time to finish a quick lunch.
• Another told me that he can take a 30 min power nap after lunch, something that just seemed inappropriate to do in the office in the past. Works wonders for him.

How's your experience been?

Changing Address on NRIC for a New Property

One of the numerous things to do after buying a new property and when ready to move into is to update our NRIC.

What does it take to change the address on our NRIC?  Pretty straightforward apparently. Just head to a friendly Neighbourhood Police Post. Bring along your NRIC, and some concrete evidence that you live in that property. 

I showed the Police officer documents that showed I bought the property, but he didn't seem none too impressed with that. Hello, that's a $1.5m contract ok? Nope, he was not impressed.  But his eyes sparkled when he saw the PUB bill for $7. Whatever works. Seems like the preferred document is a bill from PUB to the new property. Nevermind it was only $7.

The Police officer was able to get everything done on the spot, and neatly pasted a tamper-evident sticker of the new address over your NRIC, and you're done. I think he was bored to death having nothing to do and was happy to be of service.

The IT system will automatically update other government agencies - e.g. CPF, IRAS, LTA, etc.  Hmmm, all of whom collect money from you at some point? Although he said it might take a few days, I noticed all records were updated by the next day. Including my SingPass MyInfo. Neat. 

[It sure beats my experience in the US over getting my driving license and Social Security card!]

But what happens to the rest of the family members whose names are not shown on the PUB bill? I brought along my marriage certification (for my wife), and birth certificates (for my children). I'm pretty kiasu. Those showed the relationship between the other members with me. All good. He checked and was ok with them. Done in a jiffy.

I guess it gets complicated if the other residential members are not your family members and/or you can't produce the relevant relationship documents. Don't ask me how boy. Go ask ICA or enquire at the friendly Neighbourhood Police Post.  I'm sure there's a way out, though it might involve jumping over the moon and more leg work to get it done. Howling probably wouldn't work though. You can try.

Let me assure you, changing the address, this was easy. What was HARD, was changing my e-mail! One might think the virtual ought to be easier than the physical. But nooope. Do you know how much pain it is to change your e-mail, when almost everything are linked to your e-mail? And often, the e-mail is the login userID. Oh my gawd! It took me days and weeks to figure 'em out, one by one.

Related:

Going TOP in the Midst of COVID-19

Going TOP in the midst of COVID-19

I don't know why I am so 'lucky'. Toto did not strike. But when I buy a new property, it has to TOP in the midst of COVID-19!  Haiz.

With the Circuit Breaker kicking in, nothing could be done. So the developer could not proceed with the issuance of keys.

When they finally could, months later, the joy of receiving the keys to the new place turned into a nightmare. 

Water seepage in the unit, outside the unit. Railings with rust spreading down to the tiles. Debris could be seen having fallen off certain floors' concrete. Oh my gawd. Did this condo experience an earthquake or something. Haiz haiz.

And you want to arrange for a Joint Inspection? Wait. Wait. Wait. Some people are still waiting, months later.

And some people haven't even gotten their keys yet! So I guess I'm one of the 'luckier' ones, being among the first to be issued.

Meantime, the 6-month window to sell my property to redeem the ABSD is slipping away. Fortunately, there was a 6-month additional extension in view of COVID-19. Clock is counting down.