Youhave just purchased your first property at Blk 491 Jurong West Avenue 1 #01-849 at $2.1m on
Question:
Youhave just purchased your first property at Blk 491 Jurong West Avenue 1 #01-849 at $2.1m on 23 September 2021. This property is a 2 storey HDB shophouse with a shop (70m2) on the first storey and the living quarters (93m2) on the second storey. The tenure of this property is 88 years from 1 March 1996. Your client has engaged you to determine the value of the living quarters so that the correct stamp duty rates to be applied.
You have managed to gather the following sales transactions in the vicinity:
Address | = Floor Area (m2)/ Flat Model | Lease Start Year | Remaining Lease | Resale Price | Date of Contract |
480 Jurong West St 41 #04-535 | 93.00 | 1985 | 63 years | $415,000.00 | 1 Aug 2021 |
483 Jurong West St 41#03-301 | 91.00 | 1985 | 63 years | $366,000.00 | 16 May 2021 |
488 Jurong West Ave 1 #05-86 | 91.00 | 1985 | 62 years | $393,000.00 | 1 Sep 2021 |
You are to assume the following adjustment factors:
1. HDB prices increase by 2.5% from 2nd Quarter 2021 to 3rd Quarter 2021
2. For every floor adjustment is +0.5% or -0.5%
3. All the three transactions have similar conditions as the living quarters of 491 Jurong west avenue 1 #01-849.
Calculate:
- the value to be derived for the living quarters of 491 Jurong West Avenue #01-849
- the stamp duty payable by your client.
- The GST payable by your client as the seller is a GST Registered Person.