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Can You Flip Industrial Properties in Singapore?

Can You Flip Industrial Properties in Singapore

This may sometimes be a question that some may ask since flipping of residential properties is out of the question and is now a thing of the past. You may be wondering if it will be possible to flip industrial properties in Singapore. Read on to find if it is possible.

Seller Stamp Duty Applies

You may already be aware that seller stamp duty applies for residential properties in Singapore. You may want to also note that seller stamp duty too applies for industrial properties in Singapore. Seller stamp duty is applicable for the first 3 years from the date of purchase if you purchase the industrial property on or after 12th January 2013. You may note that the seller stamp duty rates are slightly different from residential properties. This regulation may be in place in order to reduce speculation and to encourage financial prudence.

Suitable for Own Use

Industrial properties in Singapore are suitable for own use especially if you are operating your own business or running your own company and you are able to operate from a B1 or B2 industrial space. If your company’s intention is to use the industrial warehouse or factory for the long term, you will definitely not have to worry about the seller stamp duty as it is usually only applicable if you were to sell within the first 3 years from the date of purchase. Since you own the industrial property, you will also not have to pay the monthly rentals. You may also note that business park spaces are usually not sold in the market to individual owners on a per unit basis as these buildings are usually wholly owned.

Some Investors Look for Rental Returns

Besides purchasing industrial properties for own use, some investors may also choose to invest in industrial properties for the rental returns that industrial properties may bring. However, not all know how industrial properties work as we all live in residential properties which are different from industrial properties.

As to whether it makes sense to be an industrial property investor in Singapore, it really depends on your priorities, knowledge and preference. Some investors prefer to stick to what they already know rather than to explore something which is rather new or not so familiar to them.