In today’s automotive landscape, the price of a Certificate of Entitlement (COE) in Singapore has reached staggering heights. At a whopping $152,000 for a 10-year COE, which translates to $15,200 annually, it’s becoming increasingly burdensome for residents. Even for smaller cars, the cost is substantial, at $104,000 for a 10-year COE, or $10,400 per year. And these figures don’t even include additional taxes imposed on vehicles and the actual purchase price of the car. On top of all this, there are road taxes and congestion charges in the form of Electronic Road Pricing (ERP). The result? Most cars in Singapore are priced well over $200,000.
The netizen said:
The Certificate of Entitlement is now $152k for 10 yrs, which is $15.2k per yr. For the smaller cars, it’s $104k for 10 yrs, which is $10.4k taxes to govt. Haven’t add on the other 2 taxes impose on vehicle and the vehicle’s price. On top of that, we still have road taxes and congestion tax in the form of ERP.
Most of the cars are easily near to $200k and above.
It’s a tax on the whole nation, cuz even goods carrying vehicles are taxed with COE. Goods vehicle COE are closed to 90k, which works out to 9k per yr for the govt.
For those who thinks it doesn’t affects you, it does, whether you own vehicle or not.
The Burden of COE
The Rising Cost of Owning a Car
With the COE prices soaring, owning a car in Singapore has become a luxury that many can hardly afford. The hefty upfront cost of a COE, coupled with various other taxes, can put a significant dent in your savings. For those who rely on their vehicles for daily commutes, the financial strain is palpable.
An Alternative Perspective
As the COE prices continue to climb, some individuals are reevaluating their transportation choices. Instead of sinking money into a rapidly depreciating asset, they are exploring alternatives. One intriguing option is investing in real estate across the border in Malaysia.
The Appeal of Malaysian Condos
Affordable Real Estate
Malaysia boasts a thriving real estate market with a variety of properties available at a fraction of the cost of a Singaporean COE. For the price of a COE alone, you can acquire a beautiful condominium in Malaysia, complete with modern amenities and a comfortable living space.
Proximity to Singapore
One of the key advantages of investing in Malaysian real estate is its proximity to Singapore. Many Malaysians commute daily to work in Singapore, thanks to efficient transportation links. This means you can enjoy the affordability of Malaysian property while maintaining access to your job in Singapore.
Diversification of Assets
Diversifying your assets is a prudent financial strategy. By investing in a condominium in Malaysia, you not only gain a comfortable place to live or rent out but also a tangible asset that can appreciate in value over time.
Escape from COE Worries
Owning a car in Singapore often comes with ongoing concerns about the rising cost of COEs and the potential for future price hikes. By investing in a Malaysian condo, you can free yourself from these worries and enjoy a more stable and predictable financial future.