Things in Singapore are getting more expensive. Not only is inflation setting in, but this increase in price is also likely to continue next year when the first of the planned Goods & Services Tax (GST) increments takes effect. The GST will increase from the current 7% to 8% from 1 January 2023 and from 8% to 9% from 1 January 2024.
While that is still some time away, it’s a good idea to start planning and saving for big-ticket items now. Here are 10 items that you should consider buying before the GST increase in 2023.
Read More: Assurance Package For GST: How Much Will Singaporean Households Be Getting Over The Next 5 Years?
#1 Non-Residential Properties
Unlike residential properties, non-residential properties incur GST during the sale and lease. Whether you are looking to buy or rent, now is the time to get ahead of the game. Not only do you benefit from the current low interest rates, but also avoid the additional 1% GST which can be significant for a large property purchase.
If you are in the market for a commercial property, now may be a good time to consider investing in one. You can find out more about why 2022 may be a good year to invest in a commercial property in our article – Is 2022 A Good Year For Businesses To Invest In A Commercial Property?
Read Also: How Would The GST Hike Affect Consumer Spending & Your Investments?
#2 Cars
With COE prices hitting new peaks, cars definitely belong to the big-ticket item category. Not only has the price of the right to own a car in Singapore increased, but luxury cars have also become more expensive with the new Additional Registration Fee (ARF) tier which is a 220% fee on top of the car’s on-market value (OMV) is now imposed if the OMV exceeds S$80,000.
If you are planning to get a car in the near future, it may be a good idea to buy one before the GST increase. Of course, given the nature of COE bidding, it may be impossible to predict whether the GST savings will sufficiently offset the increase in COE prices. Thus, car purchases should be carefully considered.
Read Also: 5 Luxury Cars Worst Hit By The New Additional Registration Fee (ARF) Tier
#3 Technology
If you’ve been eyeing some pricey electronics or appliances, now may the time to buy them. Instead of waiting for your phone to age to its planned obsolesce, consider getting this year’s flagship phones before the GST increase. Likewise, other electronics like laptops and gaming consoles tend to have upgrade cycles and it may be worth considering doing your upgrade now instead of later.
For those planning other big-ticket purchases like home appliances and TVs, this year may be a good time to lock in your purchases. If your new home is close to completion by the end of this year, consider shopping at the retailers that allow you to buy now and deliver later.
Read Also: Household Support Package & GST Voucher 2022: How Much Will Your Family Be Getting (And When)
#4 Luxury Watches, Handbags And Other Luxury Items
Spending on luxury items is never cheap but it is about to get even more expensive with the GST increase.
While 1% may not be a lot, it does add up, especially for the luxury items which can cost five or more figures. Whether you are getting a Rolex or Omega, Hermes or Chanel, these luxury items are about to get more expensive whether you getting them at retail or resale prices.
Read Also: Why Are Rolex Watches So Expensive?
#5 Renovations And Furniture
If you are a new homeowner (or would be one in the near future), before the end of this year would be a good time to lock in your renovation package before the end of the year. Shop around for a suitable and reliable interior design firm or contractor. With the borders reopening, the manpower crunch in the construction industry should also ease which may mean more competitive prices.
Likewise, if your home needs a refresh, bringing forward any planned renovation maybe worth considering and saving the additional GST.
Regardless, be wary of scams and flaky contractors. It is worth counter-checking the company’s credentials against the list of CaseTrust companies or HDB-registered contractors. In general, it is advised to not pay more than 20% as a deposit.
For those who want to spruce up their homes or furnish their new homes, also consider buying your furniture this year. Similar to appliances, consider shopping at the retailers that allow you to buy now and deliver later.
Read Also: Guide To The Cost Of Renovating An HDB Flat In Singapore
#6 Elective Surgery, Cosmetic And Dental Treatments
While public healthcare continues to have GST absorbed by the government, private treatments are subject to the GST increase in 2023.
For those who intend to undergo elective surgeries or cosmetic and dental treatments may wish to consider bringing forward these treatments to 2022. Assuming that your treatment provider is available, and you can set aside the time and funds to undergo these treatments, it may be worth the GST savings.
#7 Spa And Beauty Packages
Similar to your health treatments, beauty treatments are also subject to GST.
Glow up for a slightly lower price this year if you sign your beauty packages this year. Again, be wary of scams and untrustworthy merchants. You can check whether these companies are accredited with CaseTrust or look for companies that offer insurance for pre-prepayment.
#8 Club And Gym Memberships
Another purchase that you may not expect or think about having GST is membership fees. This can include country club memberships or even gym memberships. With some country club membership reaching 5-figures, the GST increase isn’t something to sneeze about.
Read Also: Price Guide to Country Club Memberships in Singapore
For those of us who don’t intend to own one of the original 5Cs, we can also save some money off our gym memberships by signing up before the end of the year.
Read Also: Singapore Gym Membership Cheatsheet (2022 Edition)
#9 Holiday Packages
For those of us dying to travel after the 2 years of travel restrictions, splurging on holiday packages may not be so farfetched. If we lock in our holiday packages this year, we not only can take advantage of the many holiday deals and tourism benefits dangled to boost the tourism industry, but also save on the GST increase.
