But we need to pay the Additional Buyer Stamp Duty (ABSD) – a potentially huge cost – if we decide to own both. Do note that you will be subjected to an additional buyer stamp duty which is an additional 12% of the price of the second property. Housing & Development Board About Us. Do take note this is a COST. A caveat can also be lodged on the child’s behalf to protect the property. One of the requirements for buying a resale HDB is that there is no concurrent ownership of a private property. Honestly, Rental yield for HDB flats usually looks very good – thanks to the fact that HDB flats are relatively cheaper when compared to private property. You and your spouse you can choose to acquire private residential properties locally or overseas if you can fulfil the eligibility conditions that apply to your flat. If you buy first, you would already have 1 property (i.e. There is so much in place for you to bond with your neighbours and create an active and cohesive community. You cannot concurrently own a HDB and buy a private property during the first 5 years of your stay in the HDB flat you’ve bought. You don't have to sell your HDB and buy 2 condominiums in order to rent it out. To buy a HDB (resale or BTO), the buyer must fall into one of the bucket Eligibility Schemes and meet the applicable criteria. (for resale applications submitted before 30 August 2010), There is no need to satisfy the MOP before acquiring private residential property. 8. From date of taking possession/ transfer of your flat to the following dates, whichever is earlier: Resale flats bought with CPF Housing Grant, Design, Build and Sell Scheme (DBSS) flats bought from developer, Resale flats purchased without CPF Housing Grant Private property owners who bought a HDB will need to dispose their private property within 6 months. The last requirement, in particular, is interesting because it means that you cannot own other property overseas or locally if you wish to purchase a non-subsidised or resale HDB flat. The flat owner, spouse, or occupier, who acquires the private residential property after the MOP, can retain the HDB flat. From 1 February 2016 onwards, prior consent is also required to buy any flat type with a net purchase price of $500,000 or above, after taking into account any HDB subsidies or levy. period. However with private property, one can easily sell and use that gains to reinvest in another private property. If you own a private condo first, you'll have sell it within 6 months if you buy a hdb flat, so you cant do it this way. Here are a couple of things to consider when buying a HDB flat immediately after selling your private property. The MOP is applicable for both new and resale flats, and starts from the date you take possession of your flat. Function of HDB Branches and Town Councils, Guard against Contractors on Door-to-Door Sales, Date on which the Option to Purchase (OTP) the private property is exercised, Date of the Sale and Purchase Agreement of the private property, regardless of whether it is still under construction or ready for possession, The period of renting out or non-occupation of the flat, Any infringement of the lease of the flat by the owner, Date on which the Option to Purchase of private property is exercised, Date of the Sale and Purchase Agreement of the private property, 7 years from date of selection of the replacement flat, 5 years from the effective date of possession of the replacement flat, 7 years from the date of selection to the date on which the OTP of the private property is exercised or the date of the Sale and Purchase Agreement of the private property, whichever is earlier, 5 years from effective date of possession/ transfer to the date on which the OTP of the private property is exercised, or the date of the Sale and Purchase Agreement of the private property, whichever is earlier. Public housing comes with various restrictions like 5-year Minimum Occupation Period (MOP), zero refinancing options and ethnic quotas. The Housing and Development Board (HDB) should review its rules for the inheritance of flats. The policy to dispose private property means that if you want to own both a HDB flat and a private property, you need to buy a HDB flat first, wait 5 years, and then buy a private property … Noticed I … You can login to My HDBPage with your SingPass and check if you have met the MOP to acquire a private property, under My Flat > Purchased Flat > Flat Details > Minimum Occupation Period (MOP). In general, HDB flat owners must occupy the flat for a minimum period of five years before they can sell the flat in the open market, rent out the whole flat, and invest in private property – both local and overseas. The MOP for HDB is 5 years which means you have to stay in your current HDB for 5 years before you are allowed to purchase a private property. On 30 Oct 2017, the 3rd floor unit was bought at $1.392 million. your condo that you haven’t sold yet), so the HDB would be your 2nd property at the time of buying. Before you and your spouse can acquire private residential property, you have to fulfil the MOP of your flat. Being on the ground daily, I do encounter property transactions that tells me capital growth is still possible. Is it worth paying for the ABSD for the rental yield. This means that if you want to own both an HDB flat and private property, you must first purchase a HDB flat and occupy it for at least 5 years before investing in a private property (local or overseas). In my 8 years of working as a property agent and meeting different people, I always ask them how they view their HDB home. Exercising the Option to Purchase What the news doesn’t emphasize is that MOP is only applicable to HDB and that if one has fulfilled HDB's MOP (set … CEA: L3008022J. The Housing & Development Board (HDB) is Singapore's public housing authority and a statutory board under the Ministry of National Development. This policy was enacted to prevent a potential property bubble back in 2010 when low-interest rates and high liquidity pushed home prices up. For comparison basis, this is enough to pay for your children’s university education. Now that I am in a stable relationship, we will like a place where we can call home. Logically, we can use the rental we earn from the flat to cover the private home purchase. And of one the biggest question many people asked is “Buying Private Property While Owning HDB Flat A Right Choice?”, In fact, one of the most common “goal” I see from those who are seeking to buy another private property is that – “let’s keep our HDB flat for the monthly rental.”, Taken from https://www.propertyguru.com.sg/mortgage/calculators/stamp-duty. (only if you have taken possession of the replacement flat), Resale flats purchased without CPF Housing Grant They also can’t do it the other way, which is buy a private housing first then an HDB flat, as they need to sell the private property after completing their purchase of an HDB unit. Focusing on nurturing a strong family and community spirit, public housing policies and schemes are formulated to meet changing needs and aspirations. HDB states that if a private property owner disposes his/her property, he/she can only purchase a new flat or apply for a grant 30 months later. This is because John would be able to unlock the value of his Executive Condominium through equity term loan at a desired time to purchase his 2 nd private property. Regulations allows HDB flat owners who have fulfilled their Minimum Occupation Period (MOP), which is 5 years, to purchase a private prop… Acquiring private residential property to hold on trust for another person is also not allowed. The ABSD is $70,000 and the Buyer Stamp Duty (BSD) is $24,600. For Singaporean, after you have purchased your new condominium, you may choose to keep your HDB, but for Singapore PR, you must dispose of your HDB flats within 6 months of buying the private property. Within a span of 6 months, the 8th floor unit has a potential capital gain of $200K. See the next section for more information on whether bankrupts can buy HDB flats. Given that you own a private property, if the HDB you inherited was purchased on or after 30th August 2010 by the owner, you can only keep one property – either the HDB flat (provided you’re eligible to own one) or the private property. The policy to dispose private property means that if you want to own both a HDB flat and a private property, you need to buy a HDB flat first, wait 5 years, and then buy a private property after that. Expenses involved we earn from the date you take possession of your is... 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