Just sold off your house? Well, you now have to use 50% of your cash profits to pay for your new flat. This means that half your cash will always be locked up (as long as you still want to stay in a HDB flat anyway).
I wonder who might actually say that’s a good thing?
It’s a bit different if you were to buy a flat first before selling your current one first though (but the end result’s essentially the same). Here’s the explanation from HDB:
”For those who buy their next flat before selling the existing one, the proceeds from the sale of their existing flat would not have been realised when they first apply for an HDB loan. To help them buy a flat, HDB will first grant them a bigger loan at commercial interest rates The commercial interest rates are pegged to the 3-month average non-promotional interest rate for HDB flats offered by the 3 local banks. Currently, the rate is 3.82%. after they draw down their CPF balance. After the sale of their existing flat, they will have to redeem this loan with the full CPF refund from sale of the existing flat and part of the cash proceeds as described in paragraph 4. Upon redemption, the loan will be converted to a concessionary rate loan.”
For PRs married to a Singapore citizen, HDB is going to withhold $10,000 of such couples’ housing subsidies when purchasing a resale flat in an attempt to encourage PRs to take up citizenship.
Alternatively, they’ll have to pay a $10,000 premium when buying a new HDB flat. The money will be returned once the PR takes up citizenship or the couple produces a Singaporean child.
Permanent Residents (PRs) will now find it a little bit harder to get a HDB flat after new regulations were announced last Friday.
For PRs married to a Singapore citizen, HDB is going to withhold $10,000 of such couples’ housing subsidies when purchasing a resale flat in an attempt to encourage PRs to take up citizenship. Alternatively, you’ll have to pay a $10,000 premium when buying a new HDB flat. The money will be returned once the PR takes up citizenship or the couple produces a Singaporean child.
We wonder how excited you’ll be when we tell you that the professional fees for engaging an agent are DEDUCTIBLE for your subsequent tenancies. As you’re sitting there in front of your computer, reading this page with your hand on your mouse, your curiosity increases and you are wondering this will affect you when you engage our professional services.
Two new rules have been rolled out in an attempt to curb speculation in the private property market and stabilize prices.
- Lending institutions can lend only up to 80% of the value of the property
- Stamp duty of 3% will be levied on those who sell the property within a year of buying it
I’m sure that on a stone tablet somewhere there’s etched a commandment that states that “Thou Shall Not Mention The Word ‘Tax’ on a Sunday’. From the fact that even our favourite Merlion is prone to lightning strikes, it’ll be wise not to tempt the fates too much and keep this post short. And speaking of Merlions, have you heard the one where one of our beauty contestants thought it went extinct in 1965? Why do they make it so easy??
I realized soon after writing a post about how much you can expect to pay for your initial HDB rental payments and the new HDB registration law, I should actually go into the rental procedure itself. Well, it looks like I finally got round to it! It’s not a complicated procedure, and I’m sure you’ll be able to wrap your arms around it in no time.
Let’s start with the things you’ll have to bring along:
- Photocopied passport
- Photocopied employment pass
- Good faith deposit of one month rental