HDB: 50% of Cash Proceeds From Sale Of Singapore Property To Be Used For Purchase

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.”

HDB: Housing Subsidies Withheld for PRs

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.

HDB: New HDB Regulations Affecting PRs

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.

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HDB: MOP Increased to 3 Years for HDB Properties

Last Friday (5/03/2010), HDB announced new changes to the minimum occupation period (MOP)  for HDB flats. It’s aimed at reducing speculation in the market which has seen property prices soaring in the last few months.

The MOP for resale HDB flats is now 3 years, regardless of the type of loan (or none at all, for that matter) that you’re taking. Essentially, the government is trying to get the message across that HDB flats are for occupation, not for investment. If you’re buying a new flat direct from HDB, the MOP is still 5 years.

Singapore Property Tax: Are Your Agent’s Fees Tax Deductible?

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.

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HDB: Renting Procedures in Singapore

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:

  1. Photocopied passport
  2. Photocopied employment pass
  3. Good faith deposit of one month rental

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HDB: COVs at a Record High

toa_payoh_hdb_hub_by_night_by_habib555 The Straits Times reported yesterday that the median Cash-over-valuation (COV) for HDB flats hit a new high in the fourth quarter of 2009. COVs are cash premiums that a buyer has to pay over the bank’s valuation of the flat. Why do we have to pay a COV, you might ask.

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