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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