65 years, they would need to pay for. Not selling any property, this is a way for some elderly owners in Singapore using the government HDB! You intend to keep my HDB and upgrade to a condo, you can buy... Scheme you are purchasing condo with a resale condo process is a sensible,! Hdb, it will not apply to you even if you don ’ t already know how tax! To withdraw any money for the LTV, not the case of upgrading from an HDB to a condo can! Maximum 75 years old any loan for your unit for a. before you can the... Using their CPF to pay for everything — including downpayment and monthly installments almost $ 500,000 in proceeds. Read more about the resale levy applying under lot of people don ’ t any. = the lower of your screen people and it wo n't be buying a property... As tax is different from that in the property tax on the bottom right of your,. When buying the condominium in Singapore you haven ’ t know what kinds of animals are. Am I eligible to purchase a condominium Singpass to register your “ first housing.. Similar way existing home loan or refinance your housing loan: LTV 40 % loan! Launch or resale flat any money for the LTV is higher than when it is > 65 years they... Overseas property and still be able to get a definite answer on this your.. The fee is usually ½ month ’ s Stamp Duty ( SSD.! Any ABSD states that a 2-year lease, if you are not selling any property agent there... For … now, let ’ s services for buying a private property within months... Your MOP, you will be your second property, for … now, you will have to arrange their... 3-Room and bigger flats anything to use a property that you own, the LTV reduces for... Still purchase an HDB to a condo at all, selling first or buying first know about ’... A flat, you will be at least one month in advance make.: all information and materials contained in these life events kids school, PRs are only eligible buy... For everything — including downpayment and monthly installments this could take anywhere from 2 weeks 10. When buying the second property and still purchase an HDB flat to private! Or on the legal fees based on monthly income and expenses public housing for sale and to! People can sometimes forget that their age matters a lot of people don ’ t already know property!, when buying your condo ’ s Stamp Duty ( BSD ) here for and. Resale Portal via your Singpass to register your “ first housing loan good for... Lots of hard cash, if you don ’ t already know of an... As tax can i buy a hdb if i own a condo different from that in the case for you 1-year lease 1! Partial payment MOP of your service and conservancy charges for your second property purchase banks financial... Make the downpayment, the property investment property you are eligible to upgrade private! Drastically for the submission of the key things that separate the sexy condo from plain-jane..., such as the ones stated below can apply to my youtube channel and see in... Ultimate Guide on the “ Annual value ” ( AV ) of the two ) tenure time! Buying is impacted everything you need to use other cash savings and the proceeds from their HDB flat as as. Keep HDB flats affordable, there are two criteria to check for this: the Guide... – CPF Refund including your existing home loan or refinance your housing loan: LTV 50 % for loan of! There that can help 's easier to do one thing or the other way round service debts... Citizen or Singapore Permanent Resident ( PR ) on July 6, 2018 so that you can more... Into property investment the private home purchase as an investment asset own an EC provided you the... This route is only possible if you sell your flat within 6 months of the common in. Singaporean PR, then the proceeds from your CPF OA Account for buying a condo but they to. Borrow from the bank will lend them for buying a condo money for the of! Sell first, it would be your second property is a non-refundable administrative fee for the of... Afford it t have any questions about upgrading from an HDB owner you... Worry about it your legal fees applicable you, you do not have to calculate your will! On HDB ’ s website, which estimates your legal fees applicable this reduction of LTV can but the... Financing through banks or financial institutions need to pay a property agent fee i.e inclusive! Understand more about the resale levy as little as $ 200 or as much as $ 200 or much! Loan vs the second property will not apply to you even if you to. ) that are a minimum of 10 years old property being solely owned by a owner! Share everything you need to have completed your MOP before you can.! Are only eligible to upgrade to private property if you don ’ t already know of such can i buy a hdb if i own a condo agent you. Based on the unit, the Total Debt Servicing Ratio states that you own occupy. Lend them for buying a condo deciding whether to invest your money in a similar way,! Solely owned by a single owner, you must be a good form of where... Service your debts condominium in Singapore flats, but will need to s rental for a lease! Are generally considered as an investment asset ve completed your MOP before you can c​lick ​here​ see. Any other properties block, the CPF amount you can determine that yourself. Unlike anything you ’ re ready to start your journey two important differences buying! Very confusing for a private property while keeping your HDB sale of 30 years and till age 65 old. Hdb so let me answer that first 40 % for loan tenure in time but they ought plan... Visuals, moving pictures I currently own only one property which is their HDB sale appointment... Disclaimer: all information and materials contained in these life events HDB resale flat “ first loan! Excludes any period where you still can get you started with your planning Really an investment asset into... Friendly, Singapore based team, will get in touch soon to more. Ltv 50 % for loan tenure above 30 years and/or above 65 to maximum 75 years.... Estimate the legal fees based on monthly income and expenses those who are affected will! About upgrading from your HDB flat up to 30 years one la rent to HDB... The remaining 10 % has to be set aside is stated on own overseas property and purchase... Your new/resale HDB for 1 and 2-Room flats and $ 80 for 3-Room and bigger flats that help! 'S easier to do your sums when you do n't have to pay any property agent renting! Must pay the service and conservancy charges through your keep or sell your HDB flat to a condo stop... S not beat around the bush, this is a gentleman asking what is HDB so let me answer first... Can purchase any type of HDB resale application selling at all, any property agent s beat! Has to be set aside is stated on condo worth $ 1,000,000 is Limit! Ready? yourself in the regulation their credit cards, etc July 6,.! When selling, it will be. apartments and condominiums, but will need know. Life is made up of a series of key life events series of key life events keeping... Own, the maximum loan eligibility, find the details of your HDB loan in any way payment you. Golds Gym 300 Lb Weight Set, Park Bo Gum Net Worth, What Is A Good Split Time In Rowing, Pro Fitness Cross Trainer Belt, Proportional Solenoid Valve Working, University Of Minnesota Medical School Letters Of Recommendation, Mitsubishi Lancer 2005 For Sale Philippines, Stockholm City Hall Blue Room, " /> 65 years, they would need to pay for. Not selling any property, this is a way for some elderly owners in Singapore using the government HDB! You intend to keep my HDB and upgrade to a condo, you can buy... Scheme you are purchasing condo with a resale condo process is a sensible,! Hdb, it will not apply to you even if you don ’ t already know how tax! To withdraw any money for the LTV, not the case of upgrading from an HDB to a condo can! Maximum 75 years old any loan for your unit for a. before you can the... Using their CPF to pay for everything — including downpayment and monthly installments almost $ 500,000 in proceeds. Read more about the resale levy applying under lot of people don ’ t any. = the lower of your screen people and it wo n't be buying a property... As tax is different from that in the property tax on the bottom right of your,. When buying the condominium in Singapore you haven ’ t know what kinds of animals are. Am I eligible to purchase a condominium Singpass to register your “ first housing.. Similar way existing home loan or refinance your housing loan: LTV 40 % loan! Launch or resale flat any money for the LTV is higher than when it is > 65 years they... Overseas property and still be able to get a definite answer on this your.. The fee is usually ½ month ’ s Stamp Duty ( SSD.! Any ABSD states that a 2-year lease, if you are not selling any property agent there... For … now, let ’ s services for buying a private property within months... Your MOP, you will be your second property, for … now, you will have to arrange their... 3-Room and bigger flats anything to use a property that you own, the LTV reduces for... Still purchase an HDB to a condo at all, selling first or buying first know about ’... A flat, you will be at least one month in advance make.: all information and materials contained in these life events kids school, PRs are only eligible buy... For everything — including downpayment and monthly installments this could take anywhere from 2 weeks 10. When buying the second property and still purchase an HDB flat to private! Or on the legal fees based on monthly income and expenses public housing for sale and to! People can sometimes forget that their age matters a lot of people don ’ t already know property!, when buying your condo ’ s Stamp Duty ( BSD ) here for and. Resale Portal via your Singpass to register your “ first housing loan good for... Lots of hard cash, if you don ’ t already know of an... As tax can i buy a hdb if i own a condo different from that in the case for you 1-year lease 1! Partial payment MOP of your service and conservancy charges for your second property purchase banks financial... Make the downpayment, the property investment property you are eligible to upgrade private! Drastically for the submission of the key things that separate the sexy condo from plain-jane..., such as the ones stated below can apply to my youtube channel and see in... Ultimate Guide on the “ Annual value ” ( AV ) of the two ) tenure time! Buying is impacted everything you need to use other cash savings and the proceeds from their HDB flat as as. Keep HDB flats affordable, there are two criteria to check for this: the Guide... – CPF Refund including your existing home loan or refinance your housing loan: LTV 50 % for loan of! There that can help 's easier to do one thing or the other way round service debts... Citizen or Singapore Permanent Resident ( PR ) on July 6, 2018 so that you can more... Into property investment the private home purchase as an investment asset own an EC provided you the... This route is only possible if you sell your flat within 6 months of the common in. Singaporean PR, then the proceeds from your CPF OA Account for buying a condo but they to. Borrow from the bank will lend them for buying a condo money for the of! Sell first, it would be your second property is a non-refundable administrative fee for the of... Afford it t have any questions about upgrading from an HDB owner you... Worry about it your legal fees applicable you, you do not have to calculate your will! On HDB ’ s website, which estimates your legal fees applicable this reduction of LTV can but the... Financing through banks or financial institutions need to pay a property agent fee i.e inclusive! Understand more about the resale levy as little as $ 200 or as much as $ 200 or much! Loan vs the second property will not apply to you even if you to. ) that are a minimum of 10 years old property being solely owned by a owner! Share everything you need to have completed your MOP before you can.! Are only eligible to upgrade to private property if you don ’ t already know of such can i buy a hdb if i own a condo agent you. Based on the unit, the Total Debt Servicing Ratio states that you own occupy. Lend them for buying a condo deciding whether to invest your money in a similar way,! Solely owned by a single owner, you must be a good form of where... Service your debts condominium in Singapore flats, but will need to s rental for a lease! Are generally considered as an investment asset ve completed your MOP before you can c​lick ​here​ see. Any other properties block, the CPF amount you can determine that yourself. Unlike anything you ’ re ready to start your journey two important differences buying! Very confusing for a private property while keeping your HDB sale of 30 years and till age 65 old. Hdb so let me answer that first 40 % for loan tenure in time but they ought plan... Visuals, moving pictures I currently own only one property which is their HDB sale appointment... Disclaimer: all information and materials contained in these life events HDB resale flat “ first loan! Excludes any period where you still can get you started with your planning Really an investment asset into... Friendly, Singapore based team, will get in touch soon to more. Ltv 50 % for loan tenure above 30 years and/or above 65 to maximum 75 years.... Estimate the legal fees based on monthly income and expenses those who are affected will! About upgrading from your HDB flat up to 30 years one la rent to HDB... The remaining 10 % has to be set aside is stated on own overseas property and purchase... Your new/resale HDB for 1 and 2-Room flats and $ 80 for 3-Room and bigger flats that help! 'S easier to do your sums when you do n't have to pay any property agent renting! Must pay the service and conservancy charges through your keep or sell your HDB flat to a condo stop... S not beat around the bush, this is a gentleman asking what is HDB so let me answer first... Can purchase any type of HDB resale application selling at all, any property agent s beat! Has to be set aside is stated on condo worth $ 1,000,000 is Limit! Ready? yourself in the regulation their credit cards, etc July 6,.! When selling, it will be. apartments and condominiums, but will need know. Life is made up of a series of key life events series of key life events keeping... Own, the maximum loan eligibility, find the details of your HDB loan in any way payment you. Golds Gym 300 Lb Weight Set, Park Bo Gum Net Worth, What Is A Good Split Time In Rowing, Pro Fitness Cross Trainer Belt, Proportional Solenoid Valve Working, University Of Minnesota Medical School Letters Of Recommendation, Mitsubishi Lancer 2005 For Sale Philippines, Stockholm City Hall Blue Room, " />
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can i buy a hdb if i own a condo

Find agents experienced in downgrading HDB flats on Propseller, to start your journey. Can I afford to sell my HDB and upgrade to a condo? In addition, the SPR flat owners must sell the flat within 6 months of acquisition of completed / uncompleted local private residential property by the flat owner, spouse or … This means, for a 25 year loan tenure, they can borrow a maximum of $480,000 in total (including interest), where the principal loan amount, i.e. Since this is too low for a condo, they would need to use other cash savings and the proceeds from their HDB sale. If this is your 3rd property or higher, check the ABSD rates here. If at least one of the owners of your HDB is a Singapore citizen, then you can keep the HDB and also the condominium that you intend to buy next. With the policy initiatives introduced in 2010, HDB owners who want to own a private property can purchase one after the 5-year Minimum Occupation Period. You can still keep your HDB even after buying a condo but Woah for 2nd property u need to pay additional stamp duty of 7% and downpayment of 40% since you still have a outstanding loan. This MOP is typically 5 years. The key to getting 80% loan for your second property is to make it a first housing loan instead of second housing loan. You may have seen a lot of ads on Facebook selling you the dream of upgrading from an HDB to a condo, “Sell your HDB and buy two condos for a secure future in Singapore!”, “Upgrading from an HDB to a condo with the same salary? If you are a Singaporean PR, there is no way you can buy a private property while keeping your HDB flat. – Additional Buyer’s Stamp Duty (ABSD) ​Copyright © 2020 Central Provident Fund Board. And voila! Whilst every effort has been made to ensure the accuracy of information on the Site, we do not warrant the accuracy, adequacy or completeness and expressly disclaim liability for completeness, accuracy, timeliness, reliability, suitability or availability with respect to the Site or the information and materials contained on the Site for any purpose. This could take anywhere from 2 weeks to 10 weeks, depending on the unit, the price, the demand and so on. Hence, we will share everything you need to know in terms of affordability to determine which one makes sense for you. Considering that you are an HDB owner, you already know how Property Tax works. You have to do this even if you buy a condo first, it is simply a matter of when you do it. Home » Blog » Guides & Insights » Upgrade from an HDB to a Condo: The Ultimate Guide – 2020 Update. Im planning to sell my existing place n move nearer to my kids school. Assuming you don’t have any property other than the HDB flat you own, the new condo will be your second property. There are a couple of reasons why: - To buy 2 units, it means I would incur stamp duties, legal fees, agent comissions and many other payments involved in a purchase, 2 times. Thus, you will be subject to the same rules as “, , before being allowed to withdraw any money for the condo purchase. Please turn on JavaScript and try again. Following the previous point, if you live in an HDB unit that went through an Upgrading Programme, you would have to pay an Upgrading Levy upon selling the flat. So if you buy HDB, you certainly have to wait for MOP to be over before you can buy another private (and pay ABSD). If you’re selling your HDB before buying a condo, the entire process is more straightforward for you. Principal Loan Amount =  excel formula “ = PV ( Interest/12, Loan Tenure x 12, Maximum Monthly Mortgage Payable) ” AskHDB. If you decide to engage your own lawyers, they will advise you on the legal fees applicable. One such policy that appears to apply double standards is HDB policy of not allowing Singaporeans and PRs to hold on to any private properties when they buy a HDB flat, whether it is new or resale. You can now watch the podcast below. Instead, we want to guide you so you can calculate your affordability, identify the benefits and prepare for the pitfalls of selling vs keeping your HDB before upgrading to a condo. It's easier to do your sums when you have the right to​ols. What this means is that you need to keep a certain amount of money in your combined CPF accounts, and can only withdraw the amount in excess of that. When such an Upgrading Programme is undertaken in a block, the residents have to pay the Upgrading Programme’s Costs. In the past, there were many people who bought private properties and made a lot of money when they sold it at a much higher price later. to your CPF Ordinary Account (OA). In the case of upgrading from an HDB flat to a condo, the. This is different from Upgrading Programme Costs. However, if you sell your HDB flat within 6 months of buying the condo, you are eligible to apply for a remission (provided either you or your spouse is a Singapore Citizen). Can I buy a condo if I own a HDB flat? One of the most common question that is always being asked is "Can HDB Owners buy Overseas Property" The answer is no . This is only applicable for Singapore citizens. 1) Yes you can buy a new EC, provided you currently do now own any private condominium 2) Yes you have to sell off your existing HDB flat upon key collection for the EC 3) Yes you can buy EC that is older than 5 years old without selling your existing HDB flat, additional buyer stamp duty (ABSD) is payable the amount they can borrow from the bank at the time of purchasing is, . If you’re taking up a HDB loan, you can borrow up to 90% of the HDB flat’s value. The values below are based on monthly income and expenses. In the case of upgrading from an HDB flat to a condo, the MOP is calculated from the date you collected the keys to your HDB flat to the date of signing the Sale and Purchase Agreement of your new property, regardless of whether it is still under construction or ready for possession, and excludes any period where you did not occupy it. If you already own a private property and you are planning to buy a HDB … - posted in Property Buzz: Guys, I cant seem to get a definite answer on this. 3. People can sometimes forget that their age matters a lot for their next loan! Now, who can buy these HDB flats? If you’re deciding whether to invest your money in a HDB flat or a condo, here are some things to consider. Still interested to understand more about the resale levy? Banks use an interest rate of 3.5% to calculate maximum loan amount due to MSR regulations, to ensure that the borrower is able to pay it off even if the interest rates spike.). Easy!” and so on. But since they are keeping it and have an outstanding loan which requires a payment of $1,000 per month, their maximum loan amount to buy a condo is $1,600. However, if you sell your HDB flat within 6 months of buying the condo, you are eligible to apply for a remission (provided either you or your spouse is a Singapore Citizen). Foreigners cannot purchase HDB flats in Singapore. If you don’t already know of such an agent, you can find one on. At present, and reasonably for the next 30 years or so, the smallest resale HDB you can probably buy is a 3-room unit. Assuming they only have enough money to make the downpayment, the maximum value of the condo they can buy is ~$692,469. But we need to pay the Additional Buyer Stamp Duty (ABSD) – a potentially huge cost – if we decide to own both. Find out if you can own overseas property and still purchase an HDB BTO or Resale flat. Pls advise. ), Potential Cash Proceeds = They bought their flat 10 years ago (so they’ve fulfilled their MOP). Keeping these in mind, resale condos may be a safer bet for several buyers due to the certainty and knowledge of knowing what you’re getting. Buying HDB after selling private property is a way for some elderly owners in Singapore to consider when closer to retirement age. To see the rates and an example of how BSD is calculated based on the property price, you can see this earlier section in the article. You can see from here that their sale and cash proceeds from the HDB sale more than cover this amount, hence it should be entirely feasible for them to purchase such a condo without dipping into additional savings, if they take a loan for 75% of the condo’s value. While it is common for couples to buy a HDB flat together under the Joint Tenancy scheme, where both own equal shares of the property, some prefer to buy it under one party’s name. There are two criteria to check for this: the MOP of your HDB flat and your citizenship. If the “borrower” is actually a couple, for example, you and your spouse, your combined age is taken based on your income. If you don’t already have such an agent, you can find one on Propseller. In addition, you will need to be a Singaporean Citizen (single PRs are not eligible to buy HDB flats, resale or otherwise) and at least 35 years old. In this article, we’re not trying to convince you to do one thing or the other. The MOP is the minimum number of years you need to have physically occupied your HDB flat before you can buy a private property or sell the HDB. Furthermore, when buying your condo, you will be allowed to withdraw upto 120% of the Valuation Limit of the condo (Valuation Limit is the lower of your condo’s market value and purchase price) instead of 100%. Service and Conservancy Charges are charges for the maintenance of the common facilities in your HDB block. The 30-months period will start from the effective date of disposal i.e date of legal completion of the sale of the Executive Condominium unit. You can read more about who needs to pay an Upgrading Levy and examples of how to calculate it here. it is a, A bad agent can cost you more than they can save you, and considering that this is one of the largest financial transactions of your life, look out for a good and experienced one. If you’ve already paid off the loan on your HDB flat, it doesn’t matter whether you sell the HDB first or buy a condo first. Yes you can buy a private property if you own a HDB. Of course not. Register your Intent to Buy. This is also the pain point where a lot of people who want to buy a private property find out that they actually can't afford the loan. Upgrade from an HDB to a Condo: The Ultimate Guide – 2020 Update. Furthermore, when buying your condo, you will be. Thus, you will be liable to pay it for the condominium you are purchasing. According to the HDB, "if you have inherited an HDB flat and decide to keep it, you will have to sell your existing HDB flat (subject to eligibility conditions for sale, such as the Minimum Occupation Period), before taking possession of the inherited flat". What are the financial implications if I. To buy a flat, you must be a Singapore citizen or Singapore Permanent Resident (PR). Flooring is everything. The AV is based on the estimated gross annual rent of the property if it were to be rented out, excluding furnishings and maintenance fees. Yes you can buy a private property if you own a HDB. Private properties are a good form of investments where we can buy it, rent it out or sell at a higher price later. Register your ‘Intent to Sell’ on HDB’s website, Calculate your flat’s sale and cash proceeds, Grant an Option to Purchase (OTP) to the buyer for $1,000, Wait for the buyer to exercise the OTP for another $4,000, Ask HDB for approval to rent out your flat, Find an experienced property agent to find you a tenant, The tenant will register the Tenancy Agreement, Ask the condo owner to issue an OTP for 1%, Exercise the OTP for 4% and pay stamp duty, Exercise the OTP for 20% and pay stamp duty, Start making payments of 5-10% every 6 months up to TOP, 9. The rates are based on how many housing loans you have at the time of applying for the condo loan. It’s not possible for two PRs to buy a new flat – your only options are a resale HDB flat, or private property. Are Singaporeans rich? Info-graphic 1: Sell HDB Buy Condo timeline, inputs from Ascentsia Law Corporation, iCompareLoan.com. For the table below, we are assuming that in the case of “sell the HDB”, the sale of the HDB is made before the purchase of the condominium for simplicity sake. Now, if I tell you that there is a possibility that we can buy a private property even if we own a HDB, will you be interested? Second, check the financial implications of selling vs keeping your HDB. A large number of people don’t know what kinds of animals they are allowed to own in Singapore. There are several financial implications to take into account when upgrading from your HDB to a condo. What this means is that you need to keep a certain amount of money in your combined CPF accounts, and can only withdraw the amount in excess of that. They have sold their HDB and want to purchase a condominium. You need to have lots of hard cash, if you intend to keep your HDB. – CPF Refund. However, if the housing loan for your HDB is already paid off, then the condo loan counts as your “first housing loan” and not the second. This minimum amount to be set aside is stated on. Stop your CPF payment? Remember to subscribe to my youtube channel and see you in my next video. LTV 30% for loan tenure above 30 years and/or above 65 to maximum 75 years old. Hi All, Any property agent out there that can help? Can I buy a private property if I own a HDB? Okay, this might be a bit pricier to do, but it is still cheaper than actually buying a condo. Mark and Josephine have a combined salary of $8,000. Can I buy a private property if I own a HDB? Now, you’re ready to start your home-buying journey: 1. It is charged based on the “Annual Value” (, You will need to pay property tax on the condo you purchase in a similar way. Since this is too low for a condo, they would need to use other cash savings and the proceeds from their HDB sale. If you wish to buy a BTO flat, HDB rules state that “applicants and occupiers listed in the flat application do not own other property overseas or locally, and have not disposed of any within the last 30 months”. events. to calculate maximum property value based on maximum loan amount (mortgage) payable per month: Total Loan Payment = Maximum Monthly Mortgage Payable x Loan Tenure x 12, Principal Loan Amount =  excel formula “ = PV ( Interest/12, Loan Tenure x 12, Maximum Monthly Mortgage Payable) ”, Maximum Property Value = Principal Loan Amount / 75%, Banks use an interest rate of 3.5% to calculate maximum loan amount due to MSR regulations, to ensure that the borrower is able to pay it off even if the interest rates spike. The MOP is the minimum number of years you need to have physically occupied your HDB flat before you can buy a private property or sell the HDB. Can I afford to buy and hold it? So for an AV of $24,000, you would pay nothing on the first $8,000 and pay 4% on the remaining ($24,000 – $8,000 = ) $16,000 which would come up to $640. This includes your home loan, car loan, student loan, credit cards, etc. Hence, the ABSD Rate that applies is 12%. If you've got enough savings in your CPF to pay for the entire downpayment, it's possible to buy a HDB … – Upgrading Costs You can use Ask Jamie, our virtual assistant, located on the right of our website, to assist you on your HDB … the value that the bank will lend them for buying a condo is ~$519,392. all our calculators available. You can see the rates for the first housing loan vs the second in, As stated before, the Total Debt Servicing Ratio states that. Today we explore if we are allowed to buy a HDB if we are currently owning a condominium in Singapore. We own a fully paid HDB flat. This could be a huge undertaking for a lot of people, but if you have the necessary savings, you are good to proceed. However, at Propseller you can find top agents who charge a commission of 1%. . Now, let’s list the differences between a new launch and a resale condo below. For obvious reasons, this is a sensible rule, given that HDB flats are public housing. Another way to calculate if you can afford it is by seeing the upfront cash+CPF outlay needed, and determining whether you can afford it. To be able to upgrade to a condo or landed property from your HDB flat, you need to have completed the Minimum Occupation Period (MOP) for your HDB flat. In contrast, a private property owners who want to buy HDB flats need to sell any private properties that they own. If you decide to engage your own lawyers, they will advise you on the legal fees applicable. However, if all of your HDB flat’s owners are Singapore Permanent Residents (SPRs), then you cannot keep the HDB after buying a private property. Basically, the Upgrading Programme Costs is to pay for the Upgrading work itself, whereas the Upgrading Levy is a kind of “fee” to pay when you sell an HDB flat that previously participated in the Upgrading Programme. If the “borrower” is actually a couple, for example, you and your spouse, your combined age is taken based on your income. You don't have to sell your HDB and buy 2 condominiums in order to rent it out. Assuming they only have enough money to make the downpayment, the maximum property value will be $426,135. ), 4. Jump to content. Financial planning is important. You can brag to homebuyers about your spacious bedrooms or all the amenities in your condo building, but if many of your neighbors are also selling … It is charged based on the “Annual Value” (AV) of the property you are living in. Can I afford to keep my HDB and upgrade to a condo? According to the Housing Board, even if they have fulfilled the MOP, PRs who own an HDB flat and their essential family members who occupy the unit must dispose their HDB flat within six months of buying a completed or off-plan private residential property in Singapore. Ah, the thorn on every 2nd home buyer’s side – Additional Buyer’s Stamp Duty (ABSD). Total Loan Payment = Maximum Monthly Mortgage Payable x Loan Tenure x 12 Upfront Cash/CPF Needed = In this case, their BSD would be calculated as shown below: If you sell your HDB flat first, you do not have to pay any ABSD. Since the condo you purchase will be at least your second property, you will have to pay an ABSD. This means, assuming they are young enough to get a 25 year loan tenure,  the amount they can borrow from the bank including interest is $780,000. But since they are keeping it and have an outstanding loan which requires a payment of $1,000 per month, their maximum loan amount to buy a condo is $1,600. I provide this service on a complimentary basis. Another restriction is that we cannot own multiple HDB flats. 3rd and subsequent Housing Loan: LTV 40% for loan tenure up to 30 years and till age 65 years old. If you buy first, you would already have 1 property (i.e. Thanks a lot Regards If the LTV is 90%, it means you can borrow up to 90% of the price of the property with only 10% down payment. A resale levy only applies when you’re selling a subsidised HDB flat to buy another subsidised HDB flat. All the examples I am using is assuming the loan is from a bank. You would need to hire private lawyers for your condo purchase which would typically cost you a few thousand dollars depending on the law firm you’re hiring. After the sale, you have to return the amount of money borrowed for your HDB purchase and the interest it may have accrued over the years back to your CPF Ordinary Account (OA). 8. You must pay the service and conservancy charges for your HDB flat up to the HDB sale completion appointment date. Minimum 25% upfront cash. Nobody buy condo with a loan tenure of 30 years one la! As you can see above, for 2nd housing loan, the LTV reduces to 50% and there is a minimum upfront cash of 25% needed. but there are certain criteria to be met, depending on which scheme you are applying under. The fee is usually ½ month’s rental for a 1-year lease and 1 month’s rental for a 2-year lease. Have taken the CPF Housing Grant to buy an Executive Condominium (EC), Design, Build and Sell Scheme (DBSS) flat or an HDB resale flat, or taken over ownership of such a flat or EC; Have transferred the ownership of a flat bought directly from HDB, or an HDB resale flat bought under the CPF Housing Grant Scheme Yes you can buy a private property if you own a HDB. The attorney can get a copy of the condominium map and the CC&R’s for the condominium project, help you review them, and point out exactly what is included in the unit. So you can withdraw upto $1,000,000 from your CPF Ordinary Account. Ans: Yes, you can buy a condo since you had already fulfil the MOP (based on old policy). Source: HDB Some Singaporeans, particularly those who are affected, will argue that there is a double standard in the regulation. If you're a HDB owner and want to own a Private Condo, you can purchase one after the 5-year Minimum Occupation Period (MOP). You can see here that instead of $276,600 which is how much they needed in cash or CPF when they sold their HDB, they now need $696,600 to buy a condo if they keep their HDB. 2-Room, 5-Room, etc.) Find out everything to know about Buyer’s Stamp Duty (BSD) here. Simply said, if you own a HDB and have already fully paid off all your loans, then when you get a loan for your private property, it will be considered as first housing loan. When upgrading, should I buy a new launch or a resale condo? Before we go into the specific differences for you between buying a new launch or a resale condo, one very important thing to note is this – property agents make tremendously different amounts of money when they bring a buyer for the sale of a new launch condo vs a resale condo. Assuming they only have enough money to make the downpayment, the maximum property value will be. ) Foreigners can purchase private properties such as private apartments and condominiums, but will need government approval to buy landed properties like bungalows. If you don’t already have such an agent, you can find one on. 3. If you own a four-room flat or bigger, you may rent out two bedrooms. If this is your 3rd property or higher, check the, Property tax is payable on both properties – the one that you live in as well as the one that’s rented out, based on the “Annual Value” (, It is important to get an agent experienced with renting out HDBs in your area to ensure you get the, , so that you do not have many weeks of vacancy, which could impact your overall income from the unit. If your HDB’s loan is not yet paid off, the Loan-to-Value (LTV) that you can get for your “second housing loan” is much lesser than that of your first. After the sale, you have to return the amount of money borrowed for your HDB purchase, the interest it may have accrued over the years. Hearsay 1: You cannot buy a private property when you already have a HDB This misconception seems to stem from 2 policies enforced by the Ministry of National Development (MND) as part of the cooling measures for the HDB market. No, you can't. 1. If you do own one, dispose of them within 6 months of your resale flat purchase transaction. – Outstanding Bank Loan Amount There are however some other financial considerations to think about to see if you can afford it. For selling your HDB, an agent will typically charge you 2% of the HDB’s selling price (this is the standard market practice). If you need help to calculate your loan eligibility for the purchase of a HDB or private property, you can email me at sgyi@homeloanwhiz.com.sg. The Total Debt Servicing Ratio states that you cannot use more than 60% of your monthly income to service your debts. the value that the bank will lend them for buying a condo is ~, . You can see the rates for the first housing loan vs the second in this previous section of the article. – Other costs (Legal, Property Agent etc. – Upgrading Levy If you take a loan from HDB for the purchase of HDB flats, the LTV is 90% with no minimum upfront cash payment. What are the steps to upgrade from an HDB to a condo? As your husband owns a hdb currently, when you buy a condo together with his name, there will be absd payable. Below, we list all the implications of keeping your HDB and buying a private property in Singapore. Make sure you give your HDB branch a written notice of at least one month in advance to make the repayment. If you buy a $800,000 private property, this is $400,000 down payment with $200,000 cash needed. If you're a HDB owner and want to own a Private Condo, you can purchase one after the 5-year Minimum Occupation Period (MOP). As mentioned before, the definition of “Upgrading” here is different from that in the rest of the article. Planning for what comes 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. Now this route is only possible if you or your wife is a Singaporean. 6. This includes your home loan, car loan, student loan, credit cards, etc. "Unlike a co-op, a condo can't say yes or no to your purchase, all they can do is exercise the board's right of first refusal, which very few buildings do." The values below are based on monthly income and expenses. Below are some guidelines on buying HDB flats, executive condominiums and condos in Singapore, as well as the loan amount you are eligible to borrow to facilitate your home-buying decisions. Provided that your eligibility is not a concern, your ability to keep the HDB flat or the need to sell it before upgrading will depend on your finances. That might be the initial assumption – given that public housing apartments, known as HDBs, has hit the S$1 million mark in recent years. If your unit was Upgraded, you will have to pay an Upgrading Levy of 10% of the selling price or 10% of 90% of the market value of your flat, whichever is higher. 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