Can HDB owners buy another private property? Yes you can!

Coftea , , 67 Comments

Guest post by Coftea (co-founder of SnackFirst)
I have lost count of the number of times I have been told that Singaporeans who already own a HDB flat cannot buy another private property. I actually believed it until someone knowledgeable enlightened me.

Being an aspiring HDB cum private property (or properties!) owner, getting the facts right on this subject is important. If a HDB owner can purchase another private property, what are the prerequisites and restrictions? After researching the truths online via official sources, I realised there are 3 major misconceptions which I hope I can provide some insights to.

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.

The first policy dates back to 2010 national rally when it was announced that concurrent ownership of both HDB flats and private residential properties within the Minimum Occupation Period (MOP) is disallowed. Private property owners who bought a HDB will need to dispose their private property within 6 months. But the reverse is not true. What the news doesn’t emphasize is that MOP is only applicable to HDB and that if one has fulfilled HDB's MOP (set at 5 years currently), you can still buy a private property! Definitely no concurrent ownership within MOP.

The second policy in 2013, a move aimed to protect Singaporeans, dictates that Permanent Residents (PR) owning HDB must sell their flat if they purchased a private property in Singapore. Yeah, so dual ownership of HDB and private property is disallowed for PR only.

As long as you are a Singaporean, fulfilled your HDB’s MOP and have plenty of money, there is theoretically no limit to the number of private properties you can own.

Hearsay 2: You must fully repay your existing HDB loan to buy a private property

We know that our government has measures in place to prevent us from over leveraging on our investments, but this isn’t one of them. However, the belief that there is a restriction to the amount of loan one can borrow is correct. Again, this misconception might be due to 2 policies, enforced by the Monetary Authority of Singapore (MAS) to reduce the risk of loans.

First, every one of us is tagged with a ratio called the Total Debt Servicing Ratio (TDSR), which must not exceed 60%. In simple terms, the amount of money you fork out monthly to service all your existing loans (car, student, credit card, etc.) cannot exceed 60% of your total income in the same period. There are comprehensive and complex rules that dictates how your bank assesses your existing loans and income which are beyond the scope of this article, but the takeaway is that your existing HDB loan will lower the borrowing limit for your next purchase.

Second, even if you do not exceed your TDSR, there is another loan limit called the Loan-to-value (LTV) limit. It is a percentage of the property price (or value) and starts at 80% for your first housing loan, decreases to 50% for the second and 40% for the third and subsequent loans. These figures assumed that your loan tenure does not exceed 30 years and extend beyond 65 years of age.

A simplified illustration of TSDR and LTV
TDSR limits loan to how much one can really afford and LTV uses a property price as a gauge on the cap. There may be humps and potholes along the road, but it is certainly not blocked if you are enroute to buy a private property even though you are still paying down your HDB loan.

Hearsay 3: CPF money cannot be used to buy the private property

I believe many people mistrust the CPF board. Some view it as an organisation whose sole function is to keep as much of our hard earned money as legally and morally allowed, and use it to fund secret government initiatives. No matter what the conspiracy theories are, the fact remains that CPF money can be used to fund more than one property.

The catch is you can use CPF to fund your first property up to the Valuation Limit (VL), which is the purchase price or value of the property at time of purchase. It is possible to wipe out your CPF for your first home, HDB or private. However, for your second and subsequent property, you can only use the excess savings in your Ordinary Account (OA) after meeting the Basic Retirement Sum (BRS). BRS is raised annually to keep up with inflation and stands at $80,500 now. Fortunately, the savings in Special Account (SA), including those used for investment can be considered to fulfil the BRS requirement.

So yeah, contrary to conspiracist beliefs, money in CPF is useful. When you have enough for retirement, it still can be used to pay down a second property.

Myriad of information causes confusion
One might wonder why there are so many versions of these misconceptions when information is freely available online. But I came to realise that these policies are meant to encompass a very wide spectrum of people and multiple government agencies must come together to make it work. Information spreads across HDB, MND, MAS and CPF and I have not even mentioned anything on stamp duties and taxes which will involve IRAS. It is truly not easy to grasp the entirety of it. Be aware that everyone's circumstances are different, so your friend’s story might not apply to you.

Buying another private property after a HDB may be financially challenging, but it is definitely legally allowed. Does owning a private property together with a HDB flat sounds reasonably attainable now? Some say yes others say no.

Like us on Facebook if you would like to receive updates on HDB and other financial matters. 

Coftea

If you have benefited from this post, support our first business venture at snackfirst.com or like us on Facebook!

67 comments:

  1. but the killer is ABSD.

    ReplyDelete
    Replies
    1. Hi,

      Totally.. The 7% ABSD is no joke. And 50% downpayment is required.
      Guess I'll stick to stock investing for now :)

      Delete
  2. What about married PR and Singaporean with Singeaporean kids for dual ownership of HDB and condo?

    ReplyDelete
    Replies
    1. Hi,

      This is something I hadn't thought about, but luckily I managed to find the answer :) If the PR is listed as one of the essential occupier of the HDB, then dual ownership is not allowed. An excerpt from HDB website:

      "Singapore Permanent Resident flat owners and/or essential family members who have met the minimum occupation period for their flat are required to notify HDB of their purchase of the local private residential property before they exercise the Option-To-Purchase (OTP) for the property. They would also be required to undertake to sell their HDB flat within 6 months of acquisition of a completed or uncompleted local private residential property."

      Delete
  3. Hi, how many owners can there be for a private property?
    If I want to buy a private property with my siblings, is that possible?

    ReplyDelete
    Replies
    1. Hi,

      I am sure that there can be more than 1 co-owners in purchasing of a private property. But is there a maximum number? This I can't be sure as I can't find any policy on it. As opposed to HDB, there isn't that many restrictions imposed on the eligibility criteria to own a private property.

      So the answer to your second questions is a definite yes. I can even buy a private property with an unrelated person if I want to, who is there to judge :) However, if you are buying as joint owners please take note that:
      - The percentage of downpayment and the amount of loan (LTV) you can draw will depends on how many existing housing loans the joint owners have
      - Higher stamp duties if one of the joint owner is not Singaporean or Singapore PR

      Hope I have answered your question and the home buyers section on URA website has more useful information to know. Best of luck with your investment!

      Delete
  4. Actually, you should also show that TSDR will cap the LTV that you can take before you even max out the LTV.
    So, it is not possible in your example for Coftea to borrow 750K to buy a 1.5M house.

    ReplyDelete
    Replies
    1. Hi there,

      Thanks for pointing this out! We should always take note of our TSDR and LTV when calculating the max loan amount we can take.

      In my example, he is capped to his max TSDR which is $1,440 monthly. The max amount of loan that can be taken is therefore $1440x12x35 = $604,800, given that the maximum loan tenure for residential property is 35 years.

      On the other hand, if say Coftea is earning a very high income with TSDR of $50,000 monthly, the max amount he can take will instead be capped by max LTV which is $750,000 even though he has the ability to service a huge loan. It is probably time to consider a larger, nicer and more exquisite house ;P

      Delete
  5. Hi,

    You have established the point that HDB owners can purchase a private property. But the question is whether the private property can only be used as an investment or whether the HDB owner can choose to stay in the private property and rent out his HDB?

    ReplyDelete
    Replies
    1. Hi,

      Thanks for dropping by. For Singapore Citizens, Yes! We can fully sublet our HDB and stay in the private property as long as our HDB's MOP is met. Tough luck for Singapore PR though. More info can be found via this link.

      Noticed HDB has actually revamped their infoweb and there is a new portal to check our HDB related info, including our eligibility to sublet our unit. Check it out here.

      Delete
    2. Hi,

      Thanks for the reply. Following the link provided another reader below: http://www.hdb.gov.sg/cs/infoweb/residential/living-in-an-hdb-flat/acquiring-private-property , under MOP after the table, point no. 4, states "You must continue to stay in your flat, even after acquiring private residential properties. Exceptions are only made if you have obtained prior approval from us to sublet your whole flat."
      It seems that you cannot simply just just rent out after meeting MOP, the link you provided seems to be valid only if you have attained approval from HDB. Wonder what are the criteria for HDB exception approval?

      Delete
    3. Hi there,

      It's great to have comments like your's. I learn something new everytime :)

      With regards to your question, I did a login to the HDB portal, checked my eligibility to sublet the whole flat and found that the criteria are stated in there. Click here for a screenshot of the page. I'm only about 3 years with my flat and obviously not eligible :)

      As for the approval, I understand that it is a must to apply for one with HDB if we want to sublet our entire unit. It is one of the regulations that homeowners need to comply with. I'm not sure if there are other human checks HDB does during approvals, but based on the official published criteria, I don't see why we can't sublet our flat.

      So you're right, we cannot simply just rent out. Even if we are just renting out a bedroom, we actually need to inform HDB too. You know, just to make sure IRAS knows we need to pay taxes on the rental income and in our scenario of subletting the whole flat, a higher property tax...

      Delete
  6. http://www.hdb.gov.sg/cs/infoweb/residential/living-in-an-hdb-flat/acquiring-private-property

    Read the second bullet point under the drop down "Exercising the Option to Purchase"

    Am I missing something here?

    ReplyDelete
    Replies
    1. Hi,

      Thanks for dropping by. I believe the points mentioned apply only to Singapore PR. The condition is "If all the owners of your flat are Singapore Permanent Residents and you are a flat owner or essential family member who has met the MOP for your flat".

      Hmm.. I dislike how this piece of information is communicated in HDB's revamped website. What happens if just one of the owner is PR? What about Singapore Citizens? Leaves more questions to be answered. Moreover, my previous saved links from the old HDB infoweb are all gone :(

      Delete
  7. Currently my wife is a PR and I staying in 3rm resale HDB flat.If she wants to rent
    a private appartment undet her nam for her relatives to stay in Singapore ocassionally.Will there will be amy issue?

    ReplyDelete
    Replies
    1. Hi there,
      I don't think there are any issues in your situation. URA has guidelines to home owners leasing their residential property here, and there seems to be no issues in it.

      But if your wife is planning to rent short term since her relatives only come occasionally, please note the official guideline that states "Private residential properties or their rooms within the premises should not be rented out on a short-term basis for less than 6 months on a daily/weekly/monthly basis." Moreover, renting out short term from a homeowner's perspective should incur more logistical problems. That being said, the language is 'should'. So, if someone is willing, why not huh :)

      Delete
  8. Hi Jes, thanks for your effort in putting up this article. I cannot find specific details on HDB website for Singaporean who own HDB for more than 10 years, now migrating and buying oversea property, planning to use the rental from Singapore to supplement the oversea property mortgage. Do you have any info?

    ReplyDelete
    Replies
    1. Hi LYR,
      I see two things that needs to be established on your situation:

      1. Buying property overseas while holding your HDB
      If you have fulfilled your MOP, you can buy local or overseas property. See link here.

      2. Sublet the entire HDB
      Do note that there are eligibility conditions to meet and approval to get from HDB before you can sublet your HDB. See HDB's published information here, a screenshot I have captured here and lastly, you can login HDB's portal to check your eligibility here.

      Migrating is a big decision and I guess you must have planned it for some time. Congrats on achieving it and all the best in your next venture =)

      Delete
  9. If I fulfill all the conditions ... How many private properties can I own ?

    ReplyDelete
    Replies
    1. Hi Kent,
      I really don't know, because I don't know how much money you have! ;P

      I do know that there is no limit to the number of private properties one can own. And I know that the amount of loan one can borrow decreases and downpayment one has to pay increases with more outstanding housing loans. For example, loan is 20% and downpayment 80% if one has 2 or more housing loans with tenure > 30 years. Very informative link from Moneysense here.

      Therefore, as with many other things, money is the limitation.

      Delete
  10. Can I (SC) transfer my co-own HDB flat to my wife (SPR) and purchase a private property alone? In that case,should be no ABSD incurred, right?

    ReplyDelete
    Replies
    1. Hi there,
      Afraid you can't do that. In most cases, HDB must be jointly owned by 2 or more people. This is because buyers must fall under one eligibility scheme to qualify for a HDB. E.g. Under Public Scheme, 1 SC must include at least 1 listed occupant who is an SC or SPR and form a family nucleus.

      If you have children who are above 21 years old, there is chance of transferring ownership to them if eligibility conditions for ownership transfer are fulfilled. Whether it will be a good idea is another story...

      Delete
    2. I would remain as occupier for the HDB flat to fufill the 2 people requirement. Also I would not own any property when purchasing the private property, is that right?

      Delete
    3. Hi,
      I think what you would want is to 'decouple' your HDB, transferring your share of the HDB fully to your wife. If it is successful, you can avoid the ABSD when you buy a private property. I don't have much knowledge in this subject, but below are some useful links for your reference. Hope it helps.

      - Explanation of what is decoupling here and here.
      - A fellow blogger experience on it here.

      Delete
  11. This comment has been removed by the author.

    ReplyDelete
  12. If I own a private property and want to buy new HDB flat (BTO), do I dispose the private property after I got the key (which is few years later) or when I confirmed the purchase?
    Assuming I'm a Singaporean who has never buy HDB before or married to another Singaporean to co-own the HDB flat for the first time.

    ReplyDelete
    Replies
    1. Hi there,

      For new flat purchase, it is unfortunate that the guideline states you cannot own a private property, either local or overseas within 30 months before the date of the new flat application, and up to the date of taking possession of the new flat. Which means you need to dispose your private property even before you apply for BTO! There is a chance to appeal for exemptions though, check out the last second point in this link.

      Things are different for buying resale flat where owners have 6 months to dispose their private property. You might want to take this into consideration.

      Delete
  13. hi , I need some help. I own a property oversea and have no HDB flat in SG. My mom have the impression that she will transfer it to me as i am the only child. the flat was bught over 30 yrs ago.
    can i inherit the HDB flat and still keep my property oversea.
    many thanks for helping me with the answer

    ReplyDelete
    Replies
    1. Hi there,

      I am not a good person to answer this as it may involve some legal implications. But I have got some information from HDB's portal. Since the flat has definitely met its MOP, you can inherit the flat (note that you also need at least 1 essential occupier to fulfill HDB's eligibility scheme) and keep your private property. However, you and the listed occupier(s) need to stay in the HDB after the transfer.

      Do take a look at the 2nd table in this link for more details. There is also an online e-service link to enquire on your eligibility to take over a HDB.

      Delete
  14. Hi, If I have finished paying my HDB flat with my wife (MOP all done). Can I buy out her contribution of the flat so that I become the sole owner. And she will then buy another private property without paying the 7% ABSD for 2nd property?

    ReplyDelete
    Replies
    1. Hi there,

      Yes you can. My understanding is that for married couple, you can do it via a transfer of ownership by way of gift. Although you can effectively avoid the ABSD, this process is very 'involved'. You will have to repay your existing bank loan or return CPF money for HDB loan, apply for new loan if your wife needs it and pay for admin, stamp, legal (for a lawyer) and other fees applicable.

      Here is a good guide from HDB. Additionally, here is a fellow blogger's experience and here is some info I found which is really useful. Hope they help.

      Delete
  15. Hi can a 2-room subsidised BTO flat owner buy a private property after MOP? I heard it's not allowed as it's a subsidised flat. Seek to clarify. Tks.

    ReplyDelete
    Replies
    1. Hi koh,

      Good news. Quoting from HDB website in this link, 'You can invest in private property after the 5-year MOP. However, you have to continue living in the short-lease 2-room Flexi flat after purchasing the private property'.

      This info is also something new to me. Thanks for bringing it up :)

      Delete
  16. Hi. I own and fully paid off the HDB loan and MOP met. Will I be subjected to ABSD if I buy a private property?

    ReplyDelete
    Replies
    1. Hi there,
      Yup, you will be subjected to ABSD. It doesn't depend on MOP, but on the number of properties a buyer owns. Quoted from IRAS's website: As long as a buyer owns any share of interest in a property, that property will be included in the count of properties owned by him.

      Delete
  17. Hi,

    Thanks for the wealth of info here. I am wondering if and how my wife and I can leverage on our existing Hdb unit to own another private property. We currently have enough in our cpf to fully pay off our Hdb of 8 years old. From my readings so far, the catch really is to sell existing property and buy 2 small units and rent out the second unit but this assumes the rental market and rental yield is healthy and strong.

    ReplyDelete
    Replies
    1. Hi Tony,

      It is really our pleasure to share info here. You're welcome :)

      I don't know the source of your readings (hopefully not from some property related businesses), but the real catch is in your 2nd point, it assumes the rental market and rental yield is healthy and strong. That is some big assumption! With current macro conditions, strong is definitely not something I would use. Moreover, your HDB is your home, a roof over your head. Using it for leverage and risk just doesn't sound proper to me.

      If I were to be in your shoes with sufficient resources to purchase another property, I would just look to purchase 1 condo but keep my HDB. I can keep staying in my HDB and rent out the condo as investment income, or do it the opposite way where I sublet my HDB and stay in the condo. 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.
      - If I decide to pay off my current HDB loan, I would only need 20% downpayment (instead of 50%) on the condo.
      - If things don't work out, downgrading from private property back to HDB is difficult.
      - I love my HDB, why should I start another loan, pay more property tax and maintenance fees just to stay in a condo :) Condo as pure investment vehicle is my preference. I still get to enjoy the facilities.

      Of course, these are my personal opinions. There are so many more factors to consider. Nonetheless, you should check out data on URA website here so as to see the past trend of property prices and rental income. They will be helpful for doing projections. All the best no matter what your decision is!

      Delete
  18. Hi, I feel glad to come across this article and i find it very useful. May I know the required MOP period you mentioned here for HDN is for resale HDB or new HDB? Thank you again.

    ReplyDelete
    Replies
    1. Hi there,
      Pleasure is our's when what we're sharing is useful :)
      MOP is actually applicable to both resale and new HDB purchase. It is 5 years for most cases. You can find out more info from HDB website here. Hope it helps!

      Delete
  19. Hi Coftea,Thanks for sharing! Do you know if 2 SPR have an overseas private property (still on loan but not with Singapore banks), can they buy HDB in Singapore?

    ReplyDelete
    Replies
    1. Hi there,
      Sharing is caring :)
      Afraid you can't hold on to your private property if you bought a HDB. For resale HDB, you need to dispose your private property within 6 months after your purchase. For new HDB, you will need to be free of your private property for 30 months before applying for one.

      Delete
  20. Hi Coftea, need ur advice. If the hdb flat is jointly owned by 1SC & 1SPR. Can they sublet their whole flat ?

    ReplyDelete
    Replies
    1. Hi there,
      My understanding is that to sublet a whole unit, the owner(s) must be SC. So in your case, I don't think it is allowed in HDB's policy. Nonetheless, HDB has a useful eligibility checker here, do try and let us know :)

      Delete
  21. Hi, great site! Can I check the following:

    My hubby and I have outstanding mortgage loan with HDB. Can he transfer his portion to me and we use cash to refund to his CPF+accrued interests, while my portion of hdb remains status quo? He then becomes listed as occupier of the flat.

    Can he then proceed to buy a private property and take 80% loan and without absd?

    ReplyDelete
    Replies
    1. Hi there,
      Sounds to me what you want to do is to de-couple your HDB flat by transferring all your hubby's share to you. So to answer your ultimate question, technically yes, your hubby can avoid ABSD and purchase a private property as a first time buyer, provided that your transfer is successful. With regards to your portion of HDB, it doesn't remain status quo though. You will have full shares and need to repay the mortgage loan by yourself.

      Be aware that going this route can be very 'involved', at least from what I can find out online. HDB has a good guide on the steps here and I found this blog to contain some useful readings. All the best on your decision forward!

      Delete
  22. Question here: At the time of purchase of my first HDB flat (resale), I was a Singaporean, my wife was LTVP+ (she was listed as an occupier) . MOP has been fulfilled by now and my wife has obtained SPR (she is still listed as an occupier). No more HDB loan left, full paid. Can i buy or can she buy a private property without paying ABSD? How?

    ReplyDelete
    Replies
    1. Hi there,
      As you fully own your current HDB, you will be subjected to 7% ABSD when you buy another property. As for your wife who is not a co-owner of the HDB, she will be counted as a first time buyer. However, since she is SPR, she is subjected to an ABSD of 5% on first property purchase. More info on ABSD here.

      If you're considering selling your HDB, you might be eligible for ABSD refund though. Just a thought :) I'm sure you can find capable property agents who can advise you further when you go property shopping!

      Delete
  23. Weird but can you buy a thailand property, then rent out your current HDB, buy another HDB with your children?

    ReplyDelete
    Replies
    1. Hi there,
      Buy a Thailand property, yes. Rent out current HDB, yes. But buy another HDB with your children? Nahh.. You need to dispose current HDB within 6 months for resale flats and be free of any property for 30 months for new flats. I'm sure HDB and our property market will go bonkers if this can happen :)

      Delete
  24. Hi. You have no idea how grateful people are to your words of wisdom here. Very good advice. Thank you!

    I am writing to you to make an enquiry about the rights of an executor and beneficiary of a HDB flat. Please refer to article: http://singaporeestateplanning.com/articles/financial-plans-for-estate/hdb-clarifies-rules-on-flat-ownership-relating-to-inheritance/

    I have taken over the role as the executor and beneficiary of my late uncle's HDB flat since April 2009 and because I am not 35 yet (33 this year), I am not able to take over as home owner. Interestingly, HDB has not compelled me to sell the unit yet.

    My question is that if I were to get married later this year (Nov 2016), can I take over the flat as a sole owner and if my fiancée already has a condo, can we keep both the HDB flat and the condo? We intend to stay in the condo and rent the HDB out. Does the MOP rule apply to a flat that is fully paid for and is 39 years old? This flat was taken over in April 2009 but I have not taken over as owner, only as executor.

    Hope to hear from you soon. Thank you.

    ReplyDelete
    Replies
    1. Hi Daniel,

      Apologies for this very late response. I may not be a good person to answer your question, but I try and here's what I know.

      First of all, since you are getting married (congrats! :D), your fiance and you will form a family nucleus that fulfill the eligibility condition to own a HDB flat, allowing you to take over your uncle's flat.

      However, if you open this link and view under "Ownership in Private Property" section, there is a clause that says "All proposed owners and listed occupiers must continue to reside in the flat upon the transfer of flat ownership". Renting out the flat while staying at your current condo may not be an option.

      Lastly, one extreme option I can think of to keep both houses is to sell your current condo first, take over the HDB and then purchase a new condo. MOP is already fulfilled so the transition period may not be long if planned properly. Not sure if it is worth it though... Selling the flat in the open market could be more favorable.

      Before deciding on anything, it is always good to talk to a HDB representative and/or your solicitor handling your case. Best of luck!

      Delete
  25. HI, I am a SC and my Wife is SPR, We have cleared our housing loan and fulfilled our MOP. Can we keep our HDB and proceed to get 2nd property ?
    Please advise. Thank you

    ReplyDelete
    Replies
    1. Hi Curious,

      Sorry, I've been away on 'other things' :)

      Since you are a SC, I don't see any reason why you cannot get a 2nd private property. If you look under this link, one of the requirement to sell your existing HDB is that 'all the owners of your flat are Singapore Permanent Residents'.

      Hope it helps!

      Delete
  26. Hi there my wife bought a condo 2 years ago now shes having difficulty servicing her loan and have ask cpf can they help to transfer some amount from my cpf odinary acct to odinary acct they say i cant do that but what i see there are lot of advertisement you can transfer to your love ones to the special acct and retirement acct no problem but when it come to real problem loves one facing cannot help which i find it totally sad. The only thing can do i have to be 1% co owner then process as you know transfer the shares to her.After that can i still purchase condo cause i cant purchase HDB its for my parents

    ReplyDelete
    Replies
    1. Hi Unknown,

      Sorry, been at 'other things' all this while.

      What I understand is that you can only transfer CPF money to your loved ones' SA or RA account. In this way, CPF ensures that the top-up amount is not used for any other purposes other than retirement needs. It is a way to safeguard our retirement savings.

      I don't quite understand the second part of your question. Do you mean if you can still purchase a condo after being a 1% co-owner of your wife's condo? If you don't own a HDB, then it should be good.

      I hope your wife is at a better financial situation now. I think another way is to approach the bank and refinance the loan by adding yourself into the picture too. The two of you may get better leverage.

      Hope it helps!

      Delete
  27. Great work. You have share really useful information's about property. These information's is very important for those buy a private property when you already have a HDB.

    ReplyDelete
    Replies
    1. Hi Developer Launch,

      Thank you! Just wanna clear up some myths and untrue comments I frequently hear :)

      Delete
  28. Hii ..my father and i are currently joint owner ship or our 3 rm flat.our flat still abt 1yrs 9mths..it already fully paid..recently my father get married, and his new wife..currently stay in 1 rented flat and before married to my father ,she already sign 3 year to rent that flat.

    My first question,is it ok to own one flat and stay in rented house with his wife..
    2)What does he need to do?
    If he were to pull out his name..do i need to pay his share of the flat..if i want to keep the house?
    3)Or do we need to sell the flat..

    Pls advise me..
    Thanks

    ReplyDelete
    Replies
    1. Hi ipin temasek hypermart,

      Sorry for this late response, I got occupied by life :|

      My thoughts to your questions:-
      1st qn: I suppose you're still staying in the HDB? Since you're the joint owner, there shouldn't be a problem if your dad decides to stay with your stepmom. If your dad wants to hand over the HDB to you, he could do that by initiating a flat transfer. Since it is also fully paid, you may just need to refund the CPF money used by your dad. Check out a well written guide from HDB here.

      2nd: I would suggest you take over :)

      Delete
  29. Hi,
    Very useful write up indeed. Thanks very much for your insight.
    Actually, we bought a condo in my husband's name and currently living there. Can we now buy a HDB in my name and move over there and fulfill the MOP? We are Singaporeans.
    Tks for your reply.

    ReplyDelete
    Replies
    1. Hi there,

      Sorry, been caught up with life :)

      Thanks for the compliments and glad you found it useful. The important question here is whether you can purchase a HDB yeah? Unfortunately, as you're already married, I don't think you fit into one of the eligibility bracket to purchase HDB. To single-handedly purchase HDB, well.. you have to be single in the first place :)

      Delete
  30. Hi ,

    If my HDB have not fulfilled the MOP can I buy oversea land ? Is it still considered as private property ? Thanks.

    ReplyDelete
    Replies
    1. Hi there,

      If the land you're buying is not zoned for residential purposes, then yes you can! I'm surprised at this answer found at this link.

      Hope it helps!

      Delete
  31. Hi

    Not sure if this thread is active.
    I have questions regarding upgrading from HDB to Condo.
    Assuming
    - completed my MOP
    - wanting to buy a TOP condo for 1.2million
    - selling existing HDB $450K
    my questions
    1) do I have to sell my HDB within 6 months of S&P of condo? what is the penalty if I don't?
    2) am i correct to say that the re-sale price of the HDB will be use to pay off the HDB housing loan and the net proceed can be used for down-payment of the condo?
    3) what would be the maximum LTV I can obtain with my age 36?

    Thanks!

    ReplyDelete
    Replies
    1. Hi there,

      This thread is active, but I wasn't. I'm here to correct that :)

      My 2 cents to your questions:
      1) You completed your MOP, so there is no guidelines to sell your HDB within 6 months. So I think you have more leeway to find a good buyer for your HDB as there isn't a time restriction.
      2) Yes, and also note that you will also have to refund any CPF money you used, including the interest the money will earn with CPF over the years.
      3) The LTV also depends on the number of existing loans you have and the tenor of the new loan you are taking. So in your case, you would want to sell your HDB first, declare yourself as not servicing any existing loan to get a maximum LTV of 80%. This is provided your new loan tenor is <30 years. You may want to read more on MAS's Moneysense here.

      Hope they helped!

      Delete
  32. Dear;
    May I ask for me(guy) and my brother case.

    1) Currently I am staying with my wife and kids in a 3 room flat which in 5 years time I will be able to finish paying.

    2) My younger brother intend to purchase a 2 room Free Hold Condo.

    3) Me (Guy) and my Brother intend to joint applicant to buy that Condo. I will be the Co-Borrower and the main applicant is my younger brother.

    Question: Will the IRAS charge my brother and me for 2nd Property Tax.?

    Regards
    Terry

    ReplyDelete
  33. Hi:) thank you for all the useful information. I would like to seek advice from you for he following questions:
    1I own a HDB flat for 2 years under the non citizen family nucleu scheme. Which means I(SC) 30 years old, is the sole owner of the flat with my parents(long term visit pass holder) as the occupier. my BF owns a private property together with his parents. If we get married, can we keep both property?
    2. After we getting married and we fulfilled the MOP, can my bf use his CPF to purchase another private house under his name. So we can stay alone.
    3The HDB loan is under my name and he has no housing loan at all. In that case, if he is able to purchase another private property, is it consider the second property or the third property? How will it be affect the LTV since he has no housing loan at now.
    Thank you very much!

    ReplyDelete