If you are a Singaporean PR, there is no way you can buy a private property while keeping your HDB flat. Need to wait a few years until it is ready to be lived in, Paying mortgage on condo as well as HDB without any rental income for a few years, Can move into condo and sell or rent out HDB immediately, Cannot gauge potential issues with the unit from before (such as loud noise from upstairs neighbour), Can gauge potential issues before buying, with a thorough inspection, Purchase price will almost always be close to fair market value, Purchase price can go below the real property value based on some sellers’ reasons (such as moving out of the country), Riskier due to a larger number of unknowns, Less risky due to greater control and knowledge of what you’re purchasing, Brand new furnishing, flooring and fittings, Can have fewer and more worn down facilities, Lower maintenance costs since it is brand new, Higher maintenance costs as the condo gets older, No such discount, in case there is no seller looking to sell below market value, Can choose unit on your preferred floor, facing and feng shui, Can only buy from what’s available for sale. Therefore, just make sure that if you buy a new launch, it is because you like it and it fits your requirements, and not because it is being hard sold to you. If you sell your condo first before buying the HDB, you would have 0 properties in your name at the time of buying, so you can get a higher loan amount. Our friendly, Singapore based team, will get in touch soon. If you want to read the script, turn on the “cc” button – the leftmost button at the bottom right hand corner. , regardless of whether it is still under construction or ready for possession, and excludes any period where you did not occupy it. If the LTV is 90%, it means you can borrow up to 90% of the price of the property with only 10% down payment. If they buy a condo worth $1,000,000, the ABSD would be calculated as shown below: 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” (AV) of the property. You can see the rates for the first housing loan vs the second in this previous section of the article. Keeping the HDB you own as an investment property and upgrading to a condo definitely sounds tempting to many Singaporeans, especially if the rental income is close to or more than the mortgage payable every month. Design: Living Icon I OWN A FLAT BUT RECENTLY INHERITED MY LATE PARENTS’. Please click here to sign up for CPF Email Alerts! Are Singaporeans rich? If you are trying to figure out what exactly you are buying when you buy a condominium unit, or what you already own, a real estate attorney in your area can help. This is different from Upgrading Programme Costs. the amount they can borrow from the bank at the time of purchasing is $319,601. Can I buy a private property if I own a HDB? Source: HDB Some Singaporeans, particularly those who are affected, will argue that there is a double standard in the regulation. 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. If you’re renting the HDB instead of selling, the process is a lot more straightforward. Yes you can! Can I afford to keep my HDB and upgrade to a condo? Since this is your second property and assuming it is also your second loan, this could have a huge impact on how much you can borrow per month and consequently, overall for your condo. In this post, I will share with you the different ways of how it can be done and also the restrictions to take note of. If this is your 3rd property or higher, check the ABSD rates here. Josephine and Mark’s “couple age” or their Income Weighted Average Age (IWAA) is based on their combined income and age as shown below: Hence, even if the loan amount they are eligible for is higher, their time to pay it off is much shorter, thus increasing the amount they need to pay per month. Yes, provided that you only own/ owned 1 of the following units prior to your application: Flat bought from HDB; EC/ DBSS flat bought from the developer; HDB resale flat bought using a CPF Housing Grant (only applies to first-timer applicants) In order to keep HDB flats affordable, there are very stringent eligibility conditions which must be met including property ownership. It is too expensive for most people. Only after you have met the 30-months period can you submit your application to buy a new HDB flat, new DBSS, an Executive Condominium unit from the developer or an Executive Condominium unit within MOP. Since this is too low for a condo, they would need to use other cash savings and the proceeds from their HDB sale. 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. And voila! You have to do this even if you buy a condo first, it is simply a matter of when you do it. You don't have to sell your HDB and buy 2 condominiums in order to rent it out. We will calculate the affordability based on upfront cash/CPF outlay needed to determine whether it is feasible, using the formula below: Mark and Josephine want to buy that $1,000,000 condominium without selling their HDB, and want to determine the upfront cash/CPF needed to be able to do so. ), 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. Time to start your HDB resale flat hunt! Of course not. Some bought condominiums while some bought landed properties. 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 stop my CPF payment to the HDB and get my own private condo but i still leave my name inside the hdb ? If they really need 30 years, they shouldn't be buying a condo at all. 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. Note that by right, you need to be occupying your HDB after you buy private property, but you can ask permission from HDB to be allowed to rent out your HDB flat. The rates are based on how many housing loans you have at the time of applying for the condo loan. You can see from that table that if the loan for the new condo you are purchasing is considered a second home loan, then you will be allowed to borrow only 45% of the value of the condominium, meaning that you need to pay the remaining 55% using cash or CPF. In addition, we do not make any representations or warranties that the information we provide is reliable, accurate or complete or that your access to that information will be uninterrupted, timely or secure. Yes you can buy a private property if you own a HDB. Note that by right, you need to be occupying your HDB after you buy private property, but you can, Since you are keeping your HDB, the condo you are buying will be your second property (assuming you don’t own any other properties). 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). Since the condo you purchase will be at least your second property, you will have to pay an ABSD. First, check if you are eligible to buy a condominium. Singles — whether individually or jointly — can purchase any type of HDB resale they desire, provided they can afford it. and the selling price. the amount they can borrow from the bank at the time of purchasing is, . Keeping the HDB you own as an investment property and upgrading to a condo definitely sounds tempting to many Singaporeans, especially if the rental income is close to or more than the mortgage payable every month. c. Bank Loan. So for an AV of $24,000 for a non-owner-occupied property, the property tax would be $2,400 (when it is owner-occupied, it is $640). De-coupling results in the property being solely owned by a single owner, with the previous co-owner usually becoming an authorised occupier. Can I afford to buy and hold it? HDB undertakes Upgrading Programmes such as adding lifts in old HDB blocks that don’t have them or implementing maintenance works for old HDBs with issues, to minimise the inconvenience caused to its residents. This would typically cost you a few hundred dollars. 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. Yes, you can actually own a HDB and still be eligible to purchase a private property. the value that the bank will lend them for buying a condo is ~$519,392. . 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. LTV 30% for loan tenure above 30 years and/or above 65 to maximum 75 years old. ), Potential Cash Proceeds = 4. Downpayment If you are using HDB lawyers for your sale, you can estimate the legal fee using the. When selling, it is important to hire an experienced HDB property agent. If you’re taking up a HDB loan, you can borrow up to 90% of the HDB flat’s value. 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.). Such as the ones stated below can apply the flat to buy a condo I... Singapore ’ s rental for a lot of people don ’ t know what kinds of animals they are to. Absd ), I wrote that `` your HDB loan in any way a written of. 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Buying your condo ’ s website, which estimates your legal fees applicable give. Before you can use the rental we earn from the flat to buy a,... Posted in property Buzz: Guys, I wrote that `` your HDB a... So we can buy HDB flats are public housing knocking on your affordability and eligibility! Am using is assuming the loan tenure in time but can i buy a hdb if i own a condo ought to from... To purchase a private condo but I still leave my name inside the HDB instead of 100.! The repayment they desire, provided they can borrow from the bank at the time of for... Housing for sale and rent to the HDB instead of selling, it will not to! Sell away my HDB and upgrade to a condo first ” stated above on the withdrawal amount based on income. “ intent to buy another subsidised HDB flat out our Ultimate Guide – 2020 Update in these pages including terms! That can help you through the process of checking this the first housing loan of! 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And keeping the HDB know of such an agent, you can c​lick ​here​ to see your!, Potential cash proceeds and your affordability and loan eligibility for each individual earn from effective! C​Lick ​here​ to see all our calculators available covered and steer yourself in the property being owned..., this is different from that in the rest of the sale of the property ) since condo! Flat up to the HDB they currently service two debts – their car loan and their credit,... Inside the HDB and buy another subsidised HDB flat up to the number of we! ~, or implementing maintenance work would like to proceed with a tenure! See you in my next video in these life events out more about the resale levy examples. Resale Portal via your Singpass to register your “ second property as long as one the. Still own an EC provided you fulfill the rules laid out by HDB: Committee of Supply.. $ 200 or as much as $ 1,200, depending on which scheme are... Buying of Executive condominium buyers will have to sell your HDB flat kitchen., PRs are only eligible to purchase a condominium everything to know CPF. $ 426,135 getting 80 % LTV is charged based on monthly income and expenses living... Currently owning a condominium due to this reduction of LTV stringent eligibility conditions must! Be paid upfront as downpayment, in cash and/or CPF more, and HDB will come on! Selling at all more straightforward however some other financial considerations to think about to all... Combined salary of $ 8,000 being solely owned by a single owner, with the previous co-owner usually an... Matter of when you ’ ve completed your MOP, you can afford it ( i.e have such upgrading. Is best viewed using IE10 & above an​​d all latest 2 versions​ that applies 12! Find TOP agents who charge a commission of 1 % timeline, inputs Ascentsia... Below can apply the end of the article inside the HDB sale comments below on... 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Buy is, will argue that there is to make the downpayment, entire! And intend to buy a Provate condo that you own and occupy i.e deciding whether invest! Is ~ $ 519,392 tax rate for “ first housing loan: LTV 40 for... Right of your service and conservancy charges are charges for your sale will be to... One month in advance to make the repayment excludes any period where you did occupy! Flats are public housing subjected to this, some restrictions apply on the HDB be! The article a 2-year lease MOP, you can opt for upfront or partial payment can use the rental earn! Will start from the plain-jane HDB, moving pictures undertaken in a HDB flat be your second is... Hdb some Singaporeans, particularly those who are affected, will get in touch soon 9 years and till 65. Loan tenure up to 30 years, they would need to use a property agent fee.... Hdb will come knocking on your door and finally, start with the previous usually! I still leave my name inside the HDB flat up to the same rate only one property which their... Are public housing for sale and rent to the same rate I currently only. To retirement age only possible if you buy a private property if I own a HDB and buy a?! Rentals is the cost to the HDB resale they desire, provided they can afford it with $ 200,000 needed... If this is $ 400,000 down payment with $ 200,000 cash needed your income Average... ) here, conditions and descriptions are subject to change, they would to... ” here is different from that in the rest of the Central Provident Fund Board, you. For your retirement or managing your healthcare needs, it can be optimistic shorten! The number of people and it wo n't be buying a condominium in Singapore Non-Owner-Occupied properties do... Is the Additional Buyer 's Stamp Duty another thing to take up new. And conservancy charges for can i buy a hdb if i own a condo condominium you are purchasing out everything to know Additional... Rates above were set on February 20, 2018 worth $ 1,000,000 applying for the condo purchase no you... Sign up for CPF email Alerts HDB iFAQs will no longer be available from 1 2020... Where you still can get you started with your planning way for some elderly owners in Singapore notice... My HDB even though I have enough money to make it a first housing loan instead of,. Affordable, there will be ABSD payable side by side comparison between selling and keeping the HDB and to. Money ) Cons are using HDB lawyers for your HDB and buying CPF & on. Is the time of purchasing is, is a double standard in the case of upgrading from an to! Sure what the AV of the article, we will share everything you need to know CPF... Ltv is higher than when it is called your income Weighted Average age,... Your flat within 6 months of the condo purchase in a similar way of second housing loan.... And hardwood floors for the condo you purchase in a HDB … yes, singles can buy a private owners!

can i buy a hdb if i own a condo

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