New Hdb Rule!

[forgotten 1]

Straits Times, Mar 5, 2010

3-year minimum occupation

The revised policy will apply to resale transactions where applications are received by HDB from Friday. Existing HDB owners of non-subsidised flats will not be affected.

THE Housing Board will raise the minimum occupation period (MOP) for the resale of non-subsidised flats to three years, in a move to reinforce owner-occupation and curb speculation.

Announcing the extended period in Parliament on Friday, National Development Minister Mah Bow Tan said this will align the minimum occupation for home owners to resell and fully sublet non-subsidised flats.

Previously, those who take an HDB concessionary loan have to meet an MOP of 2.5 years, while those who take a bank loan or do not take a loan must occupy the flat for a year.

Responding to concerns raised by MPs during the debate on the National Development Ministry's budget in Parliament, Mr Mah reiterated that HDB flats are primarily meant to provide owners with a roof over their heads, and not for speculation or short-term profit. Hence, they are required to stay in their flat for a minimum period before they can sell it in the open market.

To foster owner-occupation, Mr Mah said the minimum occupation period for resale of non-subsidised flats will be increased to three years.

He said the trend of HDB owners selling their flats shortly after the minimum occupation period has been rising, although the numbers are not large. 'However, if the trend continues, buyers who genuinely need housing could be crowded out,' said Mr Mah.

The revised policy will apply to resale transactions where applications are received by HDB from Friday. Existing HDB owners of non-subsidised flats will not be affected, said the HDB.

Edited March 5, 2010 by forgotten

[forgotten 1]

New flat quota for PRs

THE Government has imposed a limit on the number of flats non-Malaysian permanent residents can buy in any public housing block or estate, with immediate effect.

The quota will be set at 5 per cent for neighbourhoods and 8 per cent for blocks and will apply on top of the existing Ethnic Integration Policy (EIP).

National Development Minister Mah Bow Tan said in Parliament on Friday that this was meant to prevent foreigner enclaves in HDB estates.

'Even though PR enclaves are not a problem today, we should put precautionary measures in place early. Otherwise, it might be difficult to unravel problems later,' he cautioned. 'It is important that PRs integrate well in our local communities as they are long-term residents in Singapore.'

The HDB said PRs buy flats all over Singapore, but there are some towns in the western and northern regions where the proportion of PRs owning flats are slightly higher than the national proportion of 5 per cent.

Edited March 5, 2010 by forgotten

[forgotten 1]

S'pore-PR couple pays more

THE Government on Friday further sharpened the differentiation in housing benefits between citizens and PRs. Currently, all Singaporean couples and a citizen-PR couple are eligible to buy new flats and apply for housing grants if they buy resale flats.

With immediate effect, a citizen-PR couple will have to pay a $10,000 premium for new HDB flat. If they buy a resale flat, they will get $10,000 in their housing grant. For example, if a Singaporean who marries a PR is eligible for a CPF Housing Grant when they buy a resale flat, they will get $20,000, or $30,000 if they are staying near their parents, instead of $30,000 or $40,000 respectively.

However, if the PR family member eventually takes up citizenship, or the couple has a child who is a citizen, this $10,000 will be given back to them. Eligible households can apply to HDB within six months of the change in household citizenship status to claim the $10,000 Citizen Top-Up via CPF.

National Development Minister Mah Bow Tan, who announced the new policy in Parliament on Friday, said it is meant 'to provide an incentive for PRs to take up citizenship... and also reinforce the principle that Singaporeans are our priority'.

Mr Mah also pointed out that despite growing concerns of some residents or immigrants pushing up HDB flat prices, 'there is no evidence that specific buyer groups, like PRs and private property owners are driving up prices'.

As of 2009, PRs make up 14 per cent of the population living in HDB flats, but PR families own only 5 per cent of HDB flats, said Mr Mah.

Edited March 5, 2010 by forgotten

[Phantom 1]

Will the new measures cause HDB resale prices to crash?

No. But COV might be more realistic towards Locals but premium towards PRs.

[forgotten 1]

No. But COV might be more realistic towards Locals but premium towards PRs.

If people can only sell off HDB houses after 3 years, it will probably reduce the supply of houses in the resales market. Demand wise, it's hard to predict.

[Phantom 1]

If people can only sell off HDB houses after 3 years, it will probably reduce the supply of houses in the resales market. Demand wise, it's hard to predict.

not much of a worry. That's 3 years later. Right now is the time to start ramping supply. generally the plans are not shocking.. it's within my expectations. Would expect them to say if 2 PRs buy property, might require them to stay in SG first for at least like 2-3 years before can buy..

generally this would also help cushion over supply of private investment properties demanding rental yield as there are many TOP-ing soon or over the next 2-3 years.

[jain 0]

I'd just sold my flat & waiting for my 1st appt on April 2010,i'd caculated my (CASH PROCEEDING-cash profit from my current flat) is about $50k,thefore my concerns now is that whether the new ruling is applicable to me whereby i'd my HLE submitted months back- 50% cash need to be put back to the loan for my new flat?

Thanks & Regards

Mar 5, 2010

BUDGET DEBATE 2010

HDB revises loan policy

By Melissa Pang

THE Housing Board has removed the upgrading condition for homeowners applying for a secondary concessionary loan from HDB, in a move to help flat owners right-size and exercise financial prudence.

This means the second HDB loan will be made available to all households regardless whether they upgrade, downsize or move to the same flat type.

Minister for National Development Mah Bow Tan, who announced this in Parliament on Friday, said the focus is on helping families to right-size their housing choices.

Currently, only households that are upgrading to a bigger flat type are eligible to apply for a second concessionary loan from HDB. This may have advertently encouraged some to upgrade even though it may not be prudent for them to do so, said Mr. Mah.

In a statement, HDB said the change 'will benefit families that need to right-size to smaller flats but do not have sufficient proceeds from the sale of their existing flats'. However, HDB flat buyers who have disposed of their private properties will remain ineligible for a second concessionary loan, it said.

To further encourage financial prudence, Mr Mah also announced that HDB will reduce the quantum of the second concessionary loan, based on the full CPF proceeds and part of the cash proceeds from the sale of the existing or immediate past HDB flats.

For example, if a couple receives $60,000 in CPF refund and $80,000 in cash proceeds from the sale of their flat, they will need to use their CPF money ($60,000) and half of their cash proceeds ($40,000) to pay for their next flat. HDB would then grant them a loan that is $100,000 less. The couple then retains $40,000 in cash proceeds.

HDB said the move to right-size the loan quantum 'will ensure that flat buyers do not take a larger second concessionary loan than necessary, and can help to reduce the likelihood of subsequent mortgage arrears'.

[forgotten 1]

HDB revises loan policy

THE Housing Board has removed the upgrading condition for homeowners applying for a secondary concessionary loan from HDB, in a move to help flat owners right-size and exercise financial prudence.

This means the second HDB loan will be made available to all households regardless whether they upgrade, downsize or move to the same flat type.

Minister for National Development Mah Bow Tan, who announced this in Parliament on Friday, said the focus is on helping families to right-size their housing choices.

Currently, only households that are upgrading to a bigger flat type are eligible to apply for a second concessionary loan from HDB. This may have advertently encouraged some to upgrade even though it may not be prudent for them to do so, said Mr. Mah.

In a statement, HDB said the change 'will benefit families that need to right-size to smaller flats but do not have sufficient proceeds from the sale of their existing flats'. However, HDB flat buyers who have disposed of their private properties will remain ineligible for a second concessionary loan, it said.

To further encourage financial prudence, Mr Mah also announced that HDB will reduce the quantum of the second concessionary loan, based on the full CPF proceeds and part of the cash proceeds from the sale of the existing or immediate past HDB flats.

For example, if a couple receives $60,000 in CPF refund and $80,000 in cash proceeds from the sale of their flat, they will need to use their CPF money ($60,000) and half of their cash proceeds ($40,000) to pay for their next flat. HDB would then grant them a loan that is $100,000 less. The couple then retains $40,000 in cash proceeds.

HDB said the move to right-size the loan quantum 'will ensure that flat buyers do not take a larger second concessionary loan than necessary, and can help to reduce the likelihood of subsequent mortgage arrears'.

[forgotten 1]

To those selling/buying house now, you can check ethnic & PR quoto of the block here.

http://services2.hdb.gov.sg/webapp/BB29ETHN/BB29STREET

LOL~ My block's PR figure has exceeded the 8% PR quota.

Edited March 5, 2010 by forgotten

[forgotten 1]

I'd just sold my flat & waiting for my 1st appt on April 2010,i'd caculated my (CASH PROCEEDING-cash profit from my current flat) is about $50k,thefore my concerns now is that whether the new ruling is applicable to me whereby i'd my HLE submitted months back- 50% cash need to be put back to the loan for my new flat?

I manage to find the info on HDB site. You are not affected by the new policy! Luckily you bought your new house earlier.

Please read the page:http://www.hdb.gov.sg/fi10/fi10296p.nsf/Pr...6C?OpenDocument

"Implementation Date

The revised second loan policy is implemented with immediate effect as follows:

Transaction Types | Cut-Off Date

Purchase of New Flats or DBSS Flats | Date of booking of flat and HLE Application received by HDB on or after the date of policy announcement

Purchase of Resale HDB Flats | Date of HLE Application on or after the date of policy announcement

Purchase of Replacement Flats Under SERS | Date of HLE Application by SERS flat lessees for new SERS sites announced on or after the date of policy announcement

"

Edited March 5, 2010 by forgotten

[Plastic3 0]

the rules are really coming in fast and furious!

[bepgof 20]

Changes within expectation. Soft approach, mild effects foresee. But.....

- 1yr, 2.5yr all changed to 3 yrs. Resale mkt already under supply with "high demand", will this new rule narrows the supply further, or curbs the demand of resale, or "high demand" caused this this group of people? Sure COV will drop, cos only speculators or rich will sell/buy after 1 year/2.5 yr.

- HDB loan make easilier(2nd loan), will encourage more people to trade in resale mkt(downsize), especially those "conservative" who know less or "scare" abt bank loans.

Edited March 6, 2010 by bepgof

[Phantom 1]

Not much impact if the person chooses to go and take a bank loan to finance his next HDB purchase.

Frankly I was looking for something more high-handed.. rather than the "new" and rather expected rulings.

Edited March 6, 2010 by Phantom

[therat 18]

u refer to the 3-year minimum occupation ?

This is apply to all regardless is HDB or Bank or no loan

[bepgof 20]

Yah!, 3 yr, might be extended to 5 years if mkt "hot" again. Imagine average 8.1% gains in resale(2009jan - 2009dec). CPI and salary increase where got so fast!