Can I Rent Out My Hdb And Rent A Condo To Stay?

[Rosicky 4]

Hi, I am currently staying in my resale 5 rm HDB, has been staying for 6 years liao. Can I rent out my HDB and rent a condo? Thanks.

[therat 18]

Yes you can. But what for?

U can rent out your HDB but need to get HDB approval.

Then you lost all the rebate.

Then need to pay the rental fee as income.

Then property tax will be 10% since you had rent out the HDB.

Condo rental also not very cheap.

[Rosicky 4]

Yes you can. But what for?

U can rent out your HDB but need to get HDB approval.

Then you lost all the rebate.

Then need to pay the rental fee as income.

Then property tax will be 10% since you had rent out the HDB.

Condo rental also not very cheap.

Eh... want to get my kids into a better school.

1. What rebate do I lose? Can elaborate?

2. Subject to income tax right? If my wife is not working, can I declare it as her income?

3. How much will that be for a 5 rm flat?

Thanks!

[therat 18]

those rebate that announce during budget time.

eg. PUB rebate, TC fee rebate and simi etc

Then also ur personal rebate, as so far the personal rebate is tie to the household. Bigger house, less $$

eg http://app.singaporebudget.gov.sg/budget_2010/hbc/index.asp

Household Benefits Calculator for 2010

Depending on your eligibility, the benefits that you may receive include:

* GST Credits and Senior Citizens' Bonus

* Rental rebates

* Post-Secondary Education Account top-up

* Property Tax rebates

* Service and Conservancy Charges (S&CC) rebates

* Utilities-Save Rebates

* Central Provident Fund-Medisave Account (CPF-MA) Top-up

* Workfare Income Supplement (WIS) and WIS Special Payment

Yes, subjected to income tax.

Whether can declare under ur wife.. I'm not to sure abt it.

Present property tax is 4%. Increase to 10%

U agar agar hor.. existing property tax u pay X 2.5

[edenstrauss 3]

If the 5-room flat is co-owned by both husband (yourself) & wife, there is no way that u could get totally exempted from taxes arising from rental income.

Even when the wife whose currently unemployed & declares the rental income under her account, IRAS would split the assessment into 2 portions: 50% of it under the wife & 50% of it added onto the husband's existing income.

If the 50% to be assessed under the wife's account is too low to be taxed, that portion of the rental income becomes tax free. However, the other 50% comes under your name will be added on to your annual income drawn as e.g. an employee.

So if u r already paying taxes every year before renting out your 5-rm flat, this 50% will definitely be taxable.

But u should be able to "cut corners" in lowering taxes becox u could less off your property tax from the assessed rental income. Under IRAS' website, property taxes & interest (incurred in view of mortgage loan) r classified as "deductible" when u file for taxes.

It's best to call up the property tax department under IRAS to relate to them your situation; they will be in the best position to advise you on the financial implications on renting out & renting in the same instance.

Edited December 28, 2010 by edenstrauss

[Rosicky 4]

Thanks for all the advices.

[matrix0405 0]

Its a good idea because you can choose the location you want and you can enjoy the condo facilities; which yr kids wld love them.

[bepgof 20]

Its a good idea because you can choose the location you want and you can enjoy the condo facilities; which yr kids wld love them.

All things come at costs.

Phase 2 C has no guaranty to a seat.

Voluntary service to school a year before enrolment helps.

Good schools always have many volunteers.

"Service differentiation" is the key.

Don't say I never highlight to you.

Edited December 30, 2010 by bepgof

[marshmallow 0]

my bro did something like this (not in SG though). when his 2nd kid arrived, he rented out his own flat and rent another one that is right next block from my parents, who take care of the kids.

save a lot of time and energy in traveling and ferrying the kids around