zirhk3355 1 Report post Posted April 27, 2007 I thought there was a policy clause that says if the flat was fully paid for, it can be rented out even though not occupied for the MOP?Applies for both bank loan HDB loan, whether fully paid in cash or by CPF... Share this post Link to post Share on other sites
tweetie76 0 Report post Posted April 27, 2007 I thought there was a policy clause that says if the flat was fully paid for, it can be rented out even though not occupied for the MOP?Applies for both bank loan HDB loan, whether fully paid in cash or by CPF...hi zirhkIs there such a clause? fully paid then can rent ? but i called HDB, they say for sublet MOP is 3yr if fully paid, MOP is 5yr if flat is bot direct from HDB.But i find ridiculous because for a fully paid flat, there is no MOP rule when owner is to sell (direct purchase from open market) Share this post Link to post Share on other sites
zirhk3355 1 Report post Posted April 27, 2007 hi zirhkIs there such a clause? fully paid then can rent ? but i called HDB, they say for sublet MOP is 3yr if fully paid, MOP is 5yr if flat is bot direct from HDB.But i find ridiculous because for a fully paid flat, there is no MOP rule when owner is to sell (direct purchase from open market)You called? Best to get black and white - those customer service officers always talk loosely one, I kana alot of times liao. But anyway, I could have been wrong...Then again, why do you need to get HDB approval to sublet your flat? IMO, they want to know is only to collect money from you lor.Do you know that even if you got HDB's approval to sublet out, if the tenants are noisy and neighbours complain, HDB will still step in, maybe even revoking their approval for you to sublet. On the other hand, if your tenant is not noisy, neighbours won't complain, HDB won't come, so who will know that you had sublet out without approval?So IMO the key is not to get approval; but to get good tenants!! Muahaha...me and my crooked theories... Share this post Link to post Share on other sites
HugZ 0 Report post Posted April 27, 2007 Dun pray pray hor....Sublet whole flat better get approval from HDB, it is not only for HDB but for property taxing purposes by IRAS. Once your unit is approved, data will also be send to IRAS. All govt agencies are somewhat linked one. Owner occupied property tax is 4%, if not its 10%. You wanna siam higher property tax in S'pore ah?! Better think again hor! Bery the serious offence you know. Later they can charge you and make you pay many times more or send you sit in the cell for a while. Share this post Link to post Share on other sites
tweetie76 0 Report post Posted April 27, 2007 You called? Best to get black and white - those customer service officers always talk loosely one, I kana alot of times liao. But anyway, I could have been wrong...Then again, why do you need to get HDB approval to sublet your flat? IMO, they want to know is only to collect money from you lor.Do you know that even if you got HDB's approval to sublet out, if the tenants are noisy and neighbours complain, HDB will still step in, maybe even revoking their approval for you to sublet. On the other hand, if your tenant is not noisy, neighbours won't complain, HDB won't come, so who will know that you had sublet out without approval?So IMO the key is not to get approval; but to get good tenants!! Muahaha...me and my crooked theories... hi zirhki fully agree with you, our tenant must know how to cooperate ..hehee btw, it was stated in HDB website about the MOP <http://www.hdb.gov.sg/fi10/fi10206p.nsf/WPDis/Subletting%20Your%20Flat%20/%20RoomPolicies%20-%20Subletting%20of%20Whole%20Flat?OpenDocument&SubMenu=Policies> Share this post Link to post Share on other sites
TYM 0 Report post Posted April 27, 2007 Dun pray pray hor....Sublet whole flat better get approval from HDB, it is not only for HDB but for property taxing purposes by IRAS. Once your unit is approved, data will also be send to IRAS. All govt agencies are somewhat linked one. Owner occupied property tax is 4%, if not its 10%. You wanna siam higher property tax in S'pore ah?! Better think again hor! Bery the serious offence you know. Later they can charge you and make you pay many times more or send you sit in the cell for a while. Ya, dun pray pray. Better get HDB approval whether is it subletting whole unit or just a room. Else HDB and the taxman will come after you. Share this post Link to post Share on other sites
HugZ 0 Report post Posted April 27, 2007 (edited) Ya, dun pray pray. Better get HDB approval whether is it subletting whole unit or just a room. Else HDB and the taxman will come after you.I believe for room (not whole unit) rental, you don't need approval. I remember reading it before, but just to be on the safe side, if you're renting out a single room, do check with HDB. I think the purpose of the approval is to curb illegal people from staying in your flat. As a owner, if you're only renting out the room, you're still staying there so you can still keep an eye on your tenant. Your tenant cannot sub out to another tenant if you're staying there too because you can keep an eye on them mah. But if you're renting out the whole unit, hdb got to know for sure who your tenant is. Even when you change tenant, you have to inform them. You have to submit clear details of your tenant. Your tenants details will have to tally with the info held with MOM (eg. if your tenant is EP holder). If your unit is not approved and you rent out as a whole, how can you (as an owner) know for sure what your tenants are doing? eg. they rent out to other tenants who may be illegal immigrants. Edited April 27, 2007 by HugZ Share this post Link to post Share on other sites
waileong 0 Report post Posted April 28, 2007 Your info is partly correct but you've attributed it to the wrong reasons.HDB is not concerned about your tenants per se. The reason they generally do not allow you to rent out your whole flat (except in special cases) is because they have to ensure that you are not living elsewhere. In other words, they sold you a "subsidised" flat in support of a national policy to home ownership, they don't want you to abuse the "subsidy" by renting out your flat to earn rental income and live somewhere else.HDB can make exceptions, eg. if you kena posted overseas for work. But in general, they will not approve subletting of whole flat.Illegal immigrants are a concenrn ofICA, not HDB. Whether you rent out your private condo or HDB flat to them doesn't matter-- if you do so, you will be charged with harbouring illegal immigrants. HDB is not here to provide an additional check on illegal immigrants. And they are certainly not here to give you a clean bill of health for your tenants in case anything goes wrong. If you are caught harbouring illegal immigrants, saying that you informed HDB of these tenants is not going to reduce the charge! Share this post Link to post Share on other sites
tweetie76 0 Report post Posted April 29, 2007 (edited) anyway i was told by my fren that there is a way to rent out, let me check it out & reply u all his tenant will move in on 1 may Edited April 29, 2007 by tweetie76 Share this post Link to post Share on other sites
Maeryn 0 Report post Posted May 8, 2007 HDB voided my resale transaction 2 weeks before the 1st appt date as the sellers were caught subletting the whole unit out without HDB's approval. They claimed that they thought it was legal to do so since they went thru an agent to get the tenants and they locked up one bedroom. It is still an infringement of the Housing & Development Act. I heard they were fined $50K for the offence.Generally HDB will not grant you approval to sublet the whole unit out if you do not have a valid reason e.g. overseas posting etc as HDB flats are public housing meant for owner occupation and not for you to generate rental income while u stay elsewhere in the country. Also, the property tax rate differs too.I dont think it's worth taking the risk just for the rental income. Besides the hefty fine, you may lose the flat in the worst case scenario. Share this post Link to post Share on other sites
tweetie76 0 Report post Posted May 8, 2007 HDB voided my resale transaction 2 weeks before the 1st appt date as the sellers were caught subletting the whole unit out without HDB's approval. They claimed that they thought it was legal to do so since they went thru an agent to get the tenants and they locked up one bedroom. It is still an infringement of the Housing & Development Act. I heard they were fined $50K for the offence.Generally HDB will not grant you approval to sublet the whole unit out if you do not have a valid reason e.g. overseas posting etc as HDB flats are public housing meant for owner occupation and not for you to generate rental income while u stay elsewhere in the country. Also, the property tax rate differs too.I dont think it's worth taking the risk just for the rental income. Besides the hefty fine, you may lose the flat in the worst case scenario.hi MaerynHow old was the flat that u intend to buy ? How did HDB came to know of illegal sublet ? Is the agent fine ?Since my fren nvr stay at his house b4..so i doubt his neighbour will know..he's charging $1,200 for sublet.i will think this extra income is quite a good deal Share this post Link to post Share on other sites
raincole 0 Report post Posted May 8, 2007 hi MaerynHow old was the flat that u intend to buy ? How did HDB came to know of illegal sublet ? Is the agent fine ?Since my fren nvr stay at his house b4..so i doubt his neighbour will know..he's charging $1,200 for sublet.i will think this extra income is quite a good deal Dun break the laws just for $$. It's not worth it. The tenant may just rent it to other illegal immigrants and the owner (not the tenants) will get into trouble. This could lead to losing the HDB flat.Depending on the condition and no. of room, 1200 may or may not be a good deal lor. Share this post Link to post Share on other sites
Maeryn 0 Report post Posted May 8, 2007 Dun break the laws just for $$. It's not worth it. The tenant may just rent it to other illegal immigrants and the owner (not the tenants) will get into trouble. This could lead to losing the HDB flat.Depending on the condition and no. of room, 1200 may or may not be a good deal lor.I agree. If illegal immigrants are found staying in the flat, you will get a jail term + flat confiscated. Share this post Link to post Share on other sites
Maeryn 0 Report post Posted May 8, 2007 hi MaerynHow old was the flat that u intend to buy ? How did HDB came to know of illegal sublet ? Is the agent fine ?Since my fren nvr stay at his house b4..so i doubt his neighbour will know..he's charging $1,200 for sublet.i will think this extra income is quite a good deal The flat is 9 years old but the sellers bought it 1.5 years ago, fully paid up. They earned less than 10k in rental income but had to pay $50K fine. I didnt realise they had subletted the flat out illegally or I wouldnt have exercised the OTP. They could have gotten the tenants to move out before they got found out but they were just greedy for a few mths more of rental income.Your friend has to live in fear of people knowing that he subletted the flat out illegally, and that HDB may find out about it. I would rather opt for peaceful sleep at night. Share this post Link to post Share on other sites
therat 18 Report post Posted May 8, 2007 hi MaerynHow old was the flat that u intend to buy ? How did HDB came to know of illegal sublet ? Is the agent fine ?Since my fren nvr stay at his house b4..so i doubt his neighbour will know..he's charging $1,200 for sublet.i will think this extra income is quite a good deal agent will not be fine b'coz they just provide a serviceowner need to take up 100% responsible.when tio fine then he will know.HDB will not fine base on the rent he has collect. They will base on market rate X no. of mth X 2 (min)no. of mth.. no the exact mth he rent out.it start from the date he don't stay there till the date HDB caught him. Whether got rent out or not. HDB will not bother. (that's what I heard) Share this post Link to post Share on other sites
