Divorcees who get full custody of all children will no longer be subjected to a 5-year debarment period when buying a second subsidised flat from HDB.
Neither would they have to get prior consent from their ex-spouse to give up their right to a subsidised flat, announced National Development Minister Khaw Boon Wan.
However, the ex-spouse with no children will still be subjected to the 5-year time bar, said Mr Khaw.
Under current rules, a divorcee with children is barred for 5 years from buying a second subsidised flat from HDB after the matrimonial home is sold.
This policy was put in place to prevent people from gaming the system, said Mr Khaw.
He explained that there have been cases where couples filed for divorce and split custody of the children, so that they could then qualify for two subsidised flats.
A single parent can form a family unit with one child and apply for a subsidised flat directly from HDB.
But it turned out that the couple were not really divorced, and wanted 2 subsidised flats to rent out one for income, said Mr Khaw.
Hence, the government put in place a rule that only 1 divorcee is allowed a subsidised flat within the 5-year period, provided the other spouse gives up his or her right.
But as many MPs had pointed out, it was not easy to get consent from the ex-spouse.
In coming up with the policy change, Mr Khaw said this is to put the interest of the young kids at the uppermost.
He said that HDB will also be reviewing whether the 5-year debarment period is too long.
Mr Khaw said removing the time bar will be unwise, but hinted that 5 years may be too long.
The minister noted that the housing board must balance between deterrence against abuse and minimising hardship on genuine divorcees.
(Via Xin MSN)
Tags: child custody, divorcees, Housing
Ever dreamed of living in a bungalow/semi-D/terrace house, with space to call your own, and a garden for your kids and pet to play in, or even a place to put a pool? And set off fireworks during the New Year, or firecrackers during the Lunar New Year?
Or perhaps a high-rise condominium, with full facilities where you can swim, play tennis, have BBQ with your friends, and enjoy unblock views from your apartment?
Or for the sea lovers, own a house right by the sea, where you can dock your own yacht!
And all this, for the price of a HDB flat?
It is possible. A 1615sqft/150sqm condo the price of a 3-room HDB (700sqft/65sqm) in prime areas like Queenstown, ora landed property or a penthouse for the price of a 5-room HDB.
Recently, there’s been an increasing number of Singaporeans, PRs, and even expats, who have been buying property in Iskandar Malaysia, with most buying in the areas just north of Tuas (ie. Nusajaya). Unlike JB at Woodlands checkpoint, the developments north of Tuas are organized and well-planned. Several developers bought up huge chunks of land, and then developed their own townships, with amenities like shopping malls and so on.
This is in line with the Malaysian Government’s plans to develop Johor into a vibrant city, consisting of a Medical Hub (eg. Thomson Medical), Educity* (eg. Newcastle Medical School, Marlborough College UK, Netherlands Maritime Institute of Technology), Entertainment (eg. Legoland, Hello Kitty Indoor amusement Park, Johor Premium Outlets, Pinewood Studios UK), and Financial & Industrial areas. Their own Johor administrative offices have also moved into the new area.
But I work in Singapore. Whats the use of owning a property in Malaysia?
Well, there are a few groups of people who buy property in Iskandar.
One group consists of mainly Singaporeans or Malaysians (Singapore PR) who are willing to commute into Singapore via tuas checkpoint daily, in exchange for enjoying a bigger house or condo (their space), and spending RM instead of SGD. There are various ways of getting to/from Singapore. Some drive, while others take the Causeway Link Bus which brings you to Jurong East Interchange, and there is also a bus company that sends kids to their Singapore schools in the morning.
Another group buys property as a weekend home or a future retirement home (renting it out in the meantime). Imagine, it’s tough to retire in Singapore, as the cost of living is so high. However, if you have a property in Malaysia, by the time you retire, your mortgage would have been paid off (through rental or earned income), and if you sell/rent your HDB flat, you would have a comfortable sum of money to live on. Definitely more than what CPF Life can provide for you.
There’s also a third group, which consists of expats working in Singapore (and also in Malaysia).
When Rochelle and Geert Hulst and their two children, Eloise (6) and Alex (5), decided to stay in Singapore for the long term and find their own home, they faced a tricky decision: buy a three-bedroom 1,200-square-foot apartment at Reflections, with its buzzing location near HarbourFront, or buy a 17,000-square-foot piece of land in tranquil Malaysia and build the house of their dreams for a quarter of the price. Read more …
But is Malaysia safe?
Not every country is perfectly safe. Even Singapore has its fair share of crime. However, Nusajaya in general, is better patrolled and guarded than the older side of JB. Also, they are stepping up security in the area, and Nusajaya consists of a very large % of foreign investments (ie. Added pressure for their Government to ensure better security).
Also, most of the developments are gated and guarded, even the landed properties.
Malaysian authorities maintain crime is on the decline but Mr Wan conceded the ‘negative perception’ remains. Given that foreigners are a big target of its high-end homes, UEM Land’s focus on ensuring better security for Nusajaya which spans 24,000 acres and is one of Iskandar’s five flagship zones, is not surprising. The state administrative offices are located there as are attractions such as Legoland which is slated to launch in September.
Mr Wan said nine out of ten buyers of UEM Land’s waterfront properties in Puteri Harbour are foreigners. In its East Ledang and Horizon Hills projects, they comprise 70 and 50 per cent, respectively.
Buying a house in Malaysia might not be everybody’s cup of tea, but at least now, for those who might find themselves priced out of the market, there is an alternative option for consideration.
Hey, even our PM is all smiles about Iskandar!
Check out this site if you wanna find out more.
* Can Malaysia support so many Universities in Educity? What’s interesting to note is, even though there are quite a number of Universities, each only offer something specialized in a certain field. For example, Newcastle offers only medical courses, while Netherlands Maritime Institute of Technology offers transport, shipping, seafaring, maritime and logistics management courses. Other universities likewise only has a certain department here.
Tags: Housing, investments, malaysia
Sales will be slower in coming weeks, maybe even months
by Colin TanThe announcement of the latest set of cooling measures for the residential market yesterday probably drew extreme emotions from many in Singapore – either cheers or despair, depending on which side you are on.
The emotions – accentuated by the fact that it came right out of the blue – are probably enough to induce a heart attack, some would say.
The new rules were specifically targeted at investment buys, while the announced plans to increase the supply of Executive Condominiums recognises the fact that the majority of potential upgraders have been largely left out of the current market run-up.
The announcement probably came as a shock to many but you could say the warning signs were there, the increased buying from foreigners and the ever shrinking apartment sizes being offered on the market.
However, it does not mean that all investment buys will be affected as the rules left just enough room for some investment buys by Permanent Residents (PRs) and Singapore citizens. PRs buying their first property and citizens their second property onwards are not affected.
Already people are asking me whether the new measures will induce a price correction? It really depends on the reaction of developers and how much of the current purchases are investment buys.
If the majority of buyers have been investors, the measures have the equivalent effect of a sudden price increase of 3 per cent or more on the market.
Sales will be a lot slower in the coming weeks or maybe even months. Investors may stay away while genuine buyers will take their time to commit. Depending on how long this phase drags on, some developers may panic and start offering bigger discounts.
However, if they hold their nerve, there is enough liquidity in the market to overcome this latest set of measures, provided of course, the expected economic slowdown next year does not hit us hard.
Colin Tan is head of research and consultancy at Chesterton Suntec International.
(via TodayOnline 8 Dec 2011)
Additional stamp duties surprise analysts and industry players
by Tan WeizhenSINGAPORE – To curb excessive investment demand on private homes, the Government is imposing additional stamp duties – over and above the existing tax – on certain categories of property purchases from today.
It also announced yesterday that it will inject sites that can potentially yield a total of 14,100 units in the Government Land Sales (GLS) Programme for the first half of next year. Of these, about 7,000 units will be from sites on the Confirmed List.
The imposition of the additional stamp duties surprised analysts and industry players, with the Real Estate Developers’ Association of Singapore (REDAS) criticising the timing of the cooling measure which comes as the Singapore economy is headed for a slowdown next year.
Foreigners and corporations will be the hardest hit, needing to pay a 10 per cent Additional Buyer’s Stamp Duty (ABSD) on any private residential property.
Singaporeans will pay a 3 per cent ABSD on the third and subsequent properties, while permanent residents (PR) will pay a 3 per cent ABSD on the second and subsequent properties.
Singaporean first-time buyers and upgraders, and buyers of HDB flats will not be affected.
Some relief will be provided to alleviate the impact on affected Singaporeans, for instance those who marry foreigners or PRs and will be subject to the higher ABSD as a couple.
Reliefs will also be provided for qualifying developers and for purchases falling within the scope of Singapore’s international trade agreements.
Details of the reliefs will be provided on the Inland Revenue Authority of Singapore website.
Explaining the move, the Ministry of Finance and the Ministry of National Development said in a joint press statement that “even with the current economic uncertainties, the demand for private residential property remains firm. Given the uncertainty in stock markets and with interest rates remaining low, private property in Singapore continues to attract investors, local and foreign.”
It said: “Excessive investment demand will however make the property cycle more volatile, and thus increase the risks to our economy and banking system.”
The authorities noted that private home prices are currently 13 per cent above the peak in the second quarter of 1996 and 16 per cent above the more recent peak in the second quarter of 2008.
The joint statement added: “A higher ABSD rate for foreign buyers in particular is necessary, in view of the large pool of external liquidity and strong buying interest from abroad, and the relatively small size of the Singapore market.”
Move is ‘drastic’, say analysts
Property analysts described the cooling measure as “drastic”. However, they noted the rising foreign ownership of private homes and increasing prices.
Adding that a very small percentage of Singaporeans own a third home, head of research and consultancy at SLP International Nicholas Mak said: “This is a pre-emptive strike in preventing an increase in buying demand from foreigners, especially the non-residential foreigners.”
Mr Chris Koh, director of Dennis Wee Group, noted that foreign ownership of private properties has increased from 30 per cent last year to 33 per cent to date, pushing prices to unrealistic levels.
However, International Property Advisor chief executive Ku Swee Yong felt the measure “aimed at foreigners may be missing the mark”.
He argued that the recent spike in private home prices – especially in outside central regions (OCR) areas such as Ang Mo Kio, Pasir Ris and Chua Chu Kang – were driven primarily by Singaporeans.
“I worry that the price index will continue to rise (albeit more slowly) while at the same time we leave foreign investors with a bad taste in their mouths,” said Mr Ku. He added: “Many foreigners are here to work and settle their families down and they need to own one home for shelter over their heads.”
REDAS said in a press release that it was “disappointed in the lack of consultation on the latest measures”. It said: “They came as a surprise as the current market outlook is uncertain. The good take up rate in the primary market is driven by the increased number of new launches and unique selling points of certain projects. It is not indicative of a return to a speculative market.”
It added: “Given that the local economy is expected to slow down next year, we believe these measures are untimely.”
On the GLS programme for the first half of next year, the Government said the supply – which is less than the 8,100 units offered under the Confirmed List in the second half of this year – takes into account “the ample pipeline supply and the dampening effect of the ABSD”.
The Government added that it will “continue to monitor the property market and adjust our property policies in step with changes in the market and the economy”.
(via TodayOnline 8 Dec 2011)
A few readers have posted some questions on bankruptcy in Singapore, something I’m not familiar with. I happen to come across some Q&A, which I thought I will share with you.
The following is from the book “Talk Money” by Lorna Tan, The Sunday Times Invest Editor. Note that the article was written on 29 June 2008, so this might not be the most updated answers.
Q: What is the minimum debt level at which an individual can be made bankrupt by a creditor?
A: The level was raised from $2,000 to $10,000 in 1999. You might owe a bank less than $10,000, but you could still be made a bankrupt if the aggregate amount of all the debits, which include credit card and car loans, held by you is $10,000 or more.Q: When the Official Assignee (OA) seizes a bankrupt’s belongings, which personal and home items is he allowed to keep?
A: Section 78(2) of the Bankruptcy Acts lists the property that is specifically excluded from being divided among a bankrupt’s creditor as:
1. Property held by the bankrupt in trust for any other person;
2. The tools, if any, of his trade;
3. Such clothing, bedding, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of the bankrupt annd his family; and
4. Any property of the bankrupt that is excluded under any other written law.
You can make a case for why certain items should not be seized. As for those bought under hire purchase, they are likely to be repossessed by the vendors.Q: How much of the bankrupt’s pay is he allowed to keep for the family monthly expenses and for paying his debt?
A: The bankrupt is allowed to support himself and his family. Under Section 82, he is duty-bound to account for any money or property he receives after becoming a bankrupt. These include his income and, after allowing a sum that is “reasonably necessary” for him and his family’s maintenance, he is required to hand over any excess to the OA. This is for division among the creditors. The bankrupt is required to list his expenses in a Statement of Affairs and he should try to modify his lifestyle. Subject to certain exceptions, property acquired by the bankrupt or that passes to him before his discharge is also divisible among his creditors.Q: I have been working for many years with a good record. Will my bankruptcy put my job in jeopardy?
A: Depending on the occupation, the regulations might require the termination of your services or redeployment to another job. This is usually the case for those providing advice or executing transactions in the financial services industry.Q: Will my employer be told of my bankruptcy?
A: In some jobs, you might be required to inform your employer. Also, note that your bankruptcy will be advertised, so employers or third parties could find out from reading the newspapers, said Ms Lie Chin Chin, the managing director of law firm Characterist.Q: Is my Housing Board flat safe from the reach of creditors?
A: Yes, unless you bought or refinanced it with a bank loan and the loan agreement provides for foreclosure in the even of bankruptcy. The OA will not seize HDB residential properties owned by bankrupt Singapore citizens for distribution to creditors.Q: I am heading for bankruptcy. Is it advisable to transfer my property or other assets to my family?
A: Once you are deemed unable to meet financial obligations, any action such as the one you mentioned might be deemed as an attempt to defraud creditors. Thus, the money might still be recoverable when you are made a bankrupt. The peroid of tracing back can range from six months to as long as five years depending on the nature of the transfer, said lawyer Amolat Singh of Amolat Singh & Partners.Q: Can I take a holiday overseas while I’m in bankruptcy?
A: You must seek the OA’s permission. The OA may require you to reveal who is paying your holiday expenses, said Mr Singh. If you leave Singapore without approval, you can be jailed for up to two years or fined up to $10,000 or both.Q: When and under what circumstances can an individual be discharged from bankruptcy?
A: There is no automatic discharge and the timing depends on various factors such as whether you have a proposed scheme to settle debts partially if not wholly. There are people who remain bankrupts for as long as two decades and there are dissatisfied creditors who object to a discharge.Q: Is it true that after three years, the OA may discharge you if you owe less than $500,000?
A: Under the Bankruptcy Act, the OA has been given an administrative discretion to issue a certificate discharging a person from bankruptcy, provided that:
1. The individual has been bankrupt for at least three years, and
2. The aggregate amount of his debts does not exceed $500,000.
Such a decision is subject to judicial review by the courts.Q: What difficulty might I face from having been a bankrupt?
Credit Bureau Singapore, a commercial entity set up by the banks, will keep a record of your bankruptcy for six years. This will be given to banks if you apply for a credit facility after your discharge. Banks could reject your applications for between three and five years after your discharge. You could find it hard to get a credit card or housing and car loans. Public searches with Ipto on an ex-bankrupt’s record of bankruptcy will throw up the bankruptcy for up to six years after the bankrupt’s discharge.
Tags: bankruptcy, hdb
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