Archive for August, 2010

Summary of changes to Singapore Property Rules

Monday, August 30th, 2010

A whole bunch of changes in rules were made during the National Day Rally 2010. It affects both HDB and private property owners.

Here is a summary of the changes:

1. If you buy a HDB resale flat now with no HDB loan or grant, you now have to occupy it for 5 years before you can sell your flat.

(Previously, you need only occupy the unit for 3 years.)

2. Households earning $8k-$10k now eligible for DBSS, and $30k CPF housing grant. Must take private bank loan.

3. 16,000 more new flats will be offered this year, and up to 22,000 next year, pending demand.

4. BTO flat owners can now collect their keys 6 months earlier. This means they need only wait 2.5 years for their new flat, versus the current 3 years.

5. Private property owners who buy resale HDB flats must now dispose of their private property within six months of purchase. This is to prevent private property owners from buying HDB resale flats for investment purposes.

(Previously, private property owners need not dispose of their private property, if their HDB is primary residence.)

6. All buyers of HDB flats now have to meet 5 year minimum occupation period (MOP) before reselling the flat or before they can invest in private property.

(Previously, resale flat buyers who have not taken a HDB grant or HDB loan can buy private property for investment immediately, and sell their HDB flat after 3 years)

7. Seller’s Stamp Duty (SSD) is now applicable to any seller who sell their property within the 1st 3 years. (HDB sales are not affected due to MOP of 3 or 5 years).

    (A) SSD is calculated as:
    – 1% for first $180,000
    – 2% for next $180,000
    – 3% for balance.

    (B) If property sold within:
    – 1st year = Full SSD
    – 2nd year = 2/3 SSD
    – 3rd year = 1/3 SSD

8. If you have an outstanding housing loan and wish to buy a second property, a 30% downpayment is now needed (at least 10% cash, with balance payable with CPF). Those with no outstanding housing loan, 20% downpayment remains.

See complete news for more details:
– More help for first timers (link)
– HDB to raise income ceiling (link)
– HDB market set to cool (link)
– MND announces measures (link

MND announces measures

Monday, August 30th, 2010

1. Seller’s Stamp Duty (SSD) is now applicable to any seller who sell their property within the 1st 3 years. (HDB sales are not affected due to MOP of 3 or 5 years).

2. SSD is calculated as:
– 1% for first $180,000
– 2% for next $180,000
– 3% for balance.

3. If property sold within:
– 1st year = Full SSD
– 2nd year = 2/3 SSD
– 3rd year = 1/3 SSD

4. If you have an outstanding housing loan and wish to buy a second property, a 30% downpayment is now needed (at least 10% cash, with balance payable with CPF). Those with no outstanding housing loan, 20% downpayment remains.

THE Ministry of National Development (MND) announced on Monday several measures that would maintain a ‘stable and sustainable’ property market, that will take place with immediate effect.

In a statement issued on Monday morning, MND said it would increase the holding period for the imposition of Seller’s Stamp Duty (SSD) on residential properties sold from one year to three years.

The SSD levied will vary according to the term of occupancy. If the property is sold in the first year of purchase, the full SSD will be levied – one per cent for the first $180,000 of the consideration, two per cent for the next $180,000, and three per cent for the balance. Two-thirds of the SSD will be levied for properties sold in the second year of occupancy and one-third for properties sold in the third year of occupancy.

The extended SSD will not affect HDB lessees as the required Minimum Occupation Period for HDB flats is at least 3 years.

For property buyers with outstanding housing loans, the Minimum Cash Payment has been increased from five per cent to ten per cent of the valuation limit. This measure is applied only to buyers of private residential properties, Executive Condominiums, HUDC flats and HDB flats (including those under the Design, Build and Sell Scheme) who are taking housing loans from MAS-regulated financial institutions who already have one or more outstanding housing loans.

For this group, the Loan-to-Value (LTV) limit has been lowered from 80 per cent to 70 per cent. Borrowers who do not have any outstanding housing loans will continue to have an LTV cap of 80 per cent. Loans granted by HDB for HDB flats (including DBSS flats) will still have an LTV cap of 90 per cent.

HDB loans are offered to eligible first-time flat buyers and second-timers who are right-sizing their flats to meet their housing needs. They are required to utilise all of their CPF Ordinary Account balance before HDB loans will be granted.

In their statement, the MND said lowering the LTV limit would ‘send a clear signal’ to financial institutions to maintain credit standards, and also encourage greater financial prudence.

(via ST Online)