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.