Tuesday, January 19, 2016

Can I Buy A Private Property If I Own A HDB?

In the past, there were many people who bought private properties and made a lot of money when they sold it at a much higher price later. Some bought condominiums while some bought landed properties. Private properties are a good form of investments where we can buy it, rent it out or sell at a higher price later. Previously, I wrote that "Your HDB Flat Is Not Really An Investment". This is different for a private property where private properties are generally considered as an investment asset.

It will be almost impossible for most of us to buy 2 condominiums at once and stay in one while renting the other one out. It is too expensive for most people. Now, if I tell you that there is a possibility that we can buy a private property even if we own a HDB, will you be interested? Yes, you can actually own a HDB and still be eligible to purchase a private property. In this post, I will share with you the different ways of how it can be done and also the restrictions to take note of.

Credit: https://www.flickr.com/photos/erwin_soo/8083007078/


How Can I Buy A Private Property If I Own A HDB?

Fulfilling the MOP

To buy a private property when you already own a HDB flat, the first condition you have to meet is to fulfil the Minimum Occupation Period (MOP). The MOP for HDB is 5 years which means you have to stay in your current HDB for 5 years before you are allowed to purchase a private property. This is only applicable for Singapore citizens.

If all the owners of your flat are Singapore Permanent Residents and you are a flat owner or essential family member, there is no way you can buy a private property while keeping your HDB flat. You will have to sell your flat within 6 months of acquiring your private property.


Restrictions to take note

While it is possible to buy a private property while keeping your HDB, there are certain cooling measures which the government impose to prevent housing prices from going up too fast.

Loan to value ratio for second property and above

The loan to value ratio or LTV is the amount of loan you can get from the bank for that particular property. If the LTV is 90%, it means you can borrow up to 90% of the price of the property with only 10% down payment.

Here's the various LTV for first, second and third and subsequent properties:

1st Housing Loan:

LTV 80% for loan tenure up to 30 years and till age 65 years old. Minimum 5% upfront cash payment, 15% down payment can be paid by CPF

LTV 60% for loan tenure above 30 years and/or above 65 to maximum 75 years old. Minimum 10% upfront cash payment

For 1st housing loan, it is quite straight forward and not much cash is needed for the purchase. All the examples I am using is assuming the loan is from a bank. If you take a loan from HDB for the purchase of HDB flats, the LTV is 90% with no minimum upfront cash payment.

Let's continue to 2nd Housing Loan:

LTV 50% for loan tenure up to 30 years and till age 65 years old. Minimum 25% upfront cash.

LTV 30% for loan tenure above 30 years and/or above 65 to maximum 75 years old. Minimum 25% upfront cash payment

As you can see, the LTV reduces drastically for the 2nd housing loan. If you own a HDB and buy another private property, you may be subjected to this reduction of LTV. But, there are circumstances where you still can get 80% LTV. I will go more into details below.

3rd and subsequent Housing Loan:

LTV 40% for loan tenure up to 30 years and till age 65 years old. Minimum 25% upfront cash.

LTV 20% for loan tenure above 30 years and/or above 65 to maximum 75 years old. Minimum 25% upfront cash payment.


How To Buy A Second Property and still get 80% loan?

As you can see above, for 2nd housing loan, the LTV reduces to 50% and there is a minimum upfront cash of 25% needed. If you buy a $800,000 private property, this is $400,000 down payment with $200,000 cash needed. There is a way to overcome this.

The key to getting 80% loan for your second property is to make it a first housing loan instead of second housing loan. The keyword is on the housing loan. Simply said, if you own a HDB and have already fully paid off all your loans, then when you get a loan for your private property, it will be considered as first housing loan. The number of loans is taken into consideration for the LTV, not the number of properties. In this way, you can own a second property while still be able to get the full 80% loan.


Additional Buyer's Stamp Duty

Another thing to take note is the additional buyer's stamp duty (ABSD).

Here are the various ABSD for different groups of people depending on the number of properties you own:

Singapore Citizens

1st residential property: NIL
2nd residential property: 7%
3rd and subsequent residential property: 10%

Singapore PR 

1st residential property: 5%
2nd residential property: 10%

3rd and subsequent residential property: 10%

Foreigners

1st residential property onwards: 15%


Total Debt Servicing Ratio

Throughout my mortgage consultancy work, TDSR is the most confusing part for most people who want to buy a property. This is also the pain point where a lot of people who want to buy a private property find out that they actually can't afford the loan.

The current TDSR is 60% which simply means you cannot use more than 60% of your gross monthly income to service your loans. This is inclusive of all loans from housing, car, credit cards, student loans etc.

From this, we can calculate out the maximum loan eligibility for each individual. This is very confusing for a lot of people and it won't be easy to calculate. If you need help to calculate your loan eligibility for the purchase of a HDB or private property, you can email me at sgyi@homeloanwhiz.com.sg. You can also email me if you need to take up a new home loan or refinance your housing loan. I provide this service on a complimentary basis. More details of my service here.


Yes you can buy a private property if you own a HDB. It may be a good investment for those who are thinking to go into property investment. You don't have to sell your HDB and buy 2 condominiums in order to rent it out. Can I buy a private property if I own a HDB? Yes you can!

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1. Fixed Deposit Home Rate - The Alternative Interest Rate To SIBOR
2. Prepare To Pay Higher For Your Home Loans If You Do Nothing

118 comments:

  1. There is another way which I read from a blog.

    1. Buy a BTO from HDB as a married couple.
    2. Live for 5 years and sell it off.
    3. Individually, buy a private property. This would allow both parties to take a loan as a first loan.

    ReplyDelete
    Replies
    1. Hi ang,

      Yes this can be done. We can buy a private property under one name. But its quite costly for most people to afford the private property alone. Coupled with measures such as the tdsr, its harder to get a loan.

      Delete
  2. If I own a private property, can I buy open market HDB?

    ReplyDelete
    Replies
    1. Hi Chiang,

      If you own a private property, you will need to dispose it within 6 months after purchasing the HDB.

      Delete
  3. Hi

    My wife is a Singaporean and I am a PR. Our hdb is under her name and I am I I am stated as an occupier according to HDB. (We bought this unit under HDB foreigner spouse scheme at 2012 )

    Can I buy the private property without selling out my this HDB?

    Thank you.

    ReplyDelete
    Replies
    1. Hi,

      If you are only the occupier but not the owner of the HDB, you can buy a private property without any problem.

      Delete
  4. In this case he is the essential occupier. I thought essential occupier cannot buy.

    ReplyDelete
    Replies
    1. Hi Nicky,

      An essential occupier is actually not a owner of the flat. He/she can be deleted from being the occupier of the flat after 5 years occupation period. After that, he/she can buy any private property.

      Delete
  5. Hi
    I am planning to sell off my current hdb flat and downgrade to a fully paid smaller hdb flat. With the cash on hand, i am planning to buy a 1 bedder private property. I am not sure if i should buy a private property after i sell my flat or do as what i plan.

    ReplyDelete
    Replies
    1. Hi Happy Tham,

      If you have extra cash, it would be good to invest in private property which you can rent out. With current depressed property market prices, it would be a good time to look at it.

      Delete
  6. Hi,
    Currently I'm an occupier in a HDB flat, fully owned/paid by my husband. Can i buy a property on my own and will it be subject to ABSD?

    ReplyDelete
    Replies
    1. Hi Kris,

      If you're only an occupier and not an owner in the HDB flat, you can buy a property on your own without paying ABSD.

      Delete
  7. Hi,

    If i am the joint ownership for the HDB with my wife, then from what I can see is that we need to pay ABSD even the HDB us fully paid, right?

    ReplyDelete
    Replies
    1. Hi Robert,

      Yes you'll need to pay the ABSD even if the HDB is fully paid.

      Delete
  8. Hi,
    My husband owned a bto/hdb with her mother to be delivered to him this dec 2016. im a foreigner with epass visa can i buy a condo. My husband told me her mother dont like me to stay there.

    ReplyDelete
    Replies
    1. Hi,

      As a foreigner, yes you can buy a condo under your own name. However, do take note that there will be an additional buyer's stamp duty of 15% which you have to pay.

      Delete
  9. i am SPR n my husband is SC ,we own HDB now. can i use my name to buy private property? need to sell HDB?

    ReplyDelete
    Replies
    1. Hi AK,

      If you're a SPR and own a HDB, you have to sell your property within 6 months after you buy your private property.

      Delete
    2. Can she change her name to an occupier and purchase the private property?

      Delete
    3. Hi CK,

      We could do this in the past but it is not possible now.

      Delete
  10. I am a PR and my wife is an occupier for HDB (purchased in 2011). No my daughter got PR as well.
    My wife can buy a condo? Without selling HDB?

    ReplyDelete
    Replies
    1. Hi leelamohan reddy,

      If your wife is only an occupier for the HDB and not owner, yes she can purchase a condo without selling your HDB flat.

      Delete
  11. Hi SYYI,

    If I am a EC owner, 5-10 years later say I dispose my EC and buy a resale HDB, can I buy another private condo after getting the resale HDB? Thanks.

    Also, what's your view on the current huge supply of EC in SK & Punggol area? Thanks.

    ReplyDelete
    Replies
    1. Hi,

      Yes you can buy a private condo after buying a HDB provided you have met the minimum occupation period of 5 years. There will be restriction on the amount of loan you can borrow and additional stamp duty though.

      If there are huge supply of EC and lesser demand in SK and punggol, price will definitely drop further.

      Delete
  12. We have a 5 rm hdb flat in D19 fully paidoff and had bought a 3 bedder condo in D28 in 2014. Should we sell our hdb to get back the 7% tax or keep it to rent out? However rental market is competitive.

    ReplyDelete
    Replies
    1. Hi,

      It depends on whether you need the cash now by selling the HDB or you enjoy the cashflow for long term? For me personally, I think cashflow is good unless you got a place where you think you can invest and make your money grow faster.

      Delete
    2. I am married with a PR. I owned a landed property. My wife's name is not on the the landed property. My wife and i wanted to buy a bto, are we eligible? Or even resale flat?

      Delete
    3. Hi,

      If you own a private property now, you have to sell your HDB within 6 months of purchasing the HDB. Since your wife's name is not on the landed property, she can buy a resale HDB property or BTO 2 room if she's above 35 years old.

      Delete
  13. This comment has been removed by the author.

    ReplyDelete
    Replies
    1. Hi Angel,

      Yes you can after meet the 5 years MOP. Max loan is up to 50% and have to pay 7% additional buyer's stamp duty if you keep your cirrent EC and still have outstanding loans.

      Delete
  14. I am 24 yo Singaporean looking to purchase a condo with my mum. My mum co-own a fully paid HDB with my dad. Considering I am a first time buyer, how is the stamp duty for the condo calculated?

    Would it be possible to remove my name from the condo in the future so that I may be eligible for purchase for a hdb with my future partner.

    Thanks.

    ReplyDelete
    Replies
    1. Hi,

      If you're buying the condo with your mum, there will be an additional buyers stamp duty imposed which is 7% for singaporeans buying 2nd property. If you buy it under your name only, then will not have to pay the ABSD.

      Yes you can remove your name from the condo in the future but your mum will have to take over all the outstanding from you. Do take note that this is subjected to the TDSR also so it may be tricky then if your mum's income is not high enough to take over.

      Delete
  15. Hi,

    If I buy a HDB resale property as a 35 year old and get married later, can my spouse (who is only occupier but not owner) buy another private or HDB property as first-time buyer?

    ReplyDelete
    Replies
    1. Hi,

      If your spouse is an occupier only, she will be able to get a property as a first time buyer.

      Delete
    2. Hi SGYI,

      Assume the flat is bought in Sept 2016 under my name only. If we get married in Dec 2016, can my spouse still buy a private property after even though the MOP is not completed?

      Delete
    3. Hi,

      If your wife is not an owner of any property, there will be no restrictions to buy a private property. However, she still has to meet the income requirements in order to qualify for a loan for the property if needed. If you need advise on loan matters, you can email me at sgyi@homeloanwhiz.com.sg. i will reply you from there. Thanks!

      Delete
  16. But I was advised from hdb that if one party owns a hdb (less than 5 years) and the other owns a private, in the event they got married, they will have to dispose the hdb.

    ReplyDelete
    Replies
    1. Hi vOnvOn,

      You don't have t dispose the HDB if you don't own both the HDB and private at the same time. Even if married, don't have to combine the names in the HDB if not necessary. This will avoid the need for disposing of the HDB.

      Delete
  17. If i were to transfer my name of the bto or transfer it after mop period to my wife. Will i be able to have certain advantage of the LTV,ABSD and TDSR?

    ReplyDelete
    Replies
    1. Hi,

      I suppose you're referring to buying a new property after transferring your name?

      Once you transfer your ownership in your existing property to your spouse and have no more properties or mortgage loan under your name, you will not have to pay the ABSD and also the LTV will be at 80% instead of 50% for a second property. As for TDSR, since you're buying the new property alone, it will be based solely on your income only which could be lesser than a combined income.

      Delete
  18. Hi, I own a HDB flat and has met the MOP. Can I buy a new EC and at the same time hold on to my HDB flat? Tks.

    ReplyDelete
    Replies
    1. Hi,

      I'm not sure about that but i guess it can't be done as an EC is not a private property until it has passed the 5 years MOP. If you're buying a resale fully private EC, then it is possible.

      Delete
  19. Hi, We own a HDB Flat with existing HDB loan. if we want to buy EC, are we subjected to 80% LTV or 50% since we know that we cannot hold both the HDB and EC at the same time.

    Please advise.

    ReplyDelete
    Replies
    1. Hi Dab,

      Your LTV will be 50% if you have an existing loan. Unless you clear your loan then your LTV will be 80%.

      Delete
  20. Can SG citizen with private condo allowed to but hdb

    ReplyDelete
    Replies
    1. Hi,

      If you own a condo and buy a HDB, you'll have to sell your condo within 6 months after purchasing the HDB.

      Delete
    2. What happens if the person fails to sell the condo within 6 months?

      Delete
    3. Hi leongpengjun,

      This I'm not sure. It is required by law to sell the HDB if you purchase a private property.

      Delete
  21. Hi,
    If my hubby own a private property and i own a HDB with my parents, can i sell off my current HDB and buy another bigger HDB with my parents?

    ReplyDelete
    Replies
    1. Hi,

      If you are not the owner of the private property, you can definitely sell off your current HDB and buy a bigger one.

      Delete
    2. Thanks for the reply. Will i be affected by the ABSD?

      Delete
    3. If you sell and buy you won't be affected by ABSD. ABSD will only apply if you're buying 2nd and 3rd property while not selling the 1st property.

      Delete
  22. Hi,

    If I have an EC (5 years) and want to buy a condo, will I incur absd?

    Or will absd only be waived after EC is fully privatized (10 years)?

    Thanks!
    Shaun

    ReplyDelete
  23. Hi,

    If I have an EC (5 years) and wants to buy a condo, will I incur absd?

    Or will absd only be waived after 10 years (fully privatized)

    Thanks!
    Shuan

    ReplyDelete
    Replies
    1. Hi Shaun,

      Do you intend to keep your EC when you buu the condo? If you keep, it will be considered as a second property purchase and there will be absd.

      Delete
  24. Hi
    I have a friend, the husband is SPR, the wife is recently converted to SC. They both own a hdb (resale) and they are going to buy a new condo. Do they have to dispose their HDB when the new condo is ready?

    ReplyDelete
    Replies
    1. Hi,

      If they are both SC, don't have to dispose HDB when new condo is ready as long as the HDB meets the MOP of 5 years.

      Delete
    2. If one of the spouse is SPR, HDB fully paid. Can the couple buy a private property?

      Delete
    3. Hi,

      Yes you can as long as fulfill 5 years MOP

      Delete
  25. Hi, I owned a fully paid HDB resale flat with my spouse and has fulfilled the MOP. Can I purchase a private condo and rent out my HDB?

    ReplyDelete
    Replies
    1. Hi,

      From HDB website, you will have to continue to stay in your flat after acquiring private property unless prior approval is given from HDB.

      Delete
  26. whats your advice: sell HDB, take the cash out, and buy a pte freehold with 80% loan for rental. then, migrate and invest overseas may be aust. with the cash made out of the HDB sale. Do you think its a wise choice?

    ReplyDelete
    Replies
    1. Hi,

      Don't think its a wise choice to just buy a private property and rent out without any buffer. Some private properties the rental cannot cover the monthly instalment which will cause even more stress then. Downpayment for property would have used up more than half of the sale of the HDB. Futhermore, migrating is another issue altogether to leave family and friends here.

      Delete
  27. Hello, If I have an HDB value say 500k (after minus outstanding HDB loan), zero in CPF & 150K cash. how is the best to invest in property?

    ReplyDelete
    Replies
    1. Hi,

      For private property, the downpayment is 20% with minimum 5% in cash. If you have the downpayment ready, then it is the first step to invest in property. Another thing to take note is the maximum loan you'll be eligible to take. This can be done by doing an IPA with a bank.

      Delete
  28. I am a 37 year old man who just purchase a BTO flat under the single's scheme and the flat will be ready in June 2019. But I intend to get marry in 2018 or 2019 and purchase a condo with my spouse. Will I be eligible to co-own a condo even though I didn't meet the M.O.P for my BTO flat?

    ReplyDelete
    Replies
    1. Hi don,

      No you'll not be eligible to purchase a condo if you've not met the MOP for the HDB yet

      Delete
    2. Do you think if I would speak to my MP about this matter would it help?

      Delete
    3. Hi don,

      I'm not sure whether it will help. You can try

      Delete
  29. This comment has been removed by the author.

    ReplyDelete
  30. I inherited a landed property from my aunt upon her death. I now want to buy an HDB/BTO/EC flat. Do I need to pay ABSD?

    ReplyDelete
    Replies
    1. Hi Steve,

      Honestly im not sure if you'll need to pay absd since you inherited the property and not bought it. You have to check with IRAS on this.

      Delete
  31. Hi, my wife and I currently own a HDB purchased 8 years ago and I own a condo purchased 3 years ago under my name only. Can we sell the HDB now and buy another resale HDB under my wife's name only so that i can keep the condo? Thank you for your advice.

    ReplyDelete
    Replies
    1. Hi,

      Yes you can. Once you sell your current HDB, you can buy another HDB under your wife's name only.

      Delete
    2. Meaning to say a married person can purchase a resale hdb under his/her name only?

      Delete
  32. Hi ,me and my wife singaporean. bought resale flat in tampines May 2009. if we buy condo now in singapore . we need to sell the hdb in six months? Because all this rule came in only 2010.
    For condo we can get 80% bank loan?

    ReplyDelete
    Replies
    1. Hi Amir

      Yes you can get maximun 80% loan if you sell your HDB. However, the loan granted is still subjected to the TDSR. It is recomended to do a approval in principal with a bank before you go ahead to purchase a property.

      Delete
  33. Hi..Currently I own a HDB resale flat but didn't complete the MOP of 5 years but is there any chance I can buy a Condo in my daughter's name who is already 21 years old. ? If so any chance I can change the ownership to my name after few years ?

    ReplyDelete
    Replies
    1. Hi Param,

      Yes you can buy the condo under your daughters name. You can change to your name after you fulfill the MOP for your HDB flat but do note the prevalent ABSD will apply.

      Delete
  34. Hi SGYi,

    Can I transfer my existing HDB housing loan to my husband and retain my ownership so that I can purchase a 2nd private property at 20% LTV?

    If yes. May I have the government link for detail explanation on this matter?

    ReplyDelete
    Replies
    1. Hi,

      I think for transferring of loan to another owner, it can be done but i do not have the link for this. The current restriction is on transferring of home ownership but loans are not stated in the restrictions. You'll have to check with HDB to make sure it can be done.

      Delete
  35. Hi, I am SC, I co-owned a hbd with my parents and owned a condo. Could I buy another condo without selling the hbd which my parents are staying?

    ReplyDelete
    Replies
    1. Yes you can buy another condo but do take note of the absd and loan restrictions as stated in my article above. For 3rd property, the restrictions imposed are quite a lot.

      Delete
  36. Hi SGYI,

    I am in an unique situation. MOP not completed but permission granted to sell the flat, which is not fully paid up yet. My wife and me are going to get a resale flat near her parents' place. We're also also thinking to invest in a private property at the same time. Are we able to do this without incurring absd?

    ReplyDelete
    Replies
    1. Hi Nixiak,

      If you're planning to buy HDB again, you'll still have to wait for the 5 years MOP before you can buy private property. After the 5 years, you can buy private property but still have to pay the absd unless the government removes this later.

      Delete
    2. Can we buy the hdb flat and put it under my wife's name then buy a private property under my name so as to avoid absd?

      Delete
    3. Hi nixiak,

      No you can't do that. A married couple has to include his/her partner's name as owner of the flat.

      Delete
  37. Hi, was wondering if I buy an resale hdb fully paidup without grants, am I subjected to MOP? Pls advise. Thks

    ReplyDelete
    Replies
    1. Hi Wongclan,

      Yes the MOP is still applicable regardless if you take or never take a loan

      Delete
  38. Hi. My fiance and I are planning to buy a resale flat. His parents have a HDB flat and an overseas property. We intend to buy our flat and bring in his parents as occupiers. They will sell their flat but can they keep their overseas property? Are we still entitled to the CPF grants because we are both first timers?

    ReplyDelete
    Replies
    1. Hi,

      If he bring in his parents as occupiers, they are essentially not owners of the flat so won't be a problem keeping their overseas property.

      Yes you and your fiance will be eligible for CPF grants as first timers. You'll be happy to know that the grants have been increased to 50k now.

      Delete
    2. Thanks for your reply! Yes, the grants have increased but I'm hoping prices won't increase too!

      Delete
  39. Hi, if we have a fully paid condo and want to buy a resales HDB. Can we do transfer ownership to one of my inlaws who has a HDB fully paid. Inlaws are retirees , can we remove 1 name out from HDB and use it to transfer our condo over to avoid ABSD?

    ReplyDelete
    Replies
    1. Hi,

      Yes you can transfer private property to your in laws but taking one name out of HDB will be difficult if they have bought it under the married couple scheme.

      Delete
  40. I'm SC and my wife is PR. Our HDB is fully paid up and wish to purchase a second private property and keep our HDB. What is the best way to minimise all the taxes incurred? Thanks

    ReplyDelete
    Replies
    1. Hi,

      If you keep your HDB and buy another property, you'll be subjected to ABSD. As your wife is a PR, the ABSD will also be higher if she is the co-owner with you for the private property. If you buy the private property under your name only, the ABSD will be lower at 7%.

      Delete
  41. Hi.. my husband and I are both SC but has a property overseas. Can we still buy secondhand HDB (not BTO)?

    ReplyDelete
    Replies
    1. Hi CJ,

      Yes you can but you have yo dispose of your overseas property within 6 months after acquiring the HDB.

      Delete
  42. Hello, don't make inaccurate sweeping statements like "if you are SPR owning a hdb u will never be able to buy a private property if u dun dispose the hdb in 6mths"
    This does not hold if the SPR is a co-owner with a citizen (which can also mean one of the SPR co-owners becomes a citizen). The SPR can still buy a private property and keep the hdb under his shared name if MOP conditions for the hdb is fulfiled.

    ReplyDelete
    Replies
    1. Hi Falco,

      Thanks for pointing that out. I've checked on HDB website and indeed it is written that only all owners who are SPR are affected. I've amended my article accordingly. Thanks!

      Delete
    2. Hi Falco,

      Thanks for pointing that out. I've checked on HDB website and indeed it is written that only all owners who are SPR are affected. I've amended my article accordingly. Thanks!

      Delete
  43. Hi. My husband and I, both SCs, are purchasing our first home - resale hdb. If we buy under one name does this mean that one of us will be owner and the other occupier? If this is so, after 5 years MOP,
    1. Can the occupier (for e.g. Me) purchase another property without ABSD?
    2. I assume this will be considered my first bank loan and I'll be able to get 80% loan?
    3. Am I only able to buy a private property? Or can I use my name to buy yet another hdb?
    Finally, is it wise to purchase first property under one name in order to save on ABSD and get a better loan for second property?
    Thanks!

    ReplyDelete
    Replies
    1. Hi,

      If you're married, i don't think you can buy HDB under one name only. Have to include both names as owners. After 5 years MOP you can buy a private property but have to pay ABSD and also will only be able to get 50% loan only.

      Delete
    2. Thanks.
      We did ask hdb recently and they said one spouse can be owner and the other occupier. So I had the conception that meant that the bank loan is only on the spouse who is owner. Thus after 5 years MOP, the spouse who is occupier is free to get another bank loan and also buy a private under his/ her name without ABSD.

      Delete
    3. If only one owner than it can be done

      Delete
    4. Hi, since the spouse is only the occupier, why must he wait and complete the 5 years MOP before buying a private property since he is not the owner of any property?

      Delete
    5. Hi,

      If not the owner, don't have to wait 5 years to buy a private property

      Delete
  44. Hi

    I am SPR (SC application pending) and my wife is SC.

    We bought resale HDB (2017) under married scheme (we both are owners, my wife is first owner since she's SC and I am second owner since I am SPR).

    I plan to save up to get a second private property for investment after MOP.

    Must I incur LTV 50% with ABSD 7%? Is there no other way?

    I only can get LTV 80% if I fully paid my first HDB (2047)?

    ReplyDelete
    Replies
    1. Hi Shared cave,

      There is no other way unless the cooling measures are removed. Yes you can only get 80% LTV after you finish paying your first loan.

      Delete
  45. Hi
    Husband and I are SC. We bought a hdb with him as owner and I the occupier.
    I would like to know what are my rights as an occupier over the flat?
    Can he sell the flat without my consent after MOP?
    If he passes on, do I have legal rights over the flat as wife? Or hdb can take back the property since he is the sole owner of the flat?

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    Replies
    1. Hi SSN,

      Apologies i can't advise on the legal rights over the property. You'll have to check with HDB on your rights.

      Delete
  46. Hi,
    My husband owns a hdb with his mum, bought 20yrs ago. After we got married, we bought a private condo 10yrs ago. We are both SC. We want to sell our condo to cash out but need to get another property. What advise would you give?
    1) Can we buy an EC? need to wait 30mths after we sell the condo since hub still owns a hdb? my name is not in his hdb, can i buy the EC with my name and avoid the 30mths wait? what is the payment scheme like so that i can ensure there is enough cash on hand.
    2) Should we get another more affordable condo? Is there a downtime after selling our current condo since hubby owns a hdb and if i wish to include his name in the new condo? Will his hdb affect me? Can I use my name only for the new condo?

    Appreciate your advise.

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    Replies
    1. Hi,

      Both of you can't buy the EC unless after 30 months of selling your condo and HDB. EC is a subsidised scheme under HDB so the rules are similar to that of the HDB flat.

      Both of you can buy another condo. There is no downtime for this. However, do note as long as you are your husband owns one property and buys another one, then have to pay the additional buyers stamp duty. If you use your name only for the new condo and sell the existing one, then do not have to pay the ABSD.

      Delete
    2. Thank you.
      Say we sell our current condo and buy a new condo,
      1)anything we need to note since hub owns a hdb? Is the new condo consider a first or second property?
      2)when hub owns a hdb(even it's without my name), does it affect me in any way if i decide to buy a condo without his name? (i heard that i am no longer consider a first time buyer since hub owns one)

      Thanks a lot!

      Delete
    3. Hi,

      As your husband owns a hdb currently, when you buy a condo together with his name, there will be absd payable. The condo will be considered a second property as long as one of the owners owns any other properties.

      If you buy a condo on your own, then it won't be a problem as it'll still be your first property after you've sold your existing property.

      Delete
  47. Hi...both my wife and me are SC. I co-own a fully paid HDB with my mum and my wife name is not in the HDB.
    1)Can she buy a private property without having to pay for the ABSD? She does not own any property.
    2)if we were to buy a private property with both our names(keeping my HDB), do we need to pay the ABSD?
    3)is it a must to put her name(either occupier or co-owner) in my HDB since we are married?
    Thank you :)

    ReplyDelete
  48. Hi,

    For scenario 1, yes your wife can buy a private property without paying absd.

    For scenario 2, yes you'll have to pay absd as long as one of the owners own another property.

    For scenario 3, if hdb has not requested you to put your wife's name in, then it shouldn't be a problem. By right when a couple buys a hdb property it is a requirement that both names be put inside. For your case its more special so you'll have to check with Hdb on it.

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    Replies
    1. Thanks for your advice :)

      Delete