by Benson Koh on March 7, 2010
in HDB News
HDB is also extending its hands for people with its second concessionary loan by allowing buyers who is downgrading, upgrading or buying flat of the same type to borrow.
Previously, only buyers who are upgrading their flats are allowed to borrow the second time directly from HDB. This might have unintentionally caused families who are not ready to upgrade their flats to do so.
Read the official release from HDB here
Right Sizing the Quantum for the Second Concessionary Loan
HDB will reduce the quantum of the secondary concessionary loan by the full CPF proceeds and part of the cash proceeds from the sale of the existing or immediate past HDB.
Flat buyers can keep the greater of $25,000 or half of the cash proceed (including cash deposit received) and determine the quantum of the second loan to be granted.
50% of the cash proceeds (including deposit and cash over valuation) from the sale of the immediate past HDB flat and all of the CPF balance to finance the purchase of the next flat.
HDB will also be helping home owners who will be buying their next flat before selling their existing one by allowing them to apply for the second concessionary loan by granting them a bigger laon at commercial interest rates. The commercial interest rates are pegged to the 3-month average non-promotional interest rate for HDB flats offered by the 3 local banks.
They will redeem this loan with the full CPF refund from the sale of existing flat and part of the cash proceeds and will be reverted back to a concessionary rate loan.
A working example of how the new policy will be affecting buyers taking the second concessionary loan
by Benson Koh on March 6, 2010
in HDB News
The Government has released a series of anti-speculation measures to keep up with the private sales measure as to curb the rising cash-over-valuation (COV) syndrome that is making homes more unaffordable in the resale market.
Read the official release from HDB here
Raising the Minimum Occupancy Period (MOP) for the resale of non-subsidised HDB flats from 1 and 2.5 years to 3 years
The objective is to reinforce owner-occupancy.
Currently, lessees of subsidized HDB flats are subject to an MOP of 5 years and will still remain the same. On the other hand, lessees of non-subsidised HDB flats i.e. resale flats bought without CPF Housing Grant are subjected to the old MOP of
- Those who takes an HDB concessionary loan – 2.5 years
- Those who takes a bank loan or do not take a loan – 1 year
The newly revised MOP for resale of non-subsidised flats will be increased to 3 years, regardless of whether the buyer takes an HDB loan, a bank loan or no loan at all.
This new policy will apply to resale transactions where applications are received by HDB from 5th March 2010 (immediate) onwards.
With the latest Budget released for 2010 by Financial Minister Tharman Shanmugaratnam, property tax computation for home owners will be on a 3-tier progressive scheme.
Based on Annual Value (AV) of your owner occupied home, the tiers are as follows:-
- 0% on your first $6,000 of AV
- 4% on the next $59,000 of AV
- 6% on anything above $65,000 of AV
There is already a new online calculator available based on the new tax tier on IRAS website for you to computate your 2011 property tax should you be able to know the latest AV of your home.
Rationale for New Property Tax Tier
Mr Tharman explains that with a moderately progressive property tax system, together with an income tax system that collects more taxes from better-off individuals and a flat GST rate that everyone pays, will form a fair system of taxes as a whole.
And with such, this tax system will benefit most Singaporeans.
The Edge has released the weekly list of Singapore property transactions done between January 15th to January 22nd 2010.
Download a copy of the pdf here.
Among the Highlights
- An apartment at District 4 Caribbean at Keppel Bay sold for $1,497 psf
- An apartment at District 14 The Trumps sold for $952 psf
- A terrace house at District 15 Everitt Road sold for $1,310 psf
- A terrace house at District 9 Emerald Hill sold for $3,513 psf
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