1. Resale Levy Payable
When you sell your first subsidised flat and purchase a second subsidised property, you would need to pay resale levy. The first subsidised flat could be a direct purchase from HDB or resale flat purchased with grants. The resale levy amount is determined by the size of the first subsidised flat.
2-rm..........$15,000
3-rm..........$30,000
4-rm..........$40,000
5-rm..........$45,000
Executive..........$50,000
2. Minimum Occupation Period: 5 years
Now all HDB purchases require owners to occupy for a minimum of 5 years regardless if the purchase was with or without loan or grant. Before reaching MOP, you are not allowed to sell your flat or buy another residential private property.
3. Focus on Cash Over Valuation (COV) removed
Sellers are no longer allowed to do valuation report. HDB will only accept valuation requests from buyers or their appointed property agent after the buyers and sellers have entered into contract (Option to Purchase). Introduced on 10 Mar 2014, this change is to bring the focus on the flat price rather than COV.
In the current slow resale market, many purchases have been transacted without COV.
4. Take This Grant Again: Now its $20,000
The Proximity Housing Grant (PHG) a.k.a. stay near or bring parents/married child grant has been doubled to $20,000 for couples and $10,000 for singles bringing parents. It also extended to those who have previously enjoyed the family grant.
Plus, it works both ways - children moving near parents OR parents moving near married child.
5. Your Cash Proceeds May Be Reduced!
If you plan to use a second HDB concessionary rate loan, the loan amount has to be reduced by using part of the cash proceeds from the sale of your current or immediate past HDB flat.
You may keep $25,000 or half of the cash proceeds, whichever amount is more.
E.g. 1: if cash proceeds is $40,000, then you keep $25,000 and pay up $15,000
E.g. 2: if cash proceeds is $60,000, then you keep $30,000 and pay up $30,000
6. Cap on CPF Usage When Buying Older Properties
There is a limit on maximum CPF amount for buying properties with balance lease less than 60 years. If you are eyeing to move back to that old estate where you grew up, check again.
If you own an older HDB flat say more than 39 years old, you may face challenges finding a buyer.
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