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If 2nd timer but not taking hdb loan,need 2 pay resale levy?


Relacklabrudder
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Turbocharged

The issue is not where the loan is from.

 

Flat owners who do not buy a 2nd subsidised flat from HDB need not pay the resale levy.

 

A flat is considered subsidised, if you have bought it:

- Directly from HDB, or

- From the open market with a CPF Housing Grant

 

 

 

 

http://www.hdb.gov.sg/fi10/fi10322p.nsf/w/...vy?OpenDocument

on top of that, buying DBSS and EC direct from HDB also dont need to pay Resale Levy.

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ok, if i buy a subsidise flat? if i upgrade 2nd time from 5rm to say EC or DBSS, i dun nid.

 

but if i go for another subsidise flat 5rm or downgrade to 4rm or 3rm then i need pay levy right? even if i do not take the hdb loan the 2nd time?

 

 

The issue is not where the loan is from.

 

Flat owners who do not buy a 2nd subsidised flat from HDB need not pay the resale levy.

 

A flat is considered subsidised, if you have bought it:

- Directly from HDB, or

- From the open market with a CPF Housing Grant

 

 

 

 

http://www.hdb.gov.sg/fi10/fi10322p.nsf/w/...vy?OpenDocument

 

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Turbocharged

ok, if i buy a subsidise flat? if i upgrade 2nd time from 5rm to say EC or DBSS, i dun nid.

 

but if i go for another subsidise flat 5rm or downgrade to 4rm or 3rm then i need pay levy right? even if i do not take the hdb loan the 2nd time?

 

As long as you get another BTO or Sales of Balance flat direct from HDB you need to pay.

 

if not, DBSS and EC dont need to pay. take note EC only. EA need to pay. (EA available only at Sales of balance flat only and normally are reposses flat)

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(edited)

As long as you get another BTO or Sales of Balance flat direct from HDB you need to pay.

 

if not, DBSS and EC dont need to pay. take note EC only. EA need to pay. (EA available only at Sales of balance flat only and normally are reposses flat)

 

 

this is not true right?

 

bcos if i have a 3rm flat and i go for another 5rm BTO or sales of balance the 2nd time, i think i do not need to pay the levy since i are 'upgrading'

Edited by Relacklabrudder
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ok, if i buy a subsidise flat? if i upgrade 2nd time from 5rm to say EC or DBSS, i dun nid.

 

but if i go for another subsidise flat 5rm or downgrade to 4rm or 3rm then i need pay levy right? even if i do not take the hdb loan the 2nd time?

 

 

You need to pay

 

- If you buy a flat directly from HDB (eg: BTO, Sale of Balance Flats)

- If you buy from the open market AND use any of the CPF grants (eg: Singles Grant, Half-housing grant etc)

 

You don't have to pay

 

- If you buy a DBSS or EC directly from HDB

- If you buy from open market and DO NOT use any CPF grants. This is even if you're downgrading from a 5 rm to 4/3 rm

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this is not true right?

 

bcos if i have a 3rm flat and i go for another 5rm BTO or sales of balance the 2nd time, i think i do not need to pay the levy since i are 'upgrading'

 

Upgrade still must pay levy if your next flat is considered "subsidised".

 

In short, it doesn't matter if you're upgrading or downgrading or using HDB loan or bank loan. As long as your first flat was subsidised and your second flat (excluding DBSS and EC) are also subsidised, you need to pay levy

 

 

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dun really understand bcos for 2nd timer, are there any grants?

 

i think grants are for 1st timer.

 

assuming 1st timer i took a 3rm from HDB direct (no grants), then 2nd time i want to take again HDB but 4 or 5rm flat, so it is upgrade, therefore no need to pay resale levy.

 

correct me if i am wrong

 

 

 

 

You need to pay

 

- If you buy a flat directly from HDB (eg: BTO, Sale of Balance Flats)

- If you buy from the open market AND use any of the CPF grants (eg: Singles Grant, Half-housing grant etc)

 

You don't have to pay

 

- If you buy a DBSS or EC directly from HDB

- If you buy from open market and DO NOT use any CPF grants. This is even if you're downgrading from a 5 rm to 4/3 rm

 

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Turbocharged

this is not true right?

 

bcos if i have a 3rm flat and i go for another 5rm BTO or sales of balance the 2nd time, i think i do not need to pay the levy since i are 'upgrading'

this is old rule liao.

now rule change. as long as its HDB you have to pay resale levy. regardless of type of flat.

only upgrade they consider is DBSS and EC

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(edited)

dun really understand bcos for 2nd timer, are there any grants?

 

i think grants are for 1st timer.

 

assuming 1st timer i took a 3rm from HDB direct (no grants), then 2nd time i want to take again HDB but 4 or 5rm flat, so it is upgrade, therefore no need to pay resale levy.

 

correct me if i am wrong

 

Your 3rm from HDB is considered a "subsidised" flat as it was sold directly by HDB. No grants were given cos the sale price was already subsidised (ie: cheaper than market rate)

 

If you buy your second flat (doesn't matter the size) directly from HDB again, it is term as "subsidised" for the same reasons as your first flat and for that, you need to pay resale levy.

 

Even though each Singaporean is entitled to purchase up to 2 subsidised flats, there is a caveat to it.

 

From HDB:

 

"Singapore citizen households enjoy a housing subsidy when they buy a new flat from HDB or a resale flat in the open market applied with CPF Housing Grant. Each eligible family can purchase up to a maximum of 2 subsidised flats, in other words, enjoy 2 housing subsidies.

 

The resale levy is meant to reduce the subsidy on the 2nd subsidised flat so as to maintain a fair allocation of public housing subsidies between 1st and 2nd-timer citizen families. This is also to give priority to 1st-timers who have more urgent housing needs."

 

So if your current place is a 3 rm, you pay a levy of 30k. Last time, it used to be a % of your sale price. Even factoring this 30k, your new flat will still be cheaper than buying from the resale mkt directly. Take this 30k as a "COV" you pay to HDB!

Edited by Altivo
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Turbocharged

dun really understand bcos for 2nd timer, are there any grants?

 

i think grants are for 1st timer.

 

assuming 1st timer i took a 3rm from HDB direct (no grants), then 2nd time i want to take again HDB but 4 or 5rm flat, so it is upgrade, therefore no need to pay resale levy.

 

correct me if i am wrong

the moment you buy direct from HDB. the flats are consider subsidise liao. so 2nd time from HDB still consider subsidise.

 

you might feel flat from HDB are not subsidise at all, but its another problem altogether.

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this is old rule liao.

now rule change. as long as its HDB you have to pay resale levy. regardless of type of flat.

only upgrade they consider is DBSS and EC

 

 

oohhh Danke Sehr, i am outdated [laugh]

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thank you , merci buku. now i understand liao, as someone pointed i outdate liao [:p]

 

 

 

Your 3rm from HDB is considered a "subsidised" flat as it was sold directly by HDB. No grants were given cos the sale price was already subsidised (ie: cheaper than market rate)

 

If you buy your second flat (doesn't matter the size) directly from HDB again, it is term as "subsidised" for the same reasons as your first flat and for that, you need to pay resale levy.

 

Even though each Singaporean is entitled to purchase up to 2 subsidised flats, there is a caveat to it.

 

From HDB:

 

"Singapore citizen households enjoy a housing subsidy when they buy a new flat from HDB or a resale flat in the open market applied with CPF Housing Grant. Each eligible family can purchase up to a maximum of 2 subsidised flats, in other words, enjoy 2 housing subsidies.

 

The resale levy is meant to reduce the subsidy on the 2nd subsidised flat so as to maintain a fair allocation of public housing subsidies between 1st and 2nd-timer citizen families. This is also to give priority to 1st-timers who have more urgent housing needs."

 

So if your current place is a 3 rm, you pay a levy of 30k. Last time, it used to be a % of your sale price. Even factoring this 30k, your new flat will still be cheaper than buying from the resale mkt directly. Take this 30k as a "COV" you pay to HDB!

 

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(edited)

pls advise.

 

or regardless as long buying smaller flat or equivalent of what i bot 1st time, u need to pay resale levey?

Straight answer: YES when you buy a 2nd MARKET subsidised flat. No two way about it.

Don't be caught unnecessarily without doing proper homework because downgrading has its price which may/may not be in the interests of those who don't do their homework before making such major decision.

Buying DBSS and ECs are considered buying from a private developer and not directly from HDB. Hence, the resale levy waiver. However, iirc, the only flat where resale levy is not applicable when buying directly from HDB for 2nd timer is their Studio Apartments which are restricted to those above 55 yo.

Edited by Neutralsg
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dun really understand bcos for 2nd timer, are there any grants?

 

i think grants are for 1st timer.

 

assuming 1st timer i took a 3rm from HDB direct (no grants), then 2nd time i want to take again HDB but 4 or 5rm flat, so it is upgrade, therefore no need to pay resale levy.

 

correct me if i am wrong

 

If you bought first 3rm without any form of grant then it may be possible no need levy. Must make sure no subsidy at all for 1st resale flat. To confirm, better check with HDB hotline.

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