Can't meet minimum sum? Divorce and buy a second property.

[Windwaver]

Been happening for some time but this is a very good case where both cannot meet minimum sum 

https://singaporeuncensored.com/couple-divorce-so-they-can-buy-another-hdb-flat-to-earn-rental/

COUPLE DIVORCE SO THEY CAN BUY ANOTHER HDB FLAT TO EARN RENTAL

ByHello Its me

September 8, 2022

Bumped into an ex-colleague (who is the same age as me) earlier and had an interesting brief catch up chat over coffee.

He and his wife are now divorced. But except that there is nothing wrong with their marriage and they are still living together. The sole purpose of getting the divorce is to be able to buy ANOTHER HDB FLAT (under the singles scheme). So they collectively own two HDB flats as two single individuals.

You see, he was a manager that had recently been displaced by cheaper foreign labour. As all of us know, at our age, there is a real challenge in getting a job that would pay him a decent salary. Yes, there are lots of employers that wants to hire him. He is, afterall, a qualified professional with a wealth of 30 years’ experience behind him. However, these greedy employers are just not willing to pay him his worth and wants to exploit his skills and experience for a mean salary. He refused to prostitute his skills for a low salary. He end up driving a cab that (ironically) pays him more than any of the offers that he had received.

He won’t be getting any of his CPF money next year because he won’t be able to meet his minimum sum. All his past CPF contributions (more than $800K) had already gone into his 5rm HDB flat that they are staying in now.

His wife has some CPF left but she (too) won’t be able to get a single cent out in a few years’ time because she (too) won’t be able to meet the minimum sum as well.

So they planned, got a divorce and bought a second HDB flat just before they could lock away her CPF as the minimum sum in her CPF.

They then moved into the new flat and rented their older flat out legally because he had already and duly met the “Minimum Occupation Period” required for the legal renting out for that flat. And this rental income will serve an additional passive retirement income.

When I asked if he would be flouting any HDB regulations by doing that, he replied,

1) They are legally divorced and they are both legally SINGLE now.

2) He can retain the existing 5rm flat under the singles scheme and his wife is eligible to buy another flat under the singles scheme.

3) There is no law in this land that prohibit two single persons (divorced or not) from living together as a couple regardless if they were previously married or not.

4) At his age, being legally married is just a marital status. It doesn’t stop them living together as man and wife. They both had made their wills.

5) Instead of having the money stuck as a minimum sum in their CPF, they might as well utilise whatever that they can get out of their CPF so as to get an alternative passive income since:-

– – a) they won’t be able to get any of their CPF money anyway

– – b) even when they do get their CPF monthly payouts after the age of 65 yrs old (which is still a long way to go), the amounts will be so miserable that they would hardly be able to do anything decent with it anyway…

– – c) so…. they might as well get a second HDB flat with whatever money that they can siphoned out from their CPF (before the money is being locked away instead under the minimum sum)…. rent it out and (at least), the monthly rental income of $2,500 can help them live a more dignified retirement IMMEDIATELY (right away) rather than waiting till they reach 65 yrs old for that miserable delayed CPF payout that is so insignificant….

Thinking aloud now…. could this be the new norm of retirement in Singapore that Singaporeans will be planning for? Wouldn’t it be so sad that we have to come to this, in order that we can respond to how our hard-earned CPF money is being wilfully and forcefully withheld from us…

[Thaiyotakamli]

Soon there will be more divorce cases

[PSP415]

7 minutes ago, Windwaver said:

Been happening for some time but this is a very good case where both cannot meet minimum sum 

https://singaporeuncensored.com/couple-divorce-so-they-can-buy-another-hdb-flat-to-earn-rental/

COUPLE DIVORCE SO THEY CAN BUY ANOTHER HDB FLAT TO EARN RENTAL

ByHello Its me

September 8, 2022

Bumped into an ex-colleague (who is the same age as me) earlier and had an interesting brief catch up chat over coffee.

He and his wife are now divorced. But except that there is nothing wrong with their marriage and they are still living together. The sole purpose of getting the divorce is to be able to buy ANOTHER HDB FLAT (under the singles scheme). So they collectively own two HDB flats as two single individuals.

You see, he was a manager that had recently been displaced by cheaper foreign labour. As all of us know, at our age, there is a real challenge in getting a job that would pay him a decent salary. Yes, there are lots of employers that wants to hire him. He is, afterall, a qualified professional with a wealth of 30 years’ experience behind him. However, these greedy employers are just not willing to pay him his worth and wants to exploit his skills and experience for a mean salary. He refused to prostitute his skills for a low salary. He end up driving a cab that (ironically) pays him more than any of the offers that he had received.

He won’t be getting any of his CPF money next year because he won’t be able to meet his minimum sum. All his past CPF contributions (more than $800K) had already gone into his 5rm HDB flat that they are staying in now.

His wife has some CPF left but she (too) won’t be able to get a single cent out in a few years’ time because she (too) won’t be able to meet the minimum sum as well.

So they planned, got a divorce and bought a second HDB flat just before they could lock away her CPF as the minimum sum in her CPF.

They then moved into the new flat and rented their older flat out legally because he had already and duly met the “Minimum Occupation Period” required for the legal renting out for that flat. And this rental income will serve an additional passive retirement income.

When I asked if he would be flouting any HDB regulations by doing that, he replied,

1) They are legally divorced and they are both legally SINGLE now.

2) He can retain the existing 5rm flat under the singles scheme and his wife is eligible to buy another flat under the singles scheme.

3) There is no law in this land that prohibit two single persons (divorced or not) from living together as a couple regardless if they were previously married or not.

4) At his age, being legally married is just a marital status. It doesn’t stop them living together as man and wife. They both had made their wills.

5) Instead of having the money stuck as a minimum sum in their CPF, they might as well utilise whatever that they can get out of their CPF so as to get an alternative passive income since:-

– – a) they won’t be able to get any of their CPF money anyway

– – b) even when they do get their CPF monthly payouts after the age of 65 yrs old (which is still a long way to go), the amounts will be so miserable that they would hardly be able to do anything decent with it anyway…

– – c) so…. they might as well get a second HDB flat with whatever money that they can siphoned out from their CPF (before the money is being locked away instead under the minimum sum)…. rent it out and (at least), the monthly rental income of $2,500 can help them live a more dignified retirement IMMEDIATELY (right away) rather than waiting till they reach 65 yrs old for that miserable delayed CPF payout that is so insignificant….

Thinking aloud now…. could this be the new norm of retirement in Singapore that Singaporeans will be planning for? Wouldn’t it be so sad that we have to come to this, in order that we can respond to how our hard-earned CPF money is being wilfully and forcefully withheld from us…

So, technically, the 5 room flat totally belongs to the husband only. 

I think its a smart move and they did not break any law per se. 

My only concern is should they really live separately or relationship sour till no return, the "wifey" or ex-wife cannot claim anything from the proceeds of the 5 room flat. Unless there is a legal agreement signed to enable she will get a share then, private arrangement. 

By sharing this, I think the authorities may come to plug it, say, once divorced, one or both cannot purchase a flat till say, 5 years later? Sometimes, such plans should not be so openly shared, me thinketh. 

😅😅😂😂😂

Yada-ing 

Stay safe all 

Cheers 

[Windwaver]

8 minutes ago, Thaiyotakamli said:

Soon there will be more divorce cases

That explains why divorce cases have been on the rise 

[Windwaver]

[Wt_know]

how to "judge" real or fake divorce? 

husband say want to hayseo hayseo wife don't want

wife say .... must do OT 7 times a week .... husband scare die c* stand ... lol

Edited September 8, 2022 by Wt_know

[RadX]

Been happening in China for a while now… that may be more bona fide but this kind cases in sgp I’ve heard of quite a few cases aldy

 

dunno how many unreported 

 

decoupling…

[Fitvip]

This has been done many years ago, though the reason for the divorce may not be the same. 

A couple divorced, one party retained the house while the  other party bought a second one.

Later, they remarried in JB. They lived in one house and rented out the second. 

[Victor68]

28 minutes ago, PSP415 said:

So, technically, the 5 room flat totally belongs to the husband only. 

I think its a smart move and they did not break any law per se. 

My only concern is should they really live separately or relationship sour till no return, the "wifey" or ex-wife cannot claim anything from the proceeds of the 5 room flat. Unless there is a legal agreement signed to enable she will get a share then, private arrangement. 

By sharing this, I think the authorities may come to plug it, say, once divorced, one or both cannot purchase a flat till say, 5 years later? Sometimes, such plans should not be so openly shared, me thinketh. 

😅😅😂😂😂

Yada-ing 

Stay safe all 

Cheers 

Heard of this long time ago. I am sure the authority is aware if members of public already know it. This goes back to why are HDB flats allow for commercial rental? If no need, sell back to those that need. 

[Wt_know]

i asked my wife wants to divorce or not

she say YES ! but all assets including cash must transfer to her name

[Fitvip]

17 minutes ago, Victor68 said:

Heard of this long time ago. I am sure the authority is aware if members of public already know it. This goes back to why are HDB flats allow for commercial rental? If no need, sell back to those that need. 

Long ago, when the owner upgraded to another flat, they had to surrender the first one to HDB which then resold it.

Edited September 8, 2022 by Fitvip

[PSP415]

15 minutes ago, Victor68 said:

Heard of this long time ago. I am sure the authority is aware if members of public already know it. This goes back to why are HDB flats allow for commercial rental? If no need, sell back to those that need. 

IC. I mountain turtle, din know. Oh well, those who need to, I suppose there are ways. 

[Jman888]

20 minutes ago, Wt_know said:

how to "judge" real or fake divorce? 

husband say want to hayseo hayseo wife don't want

wife say .... must do OT 7 times a week .... husband scare die c* stand ... lol

can charge by session 

 

[Colin03]

@Windwaver This bn happening 10 years ago.

issue here is that might get caught if stay together - court case, fyi

Rather rent out HDB and stay in JB if u are semi-retired people

 

[Atonchia]

56 minutes ago, Thaiyotakamli said:

Soon there will be more divorce cases

Even richest people like Belinda and Bill divorced to split assets😂

[Jman888]

把婚姻当儿戏。。。

[Kopites]

Decoupling has been on going for decade!

I have seen circle of friends pull this trick though not for HDB but more so for the buyer/seller stamp duties. 

Another avenue is to go down the "inheritance" route. Recently government just patched up this loophole. 😁

 

[Ingenius]

1 hour ago, Windwaver said:

Been happening for some time but this is a very good case where both cannot meet minimum sum 

https://singaporeuncensored.com/couple-divorce-so-they-can-buy-another-hdb-flat-to-earn-rental/

COUPLE DIVORCE SO THEY CAN BUY ANOTHER HDB FLAT TO EARN RENTAL

ByHello Its me

September 8, 2022

Bumped into an ex-colleague (who is the same age as me) earlier and had an interesting brief catch up chat over coffee.

He and his wife are now divorced. But except that there is nothing wrong with their marriage and they are still living together. The sole purpose of getting the divorce is to be able to buy ANOTHER HDB FLAT (under the singles scheme). So they collectively own two HDB flats as two single individuals.

You see, he was a manager that had recently been displaced by cheaper foreign labour. As all of us know, at our age, there is a real challenge in getting a job that would pay him a decent salary. Yes, there are lots of employers that wants to hire him. He is, afterall, a qualified professional with a wealth of 30 years’ experience behind him. However, these greedy employers are just not willing to pay him his worth and wants to exploit his skills and experience for a mean salary. He refused to prostitute his skills for a low salary. He end up driving a cab that (ironically) pays him more than any of the offers that he had received.

He won’t be getting any of his CPF money next year because he won’t be able to meet his minimum sum. All his past CPF contributions (more than $800K) had already gone into his 5rm HDB flat that they are staying in now.

His wife has some CPF left but she (too) won’t be able to get a single cent out in a few years’ time because she (too) won’t be able to meet the minimum sum as well.

So they planned, got a divorce and bought a second HDB flat just before they could lock away her CPF as the minimum sum in her CPF.

They then moved into the new flat and rented their older flat out legally because he had already and duly met the “Minimum Occupation Period” required for the legal renting out for that flat. And this rental income will serve an additional passive retirement income.

When I asked if he would be flouting any HDB regulations by doing that, he replied,

1) They are legally divorced and they are both legally SINGLE now.

2) He can retain the existing 5rm flat under the singles scheme and his wife is eligible to buy another flat under the singles scheme.

3) There is no law in this land that prohibit two single persons (divorced or not) from living together as a couple regardless if they were previously married or not.

4) At his age, being legally married is just a marital status. It doesn’t stop them living together as man and wife. They both had made their wills.

5) Instead of having the money stuck as a minimum sum in their CPF, they might as well utilise whatever that they can get out of their CPF so as to get an alternative passive income since:-

– – a) they won’t be able to get any of their CPF money anyway

– – b) even when they do get their CPF monthly payouts after the age of 65 yrs old (which is still a long way to go), the amounts will be so miserable that they would hardly be able to do anything decent with it anyway…

– – c) so…. they might as well get a second HDB flat with whatever money that they can siphoned out from their CPF (before the money is being locked away instead under the minimum sum)…. rent it out and (at least), the monthly rental income of $2,500 can help them live a more dignified retirement IMMEDIATELY (right away) rather than waiting till they reach 65 yrs old for that miserable delayed CPF payout that is so insignificant….

Thinking aloud now…. could this be the new norm of retirement in Singapore that Singaporeans will be planning for? Wouldn’t it be so sad that we have to come to this, in order that we can respond to how our hard-earned CPF money is being wilfully and forcefully withheld from us…

I don't get it.  They cannot meet the minimum sum, divorce, ex-wife buys a new flat.  Buy new flat under this circumstances has to pay levy, which works out to something like $50,000 since the ex-wife previously bought a new 5 room flat with the ex-husband.  And for the new flat, since she didn't meet the minimum sum, i doubt she can use cpf to pay for the downpayment of 10%.  Even if she could, she would still have to fork out cash, or use her monthly cpf contribution, to pay for the new flat instalment.  

The only 'benefit' derived is 'they' together own a second flat, but has to continue to slave for the next decade or longer.   There is hardly any financial gains.