HDB and Condo
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micollh:
The old rule is that if you buy a private property after you own a HDB, you have to stay in HDB.
r u sure? this is not wat i was told. tt's why i want to check. they said if u owned HDB, u buy condo, u cannot stay in condo. but have to stay in HDB.
The rule has changed a few years ago when there was not enough affordable rental properties. The new rule is that if you complete MOP, you can stay in private property and rent out the HDB.
How do I know? I did this myself. Your agent friend need to beef up knowledge.
BTW, IRAS actually will still apply owner property tax on your HDB. Seems their system still follow the old rules. You have to write in then they will change for you. -
If one has repaid (back to CPF a/c) the CPF money used to purchase the first property, do we still need to set aside $$ in CPF a/c before we can "draw" the CPF money to pay for the private property?
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hquek:
Hi,hi micolh,
on the sum to set aside, I've found the 'answer' from cpf board - it's half the min sum:
Yes, you may use your CPF to purchase more than one property.
However, if you already own a property (HDB flat or private residential property) bought with your CPF savings and wish to buy another property with CPF savings after 1 July 2006, you must set aside half of the prevailing Minimum Sum before you can use the excess savings in your Ordinary Account for the second/subsequent property. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet this required amount.
Please note that as the Minimum Sum will be raised in July each year, the amount you need to set aside will be adjusted accordingly. Please click here for more details.
If you currently own more than one property bought with CPF savings before 1 July 2006, you need not set aside half of the prevailing Minimum Sum unless you subsequently buy another property using your CPF savings on or after 1 July 2006.
Please note that this is not applicable if you are applying to use your CPF to purchase a second or subsequent property with non-related singles. Non-related singles can only jointly use their CPF to purchase one property (HDB flat or private residential property).
Is this applicable to both owners (ie husband and wife)? If wife not working, how to have min. sum in wife's CPF account? -
micollh:
r u sure? this is not wat i was told. tt's why i want to check. they said if u owned HDB, u buy condo, u cannot stay in condo. but have to stay in HDB.financial_guru:
I can't find any further restriction after the 5 yr period. I think you can choose to stay at either one and rent out the other. Its your choice.
who is the \"they\" ? :? -
starlight1968sg:
If one has repaid (back to CPF a/c) the CPF money used to purchase the first property, do we still need to set aside $$ in CPF a/c before we can \"draw\" the CPF money to pay for the private property?
What's your definition of repaid? There is only one way in my knowledge you can repay. You have to sell your house.
The rules are related to second or more properties. If you sell your house and no other house, then you back to first house. -
teh_oh:
CPF money count separately. Here is the example.
Hi,
Is this applicable to both owners (ie husband and wife)? If wife not working, how to have min. sum in wife's CPF account?
H = husband, has 50,000 in OA, 20,000 in SA
W = wife, has 1,000 in OA, 1,000 in SA
if you are buying first property, H can use 50,000, W can use 1,000.
if you are buying second property, H can use 8,500, W can use 0. -
30plus:
Hi,
CPF money count separately. Here is the example.teh_oh:
Hi,
Is this applicable to both owners (ie husband and wife)? If wife not working, how to have min. sum in wife's CPF account?
H = husband, has 50,000 in OA, 20,000 in SA
W = wife, has 1,000 in OA, 1,000 in SA
if you are buying first property, H can use 50,000, W can use 1,000.
if you are buying second property, H can use 8,500, W can use 0.
Thanks for the explanation. -
tankee:
r u sure? this is not wat i was told. tt's why i want to check. they said if u owned HDB, u buy condo, u cannot stay in condo. but have to stay in HDB.micollh:
[quote=\"financial_guru\"]
I can't find any further restriction after the 5 yr period. I think you can choose to stay at either one and rent out the other. Its your choice.
who is the \"they\" ? :?[/quote]my col whose wife is housing agent. maybe he is not that good yet. they just started last year. -
in this case, i still cannot invest in a condo yet. as i just complete the payment OA very low still… got to wait till it reach the min sum ba… if husband and wife together… is that mean, half of the min sum only?
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micollh:
in this case, i still cannot invest in a condo yet. as i just complete the payment OA very low still.. got to wait till it reach the min sum ba.. if husband and wife together.. is that mean, half of the min sum only?
The min sum required now is about 62K - this can be from OA, investments, and (this I'm not sure) special account. I used to think I would need the 120+K, but I was wrong.
And no. the cpf that is to be used for a 2nd time must have the 62K inside if it's multiple properties. So each one need to set aside 62K.
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