I do not know when the rule was changed but it seems that one can stay in a private property and rent out his HDB flat, provided he fulfill the minimum occupation period. Therefore all PRs are eligible to buy one to rent it out for rental income, regardless of how many private properties they owned. With the surge of PRs in the last two years, this has led to the escalation of HDB resale prices, even in a recession year, thus catching Mah Bow Tan off-guard. Early this year, he had promised to review this loophole and completion is expected in "a few months time". Sinha Shekhar days of using his HDB flat as rental investment are limited.
http://938live.sg/News/Singapore/ED...ers,_and_not_speculation_or_rental_investment
HDB flats are for owner occupiers, and not speculation or rental investment
28 Jan 2010
HDB flats are for owner-occupation and not speculation or rental investment.
National Development Minister Mah Bow Tan stressed this point while speaking to reporters on the sidelines of an HDB event yesterday.
And he has tasked the housing board to review their regulations to ensure that no loopholes are being exploited.
Joanne Chan reports.
Fresh concerns over the affordability of public housing were sparked when HDB's latest housing data revealed that resale flat prices continued to climb in the fourth quarter of last year.
In addition, the median cash premium that home owners have to pay upfront doubled to 24,000 dollars, prompting calls for the Government to step in.
But Mr Mah noted that the resale market should be allowed to operate as a free market, with prices set on a "willing buyer, willing seller" basis.
Now, if you are a buyer, you feel anxious because you want prices to be low. But if you are a seller, you want prices to be high. So it's not possible for government to set the resale prices. If you were to interfere in the COV, or the resale flat market, essentially, you are saying the government should set the resale flat prices which I think both parties will be unhappy. Why? Because the buyer may be happy today, but today if he's a buyer, tomorrow he would be a seller. Then when we set the prices and he wants to sell, he will be unhappy."
While promoting a free market, Mr Mah drew the line at speculation, and stressed that public housing is for owner-occupation.
As such, Mr Mah said the housing board is relooking rules to ensure that prices are not being artificially inflated.
"If somebody is coming in the hopes of making money, through flipping or selling the flats later on, or to buy to rent without staying in there, I think that's not possible, that's not the idea of HDB flats."
Mr Mah declined to say which rules are being studied.
But he noted that the review will be completed in a few months' time.
Aside from reviewing regulations, Mr Mah said he has also asked HDB to step up enforcement.
"I've asked HDB to also step up on any possible breaking of the rules I don't know if it's extensive but anecdotally you do hear one or two cases. So we want to make sure that this is not happening."
Recent reports suggested that some flat owners at the newly completed Pinnacle @ Duxton, had rented out their entire units without a minimum occupation period.
This is illegal under HDB's housing rules.
Home buyers who received a grant from HDB must stay in their flat for a minimum of five years before they can sublet their entire unit.
For those who do not use a grant, there's a minimum occupation period of three years.
http://938live.sg/News/Singapore/ED...ers,_and_not_speculation_or_rental_investment
HDB flats are for owner occupiers, and not speculation or rental investment
28 Jan 2010
HDB flats are for owner-occupation and not speculation or rental investment.
National Development Minister Mah Bow Tan stressed this point while speaking to reporters on the sidelines of an HDB event yesterday.
And he has tasked the housing board to review their regulations to ensure that no loopholes are being exploited.
Joanne Chan reports.
Fresh concerns over the affordability of public housing were sparked when HDB's latest housing data revealed that resale flat prices continued to climb in the fourth quarter of last year.
In addition, the median cash premium that home owners have to pay upfront doubled to 24,000 dollars, prompting calls for the Government to step in.
But Mr Mah noted that the resale market should be allowed to operate as a free market, with prices set on a "willing buyer, willing seller" basis.
Now, if you are a buyer, you feel anxious because you want prices to be low. But if you are a seller, you want prices to be high. So it's not possible for government to set the resale prices. If you were to interfere in the COV, or the resale flat market, essentially, you are saying the government should set the resale flat prices which I think both parties will be unhappy. Why? Because the buyer may be happy today, but today if he's a buyer, tomorrow he would be a seller. Then when we set the prices and he wants to sell, he will be unhappy."
While promoting a free market, Mr Mah drew the line at speculation, and stressed that public housing is for owner-occupation.
As such, Mr Mah said the housing board is relooking rules to ensure that prices are not being artificially inflated.
"If somebody is coming in the hopes of making money, through flipping or selling the flats later on, or to buy to rent without staying in there, I think that's not possible, that's not the idea of HDB flats."
Mr Mah declined to say which rules are being studied.
But he noted that the review will be completed in a few months' time.
Aside from reviewing regulations, Mr Mah said he has also asked HDB to step up enforcement.
"I've asked HDB to also step up on any possible breaking of the rules I don't know if it's extensive but anecdotally you do hear one or two cases. So we want to make sure that this is not happening."
Recent reports suggested that some flat owners at the newly completed Pinnacle @ Duxton, had rented out their entire units without a minimum occupation period.
This is illegal under HDB's housing rules.
Home buyers who received a grant from HDB must stay in their flat for a minimum of five years before they can sublet their entire unit.
For those who do not use a grant, there's a minimum occupation period of three years.
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