Buying HDB after selling private property is a way for some elderly owners in Singapore to consider when closer to retirement age.
As you grow older, you might not actually need a condo with facilities such as a swimming pool or a gym or tennis courts. You might instead prefer a simple small place to stay and a smaller area to clean up.
In addition, you might want to monetise your profitable private property to generate some retirement funds. In many cases, due to the gap between a private property and a HDB flat, the funds might be quite substantial.
Finally, in terms of financial support from the government, very frequently HDB owners (especially the smaller size HDB flats owners) can get very good support in terms of GST rebates and service and conservancy charges rebate and even Singapore Power utilities rebates. Every cent counts in retirement age.
For elderly HDB owners, the Singapore government has several schemes to help the older owners. These schemes includes the Silver Housing Bonus, the Lease Buyback Scheme, the sale of 2 Room Flexi flats with very short leases etc. I will do an article on these schemes in the future.
For private owners, they can either rent out one or two rooms, they can also rent out the whole private property unit and then move to stay with their children or finally buying a HDB flat and then sell the private property.
This last method is the subject of this article.
Can you be buying HDB after selling private property
That’s the number one question we always face. This is because for many people, HDB remains a “special subsidised priority scheme” for the Singapore citizens. After all, you have purchase a private property and can you really “come back” to the HDB world ? 🙂
The answer is YES, you can buy HDB flat after selling private property.
However, having said that, there are many conditions that can create several practical issues. Here are a couple of things to consider when buying a HDB flat immediately after selling your private property.
The general rule is, of course, you need to be “selling your Private Property within 6 months after buying the HDB flat”. That is the basic rule as you are not allowed to own a private property AFTER buying a HDB flat (on the other opposite end, you are allowed to buy a private property after buying a HDB flat and completing the 5 years minimum occupation period).
As on 30th September 2022, it is no longer possible to buy a HDB resale AFTER selling your private property unless you are 55 years and above and you are willing to buy a 4room flat and below. Else you need to sell first and then wait 15 months. See this article on 15 months wait for more details.
What are some things to watch out for
Point 1 : You cannot buy a BTO flat until 30 months after selling your private property
As you just sold your private property, you cannot buy a BTO flat till 30 months AFTER you sold your private property. Hence you will need to be be buying a HDB resale flat in the open market. BTO flats (ie completely new subsidised HDB flats) are not available to you for 30 months after selling your private property.
Except for one possible scenario where you are allowed to be buying HDB BTO after selling private property. An elderly couple or a single elder (more than 55 years old) can buy a 2 room flex BTO flat but this 2 room flex home must be purchased with short term lease. The short term lease must last the youngest owner to the age of 95 years old.
This is seen in the 2 room flexi flat information page in HDB web site.
This is the unique opportunity for an elderly couple to buy a new HDB flat after selling the private property. I believe the government did this to encourage elderly couples or single to consider a short lease flat (at an affordable price) after “using up their BTO chances”. Or selling a private property.
However, there is one practical issue. The BTO flat will need to be built 😉 That would take a few years. That would not be a practical solution to someone who just sold their place.
In that case, it might be necessary to look at Balance of Sale of Flats for immediate booking.
Point 2 : You don’t have any HDB housing grants
As you just sold your private property, you will now not have access to any HDB housing grants (except perhaps for the proximity grant). This is even if you have not got any housing grants in your life before.
The primary condition for any HDB Housing Grant (family grant, singles grant, enhanced housing grant) is not just the various income ceilings but also the fact that you must NOT have sold any private property within the 30 months of the resale purchase.
It is clearly written in the terms and conditions on the CPF housing grant page.
Point 3 : You need to plan your finances carefully
As you cannot qualify for a HDB loan (again because you just sold your private property), you will need to be getting a bank loan. If your age is at 55 years old or more, this might be an issue as the limit on bank loans are 65 years old. It will be a very short tenure. Monthly payments will be high probably.
If you have an outstanding loan on your private property, buying your HDB flat also meant that your Loan to Value (LTV) are going to be affected. You will not qualify for a full 75% loan. You will need to have a lot of cash and CPF for the initial payment.
So the very prudent thing is to clear off the private property and its loan BEFORE proceeding to purchase a HDB private loan. This is why many financial experts always advise that all home loans are cleared by 55 years old.
Point 4 : You need to plan your timeline carefully
You should also be planning your transactional timeline carefully such that you will have a place to stay after selling your private property and then purchasing a HDB resale flat. A good property agent will be able to help you in planning your private property sale and negotiating with the HDB seller for your benefit.
All the above are applicable within the 30 months after selling your private property.
30 Months after Selling Your Private Property
30 months after selling your private property, you can now do the 4 things.
It is like “life has been reset” for the seller of the private property.
However, to do the following, it means you basically have done NOTHING (e.g. stay with your children, rent a place to stay etc) for 30 months of trying to be “buying hdb after selling private property”.
Can you really do that for 2 and half years ?
If you can, and you meet the eligibility criteria, then you are going to profit quite a little in terms of selling your private property and ending up with a new subsidised flat.
(1) You can now buy a BTO (subject to meeting other criteria like income ceiling etc). Because of your age, you might want to consider buying a 2 room flex BTO with shortened lease.
This will be the cheapest way of buying a BTO. However, unless the BTO is ready, it is yet another 2-3 years wait for the BTO to be ready !
(2) You can now buy an Executive Condominium (subject to meeting other criteria like income ceiling etc)
(3) You can now qualify for CPF Housing Grants (subject to meeting other criteria like income ceiling)
(4) You can now quality for HDB HLE Loan (subject to meeting other criteria like income ceiling)
Conclusion for buying hdb after selling private property
As you can see, it is not a really simple solution of just buying hdb after selling private property. It sounds simple on paper but not the same when in practical terms.
The clearest path to doing so would be a fully paid private property which is sold for positive profit and good cash proceeds. Using these cash proceeds (and a good timeline planning), the elders can buy a small HDB flat for retirement and close proximity to facilities and their children’s place.
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If you are a private property owner, or have been in the past, you now have to wait 15 months to be able to downgrade to an HDB flat. You can sell your private property, but will not be able to buy a resale HDB before the 15-month period.Can I apply for BTO if I own private property? ›
For resale flat, you have to cash out your current private property before able to proceed with HDB purchase. For BTO, you have wait 30 months to apply for BTO after you cash out your current private property.Can I buy EC after selling private property? ›
A6: If you, your spouse, or any family member to be listed in an EC application owns a private property in Singapore or overseas, you are not eligible to buy an EC unit. If you have disposed of your private property, you may apply for an EC unit after 30 months from the date of disposal of the private property.What is 15 month wait out period? ›
From Friday, private home owners must wait 15 months after the sale of their current home before they can buy an HDB resale flat.Will HDB wipe out CPF? ›
Who is it for? CPF members who purchase an HDB flat and take an HDB loan can choose to retain up to $20,000 in their Ordinary Account (OA), with the remainder going towards their housing loan payment. Buyers taking a bank loan can choose to retain any amount of their OA savings.What is the oldest age to buy HDB? ›
All buyers and their spouses must be at least 55 years old at the time of flat application. All buyers and their spouses must be at least 65 years old at the time of flat application.Can I own a HDB if I own a private property? ›
Owners of private property or owners who have disposed of a private property within the last 15 months may take over the ownership of an HDB flat if they meet the following: The existing flat owner has fulfilled the requisite occupation period. At least 1 of the proposed owners is a Singapore Citizen.Can I decouple a private property and buy a HDB? ›
Decoupling for a HDB flat is only allowed for buy over from an ex-spouse or for the transfer of the flat between family members..Can you own both HDB and private property? ›
The flat owner, spouse, or occupier, who acquires the private residential property after the MOP, can retain the HDB flat.Can I buy a HDB after selling my EC? ›
You must meet the requisite wait-out period after disposing of your EC unit on the open market before you may apply to buy an HDB flat. There is no wait-out period if you are buying a private residential property. A subsidised housing unit, such as: A flat from HDB.
In other words, you can own an HDB flat and an EC, but not two ECs, two HDB flats, etc. However, if you have already bought two such properties, you will not be eligible to apply for an EC or be listed as an essential occupier in an application.Is EC considered private property after 5 years? ›
Yes, EC is considered private property upon meeting 5 yrs minimum occupancy period. It is allowed to sell to SC & SPR, no other restriction as those in HDB, such as need to form family nucleus or age limit, of course still has to be at legit age of 21 yrs old.Can I buy resale HDB if I own a condo? ›
Only Singapore Citizens have the privilege of owning an HDB flat and private condo at the same time. But they still need to comply with the MOP before they are allowed to purchase private residential property.How many times can I buy resale HDB? ›
There is no limit on how many times you are eligible to purchase a HDB resale.Who is eligible for resale HDB? ›
To be eligible for HDB resale flats, you must check all the boxes: At least one Singaporean citizen or two Singapore Permanent Residents listed in the flat application. At least 21 years and above if you're buying in an approved family nucleus, or 35 years if you're buying as a single.Can I use CPF to buy HDB after 55? ›
Using CPF to repay housing loans after age 55
Any balance that remains in your Ordinary Account can be used for housing loan repayments.
If you tapped into your CPF for your downpayment or to service your housing loan, you will need to refund the principal amount you took from your CPF account, plus accrued interest. This interest amount is equal to what you would have earned, had you kept the money in your account.Can I leave my CPF after 65? ›
You can withdraw anytime from 55. The amount you can withdraw depends on your birth year and the age you are making the withdrawal.Should a 55 year old buy a house? ›
Buying a home after 55 is a major decision that is sure to impact your retirement. While some financial companies will give out loans to older buyers, most are wary of this for several reasons. According to personal finance expert David Ning, it's unwise to get a new 30-year fixed mortgage in your 50s.What happens to HDB flats after 99 years? ›
The 99-year lease serves the needs of the owners and their children, while ensuring that land can be recycled to house future generations. Like all leasehold properties in Singapore, the flats will revert to HDB, the landowner, upon expiry of their leases. HDB will in turn surrender the land to the State.
First things first, you have to be a Singaporean citizen, aged at least 35 years old to apply as an unmarried or divorced individual. The only exception is if you are an orphan with no siblings; you may apply for your own flat upon turning 21 under the Orphan's Scheme.Can a Singaporean own 2 private property? ›
So, for Singapore Citizen couples that want to own 2 properties in Singapore, you will have to pay 17% taxes on the purchase price on top of the abovementioned BSD (Buyer Stamp Duty) for your 2nd property, and 25% on the purchase price for your 3rd and subsequent properties jointly owned together.Can I buy HDB without income? ›
All applicant(s) must be employed at the month of application and remain employed before an HDB housing loan is disbursed. Your last drawn income is used for assessment. Your income will not be considered.How many private property can I own in Singapore? ›
Can I own more than one property in Singapore? There is no limit to the number of private properties you can own as a Singapore Citizen or PR. HDB owners who wish to purchase private property can only do so after the minimum occupation period of five or 10 years (for prime locations).How do I decouple a private property in Singapore? ›
Decoupling under a joint tenancy is typically more complicated as it usually involves a divorce. To decouple, you'll need to go through a legal severance, in which you must approach a lawyer and sign an Instrument of Declaration and then lodge it to the Singapore Land Authority (SLA).Can I own 2 HDB at the same time? ›
This decision will impact the rest of the choices you make when it comes to budgeting and finances. A caveat for HDB owners: Singaporean Citizens cannot concurrently own two HDBs, so your second home will be a private condominium or house.How can I sell my private property in Singapore without an agent? ›
- Set an asking price for your condo. ...
- List your condo for sale. ...
- Arrange viewings for interested buyers. ...
- Engage the help of a conveyance lawyer. ...
- Grant Option to Purchase (OTP) and secure 1% booking fee. ...
- Issue a Sales and Purchase Agreement and receive a 4% Exercise Fee within 14 days of the OTP.
It's possible to have more than one residential mortgage, but you'll need to nominate your main residence. Buying a second home isn't normally an issue, but trying to get a third or fourth residential mortgage can be very difficult. Lenders limit multiple residential mortgages due to illegal sub-letting.Can a person have 2 property? ›
Owning one house is a necessity but owning two houses might be a compulsion. If a person has to maintain two houses, one for his immediate family and another for his parents, as per current rules he has to pay tax on the notional rent of such second house property.Can a married couple own 2 HDB in Singapore? ›
A married couple is considered one family unit, and can thus only own one HDB flat at any one time. Individuals who each own an HDB flat before marriage are therefore given 6 months from the date of their marriage, to relinquish ownership of one of the flats they own.
Can I inherit an HDB flat if I already own an HDB? In short, yes. You can inherit it, but you would have to sell your interest in one of the two HDBs. This is because anyone can own only one HDB flat at a time.Can I buy BTO after selling resale? ›
Hi, 1) Yes, resale HDB flat owners are eligible to buy BTO flats.Can I buy a BTO after selling my EC? ›
You need to wait out 30 months after selling EC before you can apply any subsidized housing (ie. BTO).Is EC better than HDB? ›
HDB flats have a significant price advantage over Executive Condominiums and are the preferred choice for many young couples. There are also cases where couples upgrade from HDB to EC, depending on a couples' financial situation and planning.What happen to EC after 10 years? ›
New EC owners also has to fulfill MOP of five years before the property can be sold in the open market to Singaporeans and PRs. ECs can only be sold to foreigners after 10 years, when the property is considered fully privatized.Is EC cheaper than private condo? ›
ECs offer a great investment opportunity, as they can be sold on the open market after the minimum occupancy period has lapsed. Executive condos are more affordable than private condos but have similar amenities.Can I buy HDB before selling EC? ›
You will need to sell your EC to buy a HDB resale flat.What salary Cannot buy HDB? ›
Currently, the income ceiling is S$14,000 for young couples buying an HDB flat. BTO (Built To Order) is the main way eligible Singaporeans purchase HDB living quarters.Who is not eligible for HDB? ›
If you own or have an interest in any local or overseas private property or have disposed of any private property in the last 30 months before the resale application or application for an HDB Loan Eligibility letter, you are not eligible for CPF housing grants (excluding Proximity Housing Grant) and/ or an HDB housing ...How can I own a HDB and a condo at the same time? ›
If you're a HDB owner and want to own a Private Condo, you can purchase one after the 5-year Minimum Occupation Period (MOP). If you are a Private Condo owner and want to buy a HDB, you will need to sell any private properties that you own.
How to avoid paying HDB Resale Levy? You do not have to pay any Resale Levy if: You are purchasing your first-subsidised HDB flat. You have only received the Proximity Housing Grant on your previous flat purchase and no other grants (in which case your property will not be considered a subsidised flat)Can I buy a 40 year old HDB? ›
Buying An Older Resale Flat Could Limit Your Retirement Options. While it may be a reasonable choice to buy an older resale flat with a lease of less than 50 years based on your circumstances today, you should also consider how it may affect your plans in the future.What is considered second timer? ›
Essentially, you're considered a second-timer if you have enjoyed a housing subsidy before, and plan to get subsidised housing again. You're not considered a second-timer if you're buying a resale flat without CPF grants or private property.Can my parents sell their HDB to me? ›
Current flat owners may apply to change their flat ownership to include immediate family members who meet all eligibility conditions. If there is more than 1 proposed owner, they would need to decide on the manner of holding the flat upon the ownership change, whether by joint-tenancy, or tenancy-in-common.How much cash do you need for resale HDB? ›
You're taking a bank loan for your HDB flat and can meet the criteria to borrow the maximum of 75% of the purchase price. This means that you will have to pay a 25% downpayment, of which 5% has to be paid with cash while the remaining 20% can be paid with CPF.Can an 80 year old buy HDB? ›
Seniors looking to move into a new flat can buy a 2-room Flexi flat on a shorter lease. Those aged 55 and above can choose a lease of between 15 and 45 years in 5-year increments, as long as it covers them and their spouse up to the age of at least 95 years.Do I need to pay levy if I downgrade? ›
It depends on whether you have already received a subsidy for your 1st housing. If you are going for the short-lease flexi (non 99 years lease), and can be eligible for this scheme, resale levy is not payable as you will not be able to re-sell the short-lease 2 room flexi flat next time in the open market.Can I buying HDB After 35 Years Old? ›
First things first, you have to be a Singaporean citizen, aged at least 35 years old to apply as an unmarried or divorced individual. The only exception is if you are an orphan with no siblings; you may apply for your own flat upon turning 21 under the Orphan's Scheme.Can you downgrade HDB flat? ›
To be eligible for the TLS, you need to have: Booked a new HDB flat and the keys are now ready for collection. Submitted an application to sell the existing HDB flat you want to downgrade from. Have sufficient CPF / cash proceeds from the sale of the existing flat to completely redeem the temporary loan.Can 35 years old buy HDB? ›
Single Singaporeans aged 35 and above can also buy an HDB resale flat. There is a wide choice of flats with varying leases across towns. There are no income ceiling restriction except if you decide to get an HDB housing loan and/ or apply for CPF housing grants of up to $80,000.
Seniors looking to move into a new flat can buy a 2-room Flexi flat on a shorter lease. Those aged 55 and above can choose a lease of between 15 and 45 years in 5-year increments, as long as it covers them and their spouse up to the age of at least 95 years.Can I own 2 HDB in Singapore? ›
This decision will impact the rest of the choices you make when it comes to budgeting and finances. A caveat for HDB owners: Singaporean Citizens cannot concurrently own two HDBs, so your second home will be a private condominium or house.Can I inherit private property if I own a HDB? ›
In short, yes. You can inherit it, but you would have to sell your interest in one of the two HDBs. This is because anyone can own only one HDB flat at a time. You are considered an owner of an HDB flat whether you have full or partial ownership in the HDB.Can I buy HDB if I own condo? ›
You Need to Sell Your Condo Before Buying an HDB Flat
Buy a BTO/Sale of Balance Flat (SBF) Buy an executive condo (EC) from a developer. Apply for CPF Housing Grants. Take an HDB loan.
If you're in your 50s, it's not too late to buy a new home, but it's key to ask the right questions and make the wisest decisions possible. Above all, make sure you won't be stuck making mortgage payments years after retirement.Is it smart to buy a home at 55 years old? ›
Buying a home after 55 is a major decision that is sure to impact your retirement. While some financial companies will give out loans to older buyers, most are wary of this for several reasons. According to personal finance expert David Ning, it's unwise to get a new 30-year fixed mortgage in your 50s.