New housing rules from 10 May 2019

[Kopites]

you can still buy ....... but u will face some complication .

 

1) CPF loan is pro rated ..... how much they will pro rate is unknown . That means , cannot take 90% loan from CPF .

 

2) bec u dont have a flat that covers u till 95 , so they will lock up BRS amt from ur cpf at 55 .

if u totally no flat at 55 , they will lock up FRS at 55 ........

anything left , u can withdraw

point 2 quite confusing.

 

 

even with unit that cover over 95yo once still need to transfer all into BRS when once reach the stipulated age. right?

Edited May 9, 2019 by Kopites

[Kopites]

correct me if I am wrong.

 

if one born in 1980 she cannot buy a unit with lease start in 1974.

Edited May 9, 2019 by Kopites

[Showster]

you can still buy ....... but u will face some complication .

 

1) CPF loan is pro rated ..... how much they will pro rate is unknown . That means , cannot take 90% loan from CPF .

 

2) bec u dont have a flat that covers u till 95 , so they will lock up BRS amt from ur cpf at 55 .

if u totally no flat at 55 , they will lock up FRS at 55 ........

anything left , u can withdraw

It’s cannot withdraw up to valuation limit for CPF to repay HDB loan. The quantum will also drop depending on how many years of shortfall for the buyer.

 

The FRS part has always been in place. If one does not have a property to pledge, the FRS will need to be reserved. The add on condition now is that the property need to also have 40 years left (as compared to previously 30 years left).

[Kopites]

I gave it a hard thought while in the shower.

 

this rule imply that a person cannot buy a unit with lease 6 years older than his birthdate. when he is at 55 yo the lease would be at 61.

 

it also mean parent cannot sell or transfer ownership to their children. no matter how I count the lease won't be able to cover their children to 95yo.

 

this lead to another question. those 3 generation unit. How the ownership like when come to cpf withdrawal. If I am the children surely I won't want to take over the parenting unit as it will impact my cpf withdrawal.

Edited May 9, 2019 by Kopites

[Kopites]

Itâs cannot withdraw up to valuation limit for CPF to repay HDB loan. The quantum will also drop depending on how many years of shortfall for the buyer.

 

The FRS part has always been in place. If one does not have a property to pledge, the FRS will need to be reserved. The add on condition now is that the property need to also have 40 years left (as compared to previously 30 years left).

your 30 year to 40 year also food for thought.

 

In Singapore there are many hdb build in the 70s /80s. I am sure some of us here still stay in one of such unit.

 

if he was born in 1980 and the lease started back in 1974 than the lease won't cover him till 95yo.

Edited May 9, 2019 by Kopites

[Evillusion]

What crazy shit? This is not so crazy anymore if, you think of the father as the govt and the son as us then it all make sense right?

Father sabo son....i agree its a good idea if it is 999 or free hold but it becomes bad when it is 99 yrs lease hold....

[Evillusion]

yes ... thats true ...... I heard many bought Mensionate bec they know these will be claim back by hdb. so call enbloc .

 

but these mensionate are rather old ... about 40 yrs , left 59 years or less. Now owner jialiat ...... sell to who later ?

 

 

The G very smelly one ..... I think they will let these flats depre until cheap cheap then buy over . No enbloc ...

Yup....from how they are rolling this dish i am afraid they will just do that. Now i regret not selling my unit and cashing out at the earliest instance.....i am the original lesse and my flat is 23 years old.......but worse come to worse i will just rent out the unit when i am older.....

by the way its is maissonette.....

Edited May 9, 2019 by Evillusion

[Victor68]

Slow people will get use to the idea they continue to pay for their HDB till they kick the bucket. Don't worry about your CPF, it is there in that solid HDB flat. Just work and government will take care of the rest. Good boys and girls. Haha

[Chongster]

I gave it a hard thought while in the shower.

 

this rule imply that a person cannot buy a unit with lease 6 years older than his birthdate. when he is at 55 yo the lease would be at 61.

 

it also mean parent cannot sell or transfer ownership to their children. no matter how I count the lease won't be able to cover their children to 95yo.

 

this lead to another question. those 3 generation unit. How the ownership like when come to cpf withdrawal. If I am the children surely I won't want to take over the parenting unit as it will impact my cpu withdrawal.

cannot use cpf =\= cannot buy?

[Kopites]

cannot use cpf =\= cannot buy?

I don't know. I was looking at the 95 yo lease for cpf withdrawal thingy.

 

I think can still use cpf to dbuy old flat but must make sure when hit 55 lease must be able to cover till 95yo.

 

born in 1980 one can't buy a unit with lease start in 1974. it will impact your cpf withdrawal when turn 55 yo.

Edited May 9, 2019 by Kopites

[Evillusion]

Slow people will get use to the idea they continue to pay for their HDB till they kick the bucket. Don't worry about your CPF, it is there in that solid HDB flat. Just work and government will take care of the rest. Good boys and girls. Haha

If i remembered correctly they were the ones that was saying Singaporean are using way too much cpf to purchase housing and suddenly they allow this. Shouldnt they capped the payment age ceiling to 55 instead?

[Wind30]

https://www.todayonline.com/singapore/new-rules-use-cpf-and-hdb-loans-friday-singaporeans-buy-home-life

 

I think this article is clearer on the changes impact.

 

I don’t think it’s a plus or minus for old leasehold, but it’s a plus for old folks and a minus for young folks.

 

This I think is the intention. The impact is also not that big

Edited May 9, 2019 by Wind30

[Victor68]

It is very important to understand what CPF is for. Then we also need to know why HDB has to cost your life saving and by artificially inflate the HDB prices, is it good for everyone? Next we can start to look for what else we can inflate to make people happier haha

[Showster]

True, but he can still use CPF almost up to valuation and loan almost to valuation as well...

 

The idea is to discourage someone from buying a flat older than himself (built before he was born).

 

If it was an inherited flat, he can / should swop it for a newer flat. If it is a joint ownership flat, he should do likewise.

 

This may also help moderate demand for older central flats and spread out demand to newer/less mature estates. 

 

 

 

your 30 year to 40 year also food for thought.

In Singapore there are many hdb build in the 70s /80s. I am sure some of us here still stay in one of such unit.

if he was born in 1980 and the lease started back in 1974 than the lease won't cover him till 95yo.

 

[Showster]

Key takeaway

 

 

Last year, nearly one in 10 buyers (9 per cent) bought a resale flat that will expire before they turn 95. About 1 per cent of private homebuyers did so.

 

As a footnote, quite thankful that properties I have intention to hand down are all younger than my children or freehold so there is more flexibility for them in the future. The one that won't is meant for me.

 

https://www.todayonline.com/singapore/new-rules-use-cpf-and-hdb-loans-friday-singaporeans-buy-home-life

I think this article is clearer on the changes impact.

I don’t think it’s a plus or minus for old leasehold, but it’s a plus for old folks and a minus for young folks.

This I think is the intention. The impact is also not that big

Edited May 10, 2019 by Showster

[RH1667]

Can, but unlike the past, you cannot use 100% cpf since the age + lease left is not equal to 95.

 

Basically, with this new ruling, they encourage young buyers to buy newer flats and old people to buy old flats.

 

Which means the old flats will lose some demand from younger crowd.

 

 

Means mature estate HDB price will drop ? or at least expected to drop? 

Good move by garment, than the price of the newer estate HDB will be higher and younger generation will have no CPF for retirement. 

[Showster]

Not really.

 

The criterion changes means now that older persons can now qualify for higher CPF usage and loan to buy older properties. Some of them really have accumulated abundant CPF in their lives! The key difference before and after is this unlocking effect.

 

Younger persons the rules reduce the attraction of older flats. So those intending to buy old properties now go for newer properties (flats and private).

 

Overall, it has a stimulatory effect on demand while supply stays constant.

 

 

 

Means mature estate HDB price will drop ? or at least expected to drop? 

Good move by garment, than the price of the newer estate HDB will be higher and younger generation will have no CPF for retirement. 

 

Edited May 10, 2019 by Showster

[Yeshe]

Kiss your cpf good bye

 

Just want to lock in your cpf monies

They have been doing that since they start to raise cpf withdrawal age n increasing property price. That's the magical outcome of slowly eating away cpf monies....