This is a question that I have been asked many times.
Most of the sellers whom I meet tell me :
“Haiz, if only I had kept my HDB when I bought the new condo. Back then it was stillpossible to do so. Don’t know why I sold the HDB. Thought I didn’t need it anymore and didn’twant to hold another property.”
The is often followed by a rueful look and a “if-only-I-knew-better-look”.
In this article, I would like to offer a solution to this problem that some condo owners are facing.
Contents
- Why would a condo seller want to buy a HDB?
- How to buy a HDB and still own another condo
- What are the benefits of this arrangement
- Why would a condo seller want to buy a HDB?
More often than not, the client now finds that there is a lack of space in his current condo-especially with the recurring WFH arrangements and the kids conducting their school activities online.
The ideal situation will be to move to a spacious HDB 4 bedroom 1560sf Executive Masionette or Apartment apartment while they rent out their condo for passive income-or at least to let it pay for itself until it becomes a fully paid asset some 20 years later.
Sounds sweet? Yes it really is.
2. How to buy a HDB and still own another condo
I am sorry that the short answer is no.
HDB regulates that the buyer and essential occupiers cannot hold any private property during the first 5 years of buying the HDB.
So it effectively means that if you own a private property of any kind, you will not be able to buy a HDB Resale Flat or apply directly to HDB for a new flat.
It is arguable that the HDB owners have it a bit better than the private property owners because they can still buy a condo after 5 years of MOP(Minimum Occupation Period is 5 years during which you cannot sell the HDB). However they will still incur the 12% ABSD(Additional Buyer’s Stamp Duties) when they buy. But hello, at least technically they CAN buy.
That means condo owners cannot buy HDB correct?!
Fear not. There is hope yet!
The below is how I would go around it
So here is the summary of it if you are too lazy to read the whole post 🙂
