My neighbour is the first owner of a 4A HDB bought directly from HDB at about $100,000.He claims if he were to sell his flat at current market price of about $400,000 he'll be liable to pay the government levy of $100,000(25% of sale proceeds of $400,000).Is this true?
Posted by Tan John on Feb 28, 2008 in General Questions | 1179 Views
Latest Answers by Real Estate Professionals (2 Answers)
Answer Posted on May 20, 2008
Hi John, besides on the levy issue that he suppose to pay 'Provided' he buy 2nd time from hdb direct, however another issue is did your neighbour took any grant at the point he bought the 4rm frm hdb direct? If he did, once he sell his current flat and buy another in the open market, he is require to return back certain amount of what has been granted to him.(Grant is a certain amount under Low Income Scheme that was approved by hdb in order to help maintain sufficient funds by topping up certain amount into purchaser cpf for purchasing a property).
Alternatively, pls advise your neighbour to check direct with hdb is there any levy or return of grant should he intent to purchase for another flat even direct hdb or from open market.
Hope this helps..
Yours faithfully
Mor HSR.
Alternatively, pls advise your neighbour to check direct with hdb is there any levy or return of grant should he intent to purchase for another flat even direct hdb or from open market.
Hope this helps..
Yours faithfully
Mor HSR.
Answer Posted on Feb 28, 2008
Your neighbour is half right. He will have to pay a resale levy PROVIDED that he is buying his 2nd flat directly from HDB again. He would'nt have to pay levy if he is purchasing a resale flat.
But take note that the levy will be subjected to compound interest if he intend to purchase directly from HDB again.
The other truth is that the Levy has been revised to flat fees. The 25% rule as been revised since 3 March 2006.
Based on a 4 rm flat, the levy payable will be a flat fee of $40,000. Strictly in cash. No CPF.
But take note that the levy will be subjected to compound interest if he intend to purchase directly from HDB again.
The other truth is that the Levy has been revised to flat fees. The 25% rule as been revised since 3 March 2006.
Based on a 4 rm flat, the levy payable will be a flat fee of $40,000. Strictly in cash. No CPF.
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