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HDB Questions

Asked by Anonymous 16 Dec 2020

Hi Gurus,
We are SC and just ROM. We intend to buy our first HDB resale 4R flat near my parents. Our combine salary is 8K+ and are eligible for most of the HDB grants (i.e Family, EHG, PHG).
Question: If we want sell this flat after 5 years MOP, besides the standard levy (if we get a new BTO), do we need to return all the grants that we have taken from HDB/CPF? Any accrued interest to add on? Any other taxes?
Please advise and thanks in advance.

BR/John

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4 Answers

Previously Asked Questions

Robbie Chen Chee Howe · Answer 1 · 2020-12-16T23:25:06+08:00

Robbie Chen Chee Howe

Replied 16 Dec 2020

Hi John,

As long as you do not purchase a second subsidised flat in the future, you need not return the Grants (in the form of resale levy).

Accrued interest will be incurred on whatever CPF funds that you had utilized for the property, and it's not Grant-dependent.

BSD (and ABSD if you do not sell your first property) applies should you purchase a next property.

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans.

Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305 . I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
9748 6305
PropNex Realty Read More

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Ng Teck Chuan · Answer 2 · 2020-12-17T03:20:42+08:00

Ng Teck Chuan

Replied 17 Dec 2020

Hi there,

You'll need to return the cpf grant with accrued interest, but that's back into your OA which you can use for the next house anyway.

Tax-wise it's just what you pay when you buy your resale flat initially.

Feel free to contact me to discuss further.

Regards,
Teck Chuan
BBA (Finance), NUS
Marketing Director
ERA Realty Network Pte Ltd
Mobile: 91374602 Read More

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Taufik Hussein · Answer 3 · 2020-12-18T17:32:36+08:00

Taufik Hussein

Replied 18 Dec 2020

Hi

This is a common questions asked by my clients as they have the impression that grants 'need to be returned back' along with accrued interest should they sell off their flats in 5 years due to social media reports that surfaced. The answer is yes if you are only looking at the cash proceeds from selling the flat. However the 'refunded' grant and accrued interest will be placed back to your OA CPF account once you have sold off your flat and you can use the funds for your future housing plans including private property. In fact, if the sales proceed are not enough to cover the amount of grant to be 'refunded' (negative sales scenario), CPF will normally waive off the requirement of you having to top up extra cash to cover the shortfall provided you sell the flat at the prevailing market price. Do contact me at 93375051 for a free and non obligatory discussions on this. I will explain to you in details.

Regards
Taufik Hussein
ERA Realty Network Pte Ltd Read More