HDB Just Met MOP
What are the options you can choose to do with your HDB once you have met the MOP?
What is MOP?
The HDB MOP is a period of time - usually Five years that you are required to stay in your flat before you can sell, rent it out, or buy another private property.
How can I check my HDB MOP?
Login to your MyHDB page with your SingPass. Under My Flat, head to Purchased Flat > Flat Details > Minimum Occupation Period (MOP).
So what are the options...
Option 1
Continue to stay in your HDB flat
The first option is to continue staying in your HDB flat after your MOP, but its best to check if your property value is depreciating.
Check your property indicative value: https://www.era.com.sg/R026823F
For BTOs flat, study shows that the value is at its peak during the 5th to 7th year, as the renovation is still new and in good condition and remaining lease is at its longest compare to the older HDB resale flats.
This also the considering factors for most of the buyers that would prefer a longest remaining lease term in fear of the resale value in times to come when they have the intention to sell in the future.
Some owners might consider selling their BTOs once MOP is met so as to obtain a higher profit.
Option 2
Buy a private property
Some would prefer to buy a private property and rent out their HDB or vice versa. The buyer will need to pay an Additional Buyer's Stamp Duty (ABSD), and if you are still servicing your existing HDB housing loan, your Loan-To-Value (LTV) will cap at 45% for a second loan for your second property.
Buyer needs to have a strong financial capital.
Option 3
Sell your HDB and upgrade to a private property
There are a few ways for this option.
1) Sell first Buy later
2) Buy first Sell later
3) Sell and Buy concurrently
1) Sell first and buy later, owners who have a place to stay would prefer this option and no ABSD is payable on the next residential purchase. And you will have ample time to get your dream home.
2) Buy first sell later. For owners who are worried about having a temporary place to stay during the transition can option for this option as to buy first.
Please note that owners have to pay for ABSD first and this they might end up rushing to sell their HDB at a lower price to apply for the ABSD remission.
Applying for ABSD remission only to a legally married couple, who jointly purchase their second residential property as their matrimony home.
One of them must be a Singapore Citizen, and they have to sell their current flat within 6 months from their purchase of the second residential property.
3) Sell and Buy concurrently. Timing is key for this option You will need a professional Real Estate salesperson to help you in planning and structuring this process. This is also a prefer option for most of the owners and they would wish to utilize their CPF in their current flat for their next purchase.
Option 4
Sell 1 HDB and buy 2 private properties
If financially permits you by using your CPF and sale proceeds from your HDB flat, some owners might consider to sell the HDB flat and buy 2 private residential properties one for own stay and the other for investment.
Proper planning and structuring are essential so please seek am advise from the professional.
Call me for a free discussion..
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