HDB Essential-Occupiers Scheme

[light84]

Yar trust enough just go through divorce on paper also can
As Long as hearts don’t change everything can be done
It’s a matter of what admin trouble to go through only

Actually once BTO paid off can just divorce empty out a name to buy another resale to rent out also can

Yes lah but this is another topic already, need to HTHT.

 

[light84]

Yar trust enough just go through divorce on paper also can
As Long as hearts don’t change everything can be done
It’s a matter of what admin trouble to go through only

Actually once BTO paid off can just divorce empty out a name to buy another resale to rent out also can

Try telling this to Aunty Polar. Tsk tsk.

Tonight sleep sofa for sure

 

[Polar Bear King]

Try telling this to Aunty Polar. Tsk tsk.

Tonight sleep sofa for sure

she gave me 999 excuses,said too troublesome to find lawyer,not much gain not worth the trouble.
she said fake divorce live together police will catch worso i don't dare to anything illegal

 

[glorfindel]

Can lah as long as couple is married but buy as owner-essential occupier under married scheme, u call H dee bee to ask. My ah gong said so.

Single of cos cannot. Bbfa cannot.

Before 2016 can. Now cannot. No more decoupling. If someone is essential occupier, they cannot buy condo during MOP. After MOP then can. Only thing it helps is for the ABSD.

 

[8zaoyu]

If based on TS' question of buying as single scheme, then no, but can be done through the Public Scheme for BTO, or resale.

The spouse listed as essential occupier can only buy a condo after the 5 Year MOP.

I thought HDB owners after MOP can keep current property and still buy their 1 or half million$ SG Dream-tiny pte condo for rental yields, provided willing to pay upfront first of 12% ABSD (2nd property) of that 1 or half million plus the Basic Stamp Duty of 3%. But.......15% of a million is $150K already, that amount can travel and stay in hotels round the world many many years when Covid is over.

 

[glorfindel]

can share your exact planning and budgeting?
and what are you next steps like how to decouple how to expand?
what savings do you achieve in the end except the ABSD for 2nd property?

Nothing to decouple as the BTO ownership is under my sole name with my spouse as essential occupier. Loan is also under my name only. So income has to be enough to qualify for the BTO on my own. And the advantages is the ABSD savings after MOP and also can buy house under my spouse name with 75% loan.

 

[Polar Bear King]

Nothing to decouple as the BTO ownership is under my sole name with my spouse as essential occupier. Loan is also under my name only. So income has to be enough to qualify for the BTO on my own. And the advantages is the ABSD savings after MOP and also can buy house under my spouse name with 75% loan.

so call the only thing saved was the lawyer fee to arrange decoupling and the ABSD 12%

 

[NeedHeIp]

so call the only thing saved was the lawyer fee to arrange decoupling and the ABSD 12%

ABSD itself is already about $120K SGD for an one million condo, that's quite a substantial amount man.

 

[Polar Bear King]

ABSD itself is already about $120K SGD for an one million condo, that's quite a substantial amount man.

but some family would sell off HDB to branch out get 2 condos 1 under each adult head mah. avoid all problem altogether lor

 

[Pokémon]

I thought HDB owners after MOP can keep current property and still buy their 1 or half million$ SG Dream-tiny pte condo for rental yields, provided willing to pay upfront first of 12% ABSD (2nd property) of that 1 or half million plus the Basic Stamp Duty of 3%. But.......15% of a million is $150K already, that amount can travel and stay in hotels round the world many many years when Covid is over.

The owner gets to keep the HDB flat, while the spouse listed as essential occupier can buy a private property without even the need to pay for ABSD, which is why this thread.

 

[Pokémon]

so call the only thing saved was the lawyer fee to arrange decoupling and the ABSD 12%

The thing is, decoupling is no longer allowed since 1 April 2016, so the things saved are the ‘real but fake’ divorce and the 12% ABSD instead.

 

[gold_eagle36]

With this method, the benefit also that the essential occupier can buy and sell properties easily.

Will own 1 hdb 1 condo each. And be able to choose to rent either 1 out. If wan get rid hdb later also ok since the other owner already owning a condo by his name.

In a scenario where both are stuck as hdb owner, and followed by paying absd. It would be like end game as the owners essentially will need pay absd again to switch private property.

 

[Bam25th]

With this method, the benefit also that the essential occupier can buy and sell properties easily.

Will own 1 hdb 1 condo each. And be able to choose to rent either 1 out. If wan get rid hdb later also ok since the other owner already owning a condo by his name.

In a scenario where both are stuck as hdb owner, and followed by paying absd. It would be like end game as the owners essentially will need pay absd again to switch private property.

Lol why you bump up old thread
How did you even find this in the first place lol.


Anyway, sadly, HDB seems to partially closed the loophole with PLH.

Now, PLH can’t rent out whole unit even after MOP.
Most ppl who did this owner-occupier method wants to buy condo for own stay after MOP, while keeping HDB for rental, cause HDB rental yield much higher than condo.
Plus staying in condo definitely has more perks.

But with PLH, can’t rent whole unit, which kind of prevents someone from using this trick to buy and stay in condo while renting out HDB for passive income

 

[NeedHeIp]

Lol why you bump up old thread
How did you even find this in the first place lol.


Anyway, sadly, HDB seems to partially closed the loophole with PLH.

Now, PLH can’t rent out whole unit even after MOP.
Most ppl who did this owner-occupier method wants to buy condo for own stay after MOP, while keeping HDB for rental, cause HDB rental yield much higher than condo.
Plus staying in condo definitely has more perks.

But with PLH, can’t rent whole unit, which kind of prevents someone from using this trick to buy and stay in condo while renting out HDB for passive income

just dont buy PLHs?

Aim those old resale.

 

[glorfindel]

Lol why you bump up old thread
How did you even find this in the first place lol.


Anyway, sadly, HDB seems to partially closed the loophole with PLH.

Now, PLH can’t rent out whole unit even after MOP.
Most ppl who did this owner-occupier method wants to buy condo for own stay after MOP, while keeping HDB for rental, cause HDB rental yield much higher than condo.
Plus staying in condo definitely has more perks.

But with PLH, can’t rent whole unit, which kind of prevents someone from using this trick to buy and stay in condo while renting out HDB for passive income

Majority is currently still not under PLH......but you never know lah...behind closed doors maybe they planning to take back chicken in future all HDB also under similar scheme.

Just avoid prime area HDBs and it should be fine, this scheme will still work. Anyway with the prices of BTOs, how likely are you to be able to afford to buy under owner occupier for prime area anyway?

 

[gold_eagle36]

Majority is currently still not under PLH......but you never know lah...behind closed doors maybe they planning to take back chicken in future all HDB also under similar scheme.

Just avoid prime area HDBs and it should be fine, this scheme will still work. Anyway with the prices of BTOs, how likely are you to be able to afford to buy under owner occupier for prime area anyway?

Yea I think can aim non-mature near mrt not a problem to rent out.

Mainly is to explore all options. Cause my idea is that if going to buy resale hdb anyway after selling bto. Might as well use this occupier approach instead of joint tenancy where it's too limited.

May I check what stage are you in your own planning? Waiting mop as occupier??

 

[glorfindel]

Yea I think can aim non-mature near mrt not a problem to rent out.

Mainly is to explore all options. Cause my idea is that if going to buy resale hdb anyway after selling bto. Might as well use this occupier approach instead of joint tenancy where it's too limited.

May I check what stage are you in your own planning? Waiting mop as occupier??

Not yet MOP. So yeah, waiting until MOP. But with property prices now, not sure if I can even afford a private on my spouse's single salary. So who knows, maybe I still need to liquidate the HDB on MOP.

 

[Bam25th]

Majority is currently still not under PLH......but you never know lah...behind closed doors maybe they planning to take back chicken in future all HDB also under similar scheme.

Just avoid prime area HDBs and it should be fine, this scheme will still work. Anyway with the prices of BTOs, how likely are you to be able to afford to buy under owner occupier for prime area anyway?

With my single salary, I still can take $500+k loan and afford PLH bto.

But the problem will be my wife’s salary, when buying condo under her name in future. Will be eligible for only a small loan….

Then the issue with non-PLH is the very very high application rate, and thus small odds. In fact, I’ve failed BTO application many many times already

Unless I choose ulu Tengah etc, but I wouldn’t want to stay there for 5 years until MOP, and the rental yield also probably not high also.

Another option is to buy resale, but the current prices are way too high for single salary loan, unless I choose ulu places again….

 

[halfnode]

With my single salary, I still can take $500+k loan and afford PLH bto.

But the problem will be my wife’s salary, when buying condo under her name in future. Will be eligible for only a small loan….

Then the issue with non-PLH is the very very high application rate, and thus small odds. In fact, I’ve failed BTO application many many times already

Unless I choose ulu Tengah etc, but I wouldn’t want to stay there for 5 years until MOP, and the rental yield also probably not high also.

Another option is to buy resale, but the current prices are way too high for single salary loan, unless I choose ulu places again….

Seems like You’re looking at both places as investment so definitely harder to pick.

 

[Bam25th]

Seems like You’re looking at both places as investment so definitely harder to pick.

Both investment and staying purposes haha, so it’s doubly hard.

I wouldn’t want force my family to stay in undesireable place for 5 years until MOP.

And the investment part, it’s passive income for future retirement.

But I think I sort of gave up on this plan already, since I have no BTO luck