Rent out HDB and stay in condo

[Magdeline]

Hi, I stumbled upon this interesting forum. I have an immediate question that I think is relevant here:

If I buy a condo, can I rent out my entire HDB flat and stay in my new condo?

Thanks in advance.

[bjhchong]

My advice is to do the opposite, however: Rent out your condo & stay in your HDB...

Reason being this: You fetch a better rental rate with a condo.

My 2 cents worth...

Originally Posted by Magdeline

Hi, I stumbled upon this interesting forum. I have an immediate question that I think is relevant here:

If I buy a condo, can I rent out my entire HDB flat and stay in my new condo?

Thanks in advance.

Yes, it's possible. You just need to get permission from HDB in advance. I believe there's also a certain minimum number of years of occupancy you're required to fulfill before you can rent out the whole flat, ie you need to stay in your flat for X number of years.

[adbie]

Originally Posted by Unregistered

Yes, it's possible. You just need to get permission from HDB in advance. I believe there's also a certain minimum number of years of occupancy you're required to fulfill before you can rent out the whole flat, ie you need to stay in your flat for X number of years.

From this link: HDB InfoWEB : Subletting Your Flat / Room - Policies - Subletting of Whole Flat

You are allowed to sublet your whole flat if :

• You have occupied your non-subsidised flat (flat purchased from the open market without a CPF housing grant) for at least 3 years; or
• You have occupied your subsidised flat (flat purchased directly from HDB or from the open market with a CPF housing grant) for at least 5 years

I have a couple of good friends who are already doing this.

[Magdeline]

Thanks to all. The link is exactly what I'm looking for.

I plan to move to condo for a better quality of living - better security, good private facilities like gym and pool. At the same time, I wish to keep my HDB as there's still the very low-cost HPIS which is a form of life insurance. With the HPIS, it's as if my husband and I are each insured for a couple of hundred K. Now, speaking of this, does anyone know if the HPIS will be voided if we rent our flat out? Logical reasoning tells me no, unless there's some black and white stating this (I couldn't find any so far).

sorry i just started out and i'm not familiar with HDB matters.

what does HPIS stand for?

[adbie]

Originally Posted by Magdeline

...I wish to keep my HDB as there's still the very low-cost HPIS which is a form of life insurance. With the HPIS, it's as if my husband and I are each insured for a couple of hundred K. Now, speaking of this, does anyone know if the HPIS will be voided if we rent our flat out? Logical reasoning tells me no, unless there's some black and white stating this (I couldn't find any so far).

Very good plan indeed! I've invested previously in a condo (sold off since) and this never crossed my mind - move to condo (enjoy better living) and rent out HDB while keeping the HPS insurance. But this only works if you have sufficient moolah...

[Magdeline]

Yes, my husband and I worked the sums. As our jobs are very stable, we're confident we have sufficient CPF contributions in the OA account to continue to pay for our HDB. We'll use our cash savings, supplemented with a little of our existing OA balances, to fund the down payment for the condo, borrowing the rest. For the monthly loan repayment, part of it will come from the rent we collect, and the rest will come from our pockets.

[adbie]

I just learned of a new "trick".

Some HDB upgraders are selling their flats now and renting a place to stay, in anticipation of a correction in condo prices.

Since HDB resale prices are at a record high, they sell to lock in the high cash over valuation (COV), collecting a tidy sum in cash. Their CPF accounts also get refunded with what they owe CPF (i.e. how much they have withdrawn + interest they could've earned, blah). And some of them may even get extra cash if there is remaining from the sales proceed after repaying CPF.

Condo prices on the other hand have been on the decline, but recently saw an upswing due to over-eager speculators.

What is not clear is whether condo prices can sustain this recovery. So the abovementioned upgraders are betting that the prices may correct after some time, especially post-hungry ghost season or when the IR opens with lacklustre visitor arrivals (like HK disneyland did when they opened).

So they rent a place to stay for the moment.

Once the condo prices fall to an acceptable level, these upgraders will buy and move in to their swanky new abodes.

Who says HDB dwellers are not savvy?

I also started a thread to talk about the crazy HDB record prices:
http://forums.salary.sg/investments-...ly-2009-a.html

[adbie]

Even better, a friend of mine is moving to stay with his parents!