Rent out HDB and stay in condo - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Investments and Net Worth

Investments and Net Worth Talk all about money making exploits, shares, property, building net worth and retirement matters




Rent out HDB and stay in condo

Reply
 
Thread Tools
  #1 (permalink)  
Old 16-06-2009, 07:45 PM
Junior Member
 
Join Date: Jun 2009
Posts: 4
Magdeline is on a distinguished road
Default Rent out HDB and stay in condo

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.

Reply With Quote
  #2 (permalink)  
Old 16-06-2009, 08:20 PM
Senior Member
 
Join Date: Jun 2009
Posts: 40
bjhchong is on a distinguished road
Default

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...

Reply With Quote
  #3 (permalink)  
Old 16-06-2009, 08:29 PM
Unregistered
Guest
 
Posts: n/a
Default

Quote:
Originally Posted by Magdeline View Post
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.

Reply With Quote
  #4 (permalink)  
Old 16-06-2009, 10:36 PM
Senior Member
 
Join Date: Jun 2009
Posts: 67
quek is on a distinguished road
Default

Quote:
Originally Posted by Unregistered View Post
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

Quote:
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.
Reply With Quote
  #5 (permalink)  
Old 16-06-2009, 10:55 PM
Junior Member
 
Join Date: Jun 2009
Posts: 4
Magdeline is on a distinguished road
Default

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).
Reply With Quote
  #6 (permalink)  
Old 17-06-2009, 09:28 AM
Unregistered
Guest
 
Posts: n/a
Default

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

what does HPIS stand for?
Reply With Quote

  #7 (permalink)  
Old 17-06-2009, 11:26 AM
Senior Member
 
Join Date: Jun 2009
Posts: 67
quek is on a distinguished road
Default

Quote:
Originally Posted by Magdeline View Post
...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...
Reply With Quote
  #8 (permalink)  
Old 17-06-2009, 12:16 PM
Junior Member
 
Join Date: Jun 2009
Posts: 4
Magdeline is on a distinguished road
Default

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.
Reply With Quote
  #9 (permalink)  
Old 02-07-2009, 05:38 PM
Senior Member
 
Join Date: Jun 2009
Posts: 67
quek is on a distinguished road
Default

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:
https://forums.salary.sg/investments-...ly-2009-a.html
Reply With Quote
  #10 (permalink)  
Old 03-07-2009, 06:42 PM
Senior Member
 
Join Date: Jun 2009
Posts: 67
quek is on a distinguished road
Default

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


SG Bus Timing App
SG Bus Timing App - the best bus app - available on iPhone


SGX Stocks Android App - check share prices
SGX Stocks [Android] App - check latest share prices on the go


SGX Stocks for iPad - check latest Singapore share prices
SGX Stocks [iPad] app
| SGX Stocks [iPhone] app
Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Only 47 percent of Scholars stay in HDB Salary.sg Education and Personal Growth 10 15-04-2011 08:25 PM
Can you Afford that Condo? Introducing the Debt Ratios Salary.sg Investments and Net Worth 3 04-08-2009 09:21 AM
HDB Condo Ratio Salary.sg Investments and Net Worth 4 28-12-2008 10:21 PM

» 30 Recent Threads
Lawyer Salary ( 1 2 3... Last Page)
5,729 Replies, 2,392,945 Views
Factual Local Bank Salaries - DBS... ( 1 2 3... Last Page)
130 Replies, 64,956 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
1,997 Replies, 921,708 Views
Compare civil service salary ( 1 2 3... Last Page)
9,746 Replies, 5,459,627 Views
How much do you earn and save?
6 Replies, 82 Views
Local Uni Class of 2020 - COVID19... ( 1 2 3... Last Page)
253 Replies, 48,069 Views
How is life as a doctor in... ( 1 2 3... Last Page)
1,160 Replies, 881,332 Views
Roles in accenture singapore ( 1 2 3... Last Page)
331 Replies, 241,116 Views
SIM-UOL fresh grad starting pay ( 1 2 3... Last Page)
2,688 Replies, 1,255,348 Views
Marsh Graduate Development Program ( 1 2 3... Last Page)
58 Replies, 5,062 Views
Constituency Manager (People... ( 1 2 3... Last Page)
861 Replies, 439,231 Views
Mid-Year Civil Servant Bonus 2019 ( 1 2 3... Last Page)
1,478 Replies, 749,282 Views
Anyone jobless for a long time... ( 1 2 3... Last Page)
2,838 Replies, 1,060,223 Views
Dsta ( 1 2 3... Last Page)
817 Replies, 535,258 Views
For local U grads, how well are...
2 Replies, 228 Views
Q: Management Associate at SGX ( 1 2 3... Last Page)
87 Replies, 12,261 Views
Q: Big4 - Yearly salary increment ( 1 2 3... Last Page)
929 Replies, 741,185 Views
Officer Role in Bank of Tokyo -... ( 1 2 3... Last Page)
178 Replies, 143,151 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
3,221 Replies, 1,862,441 Views
Career as Teacher ( 1 2 3... Last Page)
2,571 Replies, 1,554,892 Views
Ex-MOE Teachers ( 1 2 3... Last Page)
71 Replies, 110,541 Views
Diploma in Digital Marketing at...
3 Replies, 1,095 Views
anyone working at NCS ? ( 1 2 3... Last Page)
355 Replies, 275,415 Views
Whats your net worth ( 1 2 3... Last Page)
2,711 Replies, 781,039 Views
DBS Management Associate Program... ( 1 2 3... Last Page)
1,308 Replies, 236,365 Views
Pay grade at CSA ( 1 2 3... Last Page)
104 Replies, 23,963 Views
Cold calls/emails to HR ( 1 2)
13 Replies, 1,323 Views
Insurance Agent to Bancassurance...
7 Replies, 5,165 Views
ITE lecturer ( 1 2 3... Last Page)
121 Replies, 114,146 Views
Insurance Management Associate... ( 1 2 3... Last Page)
60 Replies, 16,445 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 01:43 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2