Connect with us


3 Coffeeshop Myths About HDB Flats You Are Better Off Ignoring

Don’t just believe everything that you hear about HDB flats at the coffeeshop.

Given that the majority of Singaporeans would own a HDB flat, one would assume that most people are familiar with HDB regulations.

Yet time and again, it seems there is no shortage of HDB myths going about in Singapore. Whether this is due to misinterpretation of guidelines, or constant changes of HDB regulations, we think there are a few important HDB regulations worth clarifying on.

#1 Housing Grants Only Applicable For First-Timers

Some people think you only get a HDB grant on your first flat. This is not entirely true.

While most grants such as the Additional CPF Housing Grant (AHG) and the Special CPF Housing Grant (SHG) are catered for first-timers, there are grants that non first-timer can also apply for.

Step-Up CPF Housing Grant

Existing owners whose first flat is a 2-room subsidised flat can enjoy a Step-Up CPF Housing Grant of $15,000 if they are getting a new 3-room flat in a non-mature estate.

This grant helps them subsidies the cost of upgrading to a bigger flat to cater for a larger family.

Proximity Housing Grant

Rolled out in August 2015, the Proximity Housing Grant (PHG) allows families who buy a resale flat to receive a $20,000 grant if they buy a flat near each other. All Singaporeans are eligible to receive the grant once, regardless of whether they have received housing subsidies before, or their current income level.

This grant acts as a financial incentive for adult children and their parents to stay close by.

Read Also: Complete Guide To HDB Housing Grants

#2 You Enjoy Government Subsidies When You Apply For A BTO Flat Near Your Parents

Some first-time HDB applicants think that applying for a BTO flat near where their parents stay allow them to enjoy further government subsidies. This isn’t true.

If you apply for a BTO flat near where your parents stay, what you get are additional ballot chances, rather than extra government subsidies.

#3 A Will Supersedes Everything

Most Singaporeans buy a HDB flat as a family unit either with their spouse or their parent/child. Commonly, this would be bought under a joint tenancy scheme.

The advantage with buying a HDB flat under joint tenancy is that the rights of survivorship apply. What this means is that if one co-owner passes on, the HDB flat would automatically belong to the remaining co-owner.

This is important because joint owners would not want a situation where a surviving co-owner is forced to sell a HDB flat because his/her other co-owner passes on, and leaves the flat with another individual who wants to force sell it.

The disadvantage with joint tenancy is that you cannot simply will your HDB flat to other individuals as per your wish. This protects the surviving owner, but restricts the free will (no pun intended) of either co-owner to pass the flat to someone else.

Read Also: What Happens To Your HDB Flat After You Pass On Without Leaving A Will?

What are some other common HDB myths that you have heard about? Share them with us on our Facebook page or in the comments below!

Listen to our podcast, where we have in-depth discussions on finance topics that matter to you.