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Are you a first or second time buyer of a HDB flat?
26 May 2017 (117 views)

The HDB allows a citizen to buy a subsidized flat two times. On the second time, the buyer has to pay a resale levy. This rule may look simple, but can be quite complicated to manage. It is giving headache to the front line staff of HDB and to the general public.

Mr. X shared this story with me. His parents bought a HDB flat many years ago. His father passed away. HIs mother asked Mr. X to be included as a co-owner of the flat. By that time, the HDB flat had been fully paid. By adding his name to the flat, his mother thought that it would facilitate the transfer when she pass away.

Mr. X checked with HDB and was told that he would not be treated as a "first time buyer" of his mother's flat. Being careful, he checked with another officer in HDB and was told that this would be the treatment. 

A few years later, Mr. X applied to buy his own HDB flat. He was shocked to learn that he would be treated as a "second time buyer" as his name was already included in his mother's flat. He had to pay a levy of $50,000 on the his mother's flat. This was contrary to what he was told earlier.

He had to discuss this matter with many officers in the HDB and the town council. He was passed from one person to another. 

He finally approached a minister. He finally received confirmation from the town council that he would be treated as a "first time buyer" for his own flat as a "special case".  This matter dragged on for a year. Although the final decision was in his favor, he does not like to be classified as a "special case".

We have many cases of complicated rules governing many aspects of our life. These rules are so complicated that the people administering them are confused. It will be even more confusing to the general public.
 


Are you a first or second time buyer of a HDB flat?
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The HDB allows a citizen to buy a subsidized flat two times. On the second time, the buyer has to pay a resale levy. This rule may look simple, but can be quite complicated to manage. It is giving headache to the front line staff of HDB and to the general public.

Mr. X shared this story with me. His parents bought a HDB flat many years ago. His father passed away. HIs mother asked Mr. X to be included as a co-owner of the flat. By that time, the HDB flat had been fully paid. By adding his name to the flat, his mother thought that it would facilitate the transfer when she pass away.

Mr. X checked with HDB and was told that he would not be treated as a "first time buyer" of his mother's flat. Being careful, he checked with another officer in HDB and was told that this would be the treatment. 

A few years later, Mr. X applied to buy his own HDB flat. He was shocked to learn that he would be treated as a "second time buyer" as his name was already included in his mother's flat. He had to pay a levy of $50,000 on the his mother's flat. This was contrary to what he was told earlier.

He had to discuss this matter with many officers in the HDB and the town council. He was passed from one person to another. 

He finally approached a minister. He finally received confirmation from the town council that he would be treated as a "first time buyer" for his own flat as a "special case".  This matter dragged on for a year. Although the final decision was in his favor, he does not like to be classified as a "special case".

We have many cases of complicated rules governing many aspects of our life. These rules are so complicated that the people administering them are confused. It will be even more confusing to the general public.