Martin Lee @ Sg
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Foreign Property to Face Same Restrictions

One of the property cooling measures announced on Monday was that owners of a private property would have to sell it within six months after they bought a HDB unit.

It was further clarified that this rule will also apply to an owner of a foreign property. Meaning if you own a foreign property, you will need to dispose it within six months of buying your HDB unit.

Frankly, I am not sure how this is going to be enforced but it sends out a clear message that if you can afford to own a private property, you should not be buying a HDB.

On a separate note, Monetary Authority of Singapore (MAS) said that a buyer with a home loan for an overseas property will not be subject to the new financing rules when they are buying an additional property here.

Foreign Homes, Same Rules (Straits Times)

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Leave a Comment:

6 comments
Deborah Chia says 13 years ago

Hi,

My mother in law owes a hdb flat for 11 years. I became the co owner several months ago. I am planning to buy a foreign property. Please advise if I have to sell my hdb flat after buying the foreign property. If so, I can buy the property under my company name registered the that country. Will this 2nd scenario then affect my ownership of the hdb flat? Please advise. Thx!

Reply
BRameshq says 13 years ago

This’s a crap ruling. No way to enforce it. And you are chasing the PRs away. People who afford private property in KL, for instance are not necessarily wealthy enough to afford something in SG. Whoever thinks of this stuff…

Reply
DanielP says 13 years ago

Now that so many PRs have been inadvertently caught in this new ruling, I wonder how fast the govt will amend it to placate them.

Reply
VS LIngam says 13 years ago

Lion Investor,

Frankly, I don’t understand what the fuss is all about. The owner of the private (local or foreign) property can always transfer (or “sell”) it to his family member. Thereafter, he will become a legitimate owner of the HDB flat he just purchased.

Question:- After he transfers his private property out of his name, can he later on (say 1 yr later) buy a private property, either locally or abroad, under his own name? Or is he permanently barred from buying ANY property worldwide as long as he is the owner of an HDB flat? If this is so, then it is an audacious condition to impose on HDB owners.

Buying a foreign property is the HDB owner’s private matter. As long as he does not buy another property in sg, the sg govt should be satisfied.

And as you suggested, how in the world is the sg govt going to monitor and track the HDB flat owner’s foreign properties? There is no incentive for the foreign govts to co-operate with sg govt on this matter. Privacy laws in some foreign countries forbid sharing of such info.

It is very good that the sg govt is trying to cool the property market. But I wonder if these new measures are enforceable. Sg govt normally analyses these matters in detail before making an announcement. However, in this instance, I wonder whether the sg govt has thought through this matter thoroughly right thru the end? Perhaps the sg govt has.

Reply
    lioninvestor says 13 years ago

    Hi Lingam,

    For buyers of HDB unit, the MOP will apply. He won’t be allowed to buy a private property for a period of 5 years.

    http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/895204E2295BDC394825778E007FA919?OpenDocument

    Reply
      VS LIngam says 13 years ago

      Ah yes, the MOP. But after 5 yrs things will go back to square one ie HDB owners may start buying private properties anywhere.

      Young HDB owners can afford to wait it out. So what has the sg govt really achieved, besides delaying the “problem” for 5 yrs?

      Reply
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