mr funny
02-04-07, 00:37
April 1, 2007, 10.00 pm (Singapore time)
More renting out HDB flats after rules relaxed
MORE than 300 flat owners have been given the green light to rent out their apartments following last month's easing of rules by the HDB.
A big group of them were only able to do so after the change, which cut the time they needed to live in their flats before they could rent it out.
According to the HDB, out of the 325 people granted approvals within two weeks of the change, about 40 per cent would not have been able to qualify under the old rules.
The changes to the rules were made to allow more people to earn cash from their properties.
The previous policy allowed people to rent out their flats only after five years, or 10 years if had not paid up their HDB home loan.
Under the new regime, it no longer matters if owners have paid up their loan. They only had to live in their flat for three years, unless they had bought their flat with a subsidy or grant from the Government, in which case the timeframe is five years.
This immediately increased the pool of eligible flats to 645,000, out of more than 800,000 flats islandwide. When the previous rules came in place in 2005, only 356,000 flats could immediately be let out .
Just before the rules were eased on Mar 3, 12,600 households had sublet out their entire flat.
Rentals for HDB flats have been rising over the past year, in some cases as much as 35 per cent. The demand, say property agents, is driven by foreign professionals and students who find private apartments out of their reach.
According to the HDB, about half of these 325 households who got the approval had an outstanding HDB home loan. This means that their rental income can now be used to pay for their mortgage.
About one-third of these households were made of older people - aged 55 and above - they tended to move out to live with children after subletting their whole flat.
More renting out HDB flats after rules relaxed
MORE than 300 flat owners have been given the green light to rent out their apartments following last month's easing of rules by the HDB.
A big group of them were only able to do so after the change, which cut the time they needed to live in their flats before they could rent it out.
According to the HDB, out of the 325 people granted approvals within two weeks of the change, about 40 per cent would not have been able to qualify under the old rules.
The changes to the rules were made to allow more people to earn cash from their properties.
The previous policy allowed people to rent out their flats only after five years, or 10 years if had not paid up their HDB home loan.
Under the new regime, it no longer matters if owners have paid up their loan. They only had to live in their flat for three years, unless they had bought their flat with a subsidy or grant from the Government, in which case the timeframe is five years.
This immediately increased the pool of eligible flats to 645,000, out of more than 800,000 flats islandwide. When the previous rules came in place in 2005, only 356,000 flats could immediately be let out .
Just before the rules were eased on Mar 3, 12,600 households had sublet out their entire flat.
Rentals for HDB flats have been rising over the past year, in some cases as much as 35 per cent. The demand, say property agents, is driven by foreign professionals and students who find private apartments out of their reach.
According to the HDB, about half of these 325 households who got the approval had an outstanding HDB home loan. This means that their rental income can now be used to pay for their mortgage.
About one-third of these households were made of older people - aged 55 and above - they tended to move out to live with children after subletting their whole flat.