Resale Levy On 2nd Timers For Executive Condominium Purchases
Whether you are a first timer or are buying your second executive condominium, there are some things that you should be aware of before you finalize the transaction. One of the main things that you should know about the resale levy is that you will have to pay it at the time of booking your second flat.
Paying the HDB resale levy
Buying a second time HDB flat may not come cheap. You can expect to pay a Resale Levy of up to $55,000. However, not all home buyers must pay it. There are some exceptions, such as proximity housing grants.
Resale Levy is calculated based on a percentage of the flat’s sale price. It can vary between 5% to 25% of the resale price. The amount can also be affected by the length of the lease. For example, a 2-room flat that costs $28,000 will have a Resale Levy of $15,000. Likewise, an executive flat that costs $50k will have a Resale Levy of $50,000.
Resale Levy is due when you sell a publicly subsidised flat, and is charged at 5% interest per annum. You can also opt to defer the payment until you purchase a new flat.
HDB resale levy is not considered under the proximity housing grant
Buying a second HDB flat can be a great idea if you can afford to sell your first home at a profit. However, HDB Resale Levy may be a factor you should consider.
HDB Resale Levy is a charge imposed on the sale of an HDB subsidised flat. This charge is based on a graded percentage of the resale price. It is paid with the proceeds of the sale of the flat. However, HDB mortgage financing is not used to cover this charge. You can pay it with cash or CPF savings.
There are two types of housing grants available to Singaporeans. The Proximity Housing Grant is for those who want to move closer to their parents. They have to live within 4 km of their parents’ home. This grant can be worth up to $30000.
HDB resale levy is deducted from the cash proceeds upon completion of the resale transaction
Generally speaking, a resale levy is a levy on the sale of a HDB flat. The resale levy can be calculated based on prevailing HDB policies and procedures. It is generally based on a percentage of the resale price of the flat.
There are other ways to reduce the resale levy. For example, if the seller is a sole owner, the resale levy may be halved. It is also possible to make the resale levy payment in cash.
HDB also offers payment solutions to help you make your resale levy payment. You can use a resale levy card, or you can make the payment by cash or CPF.
The amount of resale levy will depend on the flat type and the resale price of the HDB flat. In order to find out the resale levy amount, you can refer to the HDB resale portal.
HDB resale levy is payable at the point of booking second subsidised flat
Whether you’re buying a second HDB flat or downgrading from a condo to an HDB, you’ll need to pay the HDB Resale Levy. This is a fee that is payable when you sell your first subsidised flat. This levy was earlier based on a percentage of the selling price, but the HDB has now revised its policy.
There are two types of subsidised flats – Design, Build and Sell Scheme (DBSS) flats from developers and Sales of Balance Flats (SBF) flats from HDB. DBSS flats are exempt from resale levy.
If you’re a first time buyer of a subsidised flat, you won’t have to pay the HDB Resale Levy. It was previously 90 per cent of the selling price. The amount is based on a percentage of the market valuation of your first subsidised flat.
HDB resale levy is a great investment for first timer buyers
Buying an Executive Condominium (EC) in Singapore can be a great investment if you’re a first-time buyer. This type of property comes with many benefits, including spacious bedrooms with walk-in wardrobes and high-quality finishes. It also has the highest capital appreciation of all residential property types.
If you’re a first-time buyer of an EC, you might be eligible for the $30,000 CPF Housing Grant. You’ll also be eligible for the Enhanced CPF Housing Grant. This grant is designed to assist local lower- to middle-class families afford to own a home.
HDB Resale Levy is not applicable to ECs purchased with a CPF housing grant. However, it is still an expense when you decide to sell your existing flat.
A Resale Levy is a levy that is imposed by HDB on property owners who receive HDB subsidies more than once. It is deducted from the sale proceeds and paid to the HDB.