ROF Scrapped, More Housing Options for Single Unwed Parents, and More Besides!

The government has just rolled out a slew of new measures, which should excite some people looking for a flat. Apart from scrapping the Re-offer of Balance Flats (ROF), there are now more housing options for unwed parents, and an enhanced Silver Bonus and Lease Buyback Scheme for older Singaporeans:

The end of the ROF exercise

For those of you who didn’t know, the Re-offer of Balance Flats (ROF) was a twice-a-year exercise in February and August. The ROF exercise pooled all the flats that were still unsold after a Sales of Balance (SBF) exercise, and put them up for grabs. Applicants would register, pay and administration fee, and if shortlisted get to pick a flat (subject to their queue number and the unit availability).

All of that is over now.

From this point on, there is no longer any ROF. Flats that remain unsold will just be available for open booking, all year round. That means it’s a lot easier to get a flat in urgent situations, as you no longer need to wait for February or August to take part in an ROF.

The people who benefit from this are the ones who need their flat right now, and couldn’t care less about waiting for their ideal launch site. They can browse from he pool of available flats online, and book on a first-come, first-served basis.

More housing options for unwed parents

In news that’s sure to annoy the judgemental types, HDB is now friendlier to single unwed parents. Previously, this group of home buyers had two public housing options:

Either buy a resale flat (expensive), or buy a two-room flexi-flat in a non-mature estate. Single unwed parents also had to be 35 years old, before they could buy a flat. You can read more about the bad old days in our previous article.

But now, single unwed parents are allowed to buy a flat from the age of 21. They can also buy three-room BTO flats in non-mature estates, on top of the previous two-room and resale options.

Any single unwed parents who can’t afford a flat can still be considered for public rental (they need to consult with HDB; it’s on a case-by-case basis).

Enhancements to the Silver Housing Bonus and Lease Buyback Scheme

Two existing schemes, the Silver Housing Bonus and Lease Buyback Scheme, have been enhanced.

The Silver Housing Bonus, started in 2013, provides a cash bonus to older Singaporeans who are downsizing. They could get a cash bonus of up to $20,000, by downsizing into a three-room or smaller flat, and topping up their CPF.

Under the enhanced scheme, senior citizens no longer need to be moving into a smaller flat to qualify for the bonus; they qualify as long as their next home is a three-room or smaller flat (e.g. they qualify even if they move from a three-room flat into another three-room flat).

In addition, the cash bonus is now raised from $20,000 to $30,000.

Finally, the amount they need to top up to their CPF (from the sales proceeds of their previous flat) is now up to $60,000 only. Previously, if the net sales proceeds were above $160,000, they would need to make an additional top-up to reach the Full Retirement Sum (FRS).

On another front, the Lease Buyback Scheme has increased bonuses.

The LBS allows flat owners, who are 65 or above, to sell part of their remaining lease back to HDB (e.g. if you are 70 years old and alone, you probably don’t need the remaining 50-year lease on your flat; you may as well sell it off and have a more comfy retirement).

The bonus for selling back your lease has been increased by 50 per cent from the old amount. It’s now as follows:

• Three-room and smaller flats – up to $30,000 cash bonus
• Four-room flats – up to $15,000 cash bonus
• Five-room and larger flats – up to $7,500 cash bonus

(Ps. Hmmpf. I feel obliged to tell you that, if you sell back your lease via LBS, you cannot sell your flat later. I’d hesitate to do this for highly desirable, mature-location flats; you never know if someone might come along and offer you even more money to buy it).

Are you going to benefit from these? Voice your thoughts in our comments section or on our Facebook community page.

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