{"id":5177,"date":"2016-03-29T06:20:09","date_gmt":"2016-03-28T22:20:09","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=5177"},"modified":"2022-07-01T04:01:47","modified_gmt":"2022-06-30T20:01:47","slug":"if-youre-single-and-you-just-turned-35-should-you-apply-for-an-hdb-flat","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/if-youre-single-and-you-just-turned-35-should-you-apply-for-an-hdb-flat\/","title":{"rendered":"99.co’s guides: Should Singapore singles apply for HDB flats?"},"content":{"rendered":"
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As someone born in the 1980s, it\u2019s often easy to forget just how far we\u2019ve come as a country. No, I\u2019m not just talking about all the glorious achievements we\u2019ve been harping on. But I\u2019m talking about the tiny steps we\u2019ve been taking to make our country a little more inclusive. For Singapore singles, in particular. Did you know that before 1991, single Singaporeans couldn\u2019t even buy an HDB flat?<\/p>\n

So what happened in 1991?<\/strong><\/h3>\n

The Single Singapore Citizen Scheme was introduced, so that Singapore singles above 35 years old could buy HDB flats. It was one of the first changes introduced by Mr. Goh Chok Tong after he became Prime Minister the year before. Back then, ownership of HDB flats by singles was only restricted to 3-room or smaller resale flats and only in less popular estates.<\/p>\n

It took almost a decade before singles could buy a resale flat anywhere on the island, and it was only in 2004 that singles had no restrictions on flat size. In 2013, over a decade after the BTO flat system was introduced, singles were finally allowed to buy subsidised flats directly from the HDB, but only two-room flats.<\/p>\n

What should Singapore singles know about buying HDB flats today?<\/strong><\/h3>\n

Singapore singles need to consider a couple of things when applying for an HDB flat.\u00a0If you\u2019re earning more than\u00a0$6,000, you\u2019re eligible to buy a resale flat of any size**, but not a BTO flat. If your monthly income is $6,000 or less, you are also eligible to buy a new subsidised two-room flat in a non-mature estate.<\/p>\n

(*UPDATE 10\/3: Thank you to the many readers who pointed out this error. There is no income ceiling to buy a resale flat, but if you earn more than $6,000 you will not be eligible for any grants or obtain an HDB housing loan.<\/strong><\/em><\/p>\n

**UPDATE 14\/3: As of November 2015, the income ceiling for Singapore singles to buy a new flat from HDB has been raised from $5,000 to $6,000.)<\/strong><\/em><\/p>\n

***UPDATE 21\/2: As of March 2017, the grant amount for 1st time Singapore singles buying resale flats has increased to $20,000 for a four room flat or smaller, and $25,000 for a five room flat or bigger.<\/strong><\/em><\/p>\n

If you meet those income requirements, you are then eligible for a\u00a0Singles Grant<\/a>\u00a0of $20,000 – $25,000*** if you\u2019re buying a resale flat. If you\u2019re buying a BTO flat, the price of the flat is already subsidised. Regardless of whether you\u2019re buying a new or resale flat, you may be eligible for further grants, like the\u00a0Special Housing Grant, for amounts from $2,500 to $40,000, depending on your income, as well as a Proximity Housing Grant (if you buy a resale flat to live with your parents) of $10,000.<\/p>\n

\"should<\/p>\n

So, if you\u2019re turning 35 this year, should you apply for an HDB flat?<\/strong><\/h3>\n

If you\u2019re an 80\u2019s kid like me, you\u2019ll be 35 before this decade is over. Should you be looking at applying for an HDB flat as soon as you\u2019re eligible? Here are 3 points you\u2019ll want to consider:<\/p>\n

1. Grant money is easy money<\/h3>\n

Okay, so maybe that was a pretty mercenary way to put it, but the truth is, we\u2019re Singaporeans, and we know a free gift when we see one. Whether we\u2019re planning to live in a flat permanently or not, there\u2019s no harm getting some money in the process. Grant money does not need to be returned to the government when you sell your flat. It\u2019s yours to keep.<\/p>\n

If you\u2019re buying a resale flat, that\u2019s anything from $15,000 to $35,000 in grants you\u2019re eligible for. If you\u2019re buying a BTO flat, you may get anything from $2,500 to $40,000, on top of your already-subsidised housing. That\u2019s honestly easy money.<\/p>\n

Of course, most of these grants depend on your income, which brings me to my next point.<\/p>\n

2. Your income may increase as you grow older<\/h3>\n

If you don\u2019t apply for an HDB flat as soon as you turn 35, there\u2019s a chance you might not be eligible for grants to buy an HDB flat because your income has exceeded the requirement. As I mentioned earlier, any Singapore single earning more than $5,000 is no longer eligible to buy a new HDB BTO flat, and any single earning more than $6,000 will not be eligible for any grants. But even if you think you\u2019ll never earn that much money (which is a pretty depressing thought in Singapore with our high cost of living) that doesn\u2019t mean that you can afford to wait.<\/p>\n

Since the grant amount you\u2019re eligible for is based on your income, it makes even more sense to apply for your flat while your income is still low in order to maximise the grants you can get. Of course, that doesn\u2019t mean you should manipulate your income too much before applying for a flat \u2013 remember that TDSR requirements are designed to ensure you only buy a flat you can afford.<\/p>\n

\"singapore<\/p>\n

3. The property market is pretty cheap right now, but it won\u2019t stay cheap for long<\/h3>\n

Two-room BTO flats were recently sold at prices as low as $80,000. On the other hand, resale flats went for a median price of $280,000 to $367,500 for 3-room flats last quarter. That\u2019s the result of a slow but steady uptrend over the past 5 years that seems to have stalled for now, but not for long.<\/p>\n

In that sense, there really is no better time to buy an HDB flat as soon as you\u2019re eligible for one.<\/p>\n

But do ask yourself these questions first:<\/strong><\/h4>\n