What Are The Things You Should Consider When Buying An Old Resale HDB Flat

What Are The Things You Should Consider When Buying An Old Resale HDB Flat | While many Singaporeans prefer to be proud owner of new BTOs but these days, data suggested that an increasing trend of resale HDB flat ownerships amongst youngsters. There are various reasons of the new trend that could be due to location familiarity and timing issues. Nonetheless, the type of HDB flats will bring impact on financing matters especially if there’s limited cash on hand. Here’s what you need to consider when getting a resale HDB flat.

🏢The years left in the lease

The number of years left in the leasehold tenure does affect your CPF usage and HDB flat loans. It is estimated that there’s 280,000 units are between 30 to 40 years old and approximately 70,000 units are older than 40 years. If you have the intention to use your CPF to fund your HDB flat resale with leases of less than 60 years, you may drop that idea as there’s a subjected rule. If the resale HDB flats’ remaining lease is less than 30 years, no CPF can be used. However, if you would want to use your CPF, the remaining lease of the property plus your age must be at least 80 years, for example if you’re 40 years old and the flat has another 43 years lease which adds up to 83 years.

🏢The en bloc news

It would be good to check up the history of the HDB flats via googling or news to get alert on the potential en bloc or high redevelopment potential. The Selective En bloc Redevelopment Scheme (SERS) is a not a sure thing for every resale HDB flat. Sers is on a selective basis and is offered only to HDB blocks located in sites with high redevelopment potential. Ever since the launch in year 1995, there are only 4 per cent of HDB flats have been identified for Sers. The flats have to be returned to HDB when the lease runs out which return the land to the State. It’s unwise to purchase an old, expensive HDB resale flat that an en bloc is imminent. 

🏢The prices in the future

The experts expect the value of the property decline sharply towards the end of the lease. This will happen when the loan constraints and restrictions to use Central Provident Fund (CPF) savings to finance the HDB flat. There are three possible key points that will cause the prices to fall steeper.

i) Less than 35 years

Banks are unwilling to extend loans to finance the flats purchase with less than 35 years which is also equivalent to flats that are at least 64 years old.

ii) Less than 30 years

If the HDB flats are left with less than 30 years, CPF money can’t be use to make downpayment or servicing daily ‘

iii) Less than 20 years

Cash Is King, where you will need to pay everything in cash for your HDB flat purchase. Buyers won’t be able to use CPF or loan to buy their dream home. Everything has to be in cash. 

🏢The condition of the house

It is important to also look at the house condition although it is known that resale HDB flat is more spacious than the new BTO. There’s defects that has surfaced over the time which mostly could be leakage in pipes, ceiling cracks’ and etc. If the defects are conspicuous, your renovation and repair will probably cost a bomb. Do take in consideration of the resale HDB flat’s condition minimal defects, best nothing at all. 

🏢The location and the amenities of the flat

Usually the mature housing estates have the convenient neighbourhood. Besides, good accessibility and shorter walking distance to the public transport. Hence, it is important to check out the URA master plan for future by clicking here. Although for now seems peaceful but do check out the master plan to ensure that the future planning is to make your stay and life easier and convenient with the public transportations and facilities provided. However, if you’re more of a person who enjoys peace and serene, do ensure that the master planning has minimal disruption or constructions nearby your nest.

Tentang YunFila

Seekor kentang gemuk bertopi. Meminati kucing, teknologi, steampunk, membeli-belah secara online, melayari YouTube serta mengumpul topi. Juga memiliki obsesi terhadap kentang pink pada tahap yang membimbangkan.

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