Meet John and Mary, a loving couple who have spent many years in their private condominium, enjoying the comforts of city living. As retirement approaches, they began contemplating a more practical and financially sustainable lifestyle. The idea of downsizing to a 4-room HDB flat emerged as a promising solution.
John and Mary's Questions and Journey:
Question 1: Understanding the Cooling-Off Period
John and Mary learned about the 15-month cooling-off period that typically applies to private property owners transitioning to HDB flats. Concerned about delays, they sought clarification.
Answer: Exemption for Age and Property Size
Upon consulting with a real estate expert, they discovered that their age (both being over 55 years old) and their plan to purchase a 4-room flat or smaller qualified them for exemption from the cooling-off period. This news filled them with relief, knowing they could proceed without waiting.
Question 2: Funding the HDB Purchase with CPF and Cash
With a plan to use their CPF savings and cash for the HDB purchase, John and Mary were unsure about the financial implications, particularly regarding the Additional Buyer Stamp Duty (ABSD).
Answer: No ABSD for HDB Purchases
Their realtor explained that HDB purchases are exempt from ABSD, easing their financial concerns. They were advised to prepare for the sale of their private condominium within 6 months of completing the HDB purchase.
Question 3: Ownership Arrangement for HDB Purchase
John and Mary were curious about the ownership arrangement for their HDB purchase. They wondered if both needed to be listed as buyers.
Answer: Flexible Ownership Options
The real estate expert clarified that either John or Mary could be listed as the buyer, while the other could be listed as the occupier. This flexibility allowed them to make arrangements that suited their preferences and future plans.
John and Mary's journey serves as an example of successful downsizing and retirement planning through a transition to a 4-room HDB flat. If you're considering a similar move or have questions about HDB transitions, reach out to our real estate team. We can provide personalized advice and guide you through the process to ensure a smooth transition to your ideal retirement home. Contact us today to start planning for your future housing needs.