In the case of a retiring couple who are Singaporean citizens and currently own a private condo, transitioning to a smaller 4-room HDB flat for retirement is a feasible option. Here's a breakdown of the process:
Question 1: Understand there's a 15-month cooling-off period, do we need to wait?
Answer: If both of you are above 55 years old and are purchasing a 4-room flat or smaller, you would be exempted from the 15-month waiting period.
Question 2: We plan to use full CPF and cash, do we need to pay ABSD (Additional Buyer Stamp Duty) upfront or get remission afterward?
Answer: When purchasing an HDB flat, ABSD does not apply, and there is no remission available for HDB purchases. Additionally, according to policy, any other residential properties must be disposed of within 6 months from the completion date of the HDB purchase.
Question 3: Does the purchase have to be in both our names, or can one of us be the buyer and the other the occupier?
Answer: It is not necessary for both partners to be owners. However, if you plan to purchase a private property in the future under the occupier's name, you must fulfill the 5-year Minimum Occupation Period (MOP).
Summary and Highlights:
- Couples aged 55 and above can purchase a 4-room HDB flat or smaller without waiting for the 15-month cooling-off period.
- No ABSD is payable for HDB purchases, and there is no remission available.
- All other residential properties must be disposed of within 6 months of completing the HDB purchase.
- The purchase can be made in the name of one partner, but future private property purchases under the occupier's name require fulfillment of the 5-year MOP.