PRs Give A Second Thought For Purchase Of HDB Resale Units
The new rules Implemented by government from 30th August have made some permanent residents to give a second thought to buying resale flats
The policy announced by Government says that buyers of HDB flats will not be allowed hold any sort of public or private property and if at all they own any property independent of the fact that property is here or abroad, it has to be sold within six months of HDB flat purchase.
Another part of the Government policy says that a non-subsidized flat purchaser has to ensure that his occupation lasts for a minimum of five years period.
This Government policy has decreased the interest of many PRs towards buying the property. Many industry insiders think that it is nothing but a total loss. Some officials have even quoted the examples of PRs who have been dealing in this business for a long time, but now owing to the Government policies are reconsidering purchase of non-subsidized flats. One of the officials even said that this can even bring down the purchase market by 30 to 40%.Therefore; PRs might take some time to coup with this news before considering the thought of new purchases. An official claimed that if the policies remain unchanged and inflexible, at least 10% of the PRs will leave the non-subsidized flat purchasing business.
On the contrary, sources have confirmed that in opinion of some officials these policies will not have any significant effect on many purchasers as they have been doing this business for a very long time and merely these, Government laid policies won’t hinder their long run business. Moreover, PRs can come up with different ideas to have ownership of non –subsidized flats, for instance, they can hold any sort of foreign property and keep it secret. Firstly, it is difficult to investigate a foreign property, second to this; HDB has not spoken of the consequences one has to face in case of any sort of fraud or policy violation. In addition to this, there are many PRs who do not hold or own a single piece of property, so they are free to buy the flats
A Government-laid policy regarding bank loans has also decreased the purchase of HDB flats. The policy says that from 30th August banks will loan for 70% of land value instead of the previous 80%,thereby,meaning that he purchasers have to give 30% money as down payment which is 10% more than the previous policy. Because of this sudden and unusual increase in down payments multi-flat buyers have to ponder over their decisions before going for next flats.
Another fact is that real estate companies or real estate purchasers with bigger capital will definitely go for high priced pieces of land and property rather than going for non-subsidized flats.
The new Government laid policy has opened new horizons for some real estate hunters as they are instantly buying the property, for example, a company got hold of all the 68 units that were put to sale, in a single day. Avenue of project was Outram Park MRT station comprising of single or two-bedders measuring about 484-1,615 sq.ft.
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