How can singles not be left out in investing property?

[Hock Chye]

Dear Dennis and fellow classmates,

I thought of seeking your opinion on the subject title. Wld u think singles younger than 35 years old will be left out in investing property?"

I am writing this post, using myself as an example: I am single with no intention of getting married in the next 3-5 years.

The current HDB policy does not allow any single to purchase HDB property until one reaches the age of 35 years old. Given what I had learnt in the course last Sunday, I thought that it is best that one can purchase property as early as possible if circumstances permit.

But given that any single who decides not to get married, this means that he or she can only legally own his/her first HDB property at age 35 years old (for personal staying with parents etc). Going by that scenario, he/she has to occupy the place for at least 5 years before he can sell or upgrade to buy a bigger HDB flat or private property.

While investing in private property is a possibility, does it mean it is a better option in this instance to forgo buying HDB flat but go for private property instead?

Any thoughts?

Cheers,

Hock Chye

[Dennis Ng]

Dear Dennis and fellow classmates,

I thought of seeking your opinion on the subject title. Wld u think singles younger than 35 years old will be left out in investing property?"

I am writing this post, using myself as an example: I am single with no intention of getting married in the next 3-5 years.

The current HDB policy does not allow any single to purchase HDB property until one reaches the age of 35 years old. Given what I had learnt in the course last Sunday, I thought that it is best that one can purchase property as early as possible if circumstances permit.

But given that any single who decides not to get married, this means that he or she can only legally own his/her first HDB property at age 35 years old (for personal staying with parents etc). Going by that scenario, he/she has to occupy the place for at least 5 years before he can sell or upgrade to buy a bigger HDB flat or private property.

While investing in private property is a possibility, does it mean it is a better option in this instance to forgo buying HDB flat but go for private property instead?

Any thoughts?

Cheers,

Hock Chye

Hi Hock Chye,
yes, you can consider to buy a private property instead, since there are not much benefits of buying HDB Resale flats for singles.

Of course, make sure you buy within your means ie. Housing Loan instalments should not exceed 35% of your income.

[candy_chia]

It is a matter of time the government will lower the age band below age 35.

Budget 2013: Singles to be allowed to buy flats directly from HDB
By Rachel Chang, Published on Straits Time, Mar 08, 2013
From July, singles earning $5,000 or less will be allowed to buy NEW 2-room flats directly from the Housing Board.

~~ These flats will only be in non-mature estates,
~~~ and buyers must be at least 35-years- old.

National Development Minister Khaw Boon Wan announced these details in Parliament today during the debate over the budget of the Ministry of National Development.

This change in policy was first promised by Prime Minister Lee Hsien Loong in last year's National Day Rally. He acknowledged that singles face limited housing options due to rising resale flat prices.

Currently, singles aged 35 years old and above can buy only resale flats. They get a cash grant of $15,000 from HDB if they earn $5,000 or less.

Mr Khaw said that the reason for the $5,000 income ceiling in the new singles policy is because this is the group facing the most financial difficulty in procuring housing.

He said that other details are still being finalised, such as how much subsidy will be given in the discounting of flat prices, and what relative priority to apply to married couples who are also balloting for similar flats.

But these details will be settled "as quickly as we can" in time for July's BTO launch, he said.

Mr Khaw also responded to MPs' calls for help for divorcees who are debarred from buying new flats for a period of five years after their divorce.

He said that this will be shortened to three years "to help them move on with their lives, especially those with children."

[winstonteo]

Do you think it is a good time to buy a HDB resale flat for future investment in term of rental or selling with possible housing increase in near future, given the recently new of "HDB resale prices fall 1.4% in Q2" instead of getting a NEW 2 room flat from Housing Board for singles?