HDB Flats in Singapore: Government Initiative

The government of Singapore prioritizes home ownership of its citizen. They created the Housing Development Board which is task to build, sell, and help in financing Singaporean buyers to own a condominium-style flat. Currently, there are several 30-story buildings that offer affordable flats. It is relatively easy for their citizens to own a flat; however, it is bounded by rules that aim to protect the value and the quality of the structures of the flats.

Residency before Selling the Property
hdb flats in singapore government initiative

According to the rules of the Housing Development Board of Singapore, owners who are not subsidized by the government are required to reside in their homes for a minimum of 3 years before reselling it to another owner. However, those owners who are subsidized are required to reside there for a minimum of 5 years before they are allowed to sell it.

Renting Out Rooms
renting out rooms

According to the rules of the HDB, owners of flats having a minimum of 3 rooms can rent out their extra vacant room without approval from the board as long as the owner or the family of the owner still resides in the flat. However, if you are planning to rent out the whole flat, you must be able to reside in it for 3 years if you are nonsubsidized; subsidized flats require 5 years of stay before they are allowed to be rented out. Approval is also needed prior to renting out the entire flat.

Financial Hardship
financial hardship

The HDB allows flat owners who are suffering from financial hardship to pay their arrears in an installment basis within a given fixed period. They also allow those owners with loan installment periods of less than 30 years to extend their payment period up to 30 years. Moreover, they allow flat owners to remit 50-75% of their normal mortgage for at least 6 moths initially.