ST : Condo now the cheapest option

Sep 11, 2010

PROPERTIED PERMANENT RESIDENT

Condo now the cheapest option

MR SEBASTIAN CHOW, 35, sales executive

OLD DREAMS

Mr Chow grew up in Batu Pahat in Johor but has been living and working in Singapore for the past six years. He owns a single-storey house there because his aged parents, who live in the house, transferred its ownership to him two years ago.

Meanwhile, the Malaysian national lives with his Singaporean wife, a housewife, in a rented three-room flat in Toa Payoh.

The couple have been saving diligently over the past two years to buy an HDB resale flat in Woodlands. The idea was to start a family once they moved in.

Although Mr Chow wants to raise their children in Singapore, he hopes to keep his house in Batu Pahat.

'If something happened to my job, I would still have a property to go back to in Malaysia. That is, after all, my hometown.'

WHAT CHANGED ON AUG 30

Those who buy an HDB resale flat now must dispose of their private property - including any held overseas - within six months of buying an HDB resale flat.

If Mr Chow were to sell his Malaysian property and buy a resale flat, he would not be able to buy a private property here or overseas until he fulfils the minimum occupation period of five years in the flat.

NEW HOPES

Mr Chow says: 'I was quite upset with the rule changes. The measures are targeted at investors. We are just looking for a place to live in so we shouldn't be affected. I think it's not fair.'

He will continue renting for another two years before deciding what to do next.

He does not intend to transfer the ownership of the Malaysian property back to his parents, who are in their 70s. 'My parents are quite old, which is why they transferred the property to me in the first place.'

He cannot afford a condominium unit now but will 'work harder' to save towards it as it is now the cheapest option for him.

Still, he prefers the HDB neighbourhood to the condo crowd.

'I've lived in a condo before and didn't really like it. In a condo, the neighbours can be quite snobbish but in an HDB estate, people are friendlier. If I need help, I think they will come to help me.'

REAL OPTIONS

Permanent residents who are unable to sell their private property because their parents are living in them can appeal to the Housing Board for a waiver of the rule.

However, if that appeal is unsuccessful, they will have to decide if they want to make Singapore their home.

Housing experts say that permanent residents can opt to transfer the ownership of their overseas properties to relatives if selling them is a problem.

But don't try lying about overseas property ownership.

Those caught making a false declaration to HDB can be fined up to $5,000 and/or jailed for up to six months and risk having their HDB flat acquired compul-sorily.

ERA Asia Pacific associate director Eugene Lim says if permanent residents are willing to sell their overseas property, now is a good time to buy HDB resale flats as the drop in demand from private property owners is expected to lead to lower prices.

C&H Realty managing director Albert Lu said: 'If you are planning to stay in Singapore for a long period of time, it is better to buy an HDB resale flat than to pay rent.'


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KEEP HDB PRICES REASONABLE

'The Government has allowed the HDB to be used for speculation, which is not its original intention. The HDB flat should be kept at a reasonable price for people who need it.'

Mr Chan Kok Hong, 64, managing director of property management firm



FRIENDLIER HDB NEIGHBOURS

'I've lived in a condo before and didn't really like it. In a condo, the neighbours can be quite snobbish but in an HDB estate, people are friendlier. If I need help, I think they will come to help me.'

Permanent resident Sebastian Chow, 35, a sales executive