If you are searching for a great way to get on the property ladder in Singapore, you need to consider the HDB flat. These are a very popular way to find housing, and there are suitable projects all across Singapore that you could invest in right now. Here are some of the things you need to know if you are interested in looking into HDB flats.
What is a HDB Flat?
HDB stands for Housing Development Board, one of the departments of Singapore’s government. It basically means that these are properties that the government has decided to build. You will find flats of all shapes and sizes here, not to mention ones that are located all across the city. If you are determined to commit to a style of apartment and are interested in what a HDB could offer, this is something you should definitely look into.
You should be prepared however, as this is a commitment and there are a lot of restrictions in place as to who can buy a flat and why. It might take some time for you to work out precisely what you need to do in order to be eligible for this type of property.
Who Can Purchase a HDB Flat?
One of the major restrictions in place with HDB flats is who can buy them. For now, the only people who can buy these flats as Singapore citizens or Singapore Permanent Residents, otherwise called PRs. This is to ensure that these flats are kept in the hands of people who actually want to live there rather than those who might be buying strictly for investment properties.
There are still strict rules around this. Singapore citizens are able to afford any type of flat, whereas PRs are more restricted. It is very difficult for two PRs in a relationship to buy a HDB but it is possible – you will have more luck if your spouse is a citizen of Singapore. PRs also need to have held their status for at least three years. If you are a single PR, you are not going to be able to buy a HDB flat.
How Do I Afford an HDB Flat?
In order to afford an HDB flat, you need to make sure that you know some of the options available to you. Many of the major banks in Singapore will offer a HDB loan. This will allow you to select a rate of interest and a repayment plan that suits you. It is one of the easiest ways to get the money needed for an HDB, but it is also one that you need to make sure you research properly so you can be certain that you have found the right deal.
There are several other grants out there that can also help you to afford this type of property more easily. If you want to know more about some of the options open to you as a HDB applicant, you need to make sure that you also take a look at your eligibility for some of the grants out there.
What Types of HDB are There?
There are several types of HDB flats out there that you could apply for. Each one is slightly different and can be suitable for a range of different people.
The first that you might be interested in is Build to Order, or BTO. You purchase a unit in a building that is under construction. Options can include a completed flat, or one that is slightly cheaper but will require you to install your own fittings like kitchens and bathrooms. BTOs are excellent for starter homes or for couples searching for their first place together.
Another option you might want to try is the Design, Build, and Sell Scheme or DBSS. Here, a private company began the construction of the flats but will hand it over to the HDB for management when it has been completed. Since they started out with a private manufacturer, they tend to be a little more upmarket.
Executive Condominiums, or ECs, are the only type of HDB that can be purchased by foreigners under special circumstances. They are very similar to private condos, and might have swimming pools or a creche on site.
The final option is a resale flat. These are ones that are not new and have been placed back on the market for some reason. They often tend to be a little bit bigger than newer BTOs. They might also be located close to established amenities like shopping centres or public transport stops, so they are great to move into.
Hopefully you now know a little more about HDBs and whether or not you might be eligible for one! They offer a fantastic opportunity to become a property owner in Singapore!