FAQ: What you need to know before buying a prime area BTO flat

Q: HOW DO THE EXTRA SUBSIDIES WORK?As flats in these prime areas will “naturally command higher market values”, the items can be priced with extra subsidies, on high of these at present supplied for all BTO flats.However, future homeowners of such flats can pay a share of the unit's resale value to HDB, permitting authorities to "pretty recuperate the extent of the extra subsidies” initially given.“The subsidy recovery rate will reflect the extent of additional subsidies provided at launch and the same rate will apply regardless of when the flat is resold in the future,” stated MND in response to CNA’s queries.More particulars, together with the subsidy restoration share, can be introduced in November’s BTO train.Q: CAN I SELL MY FLAT? WHEN?Future homeowners of BTO flats in prime areas can have to fulfil a 10-year minimal occupation interval (MOP) before they will promote their flats within the open market or purchase a non-public residential property.This 10-year MOP is double that of typical BTO initiatives.They can even solely promote to resale consumers who meet the prevailing BTO eligibility circumstances, such because the earnings ceiling."Sellers who attempt to price in the subsidy recovery in the selling price, in the hopes of maximising gains, may find themselves with an even smaller pool of potential buyers," stated MND.Sellers will need to have "realistic expectations" when deciding on the promoting value for his or her flat, added the ministry.Those buying the resale flats can even need to issue within the implications of the extra possession circumstances, such because the prolonged MOP and restrictions on rental.Q: CAN I RENT OUT MY FLAT?Those who purchase such flats in prime areas won't be allowed to hire out the entire flat, even after the MOP.They will solely be allowed to hire out spare bedrooms.These circumstances will apply to each the one who buys the unit from HDB, in addition to all subsequent consumers on the resale market.