housing singapore Archives

Missed Prime Minister Lawrence Wong’s first National Day Rally speech on new housing measures?

No worries for we’ve got you with this post.

Here are the highlights you need to know.

Good news for singles

With families in mind, singles will now have priority access to new homes.

Starting in mid-2025, singles looking to live near loved ones will receive priority when applying for Build-to-Order (BTO) flats.

This change was recently announced by PM Wong.

We all know that housing is one huge topic for many living in Singapore.

In his first National Day Rally speech, PM Wong reaffirmed the government’s commitment to affordable, accessible public housing.

Currently, only those 35 and above can purchase new two-room Flexi HDB units as singles.

Recognizing this limit, PM Wong asked how more could be done for singles.

The solution?

Grant them the same priority now given to married children who apply within 4 km of their parent’s home.

This means singles stand a better chance at balloting for a new build near family.

As PM Wong shared, many singles also wish to care for aging parents so this update ensures all children, whether married or not, can more easily live close by.

Lower-income couples received good news too

The Central Provident Fund (CPF) Housing Grant, assisting first-time buyers, will see its maximum amount increased.

This extra support helps more young Singaporeans purchase their first affordable home.

“This is my assurance to all young Singaporeans: Once you start work and wish to settle down, we will make sure that there is an HDB flat that is within your budget in every region,” PM Wong noted.

“We will always keep public housing in Singapore affordable for you.”

National Development Minister Desmond Lee will announce more details soon so stay tuned to the news.

Seniors, too, are not forgotten

Additional housing options have also been created for seniors.

For instance, the brand new Harmony Village @ Bukit Batok, ready to be moved in later this year, combines apartments and care services.

Image Credits: Facebook/Desmond Lee

More such developments are planned to help the older generation age gracefully.

Recovering from the pandemic

In addition, PM Wong acknowledged past housing woes stemmed from COVID-19 disruptions.

But steady progress has been made on new construction and all delayed projects should be completed by early 2025.

This will satisfy pent-up demand while stabilizing prices.

Meanwhile, the special focus remains on keeping HDB flats attainable long-term.

Upcoming policy refinements aim to shorten waiting periods for BTOs and make prime locations feasible for all.

The government is working on its public housing mission and helping citizens realize their home dreams.

The idea of having a tenant who will cover the costs of the mortgage sounds great on paper. This situation makes owning a property seem like an easy investment. In reality, you must be ready to shoulder several fees and taxes as well as unexpected repairs. Not to mention, you must handle the stress that comes with it.

Renting out your property takes knowledge and experience. After a couple of years, you will know which strategies will work and which will not. In the meantime, consider these things before becoming a landlord in Singapore.

#1: ESTABLISH A SCHEDULE FOR SITE INSPECTIONS

Landlords cannot disturb the tenants’ home with unannounced inspections. Instead, landlords must arrange regular site inspections to ensure that the property is undamaged. You will be able to update your tenants if there are items that need replacement or repair during your visit.

With the tenant’s permission, it is a clever idea to arrange an inspection every six months. Inspecting the site will help you pinpoint or prevent severe damage. For instance, once floorboards start to rot, you will need to quickly fix the issue. Letting the problem brew for half a year may lead to ripping out the entire floor.

#2: BE PREPARED FOR PROPERTY TAXES AND MAINTENANCE COSTS

Additional fees such as property taxes and maintenance costs come with being a landlord. Most private condominiums have a monthly maintenance fee. This fee, charged by the management committee, is determined by your share value.

On the other hand, property taxes are progressive and are based on the Annual Value of your home (AV). The AV is the estimated gross rental income of your property per year. It is determined by a valuation from the Inland Revenue Authority of Singapore (IRAS). Educate yourself about it.

#3: KNOW THE TAX DEDUCTIBLES

In case you are not familiar with the regulations, mortgage interest is tax deductible. The interest rate on the mortgage loan is tax deductible only if the property concerned yields income. Likewise, maintenance costs for the property are tax deductible. This can be more complex because you need to list all the items and costs of replacements.

Image Credits: pixabay.com

To check out the list of deductibles, you may go to the IRAS website. You should have a good understanding of what you can claim as a landlord. If you are uncertain, you can always ask a property agent or a wealth manager for professional help.

#4: BRACE FOR THE IMPACT OF VACANCIES

You cannot expect that there will always be rental income to cover the cost of the mortgage. A period of vacancy can happen for a variety of reasons such as the economic constraints of the pandemic, the tenant’s inability to pay for rent, the tenant will move back to his country, or the tenant’s decision to purchase his own flat. You will need to bear the mortgage without the rental income when vacancy occurs.

Moreover, do you have the capacity to service the loan if your monthly loan repayments are greater than your rental income?

#5: HAVE AN EMERGENCY FUND

The situations stated above highlight the importance of setting up an emergency fund. Keeping six months’ worth of mortgage payments in the emergency fund is recommended. If you do not have it now, you can build your fund over time.

Your fund will give you sufficient time to find solutions in case you are faced with unpleasant scenarios. This will also help you deal with emergency repairs such as broken pipes and non-functional air-conditioner.

Sources: 1 & 2