Resale Levy

[heyhoe 0]

I'm a second timer and thinking of applying for BTO. As my 1st house was 5 room, does that mean I need to pay $45K based on this website?

I called them to reconfirm but was told to pay about 3 times more due to compounding interest over the years! Please advise.

Thanks!

[chronograph 0]

This levy has to be paid in cash. That's the reason why i decided to take resale instead.

How many years since u sold your 5 room?

I also want to know why interest so high.

[gimz63251073 0]

the website does not indicate that interest have to be paid.

3times the grant given of 45k = 135k. is that the amount they told u to pay?

[ahbook 0]

if TS sold his 5 room before 3 March 2006, his Resale levy is under old scheme, 25% for 5room. that could be why it is amounting to $100K+

http://www.hdb.gov.sg/fi10/fi10322p.nsf/w/SellFlatResaleLevy?OpenDocument

Edited February 7, 2012 by ahbook

[heyhoe 0]

Yes, I sold it before 3 March 2006. I think it was more than $170K - ridiculous to buy BTO with that amount. Is there any reasons why they create the 2 schemes? I really don't understand.

[albertchng 0]

Yes, I sold it before 3 March 2006. I think it was more than $170K - ridiculous to buy BTO with that amount. Is there any reasons why they create the 2 schemes? I really don't understand.

Before 3 March 2006, you have to pay 25% of selling price (example: 5room flat was sold for $500,000 X 25% = $125,000).

On and after 3 March 2006, you only need to pay $45,000.

Not too sure if you need to pay interest from sales date.

[therat 18]

Before 3 March 2006, you have to pay 25% of selling price (example: 5room flat was sold for $500,000 X 25% = $125,000).

On and after 3 March 2006, you only need to pay $45,000.

Not too sure if you need to pay interest from sales date.

Interest start from the day TS, sold his 1st direct HDB.

HDB say.. u can either pay the resale levy on the date you sold ur 1st direct HDB OR u can pay later with interest, starting from day 1 you sold ur 1st direct HDB.

If TS sold the flat @ 2 March 2006.

Now is Feb 2012.

He need to pay nearly 6 yrs interest of the full $125K.

Tell u. Heaven price.

http://www.hdb.gov.s...vy?OpenDocument

Making Payment for the Resale Levy

The resale levy payable is determined at the point of booking of the second subsidised flat. The payment of resale levy is regardless of the type of ownership (i.e. joint-tenancy or tenancy-in-common) and the share of interest in the flat.

If you are buying your second subsidised flat, you can:

• Pay the resale levy immediately at the point of resale, i.e. when selling your subsidised flat or
• Defer the payment until you buy another flat from HDB. If you opt for this, an interest at the prevailing rate of 5% per annum will be charged.

You can pay the Resale Levy with either/combination of the following:

• with your sale proceeds or
• cash

I found it.

Interest 5%

Principle $125k

Interest : 5%

Year : 6

Interest will be P*I*Y = $37 500

That's mean TS need to pay back $125k + $37.5k = $162.5k to HDB

[albertchng 0]

...

That's mean TS need to pay back $125k + $37.5k = $162.5k to HDB

song dah... this is really front song back pain!

heng for me, i opt to pay the levy when i sold my 1st flat in 2003.

[gimz63251073 0]

sounds like a trap that hdb dig.. its bad...

but hey, no real reason to go for BTO right? buy resale lor?

[ahbook 0]

Well, to avoid paying the resale levy of S$170K & also COV on resale flat, yet wanting a new flat, TS can consider getting DBSS or EC development which does not require TS to pay resale levy.

[albertchng 0]

Waa... DBSS or EC!

Pocket deep deep sure no problem; or else TS can never buy hdb flat unless he pay up the $170K levy.

[heyhoe 0]

Thanks to all whom responded. I sold it at 1999 thus should be much more now. It just seems so unfair cause they never tell us all these when we first sell the flat.

Anyway, already have resale twice. Just thought it will be nice to have BTO for a change. Since this is the case, just stay put and renovate.

Cheers!

[forgotten 1]

A lot of people are unaware of this compounding 5% interest!

[elaine81 1]

Aiyo . then i also kena la

I bought y current flat on 01 sep 2005 .

My first flat was from hdb , 3 room flat. current flat is the 2 nd flat .

And nw going to buy a anew flat from HDB again , can some one help me with the calculation ?

How much levy must i pay ?

[therat 18]

http://www.hdb.gov.sg/fi10/fi10322p.nsf/w/SellFlatResaleLevy?OpenDocument

The doc is kind of long.