🔑 Key Highlights:
- Resale levy for HDB BTO flats can be substantial, with one forum member’s aunt facing a levy of $89.5K.
- The resale levy is calculated based on the original purchase price of the BTO flat and accumulates interest over time.
- The interest rate is 10% per annum, and interest is calculated from the date the original BTO flat was sold.
💡 Main Discussion Points:
- The thread discusses the HDB resale levy and its impact on upgrading or downsizing to a new flat.
- One member explains that the resale levy is calculated based on the original purchase price of the BTO flat and accumulates interest over time.
- Another member suggests that the aunt consider purchasing a 2-room flexi BTO, which is exempt from the resale levy for buyers above 55 years old.
- However, the aunt’s desire is to downsize to a 3-room or 2-room with an add-on room in the kitchen, and resale prices are currently too high.
📋 Important Details:
- To be exempt from the resale levy, buyers must be above 55 years old and purchase a 2-room flexi BTO.
- The resale levy is calculated based on the original purchase price of the BTO flat, with a 10% annual interest rate.
- The interest rate starts from the date the original BTO flat was sold, and interest is accumulated over time.
💭 Community Insights:
- One member shares that the resale levy can be a significant burden for those who have accumulated interest over the years.
- Another member notes that the 2-room flexi option may not be suitable for everyone, especially those who require more space.
- The thread highlights the importance of considering the resale levy and retirement planning when making HDB purchasing decisions.
⚠️ Things to Note:
- Buyer’s above 55 years old buying a 2-room flexi BTO may not be required to pay a resale levy but this does not seem to address the Aunt needs due to space requirement.
- Further details on how the remaining cash proceeds are handled may be verify if a new flat purchase happens which was not verified to be returned to aunt retirement funds.
Official links and references:
- More details on HDB BTO eligibility and resale levy can be found on the official HDB website (www.hdb.gov.sg).
- Retirement planning and CPF information can be found on the official CPF Board website (www.cpf.gov.sg).