End of illegal HDB rental
HDB has said that they are reviewing their rules to curb speculation and illegal subletting of flats.
According to Mr Mah Bow Tan:
We have been wondering about this for the longest time, and we are sure many of you are aware HDB flats are technically the best rental investments you can ever have in Singapore.
While we are not so sure about flipping HDB flats (minimum occupation period), buying to rent without staying is more rampant. Has Mr Minister even heard of the unofficial "locked door" HDB rental policy?
Well basically the owner locks one door of his 4/5rm flat and claims his Son in NS, or his daughter in NTU stays there occasionally so that the rest of the house can lease be legally leased out before the minimum occupation period. But in fact the daughter or son never comes back to use the room so the tenant can enjoy the whole house, and the owner enjoys the full $1500-2200 per month rental.
Brilliant huh? Don't believe us? Just call some agents renting out a HDB flat in the market. Ask them if any comes with "locked door".
But we are sure you can't beat this:
Illegal guide to buying a $280,000 4rm flat with just $100 per month (PRs may also apply!):
How can HDB ever stop this? According to Channelnewsasia, between January 2008 and December last year, 56 homeowners were caught renting out their flats illegally. That is 56 out of close to 1,000,000 flats or just 0.0056% subletting illegally. Is this figure right?
Probably, because it is so darned hard to catch anyone doing it. Unless you have 20 people staying in your flat and annoying the neighbors, there is little chance that this will go noticed or even reported.
And even if HDB kicks down your door CSI-style to find strangers staying in the flat, HDB has to run a check on your bank account to prove that they are illegal tenants paying rent. Even then, you could just collect rent in cash and *wash* the money. Tenants can also say that they are just friends living with you.
So how?
HDB can say they can seize the flat or even send you to the gallows for it, but that is if they can find a way to catch illegal subletting in the first place.
Our recommendation to a solution that really works, is to start with a $10,000 cash reward for blowing the whistle on your neighbor who is illegally subletting.
Good luck HDB! Your thoughts here.
Via Channelnewsasia
According to Mr Mah Bow Tan:
"If somebody is coming in and buying because they hope to make money, through flipping or selling the flats later on, or to buy to rent without staying in there, I think that's not possible. That's not the idea of HDB flats,"
We have been wondering about this for the longest time, and we are sure many of you are aware HDB flats are technically the best rental investments you can ever have in Singapore.While we are not so sure about flipping HDB flats (minimum occupation period), buying to rent without staying is more rampant. Has Mr Minister even heard of the unofficial "locked door" HDB rental policy?
Well basically the owner locks one door of his 4/5rm flat and claims his Son in NS, or his daughter in NTU stays there occasionally so that the rest of the house can lease be legally leased out before the minimum occupation period. But in fact the daughter or son never comes back to use the room so the tenant can enjoy the whole house, and the owner enjoys the full $1500-2200 per month rental.
Brilliant huh? Don't believe us? Just call some agents renting out a HDB flat in the market. Ask them if any comes with "locked door".
But we are sure you can't beat this:
Illegal guide to buying a $280,000 4rm flat with just $100 per month (PRs may also apply!):
- Buy a Resale/BTO 4room flat for ~$280,000
- Pay monthly installment of ~$1,100
- Rent out two rooms for $500 each without signing any official lease, you stay in the Masterbedroom
- Congrats, you only pay $100 a month to buy a $280,000 4rm flat, eluded the minimum occupation period and even dodged stamp duty
How can HDB ever stop this? According to Channelnewsasia, between January 2008 and December last year, 56 homeowners were caught renting out their flats illegally. That is 56 out of close to 1,000,000 flats or just 0.0056% subletting illegally. Is this figure right?
Probably, because it is so darned hard to catch anyone doing it. Unless you have 20 people staying in your flat and annoying the neighbors, there is little chance that this will go noticed or even reported.
And even if HDB kicks down your door CSI-style to find strangers staying in the flat, HDB has to run a check on your bank account to prove that they are illegal tenants paying rent. Even then, you could just collect rent in cash and *wash* the money. Tenants can also say that they are just friends living with you.
So how?
HDB can say they can seize the flat or even send you to the gallows for it, but that is if they can find a way to catch illegal subletting in the first place.
Our recommendation to a solution that really works, is to start with a $10,000 cash reward for blowing the whistle on your neighbor who is illegally subletting.
Good luck HDB! Your thoughts here.
Via Channelnewsasia
Posted on 29-01-2010 10:18 | By Francis
| Related Articles | Latest Articles |