One of many key elements of shopping for an HDB flat is that after finishing the flat buy (aka the important thing assortment), you’ll have to occupy the flat for a sure variety of years. This era, referred to as the Minimal Occupation Interval (MOP), normally lasts 5 years. (For Prime Location Public Housing (PLH) flats, it’s 10 years.)
When the MOP ends, you’re allowed to
With that, we’ve used Prospector, certainly one of our agent instruments, to compile an inventory of BTO initiatives which might be set to MOP this yr. As these initiatives have been anticipated to TOP in 2018, they need to be finishing their MOP in 2023.
| Undertaking identify | HDB property | Variety of items | Flat varieties |
| West Terra @ Bukit Batok | Bukit Batok | 1,793 | 2-room (Sort 1 and Sort 2), 3-room, 4-room, 5-room |
| Meadow Spring @ Yishun | Yishun | 469 | 2-room (Sort 1 and Sort 2), 3-room, 4-room |
| Cheng San Court docket | Ang Mo Kio | 712 | Studio Residences (Sort A and Sort B), 3-room, 4-room |
| Buangkok Sq. | Hougang | 725 | 2-room (Sort 1 and Sort 2), 3-room, 4-room |
| Solar Natura | Sembawang | 848 | 2-room (Sort 1 and Sort 2), 3-room, 4-room |
| Yung Ho Spring I, Yung Ho Spring II | Jurong West | 641 + 266 |
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| West Crest @ Bukit Batok | Bukit Batok | 495 | 2-room (Sort 1 and Sort 2), 4-room, 5-room |
| Solar Breeze | Sembawang | 700 | 2-room (Sort 1 and Sort 2), 3-room, 4-room |
| Punggol Bayview | Punggol | 1,096 | 3-room, 4-room, 5-room, 3Gen |
| Buangkok Tropica | Hougang | 718 | 2-room (Sort 1 and Sort 2), 3-room, 4-room |
| Anchorvale Fields | Sengkang | 511 | 2-room (Sort 1 and Sort 2), 3-room, 4-room |
| West Rock @ Bukit Batok | Bukit Batok | 448 | 4-room, 5-room, 3Gen |
| West Valley @ Bukit Batok | Bukit Batok | 870 | 2-room (Sort 1 and Sort 2), 3-room, 4-room |
| Toa Payoh Apex | Toa Payoh | 557 | 3-room, 4-room |
| Buangkok ParkVista | Hougang | 485 | 2-room (Sort 1 and Sort 2), 3-room, 4-room |
| West Ridges @ Bukit Batok | Bukit Batok | 1,578 | 2-room (Sort 1 and Sort 2), 3-room, 4-room, 5-room |
| Blossom Spring @ Yishun | Yishun | 650 | 2-room (Sort 1 and Sort 2), 3-room, 4-room |
| EastLink II @ Canberra | Sembawang | 1,041 | 2-room (Sort 1 and Sort 2), 3-room, 4-room |
| Fengshan Greenville | Bedok | 1,058 | Studio Residences (Sort A and Sort B), 3-room- 4-room, 5-room |
| Marsiling Greenview | Sembawang | 1,304 | 2-room, 3-room, 4-room, 5-room, 3Gen |
| Bukit Gombak Vista | Bukit Batok | 286 | Studio Residences (Sort A and Sort B), 3-room |
Do you have to promote proper after MOP?
For a lot of householders, finishing the five-year mark implies that it’s time to promote the flat. Most of the time, you’ll be able to promote it for a tidy revenue, particularly on condition that the flat was initially priced with subsidies.
What’s extra, by promoting the flat proper after the MOP, you’re extra more likely to get the next acquire out of the sale.
It is because the flat is just 5 years outdated, with round 94 years of remaining lease and continues to be in good situation. It makes the flat way more fascinating to consumers, as they most likely don’t need to spend a lot on renovation.
As an example, again in November, we reported {that a} 5-room BTO flat in Canberra that just lately accomplished its MOP was offered for S$745,000. At the moment, it was a report value for a 5-room resale flat in Sembawang.
What’s notable concerning the transaction is that its value through the BTO launch ranged from S$315,000 to S$373,000. Because of this the homeowners made a paper acquire of S$372,000 to S$430,000, or round 100% to 137%.
(As of writing, this report has been damaged by one other just lately MOP-ed 5-room flat, when it was offered earlier this month for S$760,000.)
We’ve additionally come throughout resale flat transactions of just lately MOP-ed flats that offered double their BTO value.
SELLING YOUR PROPERTY? Would you wish to understand how a lot your property is value? Or perhaps you’re contemplating itemizing your property on the market? Let us know, and we’ll have a consultant reach out to you!
However extra importantly, don’t rush to unload your flat
On the identical time, earlier than you place your HDB flat up on the market, take a step again and take into consideration the subsequent step in your homeownership journey.
Ask your self why you’re seeking to promote. Is it solely due to the excessive paper acquire or the necessity to transfer nearer to your child’s major faculty? Are you seeking to transfer to a much bigger flat or a rental?
As an example, when you’re planning to improve to a rental, guarantee it’s inside your monetary means. In contrast to HDB flats the place you have got the extra possibility of an HDB mortgage, the one financing possibility obtainable for condos is financial institution loans.
In comparison with HDB loans, the utmost financing you’ll be able to take for financial institution loans is 75% of the acquisition value or valuation, whichever is decrease.
Because of this with a rental buy, you’ll need to deal with the upper value and down fee of 25%, of which 5% needs to be paid in money.
Other than the housing mortgage, don’t overlook to make preparations for momentary lodging, particularly when you’re seeking to promote your BTO first earlier than shopping for your subsequent house, or if the subsequent house isn’t prepared but.
Should you discovered this text useful, 99.co recommends Which property varieties to improve to after promoting your first BTO? and What an HDB second-timer should know earlier than deciding to promote.