PRs discussing ways to by-pass Govt new HDB restrictions

[makapaaa]

[h=2]PRs discussing ways to by-pass Govt new HDB restrictions[/h]

January 13th, 2013 |

Author: Editorial

HDB

Among the new rules announced by the Govt to help cool the red hot property market in Singapore on 11 Jan (‘Govt announces further measures to cool red hot property market‘), the Govt implemented specific measures, with effect from yesterday (12 Jan) to target Permanent Residents (PRs) on public housing.
This is to further moderate the demand for HDB flats and require owner occupation by PR buyers. The following measures are implemented specifically to restrict PRs further:

a) PRs who own a HDB flat will be disallowed from subletting their whole flat. Previously, a PR flat owner can sublet his whole flat after meeting the minimum occupation period (MOP).
b) PRs who own a HDB flat must sell their flat within six months of purchasing a private residential property in Singapore.
​

Already, PRs on the various expat forums are discussing ways to by-pass the HDB restrictions, especially the restriction to sublet the whole flat.
The most common response from PRs who still want to rent out the whole HDB flat illegally is to “lock-up” 1 room.
On SingaporeExpats.com, a reader “JR8″ said:

“Simple: ‘One room lock’ ah
p.s. Had you thought that rather than ‘cooling the property market’*, this is just another exercise in raising taxes; popular of course as for the vast majority it will only fall on ‘other people’.”
​

Another reader, “Wd40″, thought that “technically” it should be ok for PRs to lock up 1 room to rent out the whole flat if they are going abroad (e.g. returning back to their home country):

“Well, it’s only a problem if the owner lives in Singapore in another house (even then I doubt it considering the number of ads on the property portals).
But if owner goes abroad and locks one room, then technically it should be ok, because he can say that he is not renting out the whole unit but the room is for the owner’s belongings. I don’t think it has been explicitly mentioned anywhere that owner should also be living in the same house.
Right now lots of people do it during the MOP period. Now only difference is the MOP is forever.”
​

So, it seems that with this loophole, PRs can still go back to their home country and continue to rent out their whole HDB unit with 1 room locked, even though they may no longer be working in Singapore.
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[Loofydralb]

I thought foreigners only think citizens were stupid.

Now they know Sinkie govt also stupid. FTs are running rings around Sinkie laws and regulation.
By extension they also think the Ministers are dumber for introducing unenforceable laws.

 

[ray_of_hope]

FTs are only here to milk the country dry.

 

[neddy]

FTs are only here to milk the country dry.

Exploitation is the way to go, practised by locals as well.

I love the MOP.

NSmen exploited to do National Day preparation & cleanup.

Foreign workers are exploited for cheap labour. Imagine a Pinoy graduate working as maid in Singapore.

Sellers trying to milk the customers.


It is a game played well in Singapore.

 

[watchman8]

Would PRs want to take the risk of locking one room? They are not citizens, if caught, lose PR plus risk of hdb taking back flat at cost. Also risk that tenant will tell on them at the very last month of tenancy.

Also if the PR are no longer working in Singapore, very easy to know as ICA has the digital database.

 

[watchman8]

I thought foreigners only think citizens were stupid.

Now they know Sinkie govt also stupid. FTs are running rings around Sinkie laws and regulation.
By extension they also think the Ministers are dumber for introducing unenforceable laws.

Law is enforceable, only that hdb more relax with citizens, close one eye. But with PR, no need to give face. The neighbors will also help to keep an eye. Many sinkies are pissed with PRs, so will not take much to report abuse to hdb.

 

[Prometheus888]

The quickest way to enforce is to give a monetary reward for all those HDB dwellers who report those illegal landlords.

Then it will really get HDB working on double quick time, those clowns in their enforcement division must be dragging their feet

 

[melissamarietan]

Hey..thanks for updating this news..even I was planning to invest in an HDB and hence, this news really helped me check with my eligibility criteria and yes, I am very happy to inform you friends that I will be able to buy the HDB.

 

[Romagnum]

MOP is the stupidest thing for resale, which is supposedly free market

 

[Capano2121]

If PRs decides to return to their kampung, then HDB must allow them 30 days to get rid of the property at the open market or upon expiration of the grace period must sell the pigeon hole back to the HDB at the HDB determined "MARKET PRICE"!
And because they have to sell the property anyway if they purchased private property, then the pigeon hole must not at anytime be rented out partially or otherwise!