Can I Rent Out My HDB and Stay in a Condo? Exploring the Prospects of Dual Residency

In the heart of Singapore’s bustling real estate scene, a common query emerges – Can I rent out my HDB and stay in a condo? This intriguing prospect presents a blend of financial leverage and lifestyle upgrade. With one foot in the calming, community-oriented environment of a Housing Development Board (HDB) flat and the other in the luxurious ambiance of a private condominium, residents stand to experience the best of both worlds.

This article unfolds the journey from owning an HDB flat to enjoying the high-rise view from a condo, while renting out the former. It navigates through the legal corridors, weighs the financial seesaws, and charts a roadmap for those considering this dual-property venture.

Through a blend of meticulous planning and insightful strategies, transitioning smoothly between these two types of residences could unveil a realm of possibilities, amplifying both your living experience and financial portfolio.

Can You Own HDB and Condo at the Same Time?

Yes, Singapore citizens and Permanent Residents can own both HDB and condo properties at the same time. However, certain conditions apply, especially when it comes to renting out the HDB flat. It's essential to meet the Minimum Occupancy Period (MOP), usually five years, before considering renting out the HDB flat. Moreover, the number of occupants and citizenship status significantly influence the rental possibilities.

Here’s a breakdown of the singapore regulation on owning a HDB and Condo:

1. Minimum Occupancy Period (MOP):

Before considering the purchase of a private condominium, HDB flat owners must fulfil a Minimum Occupancy Period (MOP) of five years from the date of purchase.

2. Citizenship:

Singapore Citizen: Singapore Citizens can own both an HDB flat and a private condominium concurrently, provided they have fulfilled the Minimum Occupancy Period (MOP) of five years for their HDB flat.
Singapore Permanent Resident: Singapore Permanent Residents are required to sell their HDB flat within six months of purchasing a private property. They cannot own both types of housing at the same time.
Foreigner: Foreigners are generally not eligible to purchase HDB flats in Singapore but can purchase private condominiums. However, they will be subjected to a higher ABSD rate of 60% on the purchase of any residential property.

3. Additional Buyer’s Stamp Duty (ABSD):

If a Singapore Citizen decides to keep their HDB flat and purchase a private condominium, they will be subjected to an Additional Buyer’s Stamp Duty (ABSD) which is a percentage of the purchase price of the private property.

Below is a table depicting the Additional Buyer's Stamp Duty (ABSD) rates as of 27 April 2023 in Singapore for various buyer profiles based on the higher of the purchase price or market value:

Profile of Buyer	ABSD Rates on or after 27 Apr 2023
Singapore Citizens (SC) buying first residential property	Not applicable
SC buying second residential property	20%
SC buying third and subsequent residential property	30%
Singapore Permanent Residents (SPR) buying first residential property	5%
SPR buying second residential property	30%
SPR buying third and subsequent residential property	35%
Foreigners (FR) buying any residential property	60%
Entities buying any residential property	65%
Housing Developers buying any residential property	35% (Plus Additional 5% (non-remittable))
Trustee buying any residential property	65%

4. Number of Occupants:

The number of occupants in the HDB flat affects the rental possibilities. For example, a maximum of six occupants are allowed in a three-room flat or bigger. Owners may only rent out their flat and/or bedrooms if there are less than six owners and/or authorised occupants residing in the flat.

5. Rental Regulations:

The rental of the entire HDB flat is only permissible for Singapore Citizens, and certain quotas apply for renting to non-citizens. Additionally, a minimum rental period of six months is stipulated for each tenant.

5 Advantages and Disadvantages of Renting Out HDB and Staying in a Condo

Here's a deeper dive into the advantages and disadvantages that come with this housing arrangement:

Oxley Holdings Limited, the developer behind Affinity at Serangoon, is renowned for its innovative approach to real estate development. The company has a strong track record of delivering high-quality residential, commercial, and industrial projects both in Singapore and internationally.

Advantages:

Financial Gain:
- Rental Income: Renting out your HDB can provide a steady stream of rental income, aiding in offsetting the costs associated with your condo.
- Tax Benefits: There are tax deductions available for rental-related expenses, which can prove beneficial in the long run.
Asset Appreciation:
Real Estate Value: Real estate often appreciates over time. By retaining both properties, you stand a chance to benefit from potential appreciation of your assets.
Flexibility:
Accommodation Options: Retaining both properties provides flexibility in terms of living arrangements and potential income generation3.
Investment Diversification:
Risk Management: Having properties in different segments of the real estate market (public and private) can serve as a hedge against market fluctuations.
Enhanced Lifestyle:
Amenities and Facilities: Condos often come with a range of amenities and facilities that can significantly enhance your lifestyle compared to HDB flats.

Disadvantages:

Financial Risk:
High Initial Costs: The initial financial outlay, including the Additional Buyer's Stamp Duty (ABSD), can be quite substantial.
Maintenance and Management:
Dual Responsibilities: Owning two properties entails double the maintenance effort and costs.
Regulatory Compliance:
Rental Regulations: Complying with the regulations for renting out HDB flats and managing a condo can be cumbersome.
Market Volatility:
Property Market Fluctuations: The real estate market can be volatile, which could potentially affect the value and rental income of your properties.
Tenant-Related Issues:
Finding and Managing Tenants: Dealing with tenant-related issues can be time-consuming and potentially stressful.

Transitioning Between HDB and Condo? Clicks® Has Got You Covered!

Embarking on a journey of renting out your HDB while nesting in a serene condo? Kickstart your venture with Clicks®, your companion in seamless property transitions!

🔹 List Your Property for FREE!

Showcase your HDB to a plethora of potential tenants both locally and internationally. With just a few clicks, your listing goes live and the inquiries start rolling in!

🔹 Not Sure About the Price? Try Clickstimate!

Don't leave money on the table by mispricing your property. With Clickstimate, ascertain the accurate worth of your HDB in a jiffy, absolutely FREE! Just input your property details, and in 10 seconds, you have a precise valuation to list your property at a fair price.

🔹 Eyeing a Condo? Explore Our Extensive Listings!

Dive into our vast collection of condo listings and pick your next haven. With properties spread across Singapore, Indonesia, Australia, Thailand and Malaysia, your dream condo is just a search away.

🔹 More Than Just Listings!

At Clicks®, we are a nexus of real estate enthusiasts, reputable agents, and potential buyers and renters from around the globe. Network, connect, and transact on a platform that transcends borders.

Don’t just move; move ahead with Clicks®. Illuminate your property’s potential with Clickstimate and step into a vibrant real estate community awaiting you!