Buying a property under Trust during MOP : Be careful of the pitfalls

Buying a property under Trust during MOP !! Alright, folks, get ready to dive into the thrilling world of Singaporean real estate! We’ve got a story that’ll make your heart race faster than a bidding war on a million-dollar property. Buckle up, because we’re about to explore the daring escapades of HDB flat owners aiming for that private property dream. Let’s do this!

Picture this: a group of ambitious HDB flat owners, driven by a burning desire for luxury, decide to take a leap of faith and invest in a second home. The catch? They’re breaking the rules, my friends. They’re breaking them real good.

Now, in the realm of HDB regulations, there’s something called the minimum occupation period (MOP). It’s like a real estate rite of passage, where you have to live in your HDB flat for a solid five years before you can dip your toes into the private residential market. It’s the waiting game, the endurance test, the ultimate challenge.

But these rule-breakers, they don’t have time for waiting. They’re like real estate renegades, willing to take risks that would make your grandma gasp. They thought they could outsmart the system by using trust schemes to sneakily put their new properties under their kids’ names. Crafty move, but alas, the authorities caught wind of their real estate shenanigans.

Between 2018 and 2022, about 150 of these mavericks were busted for their secret escapades. Can you imagine the drama? It’s like a real estate soap opera, unfolding right before our eyes. They thought they could pull off the ultimate double life, but they were no match for the keen eyes of the Housing Board (HDB).

Now, let’s not be too hard on these rebel souls. They were victims of misinformation, misguided by their real estate agents who thought they had uncovered some secret loophole. Bless their hearts, they were wrong. But hey, at least they had the cash to back up their bold moves. Bank loans? Nah, not for these trailblazers. They were all about that cold, hard cash.

Buying a property under Trust during MOP : The law has changed

But here’s where the plot thickens. The game changed, my friends. Starting from May 9, 2022, these rule-breakers faced a steep uphill battle. They had to face the music and cough up a whopping 35 percent upfront additional buyer’s stamp duty (ABSD). That’s like a financial gut punch, a reality check that hits harder than a falling property market.

Buying A Property Under Trust During Mop

And just when they thought they had hit rock bottom, the ABSD got a major upgrade. Boom! It skyrocketed to a jaw-dropping 65 percent from April 27, 2023. Talk about a real estate rollercoaster that’ll leave you breathless!

But let’s give credit where credit is due. The HDB means business, my friends. They’re not messing around when it comes to these shenanigans. Flat owners, listen up: you can’t play the property game during the MOP. It’s like a real estate commandment, etched in stone. Violate it, and you’ll face consequences that’ll make your head spin.

So, my fellow real estate enthusiasts, let this be a lesson. Stay on the right side of the rules, hustle hard, and one day you’ll find yourself in the lap of luxury. Be careful of 99-1 schemes too and be fully aware of its pitfalls.

Singapore dream? Consider it sold! Now go out there and conquer the real estate world like the rockstars you are. Boom!

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