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| 16. |
The
HDB flat is not a dead asset. A retiree should
be able to use it to supplement the monthly
amount from his CPF, either by downgrading
to a smaller flat, or by renting it out. However,
our rules on the subletting of entire HDB
flats are still quite restrictive. For example,
until quite recently, the owner had to be
working overseas. In January this year HDB
relaxed the rules to allow an owner to sublet
the entire flat provided he had not enjoyed
any housing or mortgage subsidy on his flat,
had lived in it for 10 years and did not have
any outstanding loan from the HDB. But only
a handful have done so. |
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| 17. |
HDB will now relax
the subletting rules further. From 1 October
2003, flat owners who have lived in their
flat for at least 15 years can sublet their
entire flat, regardless whether the flat had
been bought with a subsidy, and even if they
still have an outstanding HDB loan. If the
flat owner does not have an outstanding HDB
loan, he can sublet his entire flat after
occupying it for 10 years. |
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| 18. |
With this relaxation,
about 250,000 HDB flat owners will become
eligible to sublet their flats. This will
provide them with a source of income in old
age. From the perspective of people looking
for housing, this will enlarge the HDB flat
rental market, and offer an additional housing
option to young couples and budding entrepreneurs,
and others who are not ready or willing to
commit to a flat purchase. |
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