3,500 rental tenants purchased first home since 2013

These rental flat tenants were able to buy their new homes with the help of HDB housing grants.

About 3,500 rental flat tenants bought their first home in the Build-to-Order (BTO) or Sale of Balance Flats (SBF) exercises since 2013, of which some 2,000 have moved into their new units, reported The New Paper citing an HDB release.

One of them was Mohammad Suhaimi Junaini, who along with his wife and two daughters, moved to a three-room flat in Jurong West last September.

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The family of five lived in a rental flat in Telok Blangah for five years.

Earning $1,300 per month, the 32-year old delivery driver applied for the $200,000 unit in November 2017 as he believed it was better to acquire a flat than pay the monthly rental of $250.

This comes as the flat would “provide the family with security” in case something unexpected happened to him, he said.

He was able buy the flat with the help of $70,000 in housing grants and a $100,000 Housing Board loan.

HDB revealed that an average of around 600 rental tenants become new homeowners each year.

Of the 3,500 tenants who acquired their first home in the last six years, 28 percent opted for two-room flexi flats while 47 percent chose three-room flats.

Around 72 percent purchased a flat with the Special CPF Housing Grant or Additional CPF Housing Grant (AHG), or both.

Eligible first-timer families who purchase a flat from HDB can get up to $800,000 in housing grants, comprising the AHG (up to $40,000) and the Special CPF Housing Grant (up to $40,000).

Meanwhile, tenants who choose a resale flat can get up to $110,000 in housing grants, comprising the CPF Housing Grant (up to 50,000), AHG (up to $40,000) and Proximity Housing Grant (up to $20,000).

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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

This post was originally posted on Property Guru Property Market News Section