HDB: Give grants, take back levy?

January 29, 2016

7,900 paid resale levy

I refer to the article “7,900 second-timer households paid resale levy over past 6 years: MND” (Channel NewsAsia,  Jan 29).

It states that “From 2010 to 2015, about 7,900 second-timer households had paid the required resale levy amount when buying another subsidised flat from the Housing and Development Board (HDB)”.

How much resale levies collected?

If the average resale levy was $40,000 (4-room flat) – the total collected may be about $316 million (7,900 x $40,000).

This works out to an average levy collection of about $52.7 million a year ($316 million divided by 6 years).

How much housing grants given out?

Against this – how much did the HDB give out in housing grants yearly?

This may arguably be another indication of how the HDB makes money – by collecting resale levies back from those who had received housing grants.

Are there any countries in the world that gives out housing grants for public housing, and then collect back as a levy?

The funny thing may be that even if you lost money when you sold your flat or had your flat foreclosed because you could not pay your mortgage – you still have to pay your resale levy.

Leong Sze Hian

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About the Author

Leong
Leong Sze Hian has served as the president of 4 professional bodies, honorary consul of 2 countries, an alumnus of Harvard University, authored 4 books, quoted over 1500 times in the media , has been a radio talkshow host, a newspaper daily columnist, Wharton Fellow, SEACeM Fellow, columnist for theonlinecitizen and Malaysiakini, executive producer of Ilo Ilo (40 international awards), Hotel Mumbai (associate producer), invited to speak more than 200 times in about 40 countries, CIFA advisory board member, founding advisor to the Financial Planning Associations of 2 countries. He has 3 Masters, 2 Bachelors degrees and 13 professional  qualifications.