Assessing the potential rental yield is a crucial step when considering a Singapore condo investment. Rental yield is determined by the annual rental income as a percentage of the property’s purchase price. In Singapore, the rental yields for condos can vary significantly, depending on factors such as location, property condition, and market demand. Typically, areas with high rental demand, such as those near business districts or educational institutions, offer more attractive rental yields. Thus, conducting thorough market research and consulting with real estate agents can provide valuable insights into the rental potential of a specific Singapore condo.
The Ministry of National Development (MND) has recently announced updates to the Silver Housing Bonus (SHB) and the Fresh Start Housing Scheme (Fresh Start). These enhancements are part of the government’s continuous efforts to support elderly citizens in downsizing and to improve public housing access for lower-income households living in HDB rental flats.The SHB encourages senior citizens to plan for their retirement by unlocking the value of their residential assets to top up their CPF Retirement Account (RA). Currently, to be eligible for the SHB, applicants must be at least 55 years old, have a monthly income of no more than $14,000, own a property with an Annual Value (AV) of not more than $21,000, and purchase a smaller three-room HDB flat (excluding three-room terraced) as their replacement property.Read also: A Guide to The Enhanced CPF Housing Grant (EHG)AdvertisementAdvertisementUnder the existing SHB scheme, applicants can choose to contribute up to $60,000 to their CPF RA to receive a cash bonus of up to $30,000. This amount is prorated at a $1 cash bonus for every $2 top-up made to their RA, and can be sourced from their CPF housing refunds.Starting from Dec 1, 2021, applicants will be qualified for the SHB cash bonus as long as they can prove that their downsizing has resulted in a net increase in their CPF RA balance from any source, including from their CPF housing refunds. This means that seniors who are still using their CPF accounts to finance their homes may no longer need to make a cash top-up to qualify for the SHB.The SHB has also been expanded to cover seniors who own properties with higher AVs. Under the new criteria, applicants who own properties with an AV of more than $21,000 but not exceeding $13,000 will be eligible for the SHB. This change is expected to benefit an additional 15,000 seniors, according to MND.Such applicants will still receive a cash bonus based on the amount their RA increases, capped at $60,000. However, the cash bonus will be prorated at a $1 cash bonus for every $6 increase in their RA, up to a maximum of $10,000.In addition to the prorated amount, successful SHB applicants who right-size to a two-room or smaller HDB flat (including Community Care Apartments) will also receive a $10,000 cash bonus. This sum will not be prorated and will be given regardless of the amount contributed to their RA.Read also: HDB resale prices up by 0.1% q-o-q in 3Q2019, resale transactions down 0.2%AdvertisementAdvertisementSeniors can apply for the SHB within a year of their second property transaction. This means that those who complete their right-sizing after Dec 1, 2024, will be eligible to apply for the enhanced SHB on Dec 1, 2025.Fresh Start Housing scheme expandedMinister of State for National Development Muhammad Faishal Ibrahim has announced an expansion of the Fresh Start Housing Scheme. Launched in 2016, this programme offers financial assistance and social support to Second Timers (ST) families who have previously purchased a subsidised HDB flat, with the aim of helping them achieve homeownership.Under the current Fresh Start scheme, eligible families can purchase two-room flexi or three-room standard BTO flats with shorter leases of 45 to 65 years, which must last until the youngest owner turns 95. These flats are subjected to an extended Minimum Occupation Period of 20 years, compared to the usual five years.The enhancements to the scheme include an increase in financial support. Eligible families will now receive $75,000 from the Fresh Start Housing Grant, up from the previous $50,000.The new grant includes an initial disbursement of $60,000 credited to the applicants’ CPF Ordinary Account (OA) before their key collection dates. The remaining $15,000 will be disbursed to their OA over the next five years to help with their mortgage payments.The eligibility criteria for the scheme have also been broadened to include First-Timer (FT) families. While FT families are not eligible for the Fresh Start Housing Grant as they can benefit from the larger Enhanced CPF Housing Grant (EHG) of up to $120,000, they can still enjoy the lower cost of shorter-lease BTO units and the social support provided under the programme.Read also: HDB Optional Component Scheme (OCS) – Is It Worth Opting In?AdvertisementAdvertisementEligible FT families can start applying for the Fresh Start scheme from April 2025, while the revised Fresh Start Grant amount will take effect from the July 2025 BTO exercise.