RES exam question on HDB Policies: Mary and her husband, both Singapore Citizens, collected the keys to their 4-room BTO…
Mary and her husband, both Singapore Citizens, collected the keys to their 4-room BTO flat in January 2022 and have lived there since. In mid-2025, with a second child due, they want to buy a $1.8 million condominium and keep the flat to rent out. Which of the following statements is/are correct? (i) They may not rent out the whole flat yet, as their five-year MOP runs to January 2027. (ii) Since they will keep living in the flat until the condominium is ready, they may buy it now. (iii) Since they are citizens buying their first private property, the condominium attracts no ABSD. (iv) If they buy after the MOP and keep the flat, they pay ABSD at 20%, the citizen second-property rate.
- A(i), (ii) and (iv) only
- B(i) and (iv) only
- C(i) and (iii) only
- D(ii), (iii) and (iv) only
Show answer & explanation
Answer
B. (i) and (iv) only
Explanation
Answer: (i) and (iv) only. Their MOP runs to January 2027, which blocks both a whole-flat letting and a private purchase, and the flat counts for ABSD.(i) True. The five-year MOP counts from key collection. Keys in January 2022 put the MOP end at January 2027.(iv) True. After the MOP, keeping the flat makes the condominium their second residential property, at the citizen rate of 20%.Watch out: The HDB flat counts for ABSD, so the condominium is not their first residential property.Rule: During the five-year MOP, counted from key collection, owners may neither rent out the whole flat nor buy private residential property. ABSD counts every residential property, HDB flats included.Source: HDB, MOP rule for flats bought from 30 Aug 2010; IRAS, 20% ABSD for a citizen's second residential property from 27 Apr 2023; /learn/hdb-minimum-occupation-period-mop; /learn/stamp-duties-bsd-absd-ssd
Why the other options are wrong
- (ii) False. Living in the flat does not lift the bar. During the MOP owners may not buy private residential property, local or overseas.
- (iii) False. ABSD counts every residential property, HDB flats included. The condominium would be their second, so 20% applies.
Study the concept behind this question: Renting Out an HDB Flat or Room: Approval, Quota, Tenants
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