James Koh

HDB Ruling


Just heard from my friend that is such a rule (HDB) stating that couples earning a combined income of 8k and above are not eligible to buy a new 4 room or 5 room HDB flat. I think this rule is a bit unfair as many ppl will be earning these amount after a few years esp graduates. Like that, it seems that the only choice is to buy an EC (Executive condominium) if HDB flats are out of the picture. Note: the above rules only apply for New Flat purchase and do not apply for buying flats in the open market.

Currently, both dear (yq)and my income are reaching the threshold of 8k monthly soon, it will well exceed once the wage increase kicks in. These does not include monthly allowances, bonuses and profit sharing payouts, shareholder dividends etc.

Is the threshold of 8K refers to monthly basic salary or yearly taxable income divided over the years? This is something quite abstract and will need to find out further from HDB once we start looking for flats. If it basic monthly salary then we may still be able to purchase a new flat provided HDB allows a buffer of (8k +10 %) and not restricting on a single figure of 8k. Well if it yearly taxable income divided throughout the years, i think there is no way for us to buy new flats. The reasons are as shown below.

yq (payout scheme) = basic +allowances +production bonus + year end bonus.
my (payout scheme) = basic + sales commission + shareholder dividends + year end bonus.

If economy is well this year and assuming i get good sales commision, shareholder dividends and bonus, our monthly will be well exceed 8K and into the 5 figure mark.

Guess i may have to get a resale flat or a new EC if that the case.