Whenever there is a Sales of balance flat (SBF), there is always strong interest on them.
On the occasions that they were still not taken up, they would be transferred to the Re-offer of balance flats (ROF).
The ROF sales pools all unsold flats are from the previous SBF and ROF exercises.
Similar to other sales launches, at least 95% will be given to first timers owning a home.
They have been very popular, check the summary below.
Hence, if you are a young couple looking to buy a first home quickly, this is your shot.
The last ROF was in Aug2018. Click here to view more on the ROF scheme
ROF may be 4 months faster than SBF!
The key difference between the ROF and the SBF is the waiting period for the ballot results and the flat selection appointment.
For the ROF, this is shorter.
Ballot results for the ROF will be made known about 1 week after the application period closes, compared to about 2.5 months for the SBF.
Appointment for the flat selection will take place 1 to 5 months after application period closes, compared to 3 to 8 months for the SBF.
Since the ROF takes place only after the SBF round, it’s natural that successful applicants for the ROF will end up having a shorter waiting period for their new flats.
If the flat is already completed, applicants can move in within three months.
Is it worth to pay more for SBF and ROF vs BTO?
From forums, some have shared that it costs between $30,000 to $50,000 more for a SBF flat as compared to neighbours who applied via the BTO route.
Of course, we don't know other factors like which phase, which area and which unit type.
I do think that this $30,000 - $50,000 will be money well spent because waiting 2-3years extra is a lot.
3 key points
From an emotional point, it is fun to start living together earlier especially if you are just married.
No need to cramp up at parent's place. And starting a family is easier.
From a financial standpoint, you save on renting from HDB under the Parenthood provisional housing scheme PPHS (click here to learn) or other sources.
From an investment standpoint, you get to start owning a flat earlier and start clearing your 5years Minimum occupancy period MOP.
Then you can make the move for home upgrades if you want.
I've friends who have sold off their SBF bought slightly more than 5years ago at clementi and netted a decent gain.
They have since upgraded!!!
But first: Rules and steps for SBF or ROF
Before considering buying any type of flat, there are eligibility conditions needed to be fulfilled
Question: If I am allocated for the ROF and I reject the allocation, does it take away my first timer chance?
No. If you rejected the chance to select a flat in the Re-offer of Balance Flats (ROF) exercise when there are still available flats at their turn, will not be considered as having one count for non-selection of flat.
Question: How much payments are needed in total?
The first step is the application fee of $10.
Then the option fee of $500 to $2,000 which must be paid in cash and depends on the flat size.
Now coming to the most important part.... THE DOWNPAYMENT!
If you use a HDB loan, it can be fully funded by CPFOA.
Lastly, stamp duties. There is a formulae
– 1% on the first $180,000;
– 2% on the next $180,000; and
– 3% on the remainder.
This amounts to about a few thousand dollars and ...... it also can be paid by your CPFOA.
So no worries. Go apply soon if you are a new couple and Good Luck!! =)
Last updated on January 16th, 2019 at 10:08 pm