oversubscribed
The latest round of the Home Improvement Programme (HIP) has selected over 29,000 HDB flats for upgrading works, announced HDB in a press release on February 16. This round of HIP will see a budget of over $407 million being allocated to the selected flats, located in 13 different estates across Singapore such as Bedok, Bukit Batok, and Toa Payoh.
The HIP was first launched in 2007 to assist flat owners in addressing common maintenance issues that arise due to wear and tear in older flats. Since then, about 494,000 flats or nine out of ten eligible ones have been chosen for the programme, with close to 381,000 flats undergoing upgrading works, according to Minister for National Development, Desmond Lee.
Under the HIP, selected flats will undergo essential improvements to ensure the basic safety needs of residents. This includes repairing spalling concrete and ceiling leakages due to normal wear and tear. These essential improvements are fully funded by the government for Singapore citizen households.
On top of essential improvements, flat owners can also opt for optional improvements such as upgrading of existing bathrooms and toilets, installation of a new entrance door and grille gate, and a new refuse chute hopper. These optional upgrades are subsidised by the government, with Singapore citizen households paying as low as 5% of the cost, depending on the flat type.
Since 2012, the Enhancement for Active Seniors (Ease) programme has been offered as part of the HIP. Under Ease, flat owners can choose to install senior-friendly fittings such as grab bars, ramps, and slip-resistant treatment for toilet and bathroom tiles. Up to 95% of the costs are covered by the government for Singapore citizen households.
Purchasing a condominium is a significant investment that requires careful consideration, especially when it comes to financing. In Singapore, there are various mortgage options available. However, it is crucial to familiarize oneself with the Total Debt Servicing Ratio (TDSR) framework, which dictates the maximum loan amount a borrower can obtain based on their income and current debt commitments. It is advisable for investors to seek guidance from financial advisors or mortgage brokers to gain a better understanding of the TDSR and make informed decisions about their financing. This will also prevent them from becoming overleveraged. Additionally, checking out Singapore Projects can provide valuable insights into the real estate market and potential investment opportunities.
Since the launch of the HIP and Ease programmes, the government has allocated approximately $4 billion and around $150 million, respectively, as of March 31, 2014, according to HDB. Interested parties can check out the latest listings for HDB properties and compare past sale and rental transactions. They can also compare HDB loan rates and price trends between HDB, condo, and landed properties.