HDB MOP – Made Property Dealing Easy
What is HDB Minimum Occupation Period (MOP)? The distinction between public housing (HDB and EC) and private property is made by MOP. The five-year minimum occupation time applies to all buyers of HDB flats, resale HDB flats, and new Executive Condominiums (EC). Owners are not permitted to rent the entire apartment or sell it privately during these five years. The term of subletting will not count against the five years if the owner of the apartment has permission to sublease the entire unit.
Why Does the HDB MOP Exist? The government's policy of requiring a minimum tenure in public housing is primarily intended to quell speculative activity. The main goal of HDB apartments is to make housing for the general population more affordable, not to make money. Due to the entry price's cheap cost and the appealing rental yield, MOP upgraders regularly encountered investors who entertained the thought of purchasing an HDB to rent out. Nevertheless, as soon as they learned they couldn't rent for the first five years, they were outraged. It dashed their hopes.
Best options after HDB Mop Alternatives options after HDB MOP when your apartment has complied with HDB MOP, you may take into consideration the following choices:
Buying a private property and using your apartment as a pure rental asset Buying another HDB apartment Moving up to a private residence