Resale Levy: Who Qualifies and What You Get
Understand the costs associated with the Resale Levy if you are a second-time buyer of a government-subsidized flat.
The Resale Levy is a payment required from certain buyers to ensure that government housing subsidies are distributed fairly across the community.
Who it's for
This applies to second-time buyers who are purchasing a flat and have previously benefited from a housing subsidy on a different property.
What you get
While this is not a benefit you receive, the levy serves as a mechanism to manage how subsidies are used, ensuring that those who have already received government assistance contribute back when they move to a new subsidized home.
What it costs you
You will need to pay a fixed amount. This is typically deducted directly from the proceeds of your property sale or paid in cash.
The catch to know
Many people forget to include this levy when they are calculating the total budget needed for their second flat, which can lead to unexpected financial gaps.
How to apply
- Determine if your previous housing history qualifies you for the levy.
- Calculate the amount based on the subsidies you previously received.
- Coordinate with your bank or lawyer to handle the deduction from your sale proceeds or prepare a cash payment.