Updated: May 17, 2020
Recently, I've received quite a lot of questions from my HDB clients about their flats. Their flats have already reached past their MOP (Minimum Occupation Period) for a few years already and they would like to know how to "maximise" their HDB Flats as an asset.
A little knowledge is a dangerous thing. - Alexander Pope
Every snippet of advice my clients get from their friends seem "good". This made it all the more confusing for them to decide.
Most of the time, I would meet up with my clients. This is to understand their needs and wants better before I make proposals on their Property Wealth Planning (PWP).
WHAT IS MOP (MINIMUM OCCUPATION PERIOD)?
What is MOP?
HDB Website stated that MOP (Minimum Occupation Period) is the minimum duration that the flat owner is required to physically stay in the flat before they are allowed to sell it in the open market. At the moment, it's 5 years.
In other words, the flat owners MUST occupy the flat for at least 5 years after taking the keys. During this period, the flat owners are not allowed to is not allowed to sell their flat, nor buy any private residential properties. They are allowed to buy private commercial or industrial properties.
In addition, the flat owners are not allowed to lease out the entire flat. There is a small exception here. They can still lease out one of their bedrooms as room rental, provided that flat owners must still be staying there.
There are instances when MOP get disrupted prematurely. For example, the flat owner is posted to work overseas for several years. There are also cases where flat owners had to move to stay with a relative to take care of them. Those disrupted number of years do not count toward the MOP.