NAV of 5-room HDB flat only $12000?

[DC33_2008]

We could see rental of a 5-room HDB flat of $2500 or more depending on locations. How can the NAV be $12000 if NAV is defined as follow?

NAV defination extracted from IRAS website:
Net Annual Value (NAV)

NAV is the annual value (as shown in your property tax bill) of your property in Singapore less allowable expenses. Annual value is the gross amount at which the property can be expected to be rented from year to year.

[phantom_opera]

U never read MM Lee asking ppl not to sell HDB meh?

"Daft" is the word.

[DC33_2008]

Thinking of writing to the forum on how NAV is being computed?

U never read MM Lee asking ppl not to sell HDB meh?

"Daft" is the word.

[sherlock]

Thinking of writing to the forum on how NAV is being computed?

Dont open the worms bro... some ppl might end up paying more taxes b'cos of u

[DC33_2008]

They should just raised the cut off NAV for property tax payment. I believe it should be a level playing field and transparent.

Dont open the worms bro... some ppl might end up paying more taxes b'cos of u

[hopeful]

isnt it an indication of "corruption" in the IRAS?
the valuers stay in HDB, hence they value NAV of HDB lowly so they themselves benefit.

[DC33_2008]

Maybe should send a special note to KBW's facebook?

isnt it an indication of "corruption" in the IRAS?
the valuers stay in HDB, hence they value NAV of HDB lowly so they themselves benefit.

[Cupcakes]

LOL. Shhhhhhh.......

[eng81157]

Extract from IRAS

The Revised AVs

4.1 The AVs of HDB flats from 1 January 2013 will be increased by 5% to
13%.

4.2 The range of AVs island-wide based on the estimated market rents of
the flats by the various room types are shown below:

Room Type AV Range Estimated Monthly Rents

1-room flat $4,500 to $5,400 $375 to $450
2-room flat $5,100 to $6,000 $425 to $500
3-room flat $8,100 to $9,300 $675 to $775
4-room flat $10,200 to $11,400 $850 to $950
5-room flat $11,100 to $12,300 $925 to $1,025

Executive flat $11,700 to $12,900 $975 to $1,075

[eng81157]

and please, mai geh kiang

please don't be like a certain mr M - shooting own foot for nothing

[phantom_opera]

Relax lah .. Kenobi-wan already said shortage of HDB is "temporary" therefore he will say the current high rental value of HDB is also "temporary"

And remember there is double taxation (i.e. property tax + income tax)

[DC33_2008]

That is why I say it varies from location to location. They just need to revise the NAV annually and people will have to pay more tax. I think it is in the middle of the year.

Extract from IRAS

The Revised AVs

4.1 The AVs of HDB flats from 1 January 2013 will be increased by 5% to

13%.

4.2 The range of AVs island-wide based on the estimated market rents of
the flats by the various room types are shown below:

Room Type AV Range Estimated Monthly Rents

1-room flat $4,500 to $5,400 $375 to $450

2-room flat $5,100 to $6,000 $425 to $500
3-room flat $8,100 to $9,300 $675 to $775
4-room flat $10,200 to $11,400 $850 to $950
5-room flat $11,100 to $12,300 $925 to $1,025

Executive flat $11,700 to $12,900 $975 to $1,075

[thomastansb]

AV factored in interest, maintenance fees, town council fees, maintenance of the unit etc. Just like my RCR studio, can rent out 3.5k but AV is only 24k.

[yaozong7]

Thinking of writing to the forum on how NAV is being computed?

Unless you have no condo/HDB and do not intend to purchase 1 in the future, writing to the forum is as gd as trying to do your best to donate money to Temasek/GIC.

[DC33_2008]

Can understand the implications. Have only private properties.

Unless you have no condo/HDB and do not intend to purchase 1 in the future, writing to the forum is as gd as trying to do your best to donate money to Temasek/GIC.

[heehee]

The NAV from IRAS should be correct as it is an average for easier management. Also, don't forget, the NAV does not include furniture, fittings, renovations, maintenance costs, repairs & maintenance required etc etc.

That $2500 pm you mention that tenant will pay come with inclusive of fittings, furniture, after renovation, repairs & maintenance due to wear & tear, maintenance costs included, electricity & water bills included (many do) etc etc from the owners' pocket lah!

We could see rental of a 5-room HDB flat of $2500 or more depending on locations. How can the NAV be $12000 if NAV is defined as follow?

NAV defination extracted from IRAS website:
Net Annual Value (NAV)

NAV is the annual value (as shown in your property tax bill) of your property in Singapore less allowable expenses. Annual value is the gross amount at which the property can be expected to be rented from year to year.

[Arcachon]

We could see rental of a 5-room HDB flat of $2500 or more depending on locations. How can the NAV be $12000 if NAV is defined as follow?

5 room valuation with NAV @ $12000 is $ 595,000.

What will the valuation of 5 room when NAV is $24,000?

The resale price of HDB is press low by using valuation, NAV.......

Do you want to see 5 room valuation @ $1,000,000. Go and write to IRAS.

Huat Ah..........

[lkm]

We could see rental of a 5-room HDB flat of $2500 or more depending on locations. How can the NAV be $12000 if NAV is defined as follow?

5 room valuation with NAV @ $12000 is $ 595,000.

What will the valuation of 5 room when NAV is $24,000?

The resale price of HDB is press low by using valuation, NAV.......

Do you want to see 5 room valuation @ $1,000,000. Go and write to IRAS.

Huat Ah..........

What is the NAV of your 2-bedder SB? What is your rental now?

[Shanhz]

why you guys complaining about low tax rate for HDB? sour grapes?

[DC33_2008]

NAV has no direct relation with the valuation price of property as shown by the information from IRAS. I have also checked with past records of the rental tenancy agreement of a few properties over the last 10 years and found that the split between rental of the premise and lease of furniture, fixture, fittings is about 70:30 depending on partial or fully furnished. I have checked the NAV by comparing with the premise rental (70%) eg. $R/mth and multiply by 12 mths = $A. The NAV value is quite close to $A with just a small difference of 3-5%.

Now when you look at a 5-room hdb flat that is rented for $2500 as being conservative. If the NAV is 12000, the ratio of rental and lease of furniture becomes 40:60. To be really change the rental to $2000, he ratio is still 50: 50. There is quite a significant difference between NAV of PC and hdb flat.

Property owners who rented out their units whether PCs or HDB can just compute easily.

QUOTE=eng81157]

Extract from IRAS

The Revised AVs

4.1 The AVs of HDB flats from 1 January 2013 will be increased by 5% to
13%.

4.2 The range of AVs island-wide based on the estimated market rents of
the flats by the various room types are shown below:

Room Type AV Range Estimated Monthly Rents

1-room flat $4,500 to $5,400 $375 to $450
2-room flat $5,100 to $6,000 $425 to $500
3-room flat $8,100 to $9,300 $675 to $775
4-room flat $10,200 to $11,400 $850 to $950
5-room flat $11,100 to $12,300 $925 to $1,025

Executive flat $11,700 to $12,900 $975 to $1,075
[/QUOTE]

[Arcachon]

Annual Value SGD 11,700 valuation SGD595,000. 5 room HDB

Annual Value SGD 36,000 valuation SGD 1,550,000 2 Bedroom PC

[CondoInterested]

We could see rental of a 5-room HDB flat of $2500 or more depending on locations. How can the NAV be $12000 if NAV is defined as follow?

NAV defination extracted from IRAS website:
Net Annual Value (NAV)

NAV is the annual value (as shown in your property tax bill) of your property in Singapore less allowable expenses. Annual value is the gross amount at which the property can be expected to be rented from year to year.

Are you just talking about comparing $12000 with $2500 x 12? You must less Allowable Expenses which you mentioned yourself.

[DC33_2008]

You may want to look at last posting on the computation of the NAV of flats and PCs. PCs expenses is even higher than HDB flat like maintenance fee. Hence, there is over provision for HDB flats with 50% to rental and the balance of 50% to lease of furniture, maintenance fee, etc.

Are you just talking about comparing $12000 with $2500 x 12? You must less Allowable Expenses which you mentioned yourself.