I am a first time property buyer who just made downpayment for a condo at Lorong 26. However, due to personal reasons, I might be looking to sub sell the condo (top 2015). Can anyone help me with the pros and cons of holding the condo til top, or sub sell it now, for a first time buyer. Thank you.
Posted by Melody on Oct 26, 2011 in Home Selling | 336 Views
Latest Answers by Real Estate Professionals (3 Answers)
Answer Posted on Oct 28, 2011
Hi Melody,
I believed you the project you have just recently purchased belongs is one of the project my company is marketing
With regards to pros and cons:
Pro for selling before 4 years is close to zero at the moment as you will be incurring a Seller Stamp Duty payment that range from 4% to 16&, depending on which year you are going to sell it. This is a critical Con factor unless as mentioned, you are able to sell at a significant higher selling price to break even
If you are able to hold till TOP, the Pro will definitely be the increase in the selling price and also the reduction in Seller Stamp Duty which will likely be only 4% or 8% upon TOP. Also you have to option to rent it out and cover the monthly installment, depending on what is your financial situation. I believe the banker would have work out the monthly installment sums with you for payment before TOP and I am sure the installment is very affordable unless otherwise. If the installment is no issue to you, consider this together with Mike's example:
Would you consider to sell your property at an increase price of 20% now to break even OR
Would you consider to sell your property upon TOP at an increase price of 20% to make profit of around 10%.
Assuming that the project will TOP in 2 years time and your monthly installment is $1000(definitely lower), the total installment you will pay over next 2 year before TOP will only be $24,000.
Therefore do think about it. If you have no problem sustaining the loan for the next 2 or even 3 years, it might be more advisable to hold it till TOP. Unless your personal reasons states otherwise
Rgds,
ZhiWei
Huttons Asia Pte Ltd
CEA Reg No: R008382A
Mobile: +65 9758 4090
Email: lin.zhiwei.81@gmail.com
Website: http://SGNewCondoLaunch.com / http://www.ThePaletteCondo.sg
I believed you the project you have just recently purchased belongs is one of the project my company is marketing
With regards to pros and cons:
Pro for selling before 4 years is close to zero at the moment as you will be incurring a Seller Stamp Duty payment that range from 4% to 16&, depending on which year you are going to sell it. This is a critical Con factor unless as mentioned, you are able to sell at a significant higher selling price to break even
If you are able to hold till TOP, the Pro will definitely be the increase in the selling price and also the reduction in Seller Stamp Duty which will likely be only 4% or 8% upon TOP. Also you have to option to rent it out and cover the monthly installment, depending on what is your financial situation. I believe the banker would have work out the monthly installment sums with you for payment before TOP and I am sure the installment is very affordable unless otherwise. If the installment is no issue to you, consider this together with Mike's example:
Would you consider to sell your property at an increase price of 20% now to break even OR
Would you consider to sell your property upon TOP at an increase price of 20% to make profit of around 10%.
Assuming that the project will TOP in 2 years time and your monthly installment is $1000(definitely lower), the total installment you will pay over next 2 year before TOP will only be $24,000.
Therefore do think about it. If you have no problem sustaining the loan for the next 2 or even 3 years, it might be more advisable to hold it till TOP. Unless your personal reasons states otherwise
Rgds,
ZhiWei
Huttons Asia Pte Ltd
CEA Reg No: R008382A
Mobile: +65 9758 4090
Email: lin.zhiwei.81@gmail.com
Website: http://SGNewCondoLaunch.com / http://www.ThePaletteCondo.sg
Answer Posted on Oct 27, 2011
Hi Melody,
Mike has pointed out the considerations you should make in planning for subsale. The critical point is when did you purchase the property.
Regards,
Geryl LIM
Real Estate Consultant
CEA Reg R014783H
Mobile: +65-81577565
Email: lim.geryl@yahoo.com.sg
Mike has pointed out the considerations you should make in planning for subsale. The critical point is when did you purchase the property.
Regards,
Geryl LIM
Real Estate Consultant
CEA Reg R014783H
Mobile: +65-81577565
Email: lim.geryl@yahoo.com.sg
Answer Posted on Oct 27, 2011
Morning Melody,
It's not advisable to sub-sale your unit now, if you have purchased the unit just recently. You need to sell at minimum of 30% above your purchase price to break even.
You need to factor in the Seller's Stamp Fee of 16%, Bank's admin fee of 1%, Bank's Penalty Fee of 1.5%, paying back the legal fees subsidy that was given to you during the purchase, developer's admin charges, CVY account admin fee and not forgetting salesperson commission.
If you are ready to incur such loses, or your property have appreciated more than 30% in such short terms, or you are really in a bad condition to sustain it, then it's advisable to go ahead.
Do feel free to contact me for detail discussion.
Regards
Mike Lim
96929209
ERA
It's not advisable to sub-sale your unit now, if you have purchased the unit just recently. You need to sell at minimum of 30% above your purchase price to break even.
You need to factor in the Seller's Stamp Fee of 16%, Bank's admin fee of 1%, Bank's Penalty Fee of 1.5%, paying back the legal fees subsidy that was given to you during the purchase, developer's admin charges, CVY account admin fee and not forgetting salesperson commission.
If you are ready to incur such loses, or your property have appreciated more than 30% in such short terms, or you are really in a bad condition to sustain it, then it's advisable to go ahead.
Do feel free to contact me for detail discussion.
Regards
Mike Lim
96929209
ERA
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