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Dear Owner,
Private properties appreciate faster than HDB properties. Having said that, it also depends on your needs and wants. If you are doing estate planning, then buying a 2nd property might be good in the long run. The only setback is the 17% ABSD. However, buying under your kid's name (if they under 21), means it is a trust and you have to pay in CASH. This may not maximise your available resources ie CPF. So, do contact me directly so that I can advise you accordingly with examples on how best to plan your property portfolio.
Cheers!

Elan Govan
MABA (Lancaster)
 90170747 
jayelan@gmail.com
www.goodpropertiesguide.com Read More

Hi,

If you are buying 2nd property under your own name, if you plan to maximize the 75% loan again, you will have to clear the existing 200k residential loan. The typical breakdown as follows for $1mil 2nd residential purchase by Singaporean:

Cash 5% 50k
Cpf OA 20% 200k
Max loan 75% 750k

BSD+ABSD+Legal approx 20% 197k

Based on your income alone, the max loan attainable is 612k. So
after deducting 200k for clearing 1st loan, 1050k cash + CPF OA still available. So for quick calculation, your purchase price should be approximately $1.38mil (622k used for downpayment + stamp duties, 428k used for balance purchase price + 612k loan).

If straightforward purchasing property under your son's name under trust, only cash can be used. So your purchase price will limit to approx $1.05mil properties.

Whether which move makes sense depends on whether you plan to move to the condo, and how fast the rental from one of the properties can cover the extra ABSD and help you generate returns.

Hope the above clarifies. May I have more info and requirements about your plans so as to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,

Ivan Ng Realtor
ERA Senior Marketing Director
ERA Diamond Achiever

SEAA Salesperson Achievement Award 2021 (Gold)
SEAA Singapore Accredited Mortgage Planner (SAMP)

ERA Top 93th Achiever for Full-Year 2020 (Top 1.5% Company Level)
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ERA Top 91th Achiever in 2nd Quarter 2020 (Top 2% Company Level)
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ERA Top 86th Achiever in Sept 2019 (Top 2% Company Level)

SMU BBM (Finance), Magna Cum Laude
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Hi,

Hmmm.. Not sure if these 2 options are the most suitable for you and your family. May I propose to you a third option?

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans. Please get in touch with me for a more in-depth discussion.

Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More