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Are there any buyers who have bought another resale before selling theirs?

If so, what are the things to take note of?

I have a unit I am keen to make an offer and OTP but have yet to sell the house.

The seller has actually granted OTP to another buyer but it has expired yesterday because the buyer did not know need to submit resale checklist.

Seller says she is in a fix because her valuation might be affected if regrant the OTP to the same buyer + the x value has recently dropped by at least 20K due to a fire sale around her area.

If that is the case, please give me advise on how to secure the unit (considering I have yet to sell off my unit yet).
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6 Answers

Hi,

If you wish to purchase first, you must have enough funds to finance and complete the purchase (ie. combination of cash+CPF OA+loan must cover the purchase price and transaction costs). May I know have you done up a financial plan?

I believe you know the pros of purchasing first, so let me highlight the downsides, which include having to sell your house within 6 months after key collection to your purchase (meaning potentially having to accept a lower price due to a tighter timeline), and also having to finance 2 concurrent loans at the same time (for both houses). I believe the seller of your future house is also doing an upgrading/downgrading at the same time, which means the timeline coordination must be handled properly, otherwise there will be a lot of surprises down the road. This is why I always advise my friends who are doing concurrently sale & purchase to engage an agent to do both transactions for them, it is not as straightforward as there are several parties & factors involved, and a professional and competent agent can value-add a lot to the process. Do you have specific requirements for the purchase? (ie. certain location/blocks). If so, it be good to quickly secure the unit and nego with the owner.

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

Warm Regards,
Ivan Ng ERA ASAP
(ASk Anything Property)
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  • FH
    Hi Ivan, I already have an exclusive agent who work with my own network of agent contacts on a co-broking system.

    Meanwhile, I heard there is a holding fee we'll need to pay while hanging on to two HDB units (and paying for both at the same time for 6 months), is that true? If so, how much?
Hi, buying first and selling after that theory goes back to the days where market is good for the seller. But in this present time, it is the buyer’s market and the HDB resale market is rather weak, so my advice is for you to sell first then purchase the next. Pls feel free to let me know if you need any assistance.

Regards
Aaron
 9730 8455 
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Good morning,

Firstly, I would assume that your current HDB unit have fulfilled MOP. If you are having private property now, I would assume that you have being holding it for more than 4 years.
Secondly, if you are SC, you need to be aware that ABSD will be imposed for your purchase since you have yet to sell your current unit. If you are PR and own, ABSD will not be imposed when your purchase the private property as it is mandated that you must sell it within 6 months from key collection.
Lastly, you will need to understand that you will not be able to utilize full CPF and bank will only be able to provide you with 50% loan for the upcoming purchase, if your current property is still on mortgage.

Do feel free to contact me for further discussion.

Regards
Mike Lim
 96929209 
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ERA

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Dear sir/madam,

As you have mentioned that you already have an exclusive agent, you may wish to check with him on his advise on moving ahead with purchasing a unit prior to securing a buyer for your existing unit.

I believe you can see that most of us would advise against making the purchase first, otherwise the sale for your current place maybe made out of duress due to the timeline required for you to sell. Similarly, it seems that this purchasing you are keen to make is kind of rush (if I may put it, impulsive), which may put you off in a worse state since the purchasing decision is made on impulse while you may result to sell your existing place in duress.

The only situation where I will advise in making a purchase first will be that you have very specific and niche requirement where it will be difficult to come across similar unit like that one you are keen in moving ahead, and you have the necessary financial means to purchase first and not worry about selling your existing HDB lower than its full potential.

Would you rather be in control of situation or be made to decide out of urgency? I believe most of us would rather be in control.

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Hi,

I'll try to simplify the answer to help you make a decision:

(1) Sell first then buy would be a better option to go forward.

(2) If you are willing to take the risk of paying COV, than just ask seller to offer another OTP since the previous already expired.
On the other hand, the valuation will not dropped as much as she mentioned even through there was a fire sale.

(3) Even if your current flat is still under mortgage, your next loan amount will not affected, because no one can hold on to 2 HDB flat at the same time. Thus the bank or HDB will give a leeway on this.

(4) Not sure where you heard "holding fee" from, there are no holding fee involved during the transistion period, you will have to service both loan during that transistion period.

(5) The above answer is based on the assumption:
(a) that you are eligible to sell your flat now (completed MOP).
(b) You are not holding to any private property.

Otherwise the situation will be more complicated.

Hope the above answer to your main concerns, but if there are more queries, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com

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Robbie Chen Chee Howe
Hi,

Depending on how keen you are in the HDB flat, there are actually ways you can go about purchasing and selling at the same time.

Most important would be the timeline for both your sale and your purchase. Are the Seller agreeable to have a slightly delayed completion for this case, so that they can allow you ample time to sell off your existing flat?

I have personally handled clients whom had bought first and then sell their existing flat. I will be able to assist you in both your sale and purchase, to ensure a smooth transaction.

Should you need any 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 and your partner in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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