Asked by Anonymous
Current Situation:
My spouse and I currently own a 3-bedroom Executive Condominium (EC). It enters its 10th year next year and will soon be fully privatized. We are considering selling it to purchase an HDB 5-room flat or an Executive Apartment (EA) equivalent.
We are both self-employed and do not contribute to CPF; as such, we have been servicing our monthly mortgage in cash. However, we previously used approximately $140k from our CPF Ordinary Accounts (OA) for the initial downpayment.
Assuming we sell our EC for $1.5 million and have an outstanding loan of $700k, I understand we must refund the CPF OA with accrued interest (estimated at $150k). If we purchase a resale HDB for $850k, my questions are:
Financial Planning: What steps should we take to ensure that the purchase of the $850k HDB requires no additional out-of-pocket cash?
Downpayment: How much of the sale proceeds can be utilized toward the downpayment of the next property?
Logistics & Transition: How can we ensure a smooth transition between properties, allowing us to remain in our current home until renovations on the HDB flat are completed?
Fees: Is there any fees that requires both of us to prepare to pay?
My spouse and I currently own a 3-bedroom Executive Condominium (EC). It enters its 10th year next year and will soon be fully privatized. We are considering selling it to purchase an HDB 5-room flat or an Executive Apartment (EA) equivalent.
We are both self-employed and do not contribute to CPF; as such, we have been servicing our monthly mortgage in cash. However, we previously used approximately $140k from our CPF Ordinary Accounts (OA) for the initial downpayment.
Assuming we sell our EC for $1.5 million and have an outstanding loan of $700k, I understand we must refund the CPF OA with accrued interest (estimated at $150k). If we purchase a resale HDB for $850k, my questions are:
Financial Planning: What steps should we take to ensure that the purchase of the $850k HDB requires no additional out-of-pocket cash?
Downpayment: How much of the sale proceeds can be utilized toward the downpayment of the next property?
Logistics & Transition: How can we ensure a smooth transition between properties, allowing us to remain in our current home until renovations on the HDB flat are completed?
Fees: Is there any fees that requires both of us to prepare to pay?
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