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Hi Mdm Wong,

1) In order to give property away as a gift, usually it has to be fully paid in cash so that the beneficiary does not need to pay for it.
2) Since it is a gift we also do not expect the beneficiary to pay for it.
3) Assuming it is fully paid in cash, the beneficiary will still be subject to a gift stamp duty which is the same amount as buyer stamp duty; ~3% for a property value equal to or less than $1M or ~4% for a property value more than $1M.
4) For your case, since it is paid using 30% CPF. I would assume the bank loan is fully redeemed using cash for a simple illustration.
5) Your son is not only subject to a gift stamp duty, but he would also need to pay you back the CPF utilized + accrued interest.
6) A legal fee is needed as you need the lawyer to prepare the necessary legal paper for a proper handover. You may consult a conveyance lawyer for the cost and timeline needed.
7) You may proceed to buy your HDB flat with your spouse once you completed the legal handover process.
8) Note that you can only get approval from the HDB flat to rent out the whole unit after fulfilling the MOP (5 yrs). It is illegal to rent out a room when you are not living in it.
9) Currently only those who are posted overseas due to work or special family issues might receive approval from the HDB to rent out the whole unit. But under such circumstances, their MOP will not continue to clock. This will affect the fulfillment of the MOP.
10) With a budget of S$700k, you should be able to get a 5-rm HDB flat in most of the non-mature estates.

Please give me a thumbs-up if the answer provided is relevant to your main concern. Thanks!!!

Hope the above answer your main concerns, but if there are more query, 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
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Hi Mdm Yong,

I would be most glad to assist you further and please feel free to let me know if you need any assistance. Have a good day ahead. By the way, yes besides the buyer stamp duty of 4%, your son would also have to fork and pay both of you for the CPF plus accrued which both you and your spouse have utilised.

Regards
Aaron Chong
 9730 8455 
aaronchong2774@yahoo.com.sg Read More

Good afternoon Mdm Yong,

you are right. The transfer by gift will involves legal fee, stamp duty and return of CPF back to both of your accounts.

You are eligible to purchase a resale HDB with your hubby but wont be able to rent out the whole unit within 5 years MOP or rooms unless both of you are physically occupying it.

Since you have intention to buy an investment property, you can consider to decouple the unit under hubby and buy a studio/ 1 bed under your name as well. By buying a private property, there wont be so much restrictions in renting out.

Hope my sharing helps in aiding in your enquiry. May I know how can I value add further in your property needs?

Best regards,

YT Tan
Property Kaki
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Dear Sir/Madam,

Hi, I am Brendan!

For your scenario, yes it involves the return of CPF money and stamp duty payable.
After the gift of the property, you may purchase a HDB resale flat immediately and rent out rooms of the HDB resale. Or you may also all live in the HDB resale flat and rent out the whole EC unit.

Alternatively, if financials are ok, you can consider decoupling the current EC and invest in a 1 or 2 bedroom condo to rent our for passive rental income.

I would like to work out some options for your considerations, non-obligatory just so you understand better before making any decisions.

Pls contact me at 9754 5207  .
Or Whatsapp me by clicking this link: wa.me/6597545207 which will direct you to open Whatsapp on your mobile phone.

Thank you!
Brendan Bay,
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Hi Mdm. Yong,

Yes this is called Transfer via Gift, and your son is required to pay approx 3% buyer stamp duties to IRAS for this operation. He is also required to refund the CPF utilized + accrued interest that both of you have used for the property.

It seems like your objective is to monetize the existing property and get more rental income through the next property move. You may also want to consider equity loan on your property, and/or buying the next private property with good growth or rental prospects under you son's name.

Happy to explore together the best move tailored to your objectives. 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
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We were fortunate to have met Ivan Ng. He was thorough in going through what the complicated home-selling process required of us and more so in understanding what we would like to achieve from the sale of our unit. His responsiveness and assurance, was a trait that we really appreciate. We managed to secure a sale that exceeded our expectation with Ivan’s advises. The offered price for our unit was a record set for the flats in the neighborhood. This was definitely supported by the fact that Ivan’s listing of our unit was detailed and stood out from other listings. Because of this, we also engaged Ivan's service to help us search and buy our new resale home. After some searches and viewings, we managed to secure one at a reasonable price with his help. With Ivan’s cheery and positive demeanour, selling our unit to procuring a new one, was a smooth journey for us. It was a pleasure to have worked with him.

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Dear Mdm Yong,

CPF monies utilised for this EC has to be refunded into your account including accrued interest, before the gift can take place. Stamp duties and legal fees are applicable for the gift. For your HDB purchase, take note that you are required to be occupying the unit for 5 years before you are able to rent out the whole unit. Otherwise you may rent out the bedroom while you are staying in the property as well.

I have been in the real estate business since 2009, with more than 13 years of experience serving the Singapore real estate market.

I am very active in the residential segment of Singapore real estate market, having transacted hundreds of deals from HDBs to private condominiums and landed properties in Singapore, and have handled many unique cases in sales and purchases as well as rental deals.

Over the years, I have also established a network reaching out to more than 9,400 expatriates, bringing my market presence to both in and outside of Singapore. This has created an additional exposure when I manage my client's portfolios, on top of the conventional on and offline platforms, where other estate agents are relying on. This has allowed me to consistently convert leads into results.

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