When you are using bank loan, the term contra often means planning of the completion dates for both sales and purchases such that the transition will be smooth and you will not need to look into issue of short term accommodation in between.
When doing such transactions, you will need to find out if you have the sufficient funds to complete the purchase process first before sale. If you require funds from your sale to be in before the completion of your purchase, the transaction is likely to be slightly more complex but still manageable.
I have just completed a sales and purchase process for my client 2 weeks back and I can share more details with you if you are available for discussion. Get in touch with me in private as we are not alerted to any responses posted on this thread.
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As you're a PR-PR household, you are not eligible for HDB loan. You will only be eligible for a bank loan, hence contra facility is out for you.
If you're not planning to take any loan, you will have to plan the timeline in a way that the sales completion for your current flat has to be at least 2 weeks prior your completion for your next purchased flat, to allow your CPF funds to be back to you CPF-OA. You may also need to request an extension of stay from the buyers of your current flat if you want to renovate your new home.
If you do not need the sales proceeds from current house for your next house, you can proceed to buy first, and then latest within 6 months, sell off your current HDB flat.
I have helped many PR-PR families upgrade their HDB before, and I can assist you in your transition too.
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 in the current market.
Contra is for cases where HDB loan is involved, where there is a seamless transition of proceeds from your current flat to your next flat. As you are not eligible for contra, its more advisable to sell first as for SPR clients upgrading from HDB to HDB, as the lower rate of 5% ABSD will apply (vs 10% if you buy 1st). Its also takes more time to secure a buyer in current subdued resale market.
I have assisted various clients with their upgrade and will happy to share more on the optimal approach for your scenario to ensure a smooth transition.
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.
Ivan Ng ERA ASAP
(ASk Anything Property)
Proactive. Sincerity. Feedback.
SMU BBM (Finance), Magna Cum Laude
Contact: (+65) 97432395
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--- HDB Flat Upgraders Mr. & Mrs. Lee ---
We decided to engage Ivan as our agent as we were impressed with how he answered the enquiries on property guru website.
He has helped us to find our ideal unit and also sold our current unit. He was very patient and never pushy when we were looking for our ideal unit. He would tell us that it is always important to find a unit that we really liked.
When it comes to selling of our unit, he was always prompt in arranging for viewings and he also tried his best to arrange and consolidate the viewings due to our time constraints. He is a reliable and prompt agent and is always willing to clarify any concerns and questions that we have.
Thanks Ivan! :)
--- HDB Flat Sellers Mr. Hayum and Ms. Azizah ---
Ivan has justified our faith in appointing him as our Exclusive Agent. He transacted our unit at 620k, above valuation & highest price ever achieved for our block, within 2 months.
In a slow market, you need a proactive & committed agent who puts the extra effort. Besides advertising in papers & online intensively, he also had personally distributed flyers & spoke to potential buyers in neighboring blocks to increase exposure. Every week there were viewings & feedback.
He actually secured 2 attractive offers but assessed that the 2nd one will be a more smooth transaction. We're glad to have proceeded with his advice for a successful completion. Throughout he was professional and responsive. We wish him a great career and will be happy to recommend his services
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You will not be able to do contra as contra involves taking a HDB loan which you will not be eligible. But do not worry, the sell and buy transaction can still be conducted smoothly and seamlessly if the timeline is planned out properly.
I have addressed many of my clients on the the question of sell first or buy first. My opinion is that in the current market conditions, you should always sell first. This is because it is now a buyer's market and therefore it is easier to buy as compared to sell due to the large number of units looking for a buyer. However, if you were to buy first, you will not be able to make full use of the CPF that was utilised in your current property, and you will also be given a 6 months period to dispose off your current HDB. Securing a buyer who is willing to pay a good price for your unit takes time and if we are not able to secure such a buyer, you may be forced to accept a lower price due to the time constraint which does not makes sense.
I have assisted many clients who are in a similar situation as yourself. Please feel free to contact me so that I can plan, share and guide you step by step through the whole process.
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