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Good Day Gurus, my parents and I are staying in an EM. Sadly, my parents have applied for a divorce and it will be fulfilled in 2023. My dad is keen in selling off the EM and my mum is keen of purchasing it from him. Do understand that my mother will be 64 then. Her plan is to buy over the EM and rent it out? with the current EM in my area at ~750k. She will need to take a loan about 300K+. May i seek your advice should she take over the house as the owner or sell the house and downgrade to a 3rm flat.
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6 Answers

Hi Do contact me at 97970200  to understand more on the situation and discuss on the ideal solution

Mark, your RiGHT choice
Propnex Read More
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Dear sir/madam,

I am so sorry to hear about the situation. Before we can advise or provide any opinion, it boils down to understanding if your mum is able to undertake the loan amount you have mentioned as home loan eligibility is subjected to her age and income. In the event that she is able to obtain the housing loan, then we will do a deeper evaluation on the situation.

Warmest regards,
Geryl Lim
Associate Deputy Group Director
Salesperson Registration No. R014783H
Email: geryl.lim@orangetee.com / geryl7772@gmail.com
OrangeTee & Tie Pte Ltd 430 Lorong 6 Toa Payoh #01-01 OrangeTee Building Singapore 319402
Estate Agent Licence No. L3009250K
[main] +65 6471 8888  [mob] +65 81577565  [LDA] +65 92787772 
www.geryllim.com
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Dear Sir/Mdm,

The decision on whether to take over and rent it out or downgrade depends on her financial situation. As your mum is 64 already, if taking over require her to burden herself with a loan then she may want to consider downgrading to a 3 room flat.

Ultimately, it depends on her overall financial situation and it will be better to weigh both options before coming to a decision. Please feel free to contact me so that I can gather more information, work out both options for her and advise her further.

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
(E) nick96444854@gmail.com

SEAA Salespersons Achievement Platinum Award 2020
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Robbie Chen Chee Howe
Hi,

I am sorry to hear about your family's situation.

With regards to your Mother buying over the EM, it is not simply just taking a loan of $300k to buy over the flat from your Father. Other factors need to be taken into consideration.

Also, as your Mother is already 64 years old, she may be able to take a 11-year loan till she's 75. However, the LTV would be max at 55%. Unless she has an existing strong income, I do not think she will be able to support at $300k+ loan at this stage of her life.

Should she still insist on keeping the flat, the other option is that you could join in as a co-owner of the flat to boost up the loan.

I am experienced and well-versed in both HDB and private transactions. Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305  .

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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Hi,

It's regret to hear this.

I'm advising with the assumtion of the flat is fully paid, the method of holding is either joint tenancy (50/50%) or Tenancy-In-Common (50/50%), and the value of the flat is $750k.
You mention loan of $300k, it might means your mother had paid a higher amount during the purchase or her CPF OA has the difference of $75k.

1) If it is the scenario of paying more during purchase. Your mother will still has to pay $375 in order to buy the 50% share.
2) In order to use CPF OA $75k, she must has at least fulfilled the Basic Retirement Sum (BRS) before taking this $75k into consideration to use for purchase.
3) Loan of $300k at age of 64. She must be able to provide proof receiving constant income and fulfill the MSR from MAS. As you may be aware that normal loan tenure is up to 65 yrs old only.
If wanted to loan beyond 65 yrs old is 55% of value of the flat. And the max as of today is up 75 yrs old only. This shall subject to different bank practice.

There must be a reason behind why she is considering keeping the flat. You have to ask her what was her greatest concern over this, because those cases I've done usually both parties just want to leave the place.

Personal view is it is better to purchase a 2/3-rm flat, because it is easier to manage than an EM unless there is a big family, that everyone contribute a liitle on the house chores. It is not easy to manage a big area alone.

Hope the above answer to 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
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

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1
Loan will be an issue at that age (if she's even working), unless she has ample cash and cpf. The rest don't need to be eleaborated further.

Feel free to contact me to discuss further.

Regards,
Teck Chuan
BBA (Finance), NUS
Marketing Director
ERA Realty Network Pte Ltd
Mobile: 91374602  Read More
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