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Hi Guru, I need your advice.

a)I have been renting out my 5 room flat for the last few years, fulfilled the MOP and currently staying with my in laws. There are 2 things that cross my mind: 1)Sell the 5 room, downgrade to 4 room and purchase a private property or
2)Continue to rent the 5 room.

With the latest cooling measure, what is the best action for me to take at the moment? I have left another 8 more years to pay up the balance loan for this flat.

b)If I sell my 5 room flat and downgrade to 4 room flat, am I allowed to purchase a private property next year? What are the requirements to be eligible to purchase?

c)Can I sell my 5 room HDB without any valuation done?

d)What is the commission fee for buyer and seller?
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2 Answers

Morning Ken,

Since your current unit is still under mortgage, bank will only lend you up to 60% of valuation, depending on your income status and credit record.
To sell your current 5 room now and downgrade to 4 room flat requires prudent financial calculation and planning. With the current ruling, by doing so, you will be required to fulfill the MOP of 5 years before you are allowed to purchase private property.
If you were to rent out your 5 room flat and purchase second property, you may not be affected by the Additional Buyer's Stamp Duty, if you are SC.
To sell your unit without valuation report can be tough and tricky, as your potential buyers will not be able to work their sums, thus they may not be ready to commit. It will also do you unjust as the offered and accepted price may not reflect your unit's real value.
Standard seller's commission is going at 2% and buyer's commission at 1%. As for my case, I work in alignment with Fair Trade Act, thus my rate is flexible and open for negoitation.

Do feel free to contact me for further discussion

Regards
Mike Lim
 96929209 
ERA Read More
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Hi Ken,

Based on your question, I can't help but feel that you are indeed very lost. Since you have been renting out your HDB the last few years, may I know where are you currently residing in? Do you have any issues with servicing the outstanding loan for the HDB?

As the saying goes, steer clear of whatever you are unsure with. In this instance, I see that you aren't really well versed with the policies therefore my advise is to steer clear of any intention to "speculate". If you intend to do so by listening to others but suffer from th investment, is the agent going to be responsible?

If you need further assistance, do contact me further.

Regards,
Geryl LIM
Real Estate Consultant
CEA Reg R014783H
Mobile: +65-81577566 
Email: lim.geryl@yahoo.com.sg Read More
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