4 Answers

Hi, firstly, congrats on obtaining a new flat to stay in. Whatever type of unit it is, it is a accomplishment worth celebrating.

Seeing that your HFE will be expiring soon, there might be a case where you need to apply for HFE again as finding an ideal unit takes some time.

Based on the numbers provided by you, it might be possible for you to get a flat based on the amount alone, but it is not simple as it seems. Let's go through your questions 1 by 1.

Firstly, A renovation loan is usually obtained from the banks, and there is a fee imposed by it depending on the bank you plan to borrow from. The loan amount will also be affected by your TDSR which cannot exceeds 55%. This means if you have any other loans or other commitments may reduce your loan amount including HDB loan.

As for cash wise, there are a few items that will cost cash and i can list them out for you (might miss some out so pardon me if I miss anything out)
Option Fee and Exercise Fee ($5,000)
Lawyer Fees ($2,000 , estimated)
Resale application ($80)
Valuation Fee ($120)
Agent Commission ($3,000-$3,200, 1%)
Buyer Stamp Duty ($4,200 based on 300k, $4,600 based on $320k) Pay cash first, reimbursed later
Resale Levy
Total Estimated Cash outlay $34,400 - $35,000

As for the resale levy, it will be applicable as you have previously use HDB grants before, and as long as HDB grants are used for your purchase, it is considered a subsidized flat.

The Resale levy is paid on key collection date in cash .

As for your last question, yes that will be the case for you. In order to qualify for a HDB loan, the remaining lease of the HDB must cover the youngest owner to the age of 95, which based on 27 years old will be 68years of lease left, which will be almost or totally impossible to find at this budget.

Do not give up on the dream of having your own unit despite this, and hopefully one day you can stay in a dream house of your own.

Hi, hopefully you managed to get your doubt or query answered. If, so then congrats! Hopefully you are doing well now.

If you are currently or planning to find a property agent, I can assist.

If you are interested in prices of houses in your neighbourhood, you may visit this website to find out more or contact me .

https://www.era.com.sg/R064892F

If you are currently planning to go on a property journey selling/buying/renting/investing, I can be of assistance. Do feel free to reach out to me for more queries and assistance.

Landon Chew
97 39 60 40
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1
The questions you have posted here are specific to your scenario on your 2nd marriage plus your expiring HFE. As you have already enjoyed your first subsidy on your earlier purchase of HDB, you will be required to set aside the resale levy of $20,000 if you are looking to enjoy a 2nd subsidy. Not only that, if you are looking to take on your 2nd HDB loan, you will be required to set aside 50% of your cash proceeds from your earlier sale to finance your current purchase. These are figures that are going to eat into you cash portion to finance your purchase. This means that you have technically $0 in cash for this purchase, and with the $300k estimated budget that you have worked out, it is quite unlikely you can look at 3 room flat which can cover your wife until she is 95 years old. Even resale 2 room HDB maybe a challenge. Read More
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Additional Cash Requirements
Here’s a rough estimate of the additional costs you need to set aside in cash:

Agent Fees: $3K (1% of $300K)
Legal Fees: Approximately $2K to $3K for typical transactions.
Valuation Report Fees: Around $200 to $250.
Resale Application Fees: $80.
Stamp Duty: For a $300K flat, the Buyer’s Stamp Duty (BSD) is $4,600.
First $180K: 1% ($1,800)
Next $120K: 2% ($2,400)
So, you might need to set aside around $10K to $12K for these additional costs, excluding renovation expenses.

Resale Levy
Since you previously owned a subsidized HDB flat, you’ll need to pay a resale levy if you purchase another subsidized flat. Here’s the breakdown:

Resale Flat Subsidy: A resale flat is not considered a subsidized flat directly from HDB, but if you’re using CPF Housing Grants to purchase it, it may attract a resale levy.
Resale Levy Payment:
Amount: $20K
Payment Mode: cash.(The amount payable for the resale levy is only determined when you book your second subsidised unit. Payment for the levy can only be made in cash or through the sale proceeds of your first flat, as it cannot be paid using your home loan or CPF funds.)
Timing: Typically payable when you take possession of the new flat or upon exercising the OTP.
Remaining Lease and Loan Term Impact
Impact on HDB Loan: The loan tenure is calculated based on the age of the younger borrower. The loan term can go up to 25 years, but not extending beyond the younger borrower’s 65th birthday. For you, it means you have until age 71 to fully repay the loan, so you can still get a reasonable loan term considering your wife’s age.
Lease Coverage Requirement: HDB’s rule that the lease should cover the youngest buyer till age 95 impacts the flat selection:

For your wife (age 26), the flat needs a remaining lease of at least 69 years (95 - 26).
This means you cannot select flats with less than 69 years of lease remaining.
Price Consideration: Flats with longer leases tend to be more expensive, so finding one under $300K with the required lease might be challenging. You may need to look at flats in different areas or consider smaller units to fit your budget.
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"If you need more assistance with property matters:

like renting / selling, buying / or investing, I'm here to help!

WhatsApp me at: ABLE Toh>>9856 9255 or through this link.:https://wa.me/6598569255

(Unfortunately, this platform doesn't allow direct contact, but you can easily reach me )

You can check out my reviews here: https://www.propertyguru.com.sg/agent/able-s-k-toh-61591.

For buyers, I offer solutions for sourcing resale and new private homes at no charge.

I can connect you with reputable bankers for private housing loans free of charge and with no obligation.

I also have partners to assist with mortgage home insurance matters.

Let's seal this affinity by technology; please PM me your contact for assistance with your real estate needs. So, I believe in Affinity (Chinese word: 缘份) :), let's SEAL this AFFINITY Not by blood but by Technology > Please PM, Private Message your contact so that I CAN BE (EXTRA) PAIR OF HANDS / BRAIN and LEGS to Assist you NOW or FUTURE REAL ESTATE NEEDS!

*** You can reach me at my Singapore mobile: (+65)>>9856 9255>> or email me at Able.selling@gmail.com.

From: ABLE Toh- Your Property ASSISTANT :)

“ i am ABLE to Help As Much As You are ABLE To PM (Private Message) me ”

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It's important to ensure you're working with a legitimate property agent in Singapore. Here are some ways to check their credentials:

Verify Registration:

Public Register: Visit the Council for Estate Agents (CEA) Public Register: https://www.cea.gov.sg/aceas/public-register
Search Criteria: Use the agent's name, mobile number, or business entity number to search for their registration details.
Confirm Information: Ensure the information (name, license number, company affiliation) on the register matches the details of the agent you're dealing with.
------------------888-------------------------------------888----------------------------------------- 888-----------------------------------

"If you need more assistance with property matters:

like renting / selling, buying / or investing, I'm here to help!

WhatsApp me at: ABLE Toh>>9856 9255 or through this link.:https://wa.me/6598569255

(Unfortunately, this platform doesn't allow direct contact, but you can easily reach me )

You can check out my reviews here: https://www.propertyguru.com.sg/agent/able-s-k-toh-61591.

For buyers, I offer solutions for sourcing resale and new private homes at no charge.

I can connect you with reputable bankers for private housing loans free of charge and with no obligation.

I also have partners to assist with mortgage home insurance matters.

Let's seal this affinity by technology; please PM me your contact for assistance with your real estate needs. So, I believe in Affinity (Chinese word: 缘份) :), let's SEAL this AFFINITY Not by blood but by Technology > Please PM, Private Message your contact so that I CAN BE (EXTRA) PAIR OF HANDS / BRAIN and LEGS to Assist you NOW or FUTURE REAL ESTATE NEEDS!

*** You can reach me at my Singapore mobile: (+65)>>9856 9255>> or email me at Able.selling@gmail.com.

From: ABLE Toh- Your Property ASSISTANT :)

“ i am ABLE to Help As Much As You are ABLE To PM (Private Message) me ”

XXXXX The End XXXXXXX Read More
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