A good evening to you Mr. Liew,
Here’s a suggestion on what you may do with your available funds and income, assuming the figures you have provided above are shared equally between you and your wife and you have no outstanding loan.
Step 1:
Buy a $900,000 First Private Property under only your wife, Mrs. Liew’s name.
Advantage: Save 5% ABSD-Additional Buyer Stamp Duty on the Singaporean Status = $45,000. This amount is better than most Grant. Buying Private Property on a single name also save both of you from incurring the 5% ABSD should you purchase an EC or Resale which requires a minimum of 2 related names.
Mrs. Liew funds:
CPF: $75,000/2 = $37,500
Monthly fix income: $11,000/2 = $5,500
TDSR of 60%: $3,300 Available for Maximum Monthly Mortgage Payment without any outstanding loan
Mortgage Affordability Calculation of $3,300 Monthly Mortgage Payment at 3.5% Interest Rate and 30 years Loan Period :-
Maximum 80% Loan Amount: $730,000 (Rounded Down)
Maximum Total Property Price: $912,500
Summary of Fund required to own Mrs. Liew first $900,000 Condominium property:
5% Option Fee (Cash): $45,000
15% (Cash/CPF - Upon 8 weeks of Exercising S&P): $135,000
BSD-Buyer Stamp Duty (Within 14 days after S&P): $21,600
ABSD-Additional Buyer’s Stamp Duty For 1st Property (Singaporean 0%/PR 5%): $0
*No Agent Fee Payable by Buyer of Condominium*
*Minimum Initial Fund Required for Mrs. Liew: $201,600 (Within $37,500 CPF + Combined savings $175,000 = $212,500)
Estimated Monthly Mortgage Payment based on 1.9% Interest Rate of 30yrs Loan period: $2,625
(Less than $3,300 and partially deductible from CPF)
I have several 3 Bedroom Condominium units within this price range which may give you up to $2,400 monthly rental return should you rent out 2 of your rooms and stay in 1. This immediate potential rental income will not be easily possible should you purchase EC or Resale HDB due to MOP-Minimum Occupation Period of 5 years.
Step 2:
Consolidate income and save for Second Private Property purchase under only Mr. Liew’s name.
Advantage: Save up to 5% on ABSD-Additional Buyer Stamp Duty should you have bought your first property under 2 names instead.
Save the $2,400 monthly rental income and declare in Mrs. Liew’s Annual Tax Return, IR8A
= $28,800 Annual Savings/Extra Funding.
Mr. Liew should also save as much as $3,000 monthly or $36,000 annually.
These 2 forms of savings of up to $64,800 yearly for 3 years ($194,400) or less will allow Mr. Liew to buy the Second Private Property of similar value in the shortest period of time which could immediately be rented out which would allow for possible Third property purchase with both your boosted income from the rental yield received.
Please feel free to contact me at any time to your convenience to discuss further all these possibilities and find your ideal homes together.
Thank you and Warm Regards,
Karrien N. Chan
CEA Reg. No.: R052532H
Mobile:
82250212
Email: karrien.realty@yahoo.com
Powerful Negotiators
No. 1 Team in PropNex Realty Pte Ltd
L3008022J
Read More
