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Hi Gurus, may i know how does COV works? My dad is saying that it is additional money on top of the purchase price. I am 35 and looking to purchase a resale flat.
I am prepared to come out with cash already as my HDB loan amount is low, what happen when the vaulation is lower?

Assuming the purchase price is 285k, this is what i have
- HDB loan 130k
- CPF 70k
- Grant 60k
- Cash 25k
What happen if the vaulation is 260k? Do i need to take out extra 25K? My HDB loan is already very low and is not 90% of 260k from my understanding, does the valuation affect me in anyway since i am already prepared to take out cash in the beginning?
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2 Answers

Aaron Chong
Replied
Hi, if the valuation is lower than the purchase price, it does affect the buyer as most are not willing to pay the difference in cash.

Regards
Aaron
 9730 8455 
aaronchong2774@yahoo.com.sg Read More
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Robbie Chen Chee Howe
Replied
Hi,

COV is NOT additional on top of purchase price. Purchase Price is fixed. COV is Cash over VALUATION. It is additional Cash top up over the Valuation.

If the flat you purchased is able to match the Valuation, there will be no COV involved.

I am experienced and well-versed in both HDB and private transactions. I will be able to assist you in your property plans.

Should you need require 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.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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