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Hi, I am looking to purchase a 2-3 rm resale HDB in D15 marine parade. It looks like the hdb in the marine drive area is 40 years old. I am single and turning 35 next year. Can someone explain to me in simple terms what are the financial implications in 1) cash upfront and loan eligibility to purchase an old HDB, 2) servicing the monthly mortgage. 3) implications when trying to sell after 6-7 years when the mrt is up. Thanks and appreciate all advice!
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5 Answers

Hi,

If the hdb is 40 years and below, the bank loan and cpf that can be utilized by the purchaser will be pro-rated and will not be full. Hence your cash upfront could be higher. This in turn affects the amount of CPF that can be used to service the monthly mortgage which means part of it has to be in cash.

When you are considering to sell, the buyer will have the same issues, and the balance lease of hdb will be even less, which makes their financing more difficult. Their cash outlay will be higher as well. Put all this together, in theory its likely that the price of the older hdb will depreciate further. If you have plans to sell further down the road, you might want to consider private condos in d15 instead.

May I have more info and requirements about your plans so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,
Ivan Ng ERA ASAP
(ASk Anything Property)
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Evening,

Older units in Marine Parade estate are mostly left with less than 60 years lease. In such cases, you will not be able to use all your CPF OA funds. This would mean that you will have to prepare more cash, if you do not have enough CPF for the down payment, or take higher loan since you have limited funds from your CPF account.
Similarly, when you opt to sell the purchased units few years down the road, your buyer will have the same issue. However, as they is not much of newer units in the estate, the pricing might still be good especially when the MRT station is up and running.

Do feel free to contact me for further discussion.

Regards
Mike Lim
 96929209 
m52i@yahoo.com
ERA Read More
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GAN ENG JOO ONASSIS
Hi,

Re: Today’s SG Professional Choice- SGAgent.com & SGRealtor.com

What your plan and what factors link to your interests in old HDB at Marine Drive. Will advise accordingly.

I am contactable at 92222389  or onassis@sgrealtor.com / sgagent.com
In all Areas of Singapore. Sale/Buy/Lease/Rent, Please call and/or drop me an email me. I’m always at your Services.

Onassis Gan | R021244C | SG Professional l SGRealtor.com & SGAgent.com

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" Engage 1 & Get More than 800 Agents from the #1 TEAM in ERA to Serve You!” Read More
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Hi there,

Thanks for your query!

Perhaps we could engage in an interactive discussion to derive more information on your requirements and objectives, so that I can assist in making an informed decision. As a first time buyer, you may be faced with a couple of complex issues; example- use of CPF for older/ matured leased HDBs in the city centre. As such, you may wish to work alongside a professional who will guide you step by step and ensure you are not short changed in any case. Your welfare is protected being represented. Sure you incur a slightly marginal cost, however, think about the thousands of dollars you can possibly save with the due diligence and negotiation skills of your agent. With possession to the latest and recent sales transactions in the block and vicinity and indicative valuations, you are equipped with the up to date information to press for your price. It is an one time investment with undoubtedly continuous returns having tapped into the weak market to leverage and obtain the best priced unit.

As a rule of thumb, it is always best to get your finances assured and secured to conduct the search appropriately. Perhaps I can link you to my banker who will assist you with the loan at no cost. I would also illustrate a financial cash computations/projections and financial breakdown calculations to assess which residential options will best suit your interest best.

Look forward to your reply!
D Kumar
 +65 96659926 
ERA Associate Division Director
www.kumarrai.com

#1 team of ERA in Singapore, Asia Pacific International for 2014.

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Radhika Prakash
Dear Sir/Ma’am:

We will be glad to assist you. Kindly write to us on realproperty63@yahoo.com.sg or call us on 93380071  .

Kind Regards,
Radhika Prakash
Edmund Tie and Company
 93380071  Read More
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