Its better to market the unit for sale first before buying with current market sentiment, and also for below mentioned reasons.
As the hdb is not sold, and you would have an outstanding mortgage at point of home loan application for condo, banks can only grant max 50%.
Also, ABSD is payable upfront if you buy first. For ABSD refund, you need to fulfil certain conditions namely, at least 1 SC and selling jointly owned matrimonial property and buying condo on joint names as well. Sale must be completed within 6 months of option exercise date for purchase. If you are unable to dispose within 6 months, you no longer will be eligible for ABSD refund.
The result is your timeline is quite tight and it could be quite a stressful process.
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.
Ivan Ng ERA ASAP
(ASk Anything Property)
Proactive. Sincerity. Feedback.
SMU BBM (Finance), Magna Cum Laude
Contact: (+65) 97432395
Facebook Page: www.facebook.com/ASAProp
-- HDB BTO 4rm Sellers Mr. Farvin & Ms. Sel --
Ivan was the first agent that we met up with and right from the offset we had good vibes as he has a friendly personal approach, detailed working style and focuses on building the long-term relationship.
Our unit comes with its challenges but Ivan remained positive and had no qualms committing to our plans right from the start. It took only 6 weeks of aggressive marketing for him to secure a good offer which was a pleasant surprise in the end.
Ivan was always responsive and we had no worries to pass him the house keys. The whole process was transparent and hassle free, and he was always thinking from our point of view on how to make life easier for the client. He is a committed professional and has fast execution, so we felt assured that things are done well and we can entrust the sale process entirely to him.
--- HDB Flat Upgraders Mr. & Mrs. Lee ---
We decided to engage Ivan as our agent as we were impressed with how he answered the enquiries on property guru website.
He has helped us to find our ideal unit and also sold our current unit. He was very patient and never pushy when we were looking for our ideal unit. He would tell us that it is always important to find a unit that we really liked.
When it comes to selling of our unit, he was always prompt in arranging for viewings and he also tried his best to arrange and consolidate the viewings due to our time constraints. He is a reliable and prompt agent and is always willing to clarify any concerns and questions that we have.
Thanks Ivan! :)
--- HDB Flat Sellers Mr. Hayum and Ms. Azizah ---
Ivan has justified our faith in appointing him as our Exclusive Agent. He transacted our unit at 620k, above valuation & highest price ever achieved for our block, within 2 months.
In a slow market, you need a proactive & committed agent who puts the extra effort. Besides advertising in papers & online intensively, he also had personally distributed flyers & spoke to potential buyers in neighboring blocks to increase exposure. Every week there were viewings & feedback.
He actually secured 2 attractive offers but assessed that the 2nd one will be a more smooth transaction. We're glad to have proceeded with his advice for a successful completion. Throughout he was professional and responsive. We wish him a great career and will be happy to recommend his services Read More
I will recommend you to sell your current hdb first before purchase your private property. Iras will not refund the ABSD if you cannot sell your hdb within 6 months.I can workout the timeline for you. Feel free to contact me at 9273 6096 for further discussion.
HP:9273 6096 Read More
firstname.lastname@example.org Read More
Rather than assumptions I will prefer to advise you the suitable way.
Market unit for sale first, only commit on purchase after your HDB buyer exercises on your sale OTP.
1) resale hdb movement are slow so dont risk buying a property first and pay ABSD then cant claim back. IRAS most likely wont grant you extension for ABSD remission (experienced it before)
2) able to obtain max 80% bank loan, dont have to pay ABSD and utilise max CPF OA funds (dont need to set aside basic retirement sum)
Hope my explanation helps!
May I know how can I value add further in your upgrading plans?
- One of well-earned Star Performers under the category of Top Private Property Transactors in Jan 2017-
"Your Freehold Ally, Leasehold Tactician"
YT TAN 陈永达 | ACCA Graduate, RES
Associate Group Director
Propnex Realty Pte Ltd
Blk 480 Lorong 6 Toa Payoh, #11-95 HDB Hub East Wing, Singapore 310480
(M): +65 9111 5171
(FB): www.facebook.com/yttanassetprogessor Read More
Based on your situation, it would make sense for you to sell your current HDB before embarking on your next purchase.
By doing so, you can loan up to 80% of your condo purchase (subject to TDSR requirements). Also, you will not have any restriction on your CPF usage. Lastly, you can avoid paying ABSD altogether.
If you insist on purchasing first, you will have to downpay up to 50% of the condo, pay ABSD up front, and set aside half minimum sum of your CPF monies before being able to use any leftovers for the next property. Your TDSR will also be affected, as your HDB is still under financing. Lastly, do take note that you can only claim back ABSD should you succeed in selling off your HDB flat within 6 months of your condo purchase.
Should you need any 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.
PropNex Realty Read More
You will only be able to secure 80% loan for the condo if you have secure a buyer for your HDB (ie. you have found a buyer and the buyer has exercised the option to purchase for your HDB).
If you purchase the condo before you sell, YES, you will need to pay ABSD first and apply for the refund if you are able to sell the HDB within 6 months. The refund is only valid if the condo is purchase under both husband and wife's name as a matrimonial property, otherwise there is no refund.
Personally, I would not recommend the buy first option. This is because I have encountered many clients who bought first and subsequently are unable to offload their units due to market conditions and therefore are unable to get the ABSD refund.
What I recommend is to map out a timeline and financial plan so that the sale of HDB and purchase of condo can be smooth and seamless and you will not need an interim place to stay during the sale and purchase.
I have assisted many of my clients who are in a similar situation as you. For the sale of HDB, as long as you have an intensive marketing plan, you will be able to sell within 3 months of listing. I have just concluded a HDB sale at a record high price within 3 weeks of listing.
Please feel free to contact me so that I can understand your situation better and share with you further on how I consistently delivers for my clients!
(M) +65 9644 4854
Testimonial from Satisfied Clients (2016)
“We are very grateful to Nick for his extensive marketing efforts. With his comprehensive marketing plan, he helped us to achieve a record selling price within 2 weeks of listing our property for sale! We highly recommend his service to anyone who is keen to sell their properties.”
Mr & Mrs Wong (Property Seller)
“Nick has conducted himself ethically and professionally when handling the sales of our property. Thanks to his patience and perseverance, we managed to secure a sales price beyond our expectations.
We are very happy and satisfied with his services and will definitely recommend him to our friends and family in the future.”
Mr & Mrs Tan (Seller of Inter-Terrace House)
“Nick is a responsible, efficient and excellent salesperson. He has very good knowledge of the real estate market and I benefited a lot from his advice and sharing. He is extremely patient when guiding me through the buying process and I am happy to secure a dream house within my budget with his assistance. A highly recommended salesperson who made my house hunting journey a breeze.”
Ms Chia (Buyer)
“Nick provides a delightful customer experience from day one when I engage him as my agent to look for a flat of my choice to the completion of the deal. He is competent, resourceful and has a pleasant manner to work with. He is the Agent of my choice in dealing with properties and I would highly recommend him to others who would appreciate an agent that takes care and can give the customer a peaceful mind.”
“Nick is very pro-active in helping us to resolve whatever questions and problems that we encountered. All the issues are settled even before us having to request or ask for a second time. He was very frank and transparent with all the details, limitations and advantages that we wouldn’t have known. I think this is the most important virtue to be successful in this line. I will surely recommend him to anyone who needs his service because I trust that they will be equally satisfied!!”
Mr and Mrs Chan (Sold and Bought a property through Nick) Read More
Congrats on your impending upgrade. Before I would be able to offer you any opinion or advises like my fellow peers have done, I believe there could be other alternatives possible to achieve the upgrade with minimised financial stress like ABSD and LTV, nevertheless, a full assessment will be required to understand better whether such option is viable.
I conduct a session of pre-consultation session for my clients where we will be able to touch on these issues in private so that they understand better the mechanisms involved in the entire chain of events.
Let me know if we can discuss this further in private through email or mobile since we are not alerted to any responses posted on this thread.
Tenants can visit http://bit.ly/SGExpatRental (Official Rental Requirements - Singapore Expatriates) to indicate your rental requirements.
Thank you for your support in 2016 for the Top Producers Award - https://bit.ly/No1Team
Claim your free home report today at https://bit.ly/ClaimFreeReport.
Visit and Like my facebook page at https://www.facebook.com/propertyblogshop/
Room Rental @ https://www.facebook.com/SGRentARoom/
New Singapore Expatriates on facebook is up and running. Come join us at https://www.facebook.com/groups/newsgexpats/
My self introductory video on https://youtu.be/6UfrCOCB6Mg
Associate Marketing Director
Global Alliance Property (L3010679B) - Century 21
CEA Reg R014783H
G.A Landed Dynamic Alliance
Home of *7772 Hotline
Check out our latest Landed Dynamic Alliance 7772 mobile application on iOS or Android @ "Landed 7772" in Mobile Apps Store or Play Store now! Read More
As per your question , you will not be able to get 80% loan unless the potential buyer of your hdb has exercise option to your hdb .
As per your question , You will have to pay ABSD unless the potential buyer of your hdb has exercise option on your hdb .
There is a risk of forfeiting the ABSD paid if you fail to sell your hdb within the 6months from your private property purchased .
You may consider / negotiable with the buyer of your hdb for 3 months extension stay for your family after the hdb sales completion . However this request might affect the sales price very slightly , or it might reduce the pool of buyer .
Kindly contact me for a no-obligations chat for your property needs .
My charges are 1% commission for exclusive selling rights ( 1 sole agent only ) to your hdb , or 2% for open listing ( many agents ) .
No commission chargeable when i serve private property buyers .
Hp 8333 3327 Read More