Asked by Anonymous
Hi, I'm a turning 35 this year and I got married 2 years ago. As my spouse just got his PR last year, we would be applying for a BTO soon.
However that's just some background as we are currently staying at my parents' place.
We are currently in a situation and kind of stuck on what to do. The 4 room flat that my parents own has an outstanding of $89k to be paid. My dad due to his bad financial planning, not only is he not able to pay off the monthly mortgage but also in need of cash. My mum is a housewife and also unable to work because of her medical condition. Mum is 58, Singapore Citizen and Dad is 74, Singapore PR for some context.
My Dad is contemplating to renounce his PR. From the advices that I gathered from here, I see that one should sell the house before renouncing PR for a smoother process.
My concern here is if he renounces before selling, my mum wouldn't be able to own the flat on her own right? If she can what should be her financial capability to own the flat? She has to buy over whatever my father's share is? Where can I find out information for them on how much each party forked in?
If let's say the property is sold first then renounce PR, my dad's share from what he forked into the house will return to him and he will be able to monetize his funds upon renouncing PR, correct? And for my mum, will she be able to purchase another flat (maybe 3 room) with the funds she has in her CPF after the flat sales of the current 4 room flat? Can she single-handedly own a flat? Since she is only 58, there's a long way ahead of her and passive income from rental would be very beneficial for her in the long run as she doesn't have the basic retirement funds on a good balance. Both my brother and I suggested that she comes over to live in either of our flats but she isn't open for that option as she wants a roof over her head as a security net and also for passive income. Besides that she would prefer a helper for herself versus a shared one where priorities would be blurred if the helper needs to care for children, housework or taking care of her.
I even considered of buying over the current flat but it's going to be complicated as I wouldn't be able to buy my own house in the future and I have an elder brother in the picture as well and I don't want any misunderstandings in the future because of such rash decisions (he just got his bto last year with his family- wife and 2kids).
Please advise what's the best way forward given the situation at hand (unpaid housing loan, concern for my mum if dad were to renounce PR). Any schemes that would be beneficial for our situation would be good as well.
We have also thought along the lines of buy back lease scheme which isn't possible as both owners need to be above 65 years old. Pledging the house was another idea but only helps to monetize half of the retirement account for my dad (my mum has not met the basic retirement requirement and as for my dad, I need to check if he is eligible since he was all the while self - employed. I'm not sure if he was disciplined enough to contribute the minimum sum). Even if he pledges and gets the cash, then comes the question of the outstanding balance of 89k. He isn't able to pay the $1.1k continually hereafter and struggles to do so. He is also in a situation where he find it difficult to pay off his office rental. Given his age, he should be enjoying retirement and not slogging at work. I do empathize his situation but at the same time annoyed that his poor discipline has led us to such a situation.
Sorry for the lengthy post. Any advice is appreciated.
Thank you.
However that's just some background as we are currently staying at my parents' place.
We are currently in a situation and kind of stuck on what to do. The 4 room flat that my parents own has an outstanding of $89k to be paid. My dad due to his bad financial planning, not only is he not able to pay off the monthly mortgage but also in need of cash. My mum is a housewife and also unable to work because of her medical condition. Mum is 58, Singapore Citizen and Dad is 74, Singapore PR for some context.
My Dad is contemplating to renounce his PR. From the advices that I gathered from here, I see that one should sell the house before renouncing PR for a smoother process.
My concern here is if he renounces before selling, my mum wouldn't be able to own the flat on her own right? If she can what should be her financial capability to own the flat? She has to buy over whatever my father's share is? Where can I find out information for them on how much each party forked in?
If let's say the property is sold first then renounce PR, my dad's share from what he forked into the house will return to him and he will be able to monetize his funds upon renouncing PR, correct? And for my mum, will she be able to purchase another flat (maybe 3 room) with the funds she has in her CPF after the flat sales of the current 4 room flat? Can she single-handedly own a flat? Since she is only 58, there's a long way ahead of her and passive income from rental would be very beneficial for her in the long run as she doesn't have the basic retirement funds on a good balance. Both my brother and I suggested that she comes over to live in either of our flats but she isn't open for that option as she wants a roof over her head as a security net and also for passive income. Besides that she would prefer a helper for herself versus a shared one where priorities would be blurred if the helper needs to care for children, housework or taking care of her.
I even considered of buying over the current flat but it's going to be complicated as I wouldn't be able to buy my own house in the future and I have an elder brother in the picture as well and I don't want any misunderstandings in the future because of such rash decisions (he just got his bto last year with his family- wife and 2kids).
Please advise what's the best way forward given the situation at hand (unpaid housing loan, concern for my mum if dad were to renounce PR). Any schemes that would be beneficial for our situation would be good as well.
We have also thought along the lines of buy back lease scheme which isn't possible as both owners need to be above 65 years old. Pledging the house was another idea but only helps to monetize half of the retirement account for my dad (my mum has not met the basic retirement requirement and as for my dad, I need to check if he is eligible since he was all the while self - employed. I'm not sure if he was disciplined enough to contribute the minimum sum). Even if he pledges and gets the cash, then comes the question of the outstanding balance of 89k. He isn't able to pay the $1.1k continually hereafter and struggles to do so. He is also in a situation where he find it difficult to pay off his office rental. Given his age, he should be enjoying retirement and not slogging at work. I do empathize his situation but at the same time annoyed that his poor discipline has led us to such a situation.
Sorry for the lengthy post. Any advice is appreciated.
Thank you.
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