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Hi,
My friend has an outstanding home loan of $40k. She is living in a 3 room flat with her son who is unemployed, at west coast. As she is not working now, has difficulty paying her monthly installment! Is it possible for her to sell the current house and buy another resale 3 room flat at a lower price? Her budget is below $300k, can she find any flat at west areas? Does she need to pay levy, will she still be able to have some extra cash after the entire sales transaction? Thanks!
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2 Answers

Hi,

For flats below 300k, there could be some in the Jurong West area. No resale levy is required if she is purchasing resale hdb. Whether there are sale proceeds depends on the sale price, outstanding loan and cpf utilized. There are also transaction costs such as legal fees and agent commission.

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.

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Selling is not an issue as long as the expectation in terms of selling price matches the current market sentiments and I have heard of home owners encashing their HDB to release some cash on hand and purchase another HDB with similar price range, however, in this case where she has difficulty paying her monthly instalment, I am more worried about her eligibility to apply for a home loan on her next purchase if she needs to.

As long as she is purchasing a resale property without applying for any housing grant, resale levy is not applicable under normal circumstances.

We will need to work out on the financial details to establish feasibility of proceeding on this plan. Do get in touch with me in private for further discussion as we are not alerted to any responses posted here.

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