Hi Sir and Mdm,
First of all, congrats on your decision to purchase your HDB flat!
As you are a SPR, you can only take a bank loan and we will need to engage private lawyers for the conveyancing. So we cannot use HDB lawyers for this. As such legal fees will not be at $400. When we take a bank loan, it is compulsory that we have to fork out 5% of the purchase price in cash and 20% of it in CPF. If there are any shortage of CPF, it can be covered by cash as well. Banks can only loan to us a max of 75%.
As for your Buyer Stamp Duty (BSD), it should be $4,600. The exact formula for BSD is that the first.$180,000 will be at 1%, second $180,000 will be at 2%, the next $640,000 at 3% and the remaining at 4%. So for your case of $320,000, it will be (1% of $180,000) plus (2% of $140,000) which gives you $4,600.
You will need to factor in Additional Buyers Stamp Duty of 5% for this purchase and this will be $16,000. So the breakdown as will be as follows:
Purchase Price - $320,000
5% Cash - $16,000
20% CPF - $64,000
75% Bank Loan - $240,000
BSD - $4,600
ABSD (5%) - $16,000
Legal Fees - approx $2,000 plus GST
I am guessing that this is the first time that you are purchasing your HDB flat. What I can suggest is that we cam actually meet up for a chat. We can take this opportunity to do a financial calculation for you and also answer some of the questions that you may have. And to be honest, house buying is really not so easy. It is really not just about viewing some units on PropertyGuru and deciding to buy and all is done. When situations arises, this is when sellers and buyers will get into a deadlock and very often it ends up into a very stressful situation. And most of the time, the buyers do not even know what to do when problems surface,
I would really encourage that you walk this journey together with a professional realtor and leave the stress to him/her. House buying should be a happy process and we should leave it as such. And to be very honest wth you, not all houses can be bought! So this is also where your realtor comes in to tell you what house can buy and what house cannot buy.
Recently my partner and I just helped a buyer who was searching for her house for a few month but could not find anything. When her friend who was our customer referred us to her, from first meetup to viewings to getting her unit, all these was done within 2 weeks and she was so happy. So getting the right people to walk this journey with you really makes a huge difference.
So as mentioned, do contact me to meet up for a chat. No worries as there are no obligations at all. Looking forward to hear from you soon! Cheers!
Best Regards,
Jeffrey Heng
Senior Associate District Director (Sincerus Division)
Training Director (Navis Living Group)
NAVIS Living Group - The fastest growing group in OrangeTee that believes in Technology, Training & Teamwork (3Ts)
Founder of Sincerus Division
SAEA Real Estate Excellence Silver Award - Best Client Service (2014)
SAEA Real Estate Excellence Award Nominee - Best Client Service (2012/2013)
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