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Hi,

Unfortunately there is also the resale levy you need to fork out (in cash) should you choose to buy another BTO (2nd subsidized housing). If your current BTO is 4room, the levy is 40k. Adding the purchase price and stamp duties, one may not earn much at the end of everything. One way could be to sell the BTO and park the proceeds in properties with higher capital appreciation potential.

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)
Proactive. Sincerity. Feedback.
SMU BBM (Finance), Magna Cum Laude

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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.

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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.

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Hi,

Congratulations on fulfilling your MOP! Now for the next step towards Asset Progression!

Depending on your needs, you may choose to apply for another BTO flat. But, I'm not sure if this is the wisest option for you. Here are my concerns if you apply for a 2nd subsidized flat:

1) Long wait. You may apply for the BTO now, but the flat will not be ready until at least 3-4 years time. My question to you is, would your current flat be worth $440k in 3-4 years time when your BTO is ready?

2) Resale levy. Upon getting the keys to your BTO flat, you will be required to sell off your current HDB flat. You will also be liable for a resale levy, to be paid in CASH. If your current flat is a 4RM flat, the levy is $40,000. And if your flat is a 5RM flat, the levy is $45,000. Taking into account the CPF + Accrued Interest for the next 3 to 4 years, I'm not sure if you will have the sufficient sales proceeds if you do not manage to sell your current flat at $440k 3 to 4 years later.

Depending on your current household situation (needs and financials), you may have a variety of options apart from just applying for a second BTO. It would be good if we can sit down and assess all these options before you make a decision.

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 and your partner in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More

Hi,

This is a very good question. Thanks for posting to share with others.

You have a simple calculation: Buy = $320k, Sell = $440k, Profit = Sell - Buy = $120k.
In fact, it is not that simple.
There are some assumption I've to make before giving you a better picture:
(a) You have loan up to max from HDB (90%).
(b) The interest rate from then till now is 2.6%
(c) CPF interest rate from then till now is 2.5%
(d) Your committed loan period is 25 years
(e) Your monthly repayment is at min: $1,307.

(1) Sell now:
Considering you clear the loan on 60th month (MOP), then you will need to repay HBD $236K.
Your CPF + accrued interest is about $126k

Thus after selling, your sales proceed is estimated for $440k - HDB - CPF = $78k.

(2) Sell 10 yrs from now:
Own HDB: $170k
Return to CPF: $242k
Sales proceed = $440 - HDB - CPF = $28k

Thus simple calculation is you lose more by selling 10 yrs later. At the same time, you will have to pay resale levy of $40k for 4-rm.
You will have to fork out additional $12k cash for your BTO.

Hope the above answer to your main concerns, but if there are more queries, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com

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Dear Sir/Mdm,

You will definitely make a profit from the sale, however, the calculation is not so straight forward as you will need to take into consideration other costs such as the CPF accrued interests and legal fees etc.

Buying another BTO may not be the best option as you will be subjected to a resale levy when purchasing. You can consider upgrading instead if it is within your comfortable financial means. By upgrading, you will be able to continue to ride on the increasing property prices in the future.

Please feel free to contact me so that I can understand your situation better and provide you with further assistance!

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS)
Cert-in-REA
(E) nick96444854@gmail.com
(W) www.nicktan.com.sg

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Mr and Mrs Chan (Sold and Bought a property through Nick) Read More

Hi,
If you are buying another BTO flat, there will be resale levy. Besides, there will be incurred interest to return to CPF too. Hence the profit will be lesser than 120K. Kindly drop me an email for me to assist to compute the estimated sale proceed for your reference.

To assist and advise you more in details, kindly drop me an email for me to share.

I am contactable at my mobile or email.

CK Ang
 9046 3808 
res.ckang@gmail.com Read More