Appreciate your advice for this matter.
It would be ideal if you can remove your name from the HDB, thus you can purchase your next property as a 1st property purchase. However, any CPF you have utilized for the HDB has to be returned to you, hence the remaining owners (parents) must be able to finance it.
Otherwise, if you keep your name in the HDB, it be good if you can pay down the loan fully, hence you will be able to take 80% loan for the next one. ABSD of 7% applies however, if you are SC.
On which method suits you better, it will be best if we discuss further and understand your requirements further. Thanks and hope to value-add to your housing plans.
Thanks for your query!
The main crux of your decision will be based on your loan and the ABSD.
Do note that ABSD of 7% will be applicable for a 2nd residential property. So if you would like to retain your name in your parent's flat, you would be liable for ABSD. Furthermore, so as to facilitate your purchase, you will have to pay off your loan about before committing so that you can get maximum loan of 80%. Otherwise, it will stand at 50%.
Alternatively, it might just be a better option to optimally pay off your parents loan and remove your name, so as to achieve maximum 80% for the next purchase as well as avoid ABSD.
What we can do now is to sit down and discuss more on your expectations, objectives, requirements as well as understand your finances comprehensively. Then we can proceed to work out your financial cash projection and breakdown needed for the purchase. I will also share more insights on the market- providing up to date transaction caveats & price analysis of properties in the last few years v currently to identify and illustrate the trends.
Do note that it is purely non obligatory and the only objective of the discussion should be to enlighten you on the differences in options, work out your finances to propose which projects you may wish to consider and aide in the price charting of units in the market. There is no point obtaining wishy washy statements from everywhere. You might as well consolidate all the key information and understand the market procedure well enough before taking the step.
Should you be keen on availing my consultation and services for private property purchase, do note that there is no agent fees involved and I will walk you through this whole tedious process of : explanation of procedure, shortlisting, negotiation, paperwork, establishing financial projections / application of loan, sharing of market insights, providing up to date transaction caveats & price analysis of properties as well as and handling all technical and legal matters at NO cost!
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Do take note that you will be subject to additional buyer's stamp duty of 7% as SC.
Btw are you a Singaporean or SPR?
Be mindful that if you are a SPR household, you have to sell off your HDB within 6 months from completion or key collection date of private property.
Let's say you are a SC. With $180k cash, you can afford a property worth up to $600k (taking into consideration that you have no outstanding loan and will be subject to 7% ABSD).
But if you remove your name from current flat, you will be able to afford property worth up to $783k (because no 7% ABSD). Do take note that there will be HDB admin fee, stamp duty for transfer of ownership etc.
Probably you can share more with me so I will be in a better position to advise you further.
Hope to hear from you soon!
YT TAN 陈永达 | ACCA Graduate, RES
Vice President (Agency)
Property Avenue Pte Ltd
Estate Agent no. L3010650D
Blk 420 North Bridge Road #03-30 North Bridge Centre S188727
(M): +65 9111 5171