AskGuru Q&A Community

Good morning buyer,

Just a reminder that you will be subject to 7% additional buyer's stamp duty (7%) as this will be your second property purchase as a Singaporean and will not be entitled to obtain a full 80% bank loan (still subject to total debt servicing ratio) because you still have an outstanding loan.

Moreover, if you have utilized CPF OA funds in your current property, you will have to set aside half of the minimum sum ($80.5k in your CPF OA+ SA) before you are eligible to use the excess in the second property purchase.

Probably do let my banker to advise both of you on your approval in principle first so you can gauge how much you can loan.

In my opinion, since this unit is intended for own stay, you should purchase one when the prices still remain low due to these cooling measures.

I am not optimistic that the prices will remain low if cooling measures are removed and your mortgage repayment will definitely be higher when prices go up along with the rising interest rates.

Let's speak to my banker first and at the meantime, share more with me so I am able to draft out a financial plan for you guys to use it a guidance to know what budget you guys have.

Hope to hear from you soon!

Warmest Regards,
YT Tan
Vice President (Agency)
R043025D
Property Avenue Pte Ltd
Estate Agent no. L3010650D
Blk 420 North Bridge Road #03-30 North Bridge Centre S188727

(M): +65 9111 5171 
(E): yt.lovelyhomes@gmail.com
(W): www.yttan.com Read More

Hi,

If its a joint purchase for your 2nd property, ABSD of 7% is applicable. Since you have an outstanding loan, your next mortgage loan will only be able to loan up to 50%.

Instead you might want to explore buying on her sole name, where she can get 80% loan and no ABSD applicable. However the loan will be based on her income solely.

Thanks and may I understand your requirements further so to make better recommendations? Let's discuss further.

Warm Regards,
Ivan Ng ERA ASAP
(ASk Anything Property)
Proactive. Sincerity. Feedback.
SMU BBM (Finance), Magna Cum Laude

Email: Ivanng10@gmail.com
Contact: (+65) 97432395 
Facebook Page: www.facebook.com/ASAProp
Website: http://www.ivanng10.com/#!reviews/c11r1
(Client's Testimonials) Read More

Afternoon,

Firstly, to get a second property, you will be subjected to ABSD. Depending on your nationality, the figures can range from 7% to 15%.
Secondly, with an existing mortgage in hand, you can obtain max of 50% loan on your second purchase. 25% must be made in cash and balance 25% down payment can be made with CPF.
Lastly, if your current unit have utilized CPF monies for it's mortgage payment, you will be required to set aside the CPF minimum sum before you are able to utilize the balance.
As for the mortgage loan aspect, you can have the installment paid in whatever percentile you deem fit.

Do contact me further should you require my assistance.

Regards
Mike Lim
 96929209 
m52i@yahoo.com
ERA Read More

Hi, why don't I get my banker to liaise with you first with regards to the loan issue and affordability? Pls feel free to let me know if you need any banker's contact or any other assistance.

Regards
Aaron
 9730 8455 
aaronchong2774@yahoo.com.sg Read More

Good morning buyer,

Do take note that you have to form a family nucleus with your girlfriend (fiance/ fiancee scheme) to be eligible for new EC. In order to do so, you will have to sell off your private condo and observe a waiting period of 30 months before you can apply.

Thus she is not eligible to purchase solely by herself. If you guys are keen, you will still be eligible for CPF housing grant of up to $30k if your combined income doesnt exceed income ceiling.

But with the long waiting period of 30 months, it might be better to purchase a resale EC or private condo solely under her name instead.

Hope my explanation helps!

Warmest Regards,
YT Tan
Vice President (Agency)
R043025D
Property Avenue Pte Ltd
Estate Agent no. L3010650D
Blk 420 North Bridge Road #03-30 North Bridge Centre S188727

(M): +65 9111 5171 
(E): yt.lovelyhomes@gmail.com
(W): www.yttan.com Read More

Hi Sir,

It will be advisable to purchase the 2BR condo under your girlfriend's name so as to avoid paying the Additional Buyer Stamp Duty (ABSD) of 7% as it will be considered as a 2nd property purchase for you.

For the loan, you have an outstanding loan of 250k for the currently property and therefore the loan quantum for the 2nd property will be affected as well.

For condo purchase, 5% of valuation will be in cash and 15% of valuation can be paid in CPF. The balance 80% can be in the form of bank loan. There are legal fees in the region of 2.5k to 3k as well.

The current market is a buyer's market and it will be a good time to start looking for good deals. May I know is there any shortlisted projects you are looking at so that I can share my thoughts with you?

Please feel free to contact me at 9644 4854  to discuss more!

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

Testimonial from Satisfied Clients (2015)

“Nick from Property Avenue has conducted himself ethically and professionally when handling the sales of our property. Thanks to his patience and perseverance, we managed to secure a sales price beyond our expectations.

We are very happy and satisfied with his services and will definitely recommend him to our friends and family in the future.”
Mr & Mrs Tan (Seller of Inter-Terrace House)

“Nick is a responsible, efficient and excellent salesperson. He has very good knowledge of the real estate market and I benefitted a lot from his advice and sharing. He is extremely patient when guiding me through the buying process and I am happy to secure a dream house within my budget with his assistance. A highly recommended salesperson who made my house hunting journey a breeze.”
Ms Chia (Buyer of HDB)

“Nick provides a delightful customer experience from day one when I engage him as my agent to look for a flat of my choice to the completion of the deal. He is competent, resourceful and has a pleasant manner to work with. He is the Agent of my choice in dealing with properties and I would highly recommend him to others who would appreciate an agent that takes care and can give the customer a peaceful mind.”
Susana (Buyer of HDB)

“Nick is very pro-active in helping us to resolve whatever questions and problems that we encountered. All the issues are settled even before us having to request or ask for a second time. He was very frank and transparent with all the details, limitations and advantages that we wouldn’t have known. I think this is the most important virtue to be successful in this line. I will surely recommend him to anyone who needs his service because I trust that they will be equally satisfied!!”

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