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Good afternoon Audrey,

The alternative way is to rent out this property, the net rental gains will be gains that go toward recovering your initial position. Over time you can also redeem partially the CPF utilized + accrued interest for the property usage. But this is easier said than done for most people, especially if you are currently staying in the property, and have to find other.

The simple formula is to use attainable sale price, less outstanding hdb/bank loan, and this amount will be the amount available to refund the CPF utilized. Since this is a negative sale case, the CPF refund will not be full and will go to your CPF OA. The total OA can be used for the next property.

Depending on the budget, you should look for properties in areas that are generally undergoing or will have transformation plans that will maintain or boost the resale values in the vicinity. In addition, you could use less CPF OA so that the accrued interest will not snowball too quickly resulting in another negative sale case.

Hope the above clarifies. May I have more info and requirements about your plans so as to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,

Ivan Ng Realtor
ERA Senior Marketing Director
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Hi Audrey,

I would be most glad to assist you further and please feel free to let me know if you need any assistance. Have a good day ahead. By the way, is renting out the flat be another option for you? Cos the rental market is on a surge and will likely continue to be so for the next 1 to 2 years.

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

Appreciate your sharing, sorry to hear it. To prevent it from becoming more negative loss, I propose you to take actions soon before it is getting more and more. Welcome a free sharing at 9696 4398 

Stewart - PropNex Read More

Hi Audrey,

I am assuming that your resale flat is an aging one to be running into this situation of a negative sale. Otherwise, can I find out more about the situation?

In most of the negative situations that I have encountered, it is usually due to the usage of CPF funds for the purchase of the property, where after the sale of property, the requirement to refund the CPF including the accrued interest will be the resultant of negative sale, thus Ivan has rightly pointed out that in order to gain positive cash returns out from this scenario, your alternative is to rent out the property and using the cash obtained part of the refund to CPF. Unfortunately, this is usually not a viable option for property that is for own occupation.

Under current rules on negative sale, you will not be required to top up the shortfall should your HDB be sold at or above valuation, therefore I'd consider this a right timing to leverage on in considering the exit of current property as you mentioned, to cut loss. The calculation of sales proceeds is to deduct away the outstanding home loan, CPF utilised including accrued interest from the selling price, where the priority will be to redeem the home loan first with remaining back to CPF. By understanding this amount on top of your existing CPF funds, you will be able to work out your available CPF funds for use in next housing.

As to what property you should look for, I'd guess it will also greatly depends on your financial situation and age to know your loan matters. Of course, age of property will be 1 of the key considerations on top of CPF funds usage for the property.

I have been in the real estate business since 2009, with more than 13 years of experience serving the Singapore real estate market.

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Landed Dynamic Alliance Read More

Hi Audrey,

Having negative sale is quite common because most owners underestimated the impact of the accrual interests from the CPF usage. It is a good time to reset now because the HDB price is at an all time high and therefore this is a good opportunity to minimise your loss. Unfortunately, there are limited ways to recover the loss because the interests are ongoing and the HDB price may dip in the future and therefore the loss will become greater down the road.

To avoid such a situation again, you may choose to minimize the usage of CPF in your next property or buy a home where there are upside potential so that the capital gain and outweigh the interests incurred.

Please feel free to contact me so that I can analyze your situation for you and share with you more in depth!

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
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“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 Read More

Dear Ms Audrey,

Hi, I am Brendan!

The negative sale should be due to your CPF + accrued interest used. However, not to worry if the property is sold at or above valuation, you do not need to top up any cash to make up for the negative sales.
After the CPF is returned to your CPF account, you can use it for your next property and probably without paying any cash.

For your next property, i will suggest one that has more years of lease remaining and with potential of transformation to upkeep the property price. It will also depends on how long you are planning to stay in your next property.

i had helped a few clients facing negative sales moved to their next property smoothly and without any additional cash payment.

If you will like to know more, pls contact me at 9754 5207  .
Or Whatsapp me by clicking this link: wa.me/6597545207 which will direct you to open Whatsapp on your mobile phone.

Thank you!
Brendan Bay, ERA
 +65 9754 5207 
wa.me/6597545207
bay.binhao@gmail.com Read More

Hi ,
I would be glad to assist you.
Feel free to contact me @ 97100155  or https://linktr.ee/peiproperty.
Hope to hear from you soon.
Pei @Propnex Read More