AskGuru Q&A Community

Good afternoon,

Thanks for sharing about your plans and the details, I try to address your queries. As of prevailing regulations, my response as below:

For #1 , yes you can only use CPF OA for housing. Hence if you use 159k CPF OA, you can pay down the current housing loan, which means you no longer have any outstanding loan, and a fully paid hdb property.

For #2, if you have done #1, you will be left with approx 2k in the CPF OA . No doubt your next loan will be 75% max since it will be your 1st housing loan (but 2nd property), but the BSD + ABSD will still apply since you still own the current HDB at point of purchase of your condo. You will have to come up with cash first to pay for the downpayment, stamp duties since the CPF OA is more or less exhausted fully.

#3 The ABSD refund is not guaranteed, there are conditions required to be fulfilled as set out by IRAS. Its mainly for Singaporean citizen household married couples who are upgrading to their next matrimonial property, and selling the current matrimonial property within the required period of 6 months. The purpose is to deter property speculation but not to hinder genuine private property upgraders who are selling and buying at the same time.

If you already have plans to sell off the hdb to fund the private property, it might be ideal to actually sell it now and avoid all the hassle as above. Reason being, regulations do change time to time and it might be tougher to upgrade next time if and when there are revised cooling measures. Furthermore, in general HDB prices & private property prices are diverging, with HDB prices trending downwards and private property prices growth still sustained but at a slower pace.

Hope the response helps. I have assisted similar profile investors with that purchase, look forward to value-add to your plans as well.

Warm Regards,

Ivan Ng Realtor
ERA Senior Marketing Director
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Good day sir / madam .

It is probably better to sell your hdb first , successfully negotiate for 3 months extension stay in your hdb after sales completion , buy a resale condo , move direct from hdb to condo ,no ABSD and easy cash flow and easy loan because hdb is sold .

I am NOT able to contact you directly as i do NOT have your contact.

Kindly contact me Joanne Chia at my handphone +65 8333 3327  for a no obligations chat for your property needs.

My charges are 1% commission for exclusive ( sole agent ) selling rights to your property or 2% for open listing ( many agents ) .

NO COMMISSION CHARGEABLE WHEN I SERVE PRIVATE PROPERTY BUYERS.

Joanne chia
Email : Chia_joanne@yahoo.com.sg
Handphone +65 8333 3327  Read More

Dear Sir/Mdm,

1. After you clear your outstanding bank loan, only the balance sum in OA can be used towards the 2nd property purchase ie. about 3k plus.

2. If you were to purchase a 2nd property, you will still need to pay the Additional Buyer Stamp Duty of 12% first and you can claim it back from IRAS if you managed to sell off your HDB within a 6 months period. For the 2nd property, you will also need to purchase it together with your spouse as a matrimonial property to qualify for the refund.

3. Yes, you may consider new launch as well. If you purchase a new launch, you will need to sell off your HDB within 6 months of the TOP of the new launch to qualify for the ABSD refund.

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

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

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I write to commend Nick Tan (R040814C). When my husband and I first met Nick, we were impressed by his drive, commitment, business acumen and strategical thinking, and decided to engage him. We were not disappointed. Nick sourced for prospective quality buyers in a targeted methodical fashion and was effective in connecting us with serious buyers, notwithstanding the fact that the search primarily took place over Dec – Feb (a traditional lull period). Throughout the transaction, he also gave us helpful advice in various aspects; the advice reflected his personal experience and expertise and was not simply regurgitated from public sources without any value-add. Further, Nick went beyond the call of duty of a competent professional. He had a sense of humanity in the way he interacted with myself and the other parties to the transaction such as my parents. As an example, my newborn daughter was warded into A&E on the completion date of the transaction; the care and concern that Nick showed went beyond the scope of work of an estate agent. I commend Nick for his capabilities and character, and would certainly wish to engage him for future property transactions.
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Dear sir/madam,

I believe you probably have all the answers to the questions you have posted here ready. The key now is why are you considering such an option in the first place? What is the overall objective in such a move?

I supposed you have not refinance your existing bank loan for your current HDB where the interest i slightly on the high side from my understanding. A restructuring of your assets requires detailed understanding of what you intend to achieve before moving onto the plans and feasibility studies. It is not advisable to jump onto the bandwagon of owning 2 properties because others are doing so, because the same structuring of portfolio may not have similar benefits for everyone.

Perhaps we can have a more details discussion on your objectives moving ahead before planning for it and conducting a feasibility studies.

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Regards,

Geryl LIM
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