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Hi,

May I know if your MOP of 5 years have been reached? If so, and
as HDB resale prices are at an all-time high currently, you may want to consider to sell now as it is easier to get better price outcomes and buyers are open to older flats due to low supply high demand dynamics now. Prices may not be as bullish in 2 years time.

Back to your question, if the sale price cannot fully cover the CPF refund + accrued interest used for the property, it will be considered a negative sale. If it was sold at or above market valuation, there is no need to top up with cash for the shortfall. It will not be difficult to sell at market valuation.

If you have plans to sell, and the CPF utilized is already a huge amount, I would think it does not really have much benefit to use cash to pay down the accrued interest at the moment, while having to go through the inconvenience of less cash buffer on hand.

Happy to share more on how best to achieve your desired objectives. 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 Realtor
ERA Senior Marketing Director
ERA Diamond Achiever

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-- EC Sellers, Private Property Buyers Dr. Chan & Ms. Xie --

I would like to compliment Mr Ivan Ng for his professional work and effort.I sent my first post in Jan 2019 and Ivan replied promptly, so I have decided to contact Ivan for follow up. My EC was not ready for sale due to MOP (another 3 months from Jan) at that time and Ivan was able to give me advices on how to proceed from there. Initially we have decided to try to write to HDB for early sale but since it was only 3 months left, eventually we waited for another 3 months while we looked for our next property. Ivan was able to arrange for new property showroom appointment at a timely manner while helping us to list for our EC for sale. We were a bit worried when our EC sale time was longer than expected due to trade war, but Ivan was able to reassure us that our EC would sell. By November, he managed to secure a buyer for our EC. Thank you.

-- HDB Yishun BTO 5-RM Sellers, Private Property Upgraders Mr. & Mrs. Koh --

I would like to express my appreciation to Ivan Ng for his excellent work. Ivan is a dedicated, client-focused, patient and sincere agent. Throughout the whole process of selling and looking for our next property, he has always acted very professionally that makes my wife and I feel at ease and assured. Ivan is not a pushy and hard sales agent. Ivan listens and understands our needs and carefully guided us through. We are fortunate to have Ivan as our agent. Thank you Ivan. Read More

Hi,

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.

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

Dear Sir/Mdm,

I have assisted many of my clients who are in the same situation as yourself. In a negative sale, we will always sell at a price which is higher or at valuation so that you will not need to top up the shortfall in the CPF in cash. In this way, you will only suffer a loss in your CPF refund.

As to whether you should switch to using cash for the repayment, you will need to understand that you will not be able to get back the cash used towards paying the house in the future when you sell as it will be channel to your CPF account instead to account for the interests.

Please feel free to contact me so that I can gather more information from you and guide you further.

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
(E) nick96444854@gmail.com
SEAA Salespersons Achievement Platinum Award 2020

Visit my website to get to know me better:
www.nicktan.com.sg

I was featured recently on Council for Estate Agencies (CEA) Newsletter:
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Testimonial from Satisfied Clients
“I would like to recommend Nick Tan from SRI. Before we engaged Nick, we were working with another agent from a very popular property agency in February 2017. We decided to terminate the contract after 5 weeks of zero viewings and no paper advertisements. Basically he was just waiting for phone calls. We engaged Nick on 20th April and by 10th of May, our unit was sold off. Why Nick? 1. He has good marketing strategies 2. He always kept us posted on what he did (communications!) 3. He made sure we understand the current market situation but he will consistently reassure us that the unit can be sold off 4. He is not greedy and trusting 5. He walks the talk”
Peter & Wendy (Property Seller)

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.
Weilun & Benita (Property Seller)

“We are very grateful to Nick for his extensive marketing efforts. With his comprehensive marketing plan, he helped us to achieve a record selling price within 2 weeks of listing our property for sale! We highly recommend his service to anyone who is keen to sell their properties.”
Mr & Mrs Wong (Property Seller)

“Nick 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) Read More

Hi,

1) You might be right about the lower selling price on a lower lease HDB flat. But we won't be sure until we are there because by then there will be quite a lot of HDB flats reaching their 59 yrs with a remaining lease of 40yrs.
2) Whether to switch to pay by cash is depends on each situation. It is not easy to say yes or no without detailed info.
3) If you have accumulated sufficient cash or CPF, you may consider paying a lump sum payment to reduce your loan if you are utilizing the HDB loan.
4) By doing that you can either reduce the loan tenure or reduce monthly installment. In your case, it will be to reduce the loan tenure so as to reduce interest incurred.
5) Lump sum does not mean it must be $50k or $100k. You may do it with only a few thousand dollars. You can approach your HDB branch office to make such a lump sum payment.
6) The last concern is selling below market value. Note that if you sold below market value, the CPF board might think there is foul play and will force you to fork out cash to top up utilized CPF and accrued interest.
7) Therefore in order not to fall into that problem, you have to ensure you sold at or above the market value. In this way, you could appeal to the CPF board not to top up utilized CPF and accrued interest if there is a shortfall.

Hope the above answer your main concerns, but if there are more query, 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
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

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