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Good morning Anvril,

Do take note that in order to be eligible to purchase a private property as a HDB owner, you must first fulfil the minimum occupation period. Have both of you done so?

And you will be subject to 7% ABSD and have to set aside minimum sum of $77.5k in CPF OA + SA before you can use the excess in the second property purchase.

As you don't have much CPF left, your initial outlay will be:

1) 5% cash downpayment
2) 15% cash or CPF OA funds downpayment
3) estimated 3% buyer's stamp duty
4) 7% ABSD as SC
5) $3k legal fees
6) valuation fee, stamp duty for mortgage etc.

If you based on $800k and estimated initial outlay of 30% of purchase price, you need to have around $240k.

If not, you might want to consider decoupling. In this way, you are able to save on 7% ABSD. But do take note there are pros and cons for decoupling.

If you need any assistance or advice in your property purchase, feel free to contact me. Cheers!

Warmest Regards,
YT TAN 陈永达 | ACCA Graduate, RES
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
(W): www.propertyavenue.com.sg Read More

Hi,

Firstly, you have to fulfil MOP of 5 years before you can purchase condo. If so, for your scenario, breakdown as follows:

Cash 5%
Cpf 15%
Max bank loan 80%
Stamp duties & legal fees 10%

Pls also note that you have to set aside Minimum Sum of 77.5K each before you can use CPF for 2nd property.

Perhaps there may be a workaround, may i have more details? Thanks and hope to value-add to your investment plans further.

Warm regards
Ivan ERA
 97432395 
Ivanng10@gmail.com
Website: http://www.ivanng10.com/#!reviews/c11r1
(Client's Testimonials) Read More

Afternoon Anvril,

You will need to fulfill the MOP requirement first even though the mortgage have being cleared. Once this is done, you will need to understand that you are also required to set aside the CPF minimum sum before you are eligible to utilize the balance for down payment or monthly installment.
ABSD for SC who are getting their second property will be at 7%. Standard Stamp duty is still at 3%. Down payment required is 20% where 5% must be made in cash and balance 15% with CPF and/or cash. As for how much cash is required, assuming you are not using your CPF, you will need around $330k in hand.

Do feel free to contact me should you require further assistance.

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

Hi there!

Please find the detailed analysis of your situation.

As HDB is fully paid up- loan available up to 80%. Hence, cash Downpayment will be 20%. 5% Booking Fee and 15% made within 8 Weeks of Exercising.

Initial cash outlay:
3% BSD
7% ABSD
$3k legal misc fees

You could perhaps consider under construction properties as they are undervalued compared to resale and yet have better rental returns & appreciating scope. You can easily purchase a 2BR in a matured estate for around $600k+ with a pool view currently. This may not be possible in the future. For resale, you could explore personal loans for the downpayments.

Perhaps you can share more on your requirements and objectives so that we could work around your situation and propose alternatives and solutions to ensure a smooth purchase.

Furthermore, there is NO agent fees involved! So you can take this opportunity to discuss more on your preferences & for me to give an entire overview and share more insights to the market, chart out the market price analysis and recent sales transaction caveats, work out comprehensive financial cash projections and provide you with up to date information to the procedural steps and its associated wings- financial (loan) , legal matters etc.

D Kumar
 +65 96659926 
ERA Associate Division Director
www.kumarrai.com

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Good morning Anvril,

Great hearing from you again!

I guess you have misinterpreted decoupling. It means that one of you will remain as owner while the other becomes occupier. Thus you can use the occupier's name to purchase a private property. That purchase will be regarded as his first property purchase thus no 7% ABSD will be incurred.

This method might or might suit you. Just a suggestion. =)

Some stuffs to take note on your calculation:

1) SD $1860. (3% x $800k - $5400)
2) estimated $5k for legal fees, stamp duty for mortgage, valuation fee etc is a good estimation.

If you have any doubt in mind, feel free to contact me via mobile or email. Cheers!

Warmest Regards,
YT TAN 陈永达 | ACCA Graduate, RES
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
(W): www.propertyavenue.com.sg Read More

Good morning Anvril,

Normally HDB owners go for decoupling because they don't want to pay for the ABSD that will be incurred on their second property purchase.

7% on a $800k property is $56k.

In order to decouple, you must first fulfil MOP (which you have) then apply for decoupling with HDB. HDB will give you instructions to use their legal or private lawyer for the process. You can decouple by one party doing a part purchase or by gift.

Once done, the occupier can purchase a private property without incurring ABSD.

Hope my explanation helps! If need be, I can forward you a powerpoint slides sent by one of my legal conveyancing.

Btw sincerest apologies for the typo. It's $18600.

Probably you can get in touch with me via mobile or email because Propertyguru doesn't prompt me when there's a reply to my post.

Warmest Regards,
YT TAN 陈永达 | ACCA Graduate, RES
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
(W): www.propertyavenue.com.sg Read More

Hi,

Pls feel free to contact me to have a discussion.

Onassis Gan Eng Joo - CEA Reg No.: R021244C
CES Certified SG Realtor l SGRealtor.com
agent.myweb.sg (PropertyGuru) / agent.irealtor.sg (iProperty)

SG Hotline: +65 9222 2389 
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