AskGuru Q&A Community

Hi Ms Chew,

Re: Our Preferred SG Professional- ASAP Real Estate Services

Both of you need to log in HDB page with your singpass to see how much outstanding loans and CPF with interests to paid back now to have clear pictures of cash proceeds.

You can use CPF to pay on the mentioned items as you will have cash proceeds from the profit too.

Feel free to engage me as your agent. I can assist you based upon your stated contents and walk you through the entire process with options.

Call me now, we can explore further in detail.

I am contactable at 92222389  or onassis@sgrealtor.com / sgagent.com

In all Areas of Singapore. Sale/Buy/Lease/Rent, Please call and/or drop me an email me. I’m always at your Services.

Onassis Gan | R021244C | SG Professional l SGRealtor.com & SGAgent.com
EXPERIENCED. PROACTIVE. SINCERITY. FEEDBACK
ACTA (Full); PDCE (Singapore); MSc BIT(Middlesex); BBA (South Australia)

Featured Realtor Services recognition by SGReview.com and SGBride.com

Singapore Line : (+65) 92222389 
Malaysia Line: (+60) 111-0788889
Email: onassis@sgrealtor.com / sgagent.com
Skype: incomecare

Our Clients' Success Is Our Success
“Clients’ always at ease putting their properties with us”

Our SG Professional Services Youtube

Commercial - https://www.youtube.com/watch?v=brxduV0p85o
Residential - https://www.youtube.com/watch?v=eoMGp5nmSuI

SG Professional with presence that memorable at SGRealtor.com, SGAgent.com and SGAgents.com.

Do what the 99.99% won’t do, PLAN AHEAD TO A SUCCESSFUL TRANSITION INTO REAL ESTATE

Upcoming 2016, we are in the progress to create property portals to serve our SG clients better.

www.HiSingapore.com –Singapore Housing and Commercial Property Guide
www.Listing.sg – SG Properties Listings
www.CommercialSingapore.com – Commercial Listings
www.SGHouses.com – Residential Listings
www.Showsuite.com – SG Developer Projects Listings

SG Commercial Websites
www.SGCBD.com
www.CBDSingapore.com
www.SingaporeCBD.com
www.SgOfficeRental.com
www.SgShophouse.com

SG Landed Houses Websites – www.LandedGroup.com
www.SGGCB.com
www.SGBungalow.com
www.SGDetached.com
www.SGSemiD.com
www.SGTerrace.com
www.SGCluster.com

SG Districts Websites
www.BukitTimah.com.sg
www.Holland.com.sg
www.MarineParade.com.sg
www.sentosaisland.com.sg

Overseas Website
www.NewLaunch.my - Malaysia
www.PropertyPh.com - Philippines
www.VNProperty.com - Vietnam Read More

Hi Eileen,

That's quite a number of questions, it appears you have not decided on your objectives.

The benefits of keeping both hdb and condo will be an extra source of rental income which can go toward funding your 2nd property mortgage. However the upfront costs will be high since for 2nd residential property and 2nd property loan, assume joint purchase, your breakdown will be as follows:
Cash 25%
Cpf 25%
Max bank loan 50%
Stamp duties and legal fees approx 13%

You also need to set aside the respective 1/2 of your minimum sums in your CPF before any excess OA can be used.

If you are selling your hdb to fund the condo, things will be relatively easier as you can take up a max bank loan of 80% if you time the sale & purchase appropriately. The typical breakdown (assume joint purchase) will be as follows:
Cash 5%
Cpf 15%
Max bank loan 80%
Stamp duties and legal approx 8%

From the looks of it, I believe you will have positive cash proceeds from the sale.
The timing is crucial as you need to sell and buy together and make the transition smooth, and minimize the costs outlay.

As this involves a few permutations, it will be easier if I can have more details so to make better recommendations. Will be glad to illustrate the full financial planning of all available options so you have the overall picture of what to expect for each option, and whether it maximizes your benefits in doing so.

Thanks and may I have more details so to value-add further to your plans? Look forward to hear from you soon.

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

Hi Eileen,

Essentially, the 2 most important factors to note:
1) if you decide to keep your HDB, yes you need the minimum sum in each of your CPF accounts, pay ABSD, and you can only obtain a maximum of 50% loan (do take note TDSR applies here as well)
2) if you decide to sell your HDB unit and purchase the condo, you can take up to 80% loan, and the only minimum cash you need is 5% (if you have enough funds in your CPF for downpayment, BSD, legal fees etc)

Feel free to contact me at your convenience, and we can carry on from there.

Thanks and regards,
Teck Chuan, Ng
BBA (Finance), NUS
ERA Realty Network Pte Ltd
Mobile: 9137 4602  Read More

Hi Eileen,

1. If you are to sell the HDB and upgrade to a condo, you will need to plan your sales and purchase properly so that the transition will be smooth and you will not need to find a temporary place to stay during the transition.

2. If you choose to keep your HDB, the condo will be a 2nd property and you will be required to pay an Additional Buyer Stamp Duty of 7% of the condo purchase price. This is on top of the normal stamp duty of about 3%. For the loan, if you still have an outstanding mortgage loan for this current property, you will only be eligible to loan up to 50% for the condo.

3. You are required to set aside 1/2 your minimum sum and is only able to use the excess to service your 2nd property.

4. You are not required to return the 40k grant. Your sales proceed will be:

Selling Price - Outstanding Loan - CPF refund plus interest for both yourself and your husband - Conveyancing Fees - Admin - Agent Commission.

Conveyancing Fees and Admin fees is usually less than $500 if you use a HDB lawyer.

5. For a 1 mil condo, assuming you sell your HDB and purchase a condo, you will be eligible to loan up to 80%. Breakdown is as such:

a. 80% Loan - $800,000
b. 5% cash - $50,000
c. 15% CPF - $150,000
e. Normal Stamp Duty - $24,600 (can use CPF)
f. Conveyancing Fee - $3000 approx. (can use CPF)
g. ABSD (if keeping HDB) - $70,000

Please feel free to contact me so that I can draft up a full financial plan for you and guide and assist you thru the sales and purchase process.

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

Testimonial from Satisfied Clients (2015/2016)
“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 a property through Nick)

“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 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)

“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)

“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) Read More

Evening Eileen,

Firstly, should you opt to keep the HDB unit and purchase the private property as your second property, you will be required to set aside $80.5k for the CPF minimum sum. If your current HDB unit is still under mortgage, you can obtain max of 50% loan for your second purchase. And if the unit is place under both names, ABSD of 10% is payable.
Secondly, without knowing how much is your outstanding loan, total CPF utilization, the accrued interest and the actual location of your unit, it would be impossible for me to provide with the accurate financial computation.
Lastly, as per indicated on point 1, how much cash you will need will depend on whether you are selling or keeping your HDB unit.

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

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

Hi Eileen,
I do see you have lots of question and before making the decision how to move on. Why not have a short meet up session for me to address all your doubts and assist you to compute the estimated financial plan?

To assist and advise you more in details, kindly drop me an email for me to share.

I am contactable at my mobile or email.

CK Ang
 9046 3808 
res.ckang@gmail.com Read More

Hi Eileen,

I am assuming that you still have an outstanding home loan for your current HDB.

For purchasing Condo without selling HDB:
Maximum 50% loan subjected to income eligibility. CPF utilisation is permitted provided you have set aside half of the minimum sum required. Take note of additional buyer's stamp duty applicable on top of the typical 3% buyer's stamp duty. ABSD is computed based on your husband's citizenship. 25% of the amount must be in cash. ABSD is also payable in cash.

For purchasing condo after selling HDB:
Maximum 80% loan subjected to income eligibility. CPF utilisation is permitted. 3% buyer's stamp duty is applicable. 5% of the amount must be in cash.

Should you decide to sell your existing HDB and wish to estimate the sales proceeds from this sale. Assuming $800k selling price, you will need to deduct the following out from the sales price to get your sales proceeds:

1) Deposit (up to $5k) from purchaser
2) Outstanding home loan
3) CPF utilised plus accrued interest
4) Any other miscellaneous fees

Take note that there will also be administrative charges for conveyancing the sale of your HDB (legal fees, discharging of home loan and etc.)

For downgrading in future, assuming that the current regulations in place is still applicable by then, you are eligible to purchase only a resale HDB in future, however, you will need to dispose off your existing private property within 6 months from taking possession of your HDB then. You will not be able to enjoy any concessions from HDB for a period of 30 months after the sale of your private property.

Hope the above helps.

Tenants can visit http://bit.ly/SGExpatRental (Official Rental Requirements - Singapore Expatriates) to indicate your rental requirements.

Claim your free home report today at http://bit.ly/ClaimFreeReport.

Visit and Like my facebook page at https://www.facebook.com/propertyblogshop/

New Singapore Expatriates on facebook is up and running. Come join us at https://www.facebook.com/groups/newsgexpats/

My self introductory video on https://youtu.be/6UfrCOCB6Mg

Regards,

Geryl LIM
Associate Marketing Director
Global Alliance Property (L3010679B)
CEA Reg R014783H
Mobile: +65-81577565  /+65-92787772
Email: geryl7772@gmail.com

G.A Landed Dynamic Alliance
Home of *7772 Hotline
Check out our latest Landed Dynamic Alliance 7772 mobile application on iOS or Android @ "Landed 7772" in Mobile Apps Store or Play Store now! Read More

Good evening Eileen,

Do take note of these cooling measures if you decide to hold on to existing HDB and purchase a condo:

1) if you have outstanding mortgage, you can only take up to max 50% bank loan for your purchase.

2) if you have utilised CPF OA funds for existing HDB, you have to set aside half of minimum sum ($80.5k) in each CPF OA + SA first before you can use the excess CPF OA funds for this purchase.

3) You will be subject to 10% additional buyer's stamp duty for this joint purchase on top of buyer's stamp duty of estimated 3%. Higher of 7% as SC or 10% as SPR.

But if you decide to sell HDB and upgrade to condo:

1) you wont need to pay any ABSD, just BSD as IRAS will consider this purchase as your first and only property in Singapore.

2) you can obtain max 80% bank loan.

3) you can utilise all your CPF OA funds.

Perhaps we can discuss and see whether can you restructure your property portfolio from 1 HDB to two private properties. 1 for own stay while the other for investment.

To derive sales proceeds: it will be sale price minus off these expenses:

1) utilised CPF OA funds plus accrued interest (inclusive of your grant)
2) any outstanding loan
3) resale application fee $80
4) legal fees
5) pro rated property tax
6) agent's commission

Assume you sell off HDB and purchase a private property and able to obtain max 80% bank loan, your initial outlay will be as such:

1) 5% cash downpayment
2) 15% CPF OA funds or cash downpayment
3) estimated 3% buyer's stamp duty
4) legal fees

You are able to utilise CPF OA funds for the payment of stamp duties and legal fees. Just that usually law firm will advise buyers to pay stamp duties in cash first because CPF board might not release the funds quick enough to pay IRAS.

Perhaps we can do a financial calculation to see what's your current status and how can we proceed further.

As for usage of CPF OA funds, I might have replied you in another post. If you are still unclear, feel free to contact me.

Lastly, you can only downgrade to a resale HDB from a private property. If you are thinking of getting a BTO, you will have to sell off condo first and observe a waiting period of 30 months before you can apply for BTO.

May I know what's your future plans?

Hope I can be part of your property plans. Cheers!

Warmest Regards,
YT TAN 陈永达 | ACCA Graduate, RES
R043025D
Propnex Realty Pte Ltd

(M): +65 9111 5171 
(E): yt.tan91115171@gmail.com
(W):www.yttan.com Read More