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My mother is 55 years old and wishes to downgrade her fully-paid 5-room HDB flat (house fully paid by both cpf savings and cash) to 3-room flat. Her RA account has about $100K. Can she still use her CPF account to pay for the downgraded home? Is she able to sell and buy the downgraded home without going through any mortgage loan or paying cash upfront and use the value of the 5-room flat to pay for the assumingly cheaper downgraded home? She does not have any other properties and would want to move in a new small home without having any loan or debts or paying high amount of cash.
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9 Answers

Hi,

Assuming the prices of both the 5-room and 3-room are transacted at similar prices, yes it is possible to do so while meeting all your aforementioned requirements. Has she withdrawn any CPF monies upon reaching age 55? I have worked on similar cases and would be happy to share more on the best approach.

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
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Dear Sir/Mdm,

This is a situation that many elder homeowners faced when downgrading. There are several issues that you need to consider before proceeding.

1) You need to know what is the minimum sum that your mum is supposed to fulfill. If she is turning 55 years old this year, her minimum sum will be $181,000, which means that she is short of $81,000. After selling the flat, depending on the amount of CPF that she had used so far, she will need to top it up to the minimum sum. The balance of CPF refund if any, she will be able to draw out as cash. 50% of the minimum sum, in this case, $90,500 can be used for the purchase of the next housing.

2) It is possible to use her sales proceeds to fully pay off the next property. However, it will be better to draw up the financial plan so that she can understand her cash flow and overall cash position after the sale and purchase before she decides whether to proceed.

3) Besides the finances, the timeline will also need to be planned properly so that your mother will be able to transit seamlessly without the need for a temporary shelter.

I have assisted a lot of my clients to transit successfully. Please feel free to contact me so that I can understand your situation better and draw up a transition plan for your mother.

Regards,
Nick Tan
(M) +65 9644 4854 
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Robbie Chen Chee Howe
Hi,

Yes, it is possible.

However, before we proceed with this plan, I would suggest we work out all the financials first. This will include (not limited to) checking out her CPF obligations, calculating of sale proceeds, financial planning for her purchase etc.

I am experienced and well-versed in both HDB resale and private transactions. I will be able to assist you in your property plans.

Should you need require further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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Hi Sir/Madam

I will be glad to assist

I won't be able to contact you first as I do not have your contact, appreciate if you can contact me at (65) 96608508  or Silviayang8@gmail.com with details of your unit
or click here https://bit.ly/WaSilvia to whatsapp me for no obligation discussion
Thank you.

Warmest regards,

Silvia Yang

Senior Marketing Director
ERA Realty Network Pte Ltd
Mobile: (65) 9660 8508 
Email: Silviayang8@gmail.com Read More
0
Hi
I have assisted clients who are above 55 in sellinng their current flat and fully paying for their next flat. In fact for one of my recent client, he manages to sell his 4 room flat with outstanding loan and purchase a 5 room flat fully paid. Yes she are able to use CPF above her basic retirement to purchase another resale flat. This involves quite a complex calculation and explanation for me to explain in details over here and it's best if we meet either physically or virtually for me to explain. Do conatct me at 93375051  for a free and non obligatory discussions on this.
Regards
Taufik Hussein
ERA Realty Network Pte Ltd Read More
0
Hi Maam
Just to add, in regards to your questions on your mother did not want to come out with high amount of cash and wanted to make use of the sales proceed from her previous flat, this can definately be done with careful planning on the timeline.

Regards
Taufik Hussein
ERA Realty Network Pte Ltd Read More
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Mani Subramanian Veeramani
Hi

....Can she still use her CPF account to pay for the downgraded home?

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WhatsApp me at: ABLE Toh (65) 98 56 92 55 or through this link.:https://wa.me/6598569255

----------------------------888--------------------------------888--------------------------->>>

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like renting / selling, buying / or investing, I'm here to help!

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(Unfortunately, this platform doesn't allow direct contact, but you can easily reach me )

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I can connect you with reputable bankers for private housing loans free of charge and with no obligation.

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