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My retired mom and dad wish to sell our 5A HDB flat (old model) in Jurong West. We purchased it for $330k and the last resale price was around $470k. My eldest sister will be moving into her BTO and it would be our temporary home while we find a new one.

I will be graduating in 2014 and my expected salary is $4,000. I do not intend to get married in the next 5 years. I was wondering which of the following options are wise:

1) Sell the flat, pay 20% cash downpayment for a condo and I will take up the mortgage loan.

2) Sell the flat, buy another flat as a family nucleus

3) Sell the flat, my parents buy a studio apartment and I will live somewhere else (least desirable option)

I'm aware of all the costs involved including the ABSD, etc, and I intend to make this investment decision myself. My objectives are to let my parents experience a bit of luxury, and also to invest in a private home for my future family.

I hope someone can give some colour on this. Many thanks.
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3 Answers

Dear Ashley,

Applause to you for these detailed plannings especially for your parents.

Given that you prefer to allow your parents expereince a bit of luxury, it is more applicable to purchase a condo for them. Nevertheless, since you have mentioned that you will only be graduating in 2014, I am assuming that you are currently not having any regular income to assist in servicing the loan for purchase. As such, it will be important to get the bankers to assist in doing the financial assessment for your household to see what are the feasible options financially, since your parents are already retired. With a monthly income of $4k, and only 30% of your income is taken into consideration for servicing of home loan, your options of condo may not be viable.

Unless there is a need to sell off soon, you may wish to hold back the decision in anything until the coast is clearer. This requires careful planning since it is going to affect the lifestyle long term.

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Geryl LIM
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Morning Ashley,

Being a student, I would assume that you have no income, hence it's unlikely for plan A to work.

Purchase resale unit under family nucleus might work, if your parents are still working or intend to cash out the purchase. Reason is similar as the plan A and being retirees, bank will be more caution when dispersing mortgage to them.

Hence if you intend to execute the plan soon, plan C, being the least desireable, will be the best choice.

Do feel free to contact me for further discussion.

Regards
Mike Lim
 96929209 
m52i@yahoo.com
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Hi,

Regard to your question. Why not you just drop me an email at ot1984pierre@gmail.com or Contact me @ +65 8 2 7 9 8 3 2 7 - Whatsapp / Call / SMS

Why Should Sellers/Landlords engage me? Contact me @
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