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Dear sir/mdm,

Before we go into if you should give up the HDB and get a condo, you should be aware of the consequences of cancelling the BTO at this stage. The penalty incurred will be 5% of the purchase price and you must wait out a 1-year period from the date of cancellation of the flat application before you may apply or be included as an essential occupier for:

- A new flat
- A resale flat with CPF housing grant
- A Design, Build and Sell Scheme (DBSS) flat from the property developer
- An Executive Condominium (EC) unit from property developer
- A resale flat that has been announced for Selective En bloc Redevelopment Scheme (SERS)
- For first-timer families: Any additional ballot chances accumulated from your previous unsuccessful BTO applications in the non-mature estates will be set to 0.

With regards to whether should you give up the HDB, the consideration could be the financing aspect for the purchase. As you have rightly mentioned that you are 57, have about $1m in SGD cash and CPF savings, may I know if this is after setting aside your Basic Retirement Sum in your CPF or before? Given this amount of funds available and with your wife still with active employment, I believe that loan should not be an issue and if you are looking at buying into private property for better lifestyle, it is definitely better to do so now than later, since the runway is longer, if you do not mind losing the 5% of purchase price for cancelling the HDB. It is also good to do up an in principle approval for the home loan aspect to know the commitments involved in purchasing a private residential and plan out accordingly.

I have been in the real estate business since 2009, with more than 13 years of experience serving the Singapore real estate market.

I am very active in the residential segment of Singapore real estate market, having transacted hundreds of deals from HDBs to private condominiums and landed properties in Singapore, and have handled many unique cases in sales and purchases as well as rental deals.

Over the years, I have also established a network reaching out to more than 9,400 expatriates, bringing my market presence to both in and outside of Singapore. This has created an additional exposure when I manage my client's portfolios, on top of the conventional on and offline platforms, where other estate agents are relying on. This has allowed me to consistently convert leads into results.

With an evolving market, where change is the only constant, I have also been investing in upgrading of my knowledge and skills sets to improve myself and meet the demands of current and future market.

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Geryl Lim
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OrangeTee & Tie Pte Ltd 430 Lorong 6 Toa Payoh #01-01 OrangeTee Building Singapore 319402
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Landed Dynamic A Read More

Hi,
You are right in thinking about letting the BTO go and buying a condo. But, these are serious financial decisions that your family has to take. In my role as an advisor for young couples, I always ask them to take the EC route. In your case, I think your were lucky to get a BTO some years ago. You can live in it and wait for MOP before letting go or, return it to HDB with some penalities, and choose a condo and like you say, consider the family's needs first.

Money will come and go but we have only ONE LIFE. Suggest you contact me to learn more.
Cheers!

Elan Govan
MABA (Lancaster)
 90170747 
jayelan@gmail.com
www.goodpropertiesguide.com Read More

Good evening,

Perhaps another way to consider is to purchase the private property under one of your parents or trusted family member's name, while you keep the BTO and continue to stay in it till MOP is fulfilled and get to enjoy the amenities of the condo bought under your parents name. It is probable that you would make a tidy sum of 200k - 300k capital gains when you sell the BTO unit after it reaches 5 year MOP, so it is a pity to let it go since its so close to completion, a brand new flat and virtually assured of some form of capital gains upon MOP fulfilled.

Happy to discuss further on what's the best next step and offer a tailored solution. May I have more info and requirements about your plans so as 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

SEAA Salesperson Achievement Award 2021 (Gold)
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Good morning Sir,

We might have to sit down and weigh different options along with financials being worked out to have a better understanding which options do both of you desire more.

1) Cancellation of BTO
you need to check with HDB whether can you cancel the BTO application especially you are due to collect keys in 3 months time and what's the penalty will you need to bear, in terms of monetary and ban for booking next house directly from HDB.

Let's say you are okay to pay the penalty and forgo the BTO, what are your options out there?

2) I do understand you have ready funds on hand but due to you are 57, you need to set aside full retirement sum before you can use the rest to commit to a house so we have to work things out in terms of that and loan.

3) Actually if you dont have a BTO application at the moment, both of you should be financially capable to buy 2 private properties. 1 for investment while 1 for own stay.

There's definitely no right or wrong in any property decision.

But do take note if you decide to hold on to HDB and rent out in future, you will be subject to additional buyer's stamp duty (ABSD) on second property purchase unless current BTO ownership is one owner while the other is essential occupier. The essential occupier will be able to buy without being hit by ABSD as SC as of current rules.

And loan assessment will be affected as you have shorter horizon to repay loan if you opt to get one.

Hope my sharing helps in aiding in your enquiry. May I know how can I value add further in your property needs?

Best regards,

YT Tan
Property Kaki
You dream. I create. We make it happen!
Association of Chartered Certified Accountants Graduate
Singapore Accredited Mortgage Planner

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Hi Sir,

In my opinion, it is better to get the BTO as it will be ready in a few months time and your river facing 4 bedroom unit will definitely be able to make you a tidy sum of profit when you sell 5 years later.

As for your spare cash, you can consider investing in other kind of investment which provide attractive yields currently such as T Bills or can also consider industrial or commercial properties.

Please feel free to contact me so that I can provide you with further assistance and sharing.

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS) / Cert-in-REA
(E) nick96444854@gmail.com
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Susana (Buyer) Read More

Hi Sharon, do contact me at 97970200  to understand more and discuss on your options

Mark, your RIGHT choice
Propnex 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