AskGuru Q&A Community

Good morning,

Thanks for your enquiry. Yes one approach as you have mentioned, is to sell off the current place to unlock the proceeds first so to make the next move. This involves renting in the interim.

Another way could be to do a decoupling process, where one of the owners name is removed first so that he/she can buy the next under construction property as a 1st residential property. This could unlock some proceeds partially as the remaining owner takes up loan financing while keeping the property. There are however other costs as well, which I can only advise better if I have more information.

I have worked on similar cases and would be happy to share the optimal approach to structure the deal tailored to your circumstances. My contact is 9743 2395  , look forward to discuss and collaborate together on your housing plans.

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
ERA Senior Marketing Director
ERA Diamond Achiever

ERA Top 11 Achiever in June 2020 (Top 1% Company Level)
ERA Top 91 Achiever in 2nd Quarter 2020 (Top 2% Company Level)
ERA Top 15 Achiever in April 2019 (Top 1% Company Level)
ERA Top 86 Achiever in Sept 2019 (Top 2% Company Level)
ERA Top 510 Achiever in Year 2019 (Top 8% Company Level)

SMU BBM (Finance), Magna Cum Laude
Proactive. Sincerity. Feedback.

Contact: (+65) 97432395 
Email: Ivanng10@gmail.com
IG: instagram.com/ivanngrealtor
WeChat: ivanng10
FB: fb.com/IvanNgRealtor
W: ivanng10.com/clientreviews
(Client's Testimonials)
CEA: R052114D

**Note: We are not prompted when you respond here, hence please get in touch directly. Look forward to hear from you soon! **

-- EC Sellers, Private Property Buyers Dr. Chan & Ms. Xie --

I would like to compliment Mr Ivan Ng for his professional work and effort.I sent my first post in Jan 2019 and Ivan replied promptly, so I have decided to contact Ivan for follow up. My EC was not ready for sale due to MOP (another 3 months from Jan) at that time and Ivan was able to give me advices on how to proceed from there. Initially we have decided to try to write to HDB for early sale but since it was only 3 months left, eventually we waited for another 3 months while we looked for our next property. Ivan was able to arrange for new property showroom appointment at a timely manner while helping us to list for our EC for sale. We were a bit worried when our EC sale time was longer than expected due to trade war, but Ivan was able to reassure us that our EC would sell. By November, he managed to secure a buyer for our EC. Thank you. Read More

Hi, This would really depends on your current financial situation and also your existing property portfolio. there are several ways to go about resolving this issue which does not require you to buy your existing property and at the same time getting access to the required capital for you to commit to your new purchase. Do drop me a call or e mail for a more detail discussion in order for me to provide a more customize solution to this issue you are facing. Looking forward to hearing from you soon.
Cheers
Rix Jim
 9687 1379 
rix.jim@hotmail.com
Propnex Read More

Hi, I would be most glad to assist you further and pls feel free to let me know if you need any assistance. Hope to hear from you soon and have a great week ahead.

Regards
Aaron Chong
 9730 8455 
aaronchong2774@yahoo.com.sg Read More

Dear Sir,

The straight-forward option is to sell your current place first and rent a unit until the MOP as developers are not allowed to re-issue the BUC option currently. However, you will incur some opportunity cost in terms of rental during these 2 years.

The other option that my clients adopt is to decouple the current property so that you can free up one of your names to purchase the BUC. Under such an arrangement, you will be able to free up some cash from the current property and use the cash to purchase the BUC. You can also continue staying in this current property and sell it after 3 years when the Seller Stamp Duty is not applicable. This option is ideal if one party's income alone is able to support the loan. Cost wise will be the stamp duty to decouple as well as the legal fees which is about 6k.

The best option would depends on your individual situation. Please feel free to contact me so that I can understand your situation better and provide you with more informed recommendations.

Regards,
Nick Tan
(M) +65 9644 4854 
B.Eng(Chemical)(Hons)(NUS)
Cert-in-REA
(E) nick96444854@gmail.com
SEAA Salespersons Achievement Platinum Award 2020
Visit my website to know me better: www.nicktan.com.sg

I was featured recently on Council for Estate Agencies (CEA) Newsletter:
http://bit.ly/CEAnews

I have written a guide on buying Residential Property:
http://bit.ly/buypropertyguide

Testimonial from Satisfied Clients
“Nick is a responsible, efficient and excellent salesperson. He has very good knowledge of the real estate market and I benefited 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 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 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

Hi Do contact me at 97970200  to understand more and discuss on an ideal solution for you

Mark, your RIGHT choice
Propnex Read More

Hi Sir,

I understand that you wish to purchase a BUC, but wish to avoid ABSD and also need Cash for the Downpayment.

As your current property is still under loan, should you purchase a BUC, you will only be able to loan up to max of 45%. This means that you will have to fork out 55% as downpayment, on top of the BSD (approx 4%) and ABSD (12%). That will add up to a total of more than 70%!

As you mentioned that your cash is locked up in your current private property, I do have a method which you may consider. This is to do "decoupling" of your current property. By doing decoupling, you will be able to free up some cash, loan up to max 75%, and also avoid the hefty ABSD.

However, one thing to note is that both you and your wife need to have an income in order for the decoupling method to work. If either of you does not have an income, you will probably need to adopt another method. Do get in touch with me so that I can access if you are suitable for this method.

I am experienced and well-versed in both HDB 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

Besides all the methods you suggested, you can also consider decoupling & equity loan.

Feel free to contact me to discuss further.

Regards,
Teck Chuan
BBA (Finance), NUS
Marketing Director
ERA Realty Network Pte Ltd
Mobile: 91374602  Read More

Hi Sir

1 and 2) One of the method is to sell your existing property first and buy your next property
If you hv intention to keep your existing property you can consider part share
However there might be other options depend on your current financial and property porfolio.

3) It will be depend on which BUC that you are keen and their payment progress might be different

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

Hi,

1) Almost paid-up implied if don't sell, 2nd loan only can get 45%.
2) Cash locked up in 1st property & shortage of upfront cash. Cash downpayment might be limited, and in turn, limit your choice of the next home.
3) If not selling, will incurred ABSD of 12%.

The above increase your cash and/or CPF by 42% on the next purchase.

To do a decoupling, the legal fee might be as high as $8k compare to direct selling of $2.5k~$3k. An additional $5k.
Although this method might possible have the following effect:
a) Increase cash upfront
b) Not required to incur ABSD
c) Can loan up to a max of 75% LTV.
d) Free up additional CPF for the next purchase

There is a certain condition to meet:
1) Both parties must have a certain financial status, meaning both of you earn 5 figures monthly income.
2) Both parties have sufficient CPF fund

Let's do a simple calculation to understand where you stand:
1) TDSR assessment of $10k active income, assume no outstanding loan, own 2 credit cards, no car loan = $1,313,900.
2) Let say your current property worth $1.2M.

Mean if both of you earn $10k each, each of you able to take up a loan up to $1,313,900.

a) The buying party should be able to take over the selling party's share. Since the loan is almost cleared. So only need to takeover $600K++ or even up to $700k.
b) Outgoing party's sales proceed has to clear existing loan, CPF + accrued interest = $600k - $100 (loan) - $200k (CPF) = $300k cash
c) Using these cash proceeds, can assist the buying party on the BSD, legal fee, 5% cash for the buying over share, etc.
So can see you are able to unlock around $300k cash from this process. And in a better position of getting something to your liking. $1.6M is able to get a comfortable 3 bedder in the current market.

You may consider this method if your current financial status, current property worth, CPF funds, etc are roughly in that range.

During this process of decoupling, no agent fee involved, only incur a legal fee, mortgage loan stamp duty, BSD, mortgage discharge fee, etc

The timeline of BUC is really dependent on the one you are eyeing on:
i) 5% cash to exchange for an OTP
ii) Exercise OTP - 5 wks from (i)
iii) Pay BSD - 2 wks from (ii)
iv) Pay completion (15%) - 1 wk from (iii)
v) Pay foundation if bought at the launch (5%) - 6~9mths
vi) If managed to get a 75% loan, this portion onwards will be taken care of by the bank.

So you have to calculate your fund from (i) to (v). The last thing to note is decoupling easily takes up around 2 months to complete. So do not commit until you are ready.

Hope the above answer to your main concerns, but if there are more query, please feel free to contact me at 90110636  , or email: ling.ck7@gmail.com if more information is needed.
I'll be glad to assist.

Best regards
Ling CK
 90110636 
ling.ck7@gmail.com
https://R056727F.propnex.net/
https://www.facebook.com/Homesellerbuyer

Note:
Any response to our answer does not reach us until we scroll through each and every query posted daily.
The best way to get a follow up is to Whatsapp or email us directly. Read More

Hi

I am able to assists. Do contact me at 93375051  for a free and non obligatory discussion on this.

Regards
Taufik Hussein
ERA Realty Network Pte Ltd Read More