Asked by Vincent
We lived in a HDB flat(Valued:400K) for 12 years. My dad died 4yrs ago and our loan is paid by Home Protection Scheme. My mum and my bro are the owners of this flat since.
I (28yo) intend to buy an EC with my mum (2nd timer). This mean my bro (34yo) has to buy her 50% share thru a loan to release her name.
She will give the 150K cash to me (I will be the ACTUAL person paying the flat loan in my bro’s name) and return 50K to her CPF. Consolidating with my own saving, the three of us would upgrade to an EC. We then rent out our flat and use the rental to finance both loans (flat and EC). I will pay the excess.
I intend to sell the EC in 10 years’ time. They will move back to their flat while I move to a smaller condo I would probably have bought in the 7th year. I will continue paying my bro's flat loan until it is fully paid off, even if there is no rental.
Assuming all parties in the scenario is willing. Can this work? Will I make a loss? Incur too much interest?
I (28yo) intend to buy an EC with my mum (2nd timer). This mean my bro (34yo) has to buy her 50% share thru a loan to release her name.
She will give the 150K cash to me (I will be the ACTUAL person paying the flat loan in my bro’s name) and return 50K to her CPF. Consolidating with my own saving, the three of us would upgrade to an EC. We then rent out our flat and use the rental to finance both loans (flat and EC). I will pay the excess.
I intend to sell the EC in 10 years’ time. They will move back to their flat while I move to a smaller condo I would probably have bought in the 7th year. I will continue paying my bro's flat loan until it is fully paid off, even if there is no rental.
Assuming all parties in the scenario is willing. Can this work? Will I make a loss? Incur too much interest?
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