Free advice/discussion on buy/sell of Resale flat (Part 5)

[therat]

hi all

thks for advice

check with u guys , if i own a resale flat not bought under any housing grant
this resale flat is under my name and mum

am i considered as first timer with my wife ?if i apply for the
NEWFLAT UNDER THE HALF-YEARLY SALE OF 3-ROOM PREMIUM,
4-ROOM AND BIGGER FLATS
.

first time applying for NEW HDB flat.

ask HDB
They are pay to answer question.

 

[skilled]

ur 4rm flat brought at price A
then sell at price B

u will get back B - A = C

so if i bought @ 40k...i sell at 300k.

i get back about 260k in cash right?

and i dont apply for any flat in my name so i wont get a 80k reduction.

Thanks alot

 

[vinz]

so if i bought @ 40k...i sell at 300k.

i get back about 260k in cash right?

and i dont apply for any flat in my name so i wont get a 80k reduction.

Thanks alot

Assume no outstanding loan amount,
and your initial 40k paid in cash and already paid in full.

When you decide to sell now at 300k, you will get the 300k (full amount) back in cash.

 

[Don_Corleone]

Hi Vinz,

i m a noob to buying house so pls bear with my qns...

me n my gf recently looking for flats, wanna stay in amk area cos both parents in amk.... but dun think will have new flats (other than DBSS which is out of budget) and the SERS at teck ghee vista which may b very hard to get.

so probably resale is our only option.

i want to ask, when u buy a resale flat, what does the 20% downpayment mean? is it muz take out cash and pay? i know the cash above valuation is cash terms, but trying to find out what other cash payments r there.

so for example if the flat is valued at 350k but seller wants 370k, we have to fork out 20k cash, but the downpayment 20% of 70k/74k means what?

thanks in advance vinz!

 

[vinz]

i want to ask, when u buy a resale flat, what does the 20% downpayment mean? is it muz take out cash and pay? i know the cash above valuation is cash terms, but trying to find out what other cash payments r there.

so for example if the flat is valued at 350k but seller wants 370k, we have to fork out 20k cash, but the downpayment 20% of 70k/74k means what?

thanks in advance vinz!

The minimum downpayment is 10% and not 20%. Of course if you want to pay up 20% or even 50% it's all up to you, the more downpayment you pay, the less your loan amount.

As from your above,
Valuation: 350k
Cash over valuation (COV): $20k

Downpayment required:

If taking HDB loan 10% of valuation
= 35k (from CPF or cash)

If taking Bank Loan 10% of valuation
= 5% compulsory cash $17.5k + 5% (from CPF or cash) $17.5k = 35k

So if taking bank loan, total cash needed = $20k (COV) + $17.5k = $37.5k

 

[Gaddy23]

hi me and my mum want to buy a flat. can we sign a 30 year bank loan if my mum is 55. I'm 21 but entering NS. My mum told me if she is too old and im not working cannot take 30 years bank loan. Is that true? Do i have to be working first?

And our budget is $250k for a 4room in bukit batok or bukit panjang. We are not too fussy about location and actually prefer lower floors. Is our budget realistic. I saw hdb recent transactions and it seems okay to me but we are not sure about how much COV we have to pay. We only can afford 10k max after paying the downpayment. We can't pay for the downpayment with the cpf which is in the RA account right?

Many thanks.

 

[vinz]

hi me and my mum want to buy a flat. can we sign a 30 year bank loan if my mum is 55. I'm 21 but entering NS. My mum told me if she is too old and im not working cannot take 30 years bank loan. Is that true? Do i have to be working first?

Bank are commercial entity, they are only interested in those owners who are officially working. Most likely they will just be taking your mum's salary and age into account.

And our budget is $250k for a 4room in bukit batok or bukit panjang. We are not too fussy about location and actually prefer lower floors. Is our budget realistic.
I saw hdb recent transactions and it seems okay to me but we are not sure about how much COV we have to pay. We only can afford 10k max after paying the downpayment. We can't pay for the downpayment with the cpf which is in the RA account right?

250k is one of the lowest 4rm flat type in Bt panjang. Should be units not near the mrt/LRT , maybe low floor unit with simple reno.

Bt Batok I think its higher (around 280k range).

Please do not look at the few lowest tranasacted price and based the average price on those. Average prices should be those in the medium range.

10k Cash over valuation units there should be some units, but location wise will definitely not be the best. And of course maybe low floor with reno needed.

Don't forget there are other cash involved, eg. agent service fees and renovation cost.

If u have other questions, you can email me directly vinz@hotmail.com

 

[helprent]

hi , any 3 rooms resale flats at jurong west ,east,bukit panjang,taman jurong valued below 200k?
cash: around 10k?
dont mind original or low floor.

 

[vinz]

hi , any 3 rooms resale flats at jurong west ,east,bukit panjang,taman jurong valued below 200k?
cash: around 10k?
dont mind original or low floor.

Singaporean or PR?
1st timer?
HDB or bank loan?

email me vinz@hotmail.com directly.

 

[luvyluvy]

Cash during first appointment

Hi vinz,
We have just bought a 5-room for 395000, val:372k cov:23k
but v have low cash in our CPF ordinary a/c. Around 6K. Can u pls clarify how much cash we should pay in the 10 days period from 1st appt? Also, can we withdraw all the CPF amount in OA?

Thanks in advance.

 

[vinz]

Hi vinz,
We have just bought a 5-room for 395000, val:372k cov:23k
but v have low cash in our CPF ordinary a/c. Around 6K. Can u pls clarify how much cash we should pay in the 10 days period from 1st appt? Also, can we withdraw all the CPF amount in OA?

Thanks in advance.

Do you have your agent? Are you paying commission to any one? If yes, why are you not advise on this?

If taking HDB loan:
(1) Cash Payable 10days from 1st appt = (23k COV) - minus (Deposit paid)

(2) If your CPf there is only 6k, then you have to top up another 31.2k in CASH. (37.2k - 6k = 31.2k)
Because Minimum downpayment = 10% of valuation = 37.2k

(3) Stamp fees for 395k = $6450

Total cash payable : Add up (1) + (2) + (3) above

If taking BANK loan:
(1) Cash Payable 10days from 1st appt = (23k COV) - minus (Deposit paid)

(2) If your CPf there is only 6k, then you have to top up another 31.2k in CASH. (37.2k - 6k = 31.2k)
Because Minimum downpayment = 10% of valuation = 37.2k

(3) Stamp fees for 395k = $6450

Total cash payable : Add up (1) + (2) + (3) above

I did not add in legal fees, caveat fees, agent fees, insurance etc.

 

[luvyluvy]

Do you have your agent? Are you paying commission to any one? If yes, why are you not advise on this?

If taking HDB loan:
(1) Cash Payable 10days from 1st appt = (23k COV) - minus (Deposit paid)

(2) If your CPf there is only 6k, then you have to top up another 31.2k in CASH. (37.2k - 6k = 31.2k)
Because Minimum downpayment = 10% of valuation = 37.2k

(3) Stamp fees for 395k = $6450

Total cash payable : Add up (1) + (2) + (3) above

If taking BANK loan:
(1) Cash Payable 10days from 1st appt = (23k COV) - minus (Deposit paid)

(2) If your CPf there is only 6k, then you have to top up another 31.2k in CASH. (37.2k - 6k = 31.2k)
Because Minimum downpayment = 10% of valuation = 37.2k

(3) Stamp fees for 395k = $6450

Total cash payable : Add up (1) + (2) + (3) above

I did not add in legal fees, caveat fees, agent fees, insurance etc.

Yeah we have enganged an agent already. And he gave us the info abt the cash payment part. But when we ask him, how much we should pay within 10 days after 1st appointment. He says only legal fees have to paid during first appointment. As he is pretty new to this field, I m not sure if he is correct. But the info from HDB website confuses me either. From HDB,

1.4 Cash Payment
In computing the financial plan, a cash payment is required when the purchase price is above the market valuation or when the loan granted (with credit assessment) and the CPF usable for the purchase are insufficient to cover the purchase price. If the cash payment required is more than 10% of the purchase price, you are only required to pay 10% within 10 days from the First Appointment date. The balance must be paid on the resale completion. If the cash payment required is less than 10%, this amount must be paid within the 10 days period.

We are taking a bank loan. Our first appointment is in the 2nd week of Nov. We need to get ready the cash upfront in some other means other than our savings . Thats y I wanted to know how much we have to pay immediately after 1st appointment. And we have paid 5K as deposit. So we have to pay 18K immediately after 1st appointment, rite? The (2) and (3) u mentioned will be paid during the completion, rite? Pardon me for my silly questions.

Thanks in advance.

 

[YeeFC128]

Hi luvyluvy,

I would like to clarify something for bank loan.

You need to pay extra 5% cash for the value of $372k for taking bank loan. ie $18.6k.

It is advisable not to take 90% loan because the interest rate is very much higher. Normally it would be about 1% more.

Therefore for 80% bank loan, you will have to fork up additional $37.2k cash.

 

[vinz]

Yeah we have enganged an agent already. And he gave us the info abt the cash payment part. But when we ask him, how much we should pay within 10 days after 1st appointment. He says only legal fees have to paid during first appointment. As he is pretty new to this field, I m not sure if he is correct. But the info from HDB website confuses me either. From HDB,


We are taking a bank loan. Our first appointment is in the 2nd week of Nov. We need to get ready the cash upfront in some other means other than our savings . Thats y I wanted to know how much we have to pay immediately after 1st appointment. And we have paid 5K as deposit. So we have to pay 18K immediately after 1st appointment, rite? The (2) and (3) u mentioned will be paid during the completion, rite? Pardon me for my silly questions.

You will be meeting your lawyers around the 1st appt date.
The lawyers will work out all the cash payable (1)+(2), and and you only need to issue a cheque to the lawyer around 1-2weeks before 2nd appt.

(I guess u have at least 2-3weeks after 1st appt. The 10days is for those taking HDB loan)

(3) the stamp fees should be deducted using your existing CPF. Lawyer will advise you on this.

No matter how payment is made, the calculation of (1) + (2) + (3) above should be about right since you CPF is very little, you have to top up quite a bit of cash. Payable to lawyer 1-2weeks before 2nd appt.

 

[luvyluvy]

You will be meeting your lawyers around the 1st appt date.
The lawyers will work out all the cash payable (1)+(2), and and you only need to issue a cheque to the lawyer around 1-2weeks before 2nd appt.

(I guess u have at least 2-3weeks after 1st appt. The 10days is for those taking HDB loan)

(3) the stamp fees should be deducted using your existing CPF. Lawyer will advise you on this.

No matter how payment is made, the calculation of (1) + (2) + (3) above should be about right since you CPF is very little, you have to top up quite a bit of cash. Payable to lawyer 1-2weeks before 2nd appt.

oh thanks for ur clarification.

 

[luvyluvy]

Hi luvyluvy,

I would like to clarify something for bank loan.

You need to pay extra 5% cash for the value of $372k for taking bank loan. ie $18.6k.

It is advisable not to take 90% loan because the interest rate is very much higher. Normally it would be about 1% more.

Therefore for 80% bank loan, you will have to fork up additional $37.2k cash.

Hi YeeFC128,
Thanks for ur concern. But we already applied for 90% loan.

 

[elaine81]

Hi,

You did not provide how much CPF you have in your existing ordinary account, and how much you had use for existing home. Not even in past posts.

vinz

hi Vinz , sorry for the veri last reply , busy with wk these few days , , and also home pc broke down , now at mu hse , using bro's pc , as said ,

my cpf ordinary acc now only left $249 , my hubby left : $473.09 , I used 19444.67 including accrued interest on my hse , and my hubby used $49167.92 on our flat.

 

[elaine81]

Singaporean or PR?
1st timer?
HDB or bank loan?

email me vinz@hotmail.com directly.

haha , like tat also can , then got any 4 room in Jurong west , prefer less than 10 yrs , high flr , around $225k ? aiya , think difficult , now 4 room very exp , Vinz , pls help me calculate , realli " bu gan xin "{ leh , buy 4 rm in Pasir Ris , now go JW hv to buy 3 room , .... grumble ...

 

[hongster34]

I have a complicated scenerio here. Not sure if U can help. Thanks.

It goes like this:

A couple got $30k grant for a 5-room flat. One of them is local, the other a PR. They have migrated and want to sell their flat. Do they need to return the 30k grant?

Instead of selling, the local's sibling (single with income exceeding 3k) wants to take over the PR's share. Is it possible? What happens to the grant? Btw, are they entitled to any other grants?

 

[hongster34]

If the seller is not present in Singapore, we understand we need to engage a lawyer for a power of attorney. How much will it cost? Any idea? Thanks.