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

vinz

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Hi Vinz,

Is it true that 30k for first timer are only for resales flats, will there be any grant for direct buy from HDB?
1st timer grant either 30k or 40k, is only for 1st timer getting a RESALE Flat.

Brand new flat no grant.

For additional housing grant (monthly income less than 5k), applicant can apply for it regardless whether they are buying resale or brand new flat as long as they meet the eligibility criteria.

For resale flat and brand new flat, applicant can opt for HDB loan (if they are eligible for it).

vinz
 

bb1314

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Hi, I'm getting a HDB unit with bank loan.

There's a clause in the bank's letter of offer stating:

"The offer is subject to CPF Board approving the release of approximately the following sums from the Borrower's CPF account(s) to finance the purchase of the Property: - Lump sum of S$50,000."

I will get extra few more thousands before the first appointment. This clause means that CPF board can only release S$50,000 (and not more) from the CPF account(s)? Or all amount in the CPF ordinary account will be wipe off?
 

davyan

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When i apply HLE online, there's a part called Emplyment Details. Currently i have 2 employers but i can only enter 1 employer in the form. What should i do? Should i just enter one employer details will do?
 

ziggyy

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Do you mind the afternoon sun, if not then its ok.
Some people don't mind, some do, its all up to the individual.

Taking measurement for? Usually all these will be done only after a buyer confirm buying the place. of course i think most owners wouldnt mind you taking measurement, it means you love the unit very miuch and is planning on what to do with the interior decor etc..


Usually its 1%, unless the 2nd unit is also his exclusive (he represent the seller), then maybe you can nego alittle with him/her.

30k below? I think maybe 5k lesser is more reasonable, but of course you can go ahead and make an offer of 30k, most likely they will come back with a price nearer to 20k below valuation for you to decide.

They can appeal for a longer time if they cant get a reasonable price.

Sign the option to purchase, pay a cash deposit (max 5k cash), then get your loan settle (HLE or Bank Letter of offer), then confirm the purchase by exercising (signing again on page 8 of contract) within two weeks.

Then can request for a 1st appt and prepare to go to HDB.

My advise is to get your financial plan work out properly 1st before you sign on anything.
The agent representing you should be able to advise you accordingly.

Hi Vinz,

Thanks as always.

In the end, bought the floorplan from HDB's website, $5 btw. Main deal breakers for my wife were, small kitchen (even though we rarely cook...) and west facing. But after looking at the floorplan, we think its still possible to squeeze everything we need into the kitchen, though spend a little more on renovating.

For the West facing issue, probably use those window-film but overall, the positive seems to outweigh the negatives for this unit.

Going to ask this agent to help us make an offer, fellow is abit blur or just very fresh, suspect he's a runner for a another main agent cos at our second viewing, he couldn't make it and other agent met us and said he is the boss.

Financial plan have been worked out by ourselves using hdb's website, like I've said, not much confidence in this agent but think no choice still got to pay him the 1% since he brought us there... The seller has his own agent which looks more zhai to me.

One more thing, I was asked by 'our' agent to provide a cheque for $1k with the seller's name if I want to make an offer. Normal? What if the seller don't want to accept the offer or want to raise the price, can I take the cheque back. Will also ask the agent but just want to know the market practice.

Thanks.
 

ronski

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Hi Vinz,

Thanks as always.

In the end, bought the floorplan from HDB's website, $5 btw. Main deal breakers for my wife were, small kitchen (even though we rarely cook...) and west facing. But after looking at the floorplan, we think its still possible to squeeze everything we need into the kitchen, though spend a little more on renovating.

For the West facing issue, probably use those window-film but overall, the positive seems to outweigh the negatives for this unit.

Going to ask this agent to help us make an offer, fellow is abit blur or just very fresh, suspect he's a runner for a another main agent cos at our second viewing, he couldn't make it and other agent met us and said he is the boss.

Financial plan have been worked out by ourselves using hdb's website, like I've said, not much confidence in this agent but think no choice still got to pay him the 1% since he brought us there... The seller has his own agent which looks more zhai to me.

One more thing, I was asked by 'our' agent to provide a cheque for $1k with the seller's name if I want to make an offer. Normal? What if the seller don't want to accept the offer or want to raise the price, can I take the cheque back. Will also ask the agent but just want to know the market practice.

Thanks.

Hi, maybe I can help to answer your cheque/money issue as I just gone through the same situation as you.
I give my agent $500 to make an offer (not sure if this is the market pratice), so let say if the seller agrees, this $ (max $1K) will be part of the OTP. U have to pay another $$ (max $4K) to exercise the OTP. So if the the seller don't want to accept the offer or want to raise the price, u can of course take back your cheque, but make sure your agent writes u a reciept with name and NRIC. (not sure about cheque as I pass my agent cash)

As Vinz had mention to me, try to nego as low on the OTP as the money will not be return to u but will be use to offset the loan amount.
So in all I pay $500 + $500 for the OTP :D. Now waiting for my 1st appt with HDB:s12: .
Hopes the above helps.
 

ziggyy

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Thanks. Good idea about going as low as possible. Will try that when I contact him.
 

jalan

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hi ...

Wana know when to pay agent's commission ??
receive a letter from agent office say prepare cheque on 1st appt . ??
I thought only pay after whole transaction done ? 2nd appt...:s22:
 

ricothp76

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i think most of the time it is on the 1st appt. my agent conveyed this to me when i expressed interest in the flat as well as signing the OTP as there is a letter that i need to sign for payment of commission to the agent. the letter tells me the price and i need to pay as well as when.

i also initially thought that only after 2nd appt then pay.
 

vinz

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Hi, I'm getting a HDB unit with bank loan.

There's a clause in the bank's letter of offer stating:

"The offer is subject to CPF Board approving the release of approximately the following sums from the Borrower's CPF account(s) to finance the purchase of the Property: - Lump sum of S$50,000."

I will get extra few more thousands before the first appointment. This clause means that CPF board can only release S$50,000 (and not more) from the CPF account(s)? Or all amount in the CPF ordinary account will be wipe off?
For bank loan, you can choose whatever amount to use for this purchase instead of wiping clean your CPF ordinary for those taking HDB loan.

I believe you must have done a financial plan with the banker and this $50k is the amount to be use for your purchase for this unit. The remainding CPF will be left untouched in your account for use for the monthly installment or whatever investment you may decide to do.
 

vinz

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Wana know when to pay agent's commission ??
receive a letter from agent office say prepare cheque on 1st appt . ??
I thought only pay after whole transaction done ? 2nd appt...:s22:
Officially all the property agency will want payment to be in on the 1st appt.

Of course if you are abit tight, you can just inform the agent that you would like to pay on the 2nd appt, shouldn't be a big issue unless the agent is also "tight" himself and need your money asap.

vinz
 

rasfene

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Hi Vinz, a question here... normally it would take how long a duration for the purchase of a resale flat? my gf and I are looking for a resale flat but we haven't rom yet. When do we need to be legally married for the purchase? I'm just looking for a general timeline.. it could be a few weeks or few months? we dun like to have the possibility of viewing a nice flat and discover that we have to rush our rom.

btw, vinz do you do bukit batok business? ^^
 

fingercrox

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Hi vinz,

read up alot of your posts and your thread has been very informative. Just have a couple of qns which i hope you can advice me on:

1) Let's say my monthly CPF deposit is $1200 (20% from myself and 14% from employer), am i right that 2/3 of it can be used for my 10% deposit of the flat. Let's say 18months later, i will have $800*18=$14400. Assuming that the total CPF plus my current savings allows me to have up to $40K for the 10% downpayment, would you think its advisable to go ahead with a resale flat(5room) in Punggol area instead of applying for a new flat.

2) Reason so is because my gf is older than me, and we have plans to settle down within 2yrs. However, the ability to get a flat successfully is the biggest obstacle. We dont want to wait too long for a new flat, so we're considering getting a resale flat in punggol area which is still relatively new. But it seems not worth it given that the price range for 5rm in Punggol is ard $390K for the low levels and my brother-in-law got it at 180K during the walk-in selection few years back. Not exactly a fair comparison but just wondering if i should really consider a resale flat. Btw, do u know of the rebates that HDB provides for first-time applciants?

3) Do you know whats the availability of resale flats in Punggol area, i.e. many people letting go of their units?

4) When will i know that there are available walk-in selections from left-over units? Tried the HDB website but cannot find any concrete info.

Thanks alot in advance!
 

vinz

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Hi Vinz, a question here... normally it would take how long a duration for the purchase of a resale flat?
From the day u sign and exercised (assumed you already have HLE by then), till getting keys, it will be at least 3mths - 5mths period, note that it is "at least".
my gf and I are looking for a resale flat but we haven't rom yet. When do we need to be legally married for the purchase?I'm just looking for a general timeline.. it could be a few weeks or few months? we dun like to have the possibility of viewing a nice flat and discover that we have to rush our rom.
From the day you become official owner and get the keys (refer to earlier question), you have 3months to produce the ROM cert to HDB. If you need longer than 3mths period, it is possible to appeal.

So logically speaking, from now when you start viewing house, u have at least 6-9mths to get ROM.
btw, vinz do you do bukit batok business?
Yes i do, kindly email me directly vinz@hotmail.com
 

vinz

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1) Let's say my monthly CPF deposit is $1200 (20% from myself and 14% from employer), am i right that 2/3 of it can be used for my 10% deposit of the flat. Let's say 18months later, i will have $800*18=$14400. Assuming that the total CPF plus my current savings allows me to have up to $40K for the 10% downpayment, would you think its advisable to go ahead with a resale flat(5room) in Punggol area instead of applying for a new flat.
Please note, out of the 34% you mentioned which will go into your CPF, only 22% of your gross income will be going into your CPF ordinary account monthly. The rest will be going into your Medisave and Retirement account.

Refer to your postings, the estimated figure is about right.
2) Reason so is because my gf is older than me, and we have plans to settle down within 2yrs. However, the ability to get a flat successfully is the biggest obstacle. We dont want to wait too long for a new flat, so we're considering getting a resale flat in punggol area which is still relatively new. But it seems not worth it given that the price range for 5rm in Punggol is ard $390K for the low levels and my brother-in-law got it at 180K during the walk-in selection few years back. Not exactly a fair comparison but just wondering if i should really consider a resale flat. Btw, do u know of the rebates that HDB provides for first-time applciants?
Property prices move up and down. However the prices of spore property (HDB) will most likely not drop to the level of a few years back (180k brand new, or around 300k resale).

You just have to be realistic about the current pricing and stop thinking about how much the 1st owner gain etc etc.. By the way, punggol is a relatively new estate without much facilities (Not sure when the government is really going to fulfill all those plans).

My suggestion (if its me buying) would be to get sengkang which has all the amenties there. And the price is cheaper than punggol.

3) Do you know whats the availability of resale flats in Punggol area, i.e. many people letting go of their units?
Once a block reaches 5yrs, many people will start selling, its very normal. Many flats in punggol are reaching their 5yrs minimum occupational period (MOP) now, so many of those who endure for 5yrs will start to move out. Can be many reasons, like moving back to stay near parents so that they can look after the children etc..

4) When will i know that there are available walk-in selections from left-over units? Tried the HDB website but cannot find any concrete info.
Subscribe to the below HDB website and u always have the latest news in your mailbox.
Best of all, this service is FREE...

Click : HDB eAlert Service
 

renelaughter5

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HELP HELP

My dad is the sole owner of a 3-room HDB flat. Recently he wanted to sell this flat and had actually signed an agreement with a buyer. However just before the 1st appointment at HDB, we found out that my dad have stage 4 cancer so we decided not to sell the flat. He needs a home. The buyer requested for compensation but we cannot afford. The buyer decided to take legal action. May I know the extent that the buyer can sue us? Will the buyer able to sue till we are forced to sell the flat? Or the case can only sue till my dad declare bankrupt as he cannot afford the compensation?

Hope can receive some advices. Thanks.
 

yhzhuo

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Hi Vinz,

Thanks for the service you are providing.

I have two queries:
- besides COV and the (estimated) 1% agent fees, what are other cash payments that I should prepare for?

- how much more difficult is it for me to find / get a place without the help of an agent?

Thank you!
 

realcookie

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hi all,

if i find the hdb through web or newspaper, is the agent fee fixed at 1% + GST? would it be reduced to such as 2k or 3k?
thanks..
 
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vinz

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My dad is the sole owner of a 3-room HDB flat. Recently he wanted to sell this flat and had actually signed an agreement with a buyer. However just before the 1st appointment at HDB, we found out that my dad have stage 4 cancer so we decided not to sell the flat. He needs a home. The buyer requested for compensation but we cannot afford. The buyer decided to take legal action. May I know the extent that the buyer can sue us? Will the buyer able to sue till we are forced to sell the flat? Or the case can only sue till my dad declare bankrupt as he cannot afford the compensation?

Hope can receive some advices. Thanks.
Simplest thing buyer can do is to sue you for the differences in prices for your dad's flat, and the next flat they buy.

Eg. Dad house signed on dotted line 200k,
Next house they buy at 230k,
Buyer can sue your dad for 30k , and legal course incurred.

I suggest you sit down with the buyer, show them your dad medical record,
and hopefully they will not pursue the matter. You must understand that the buyer might had already sold off their own house and urgently need a place to stay etc..

Is your dad staying with you? if not, wouldnt it be better if he sell off the flat and move in with any of you, and use the money from the sale of the flat for his medical expenses.
 
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