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

[vinz]

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?

The grant is put into the local CPF ordinary account. If they have satisfied the 5yrs MOP, then when they sell off the unit, the grant amount goes back to the singaporean CPF ordinary account. There is NO NEED to return to the government. The grant is part of the CPF ordinary account from then on.

If they did not satisfied the 5yrs MOP, then i believe they have to return the grant amount. Pls call HDB to verify. (1800-8663066)

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?

The house is purchase as a couple (married). Unless there is a divorce, if not the PR share cant be sold off to another person. HDB wants married couple to hold a flat in both person name, and not to sell off either one's share as and when they feel like it.

If the sibling is eligible to buy (single above 35yrs old), then he can buy over from BOTH of them as a single.

Single with income below 3k are eligible for 11k Singles grant.
Above that no grant.

Pls click :Singles grant

Pls click : Questionnaire on Housing Loan Type Eligibility

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

around $250 + GST

 

[shepherd_2000]

I'm going to settle down and get my house in a few years.How much do I need to put in my cpf to get the HDB loan? What if my wife decide to stay home and be a homemaker, how much grant can I get? Thanks.

 

[vinz]

I'm going to settle down and get my house in a few years.How much do I need to put in my cpf to get the HDB loan? What if my wife decide to stay home and be a homemaker, how much grant can I get? Thanks.

HDB loan is not how much you have to put in, it's whether you are eligible or not.(of course the most basic part is there must be a proper household income to verify you are able to pay loan amount monthly)

And the same as grant, if you and wife are eligible for grant, then you still get the full grant even if your wife is not working.

 

[onezero]

i'm planning to purchase a 3-room resale flat. However, most of the flats in the area that i'm interested in are around 35-39 years old.

Assuming i will be staying in the flat for 15-20 years, by then the flat lease will left only 30-40 years.

Qns : is it worth buying such an old flat if i intend to stay for a long time?

Your advise is greatly appreciated.

 

[vinz]

i'm planning to purchase a 3-room resale flat. However, most of the flats in the area that i'm interested in are around 35-39 years old.

Assuming i will be staying in the flat for 15-20 years, by then the flat lease will left only 30-40 years.

Qns : is it worth buying such an old flat if i intend to stay for a long time?

Your advise is greatly appreciated.

I believe most of the old 3room/4room flats (30-50yrs old) will be announced for SERS (enbloc) by HDB if no upgrading had been done on them yet.

If you like the estate and location, I believe it's still alright.

But take note 15-20yrs later when you sell, the banks might not be able to finance your buyer for the max loan tenure or amount. Hopefully you be able to get someone to pay in FULL CASH.

 

[helprent]

where can i c hdb valuation cost data instead of resale price only?
which valuers has highest /lowest valuation ?

 

[vinz]

where can i c hdb valuation cost data instead of resale price only?

No any that i know of.
Maybe u can refer to the below avg COV of houses and compare to the recent transaction, and then work backwards from there. But I think it won’t be accurate as all the data are based on housing type all over the estate.

Median Price/COV price

which valuers has highest /lowest valuation ?

There is no way you can control which valuer comes to value a flat, so no point knowing who give highest valuation etc. Anyway no diff, they give their professional opinion, u can’t manipulate them etc.

 

[PermanentHeadDamage]

My wife and I together earn more than $8k. I was told that in order to get a flat, better for my wife to resign so that my income would be less than $8k. My questions are:

1. How early does she have to resign? Before the application? or get key?

2. How long does she have to stay unemployed? From the moment we start looking for flat until we get the key? Or just in the beginning?

3. If after resigning, she goes back and works at the same workplace, would it be illegal?

Thanks for your help.

 

[vinz]

My wife and I together earn more than $8k. I was told that in order to get a flat, better for my wife to resign so that my income would be less than $8k. My questions are:

1. How early does she have to resign? Before the application? or get key?

I don't work for HDB, so I am not really sure about this.

From my understanding, the household income is to be declared when applying for HLE (HDB loan), so I believe at the time the application for HLE is being made, the combined income must be below 8k.

Depends when you are applying the HLE.
For resale flat , the HLE must be out before the exercising of Option to Purchase (Signing contract to purchase).

For brand new HDB flat which are uncompleted, I believe the HDB requires the HLE twice:

From HDB website:
For uncompleted flats, where the purchasers will only obtain physical possession of the flat a few years after the date of selection, we will reconfirm your loan eligibility before disbursement of the loan to check that there is no change in your financial ability to service the loan.

2. How long does she have to stay unemployed? From the moment we start looking for flat until we get the key? Or just in the beginning?

For resale flat, its the moment just before she apply for HLE, till she get keys to the resale flat.

3. If after resigning, she goes back and works at the same workplace, would it be illegal?

I am in no authority to answer this question, but logically speaking, why would it be illegal if someone rejoin the same company?

 

[tang_tang]

Hi Vinz

Yesterday we went to view a house and we like the unit very much. We agree the valuation price $350k +$25k cash selling price will be $375k. At the same time we pay the option fee $1k and and option exercise fee $4K cos we already got HLE. The couple divorce and wanted to sell their house. The valuation report is going to expired in 7 days. The owner want to revaluation the house cos she want to delay the submission and put it as 30 days. The owner say she need time to look for a new house.

Do you think the revaluation will let us need to fork up more cash?

 

[vinz]

Hi Vinz

Yesterday we went to view a house and we like the unit very much. We agree the valuation price $350k +$25k cash selling price will be $375k. At the same time we pay the option fee $1k and and option exercise fee $4K cos we already got HLE. The couple divorce and wanted to sell their house. The valuation report is going to expired in 7 days. The owner want to revaluation the house cos she want to delay the submission and put it as 30 days. The owner say she need time to look for a new house.

Do you think the revaluation will let us need to fork up more cash?

Are u comfortable with the 25k cash? If yes u can just inform the owner and agent that you do not want a new valuation report. U can reassure the owner that you are ok to register with HDB, but instead of getting the earliest date, u will get the LASTEST date available. In this way, it should be at least 30-50days later than the earliest 1st appt date.

I am not a valuer, i have no say in a valuation report. But recent market view is that valuation is either at the same price, if not slightly higher (mean less cash).
But of course it can also drop, nobody knows. It's up to you to decide.

Of course u can request for 1st appt at the LATEST date, and at the same time request for another valuation report. Then the valuation report which is to your advantage will be submitted to HDB on 1st appt.

If you apply for 1st appt date after this valuation report is expired, then sad to say you got no choice but to use the new one no matter what the amount is.

 

[chloe1098]

Hi all,

The previous Four threads on resale and housing matters gets too long. So I am starting a new one (Part 5) today.

I log in almost daily, if anyone got any questions bugging you about housing matters,
pls feel free to ask, it's good to share my knowledge if I can be of some help.

regards,
vinz

Note: Please refer to previous thread if you have time to browse through all the qns some other homeowners asked me previously. if not u can post your qns here and see what we can do to advice you.

Previous link:
Part 4: Free advice/discussion on buy/sell of Resale flat (Part 4)

The above link might not be working due to technical changes within the forum.

hi vinz!

we will be having our 1st appointment next week oct28, i read from you previous post that it will take 8weeks for the resale completion if we take our loan from the bank. My question is, can we adjust this later for at least 1week delay around dec31? because my additional monies will come out by the end of dec.
Thanks! waiting for ur reply....

 

[vinz]

hi vinz!

we will be having our 1st appointment next week oct28, i read from you previous post that it will take 8weeks for the resale completion if we take our loan from the bank. My question is, can we adjust this later for at least 1week delay around dec31? because my additional monies will come out by the end of dec.
Thanks! waiting for ur reply....

Any adjustment to the date, either earlier or later, have to be mutually agreed upon by all sellers and buyers. Just update the HDB officer on the 1st appt if everyone is ok. If seller not ok with this timing, then there is nothing you can do other than to take a bridging loan.

Please consult and update the agent who help you on the purchase asap.

 

[chloe1098]

thanks for the prompt reply....so how is this bridging loan works? can i used this to for my downpayment of the house? i'm short of around 10k-15k, big amount of money huhuhu....We avail the homeloan of POSB home loan.

 

[vinz]

Please contact your banker to speak to them on this matter.
If you had already sign on the Letter of Offer, it will be very difficult to add in this bridging loan into the existing L.O. (legal issues involved)

Didnt the banker advise you on this when they did the calculation for your loan amount?
what about your agent? Anyway you will be incurring an admin fees of 1-2k, and also interests for the bridging loan.

Stop worrying too much and just speak to the seller agent whether possible for 2nd appt to be delay till the 9th week. Maybe they are ok with it.

If all else fails, i guess u have to fork out cash to pay this amount.

Please speak to your agent asap.

 

[hongster34]

In your opinion, which is a better buy?

A 4-room flat in amk - 30 years old - around 300k - needs reno - near popular girls sch

A 5-room flat in serangoon north - 10 years old - around 380k - near popular mixed sch

Both is accessible by short feeder bus to train station.

Thank you.

 

[hongster34]

The grant is put into the local CPF ordinary account. If they have satisfied the 5yrs MOP, then when they sell off the unit, the grant amount goes back to the singaporean CPF ordinary account. There is NO NEED to return to the government. The grant is part of the CPF ordinary account from then on.

If they did not satisfied the 5yrs MOP, then i believe they have to return the grant amount. Pls call HDB to verify. (1800-8663066)The house is purchase as a couple (married). Unless there is a divorce, if not the PR share cant be sold off to another person. HDB wants married couple to hold a flat in both person name, and not to sell off either one's share as and when they feel like it.

If the sibling is eligible to buy (single above 35yrs old), then he can buy over from BOTH of them as a single.

Single with income below 3k are eligible for 11k Singles grant.
Above that no grant.

Pls click :Singles grant

Pls click : Questionnaire on Housing Loan Type Eligibility around $250 + GST

Thank you for the answers.

 

[leozakk]

In your opinion, which is a better buy?

A 4-room flat in amk - 30 years old - around 300k - needs reno - near popular girls sch

A 5-room flat in serangoon north - 10 years old - around 380k - near popular mixed sch

Both is accessible by short feeder bus to train station.

Thank you.

Do you have a daughter? Do you want her in the popular girl's sch?

Both are in different estate, with different town centre, different proximity to "city".

How can you compare apple with orange? which one colour is nicer?

 

[kennymok]

qsn:

my condo is paid by father, around 400k paid by cash, rest by CPF, still paying.

Father passed away, i sell the condo, do i need to 'help' my father or me top back into CPF? since the money is from his CPF, not mine.

if condo valuation price is 700k, and its paid up till 600k, i sell it, will the proceeds become all cash?
700k - 100k(outstanding bank loan + interest)<== amt is just an example, not accurate.

will i be able to use the cash to pay up a HDB resale flat?
in such economy, do u think its better to invest in property instead of shares/stockmarket/similier stuff.

Im have no idea to buy a 4 room or a 5 room, IF the proceeds i get back in all cash, since 5 room property prices will shoot up in the coming years, profit will be more then selling a 4 room.

Is this thinking skewed?

Thanks guys for reading!

 

[bb1314]

Timeline

We are going to get ourselves a resale flat, 90% bank loan. Assuming:

Valuation price = 350k
Purchase Price = 370k

Can somebody advise on when to pay what? & when to do what? I'm getting confused with so many rules/regulations. Below is my understanding. Pls advise if it's correct.

Day 1
Pay $1000 Option Fees (part of deposit), get the OTP which is already signed by seller.

By Day 14
Get letter of offer from bank, Sign OTP & pay upto $4000 for Option Exercise Fee to seller (part of the max 5k deposit), submit Resale Application to HDB.

1st appointment (2-4 weeks after submission of Resale Application)
5% downpayment from CPF (17.5k)
Stamp fees+caveat fees (~6.45k from CPF)
legal fees (3k from CPF)

within 10days after 1st appointment
5% downpayment cash (17.5k)
COV (20k-5k deposit = 15k)

Completion Date (8 weeks from 1st appointment)
Agent Fees 3.8k (cash)

Is this correct?