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Old 21-03-2008, 06:31 PM   #1
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How much cash needed for HDB/Condo?

Hi looking for property with non resident citizen.

was looking at all the threads but unable to understand.

Just how much cash upfront is needed for a new hdb, resale hdb etc?

or a condo, price range quotes welcome .
breakdown of costs welcome .

i'm always puzzled by the rebates, if can be used to offset upfront cash or later during repayments.

cash over valuation and stamp duties are puzzling me too

any one / experts able to help .

I dun want to end up buyign a house begging pple for cash or having no renovation in the end due to cash problems.

thanks all
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Old 21-03-2008, 08:48 PM   #2
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Just how much cash upfront is needed for a new hdb, resale hdb etc?
Depends on the cash above valuation, and whether you are taking bank loan or HDB loan

Example 1:
Eligible for New Flat from HDB, Eligible for HDB loan. Purchase price 200k.

Minimum Downpayment = 10% of purchase price
=10% x 200k = 20k (Can be paid fully using CPF)

Maximum loan amount = 90% of purchase price = 90% x 200k = 180k

Stamp fees payable to government (pls use below formula)
1st 180,000 = 1% of 180,000 = $1,800
2nd 180,000 = 2% of amount/180,000 = $3,600
Any amount above 360,000 = 3% of amount


Stamp fee For this case
(Price of 200k) = 1,800 + (20,000 x 2%) = $2,200
(Can be paid fully using CPF)

Above example is the same for HDB resale flat at valuation and taking HDB loan
Please note that HDB resale fact usually include a component call the CASH ABOVE VALUATION (COV).


Example 2:
Resale HDB unit, Bank Loan. Purchase price 240k.
Valuation Price = 200k
Cash above valuation = 40k (CASH on top of the valuation price, negotiable between buyer and seller)
Final purchase price = 240k

Minimum Downpayment = 10% of Valuation price
For HDB loan =10% x 200k = 20k (Can be paid fully using CPF)
For Bank Loan = (5% Cash + 5% CPF) x 200k = 10k compulsory cash + 10k CPF = 20k


Stamp fees (pls use below formula)
For this case, (Price of 240k) = 1,800 + (60,000 x 2%) = $3,000
(Can be paid fully using CPF)


or a condo, price range quotes welcome .
breakdown of costs welcome .
Same as HDB resale with BANK LOAN
cash over valuation and stamp duties are puzzling me too
Refer to above.

Advice : Do not overcommit.

vinz

Last edited by vinz; 17-01-2009 at 10:20 AM..
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Old 22-03-2008, 12:25 AM   #3
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hey many thanks for the clear explanation.
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Old 22-03-2008, 12:01 PM   #4
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Hi looking for property with non resident citizen.
HDB is not citizen.
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Old 22-03-2008, 12:25 PM   #5
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Depends on the cash above valuation, and whether you are taking bank loan or HDB loan

Example 1:
Eligible for New Flat from HDB, Eligible for HDB loan. Purchase price 200k.

Minimum Downpayment = 10% of purchase price
=10% x 200k = 20k (Can be paid fully using CPF)

Maximum loan amount = 90% of purchase price = 90% x 200k = 180k

Stamp fees payable to government (pls use below formula)
1st 180,000 = 1% of 180,000 = $1,800
2nd 180,000 = 2% of amount/180,000 = $3,600
Any amount above 360,000 = 3% of amount


Stamp fee For this case
(Price of 200k) = 1,800 + (20,000 x 2%) = $2,200
(Can be paid fully using CPF)

Above example is the same for HDB resale flat at valuation and taking HDB loan
Please note that HDB resale fact usually include a component call the CASH ABOVE VALUATION (COV).


Example 2:
Resale HDB unit, Bank Loan. Purchase price 240k.
Valuation Price = 200k
Cash above valuation = 40k (CASH on top of the valuation price, negotiable between buyer and seller)
Final purchase price = 240k

Minimum Downpayment = 10% of Valuation price
For HDB loan =10% x 200k = 20k (Can be paid fully using CPF)
For Bank Loan = (5% Cash + 5% CPF) x 200k = 10k compulsory cash + 10k CPF = 20k


Stamp fees (pls use below formula)
For this case, (Price of 240k) = 1,800 + (40,000 x 2%) = $2,600
(Can be paid fully using CPF)


Same as HDB resale with BANK LOAN
Refer to above.

Advice : Do not overcommit.

vinz
I thought under new rules, must pay 8 or 10% cash even get a new hdb?
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Old 23-03-2008, 03:08 PM   #6
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I thought under new rules, must pay 8 or 10% cash even get a new hdb?
I really wonder why are those so many people confused about these HDB rulings when all along it had never changed . There are many new rules and regulation, but where do people actually get their information from?

If you are eligible for a new flat, most likely you are also eligible for HDB loan,
and if you are using HDB loan, there is no need for 8 or 10% cash.

Pls click :Housing Loan from HDB

If you are eligible for a new flat, but decided to take up a bank loan instead,
then you need to pay 5% complusory cash and another 5% using CPF/Cash.

Pls Click: Housing Loan from Bank

Most of us would rather take up the HDB (if eligible) rather than a BANK LOAN.
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Old 15-01-2009, 11:48 AM   #7
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Based on this e.g

Example 2:
Resale HDB unit, Bank Loan. Purchase price 240k.
Valuation Price = 200k
Cash above valuation = 40k (CASH on top of the valuation price, negotiable between buyer and seller)
Final purchase price = 240k

Minimum Downpayment = 10% of Valuation price
For HDB loan =10% x 200k = 20k (Can be paid fully using CPF)
For Bank Loan = (5% Cash + 5% CPF) x 200k = 10k compulsory cash + 10k CPF = 20k

If it is bank loan, where does the $5K deposit fit into ? Part of the 5% compulsory cash ?
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Old 15-01-2009, 02:29 PM   #8
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Based on this e.g

Example 2:
Resale HDB unit, Bank Loan. Purchase price 240k.
Valuation Price = 200k
Cash above valuation = 40k (CASH on top of the valuation price, negotiable between buyer and seller)
Final purchase price = 240k

Minimum Downpayment = 10% of Valuation price
For HDB loan =10% x 200k = 20k (Can be paid fully using CPF)
For Bank Loan = (5% Cash + 5% CPF) x 200k = 10k compulsory cash + 10k CPF = 20k

If it is bank loan, where does the $5K deposit fit into ? Part of the 5% compulsory cash ?
For bank loan, pls note that the total cash component is COV + 5%,
which in this case is 40k + 10k = 50k

The 5k deposit will be deducted from this 50k, meaning the buyer will have to issue a cheque of 45k to the lawyer who will be handling his conveyancing and bank loan issue.
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Old 15-01-2009, 02:32 PM   #9
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On the similar case, where does the $5K deposit goes to if it is a HDB Loan and transact at valuation or below valuation?
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Old 15-01-2009, 02:41 PM   #10
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On the similar case, where does the $5K deposit goes to if it is a HDB Loan and transact at valuation or below valuation?
of course it goes to offset the purchase price.

Eg. valuation 200k, flat sold at 195k, deposit paid 5k.

So additonal downpayment needed will be:
Purchase price of ( 195k x 10% ) - 5k deposit = $14,500 (CPF or cash)

Last edited by vinz; 15-01-2009 at 02:46 PM..
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Old 16-01-2009, 06:09 PM   #11
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means you need around 30k to buy a resale.

100+k cash to buy condo.
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Old 17-01-2009, 09:20 AM   #12
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Hi Vinz,

Reference to your example 2

Stamp fees (pls use below formula)
For this case, (Price of 240k) = 1,800 + (40,000 x 2%) = $2,600
(Can be paid fully using CPF)


How do you derived get the (40,000 x 2%) ? Where do you get the $40,000?

Taking another example of a resale HDB purchase price 340k.
Valuation Price = 300k
Cash above valuation = 40k


The stamp fee is thus = $1800 + [??????? x 2%] = ???????

Thks
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Old 17-01-2009, 10:19 AM   #13
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Hi Vinz,

Reference to your example 2

Stamp fees (pls use below formula)
For this case, (Price of 240k) = 1,800 + (40,000 x 2%) = $2,600
(Can be paid fully using CPF)


How do you derived get the (40,000 x 2%) ? Where do you get the $40,000?
Sorry, my mistake, it should be:
1,800 + (60,000 x 2%) = $3,000

I did the changes on my previous posting too.

Taking another example of a resale HDB purchase price 340k.
Valuation Price = 300k
Cash above valuation = 40k
The stamp fee is thus = (1st 180k x 1%) + [(340k-180k) x 2%] = $5,000

Stamp fees payable to government (pls use below formula)
1st 180,000 = 1% of 180,000 = $1,800
2nd 180,000 = 2% of amount/180,000 = $3,600
Any amount above 360,000 = 3% of amount
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Last edited by vinz; 17-01-2009 at 10:28 AM..
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Old 19-12-2009, 01:23 AM   #14
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of course it goes to offset the purchase price.

Eg. valuation 200k, flat sold at 195k, deposit paid 5k.

So additonal downpayment needed will be:
Purchase price of ( 195k x 10% ) - 5k deposit = $14,500 (CPF or cash)
eg. valuation 200k, COV 20k. deposit paid 5k.

May I know the deposit paid during exercise of option will be offset from valuation or COV? In other words,
loan - 90% = 180k
10% cpf = 20k
Will hdb offset my 5k from my 10% downpayment which means I can only use 15k from CPF instead of 20k? BTW, if HDB is doing conveyancing, who should I pay COV to? To HDB or directly to owner? pls advise. thanks.
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Old 19-12-2009, 10:18 AM   #15
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eg. valuation 200k, COV 20k. deposit paid 5k.

May I know the deposit paid during exercise of option will be offset from valuation or COV? In other words,
loan - 90% = 180k
10% cpf = 20k
Will hdb offset my 5k from my 10% downpayment which means I can only use 15k from CPF instead of 20k? BTW, if HDB is doing conveyancing, who should I pay COV to? To HDB or directly to owner? pls advise. thanks.
Deposit paid (any amount) is usually use to offset the cov.

Unless it is selling below valuation or at valuation, then it is use to offset the 10% downpayment when taking hdb loan,
or the 5% compulsory cash when taking bank loan.

only max of 5k cash (as deposit) goes to seller. The rest of cov (15k remainding for your case) or cash is payable to your legal representation (HDB loan will be HDB, Bank Loan will be pte lawyer).

Last edited by vinz; 19-12-2009 at 10:20 AM..
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