Condo downgrade to hdb - Double Whammy with FRS and 15m wait-out period?

[proton_cannon]

TS, go see your mp.

Who did you and your family members voted for

 

[sacrificium]

Hi, recently a friend did some reading and shared with us his concerns, which will also apply to us in the coming years. So seeking some insights here pls.


He is currently staying in a condo, and he is nearing 50yo.

If he want to downgrade to resale HDB now, he will have to suffer the "new" 15m wait-out rule, which means he need to rent for roughly 2 years, which is about $60k-$80k in current crazy market?

The good thing is if he sell his condo now, his entire refunds to his CPF can be used to buy the next HDB.


However, the 15m wait-out rule exempts 55yo who downgrade to HDB 4-room.

So, if he wants to avoid the rental expense ($60k-$80k) by only selling at 55yo, he no need to wait for 15m before buying the next resale HDB.

However, he read that when he sells the property at 55yo, he need to top-up his Full Retirement Scheme. (If a person turns 55yo in 2027, the required FRS is $228,200, and the figure will continue to climb over the years!)

After deducting the FRS, there won't be much left to apply towards the next HDB purchase, and need to take loan again?


The original idea of downgrading is to fully pay off the HDB and chill a bit.

But now it seems that we cannot do that anymore? Like go left, go right also jammed?


Seems that the only way is to bite the rental bullet and make the "move" before 55yo, in order to avoid topping up the FRS.

Or maybe just hold on to the condo and passed it on to his kids later on?


Are there further things to take note of?

Any insights or advice please?

Or what would you do if you are in a similar case?

Thanks!

Please lah, after he sold his condo, he will have excess cash to just pay off his HDB and top up his CPF.

 

[keithster]

if he sells now & can profit well... why not? if profits can cover 15 mths rental.

 

[Water Bottle]

Best bet is for TS's friend to hold out for another yr or so. There are chance this rule might withdraw before GE 2025. As This rule is extremely unpopular for those who are in the same situation as TS's friend.

 

[abramovich]

Can own condo means is rich ppl in the 1st place… why u bother huan lo rich ppl problem?

 

[celestial517]

Rent in and rent out lo. Earn the rental difference until 55. Hopefully by then enough to cover frs.

Anyway you sell condo 1.5 mil, buy hdb 600k, got more than enough what.

 

[charlieangel123]

very good to pawn such people

 

[shodan99]

Rent in and rent out lo. Earn the rental difference until 55. Hopefully by then enough to cover frs.

Anyway you sell condo 1.5 mil, buy hdb 600k, got more than enough what.

thats provided he fully paid off the loan hor. usually by age50, not fully redeem the loan yet...

 

[botak33]

TS friend can try to increase the seling price to cover some of his 15 month's rental. Ask him to "look open" don't cent count.

 

[chickenpiez007]

Hi, recently a friend did some reading and shared with us his concerns, which will also apply to us in the coming years. So seeking some insights here pls.


He is currently staying in a condo, and he is nearing 50yo.

If he want to downgrade to resale HDB now, he will have to suffer the "new" 15m wait-out rule, which means he need to rent for roughly 2 years, which is about $60k-$80k in current crazy market?

The good thing is if he sell his condo now, his entire refunds to his CPF can be used to buy the next HDB.


However, the 15m wait-out rule exempts 55yo who downgrade to HDB 4-room.

So, if he wants to avoid the rental expense ($60k-$80k) by only selling at 55yo, he no need to wait for 15m before buying the next resale HDB.

However, he read that when he sells the property at 55yo, he need to top-up his Full Retirement Scheme. (If a person turns 55yo in 2027, the required FRS is $228,200, and the figure will continue to climb over the years!)

After deducting the FRS, there won't be much left to apply towards the next HDB purchase, and need to take loan again?


The original idea of downgrading is to fully pay off the HDB and chill a bit.

But now it seems that we cannot do that anymore? Like go left, go right also jammed?


Seems that the only way is to bite the rental bullet and make the "move" before 55yo, in order to avoid topping up the FRS.

Or maybe just hold on to the condo and passed it on to his kids later on?


Are there further things to take note of?

Any insights or advice please?

Or what would you do if you are in a similar case?

Thanks!

Yo TS....got money buy condo no money employ property consultant?

compared to actual certified agents, you prefer crash-mongering edmwers advices???

 

[wongminmin]

frd = ts
u can rent out ur condo, then u go rent from others.... then earn the differences. then wait for the next new policy loh

i thought condo worth at least 1m...
60k for 15 month = 4k per month..... not much for u

 

[JAson1980]

who he voted for

 

[y2k_tay]

Sell n become neighbour of TKL.......

 

[johnsonheng]

Rich man problem. Just ask him to get a property agent to figure his sums out will do. He's not short of money. Just need to figure out how to move them around.

Indeed, that 60K rental is peanut to his profit from selling private condo. Plus his principal sum, easily 1.5m I'm hard cash. Seriously, get a property agent, you obviously don't have the skills to mange his money.

it damm hard to sell condo , due to the SST....
coz the resale price after fact in has to be slight cheaper than the newly launch condo price.

 

[chinesealbumart]

Is there a legal requirement to top up to fsr???? I thought you can take out anything over brs

yes. As long as u meet the BRS.

 

[administrator88]

Why u worry for a friend? As if his profit from condo will share with u

Hanor hanor I worry myself first

 

[pippo20]

Mnd already said its a temp measure. Hdb prices come down surely will remove this private owner selling cannot buy within 15mths rule.

 

[Gonjeng]

Hi, recently a friend did some reading and shared with us his concerns, which will also apply to us in the coming years. So seeking some insights here pls.


He is currently staying in a condo, and he is nearing 50yo.

If he want to downgrade to resale HDB now, he will have to suffer the "new" 15m wait-out rule, which means he need to rent for roughly 2 years, which is about $60k-$80k in current crazy market?

The good thing is if he sell his condo now, his entire refunds to his CPF can be used to buy the next HDB.


However, the 15m wait-out rule exempts 55yo who downgrade to HDB 4-room.

So, if he wants to avoid the rental expense ($60k-$80k) by only selling at 55yo, he no need to wait for 15m before buying the next resale HDB.

However, he read that when he sells the property at 55yo, he need to top-up his Full Retirement Scheme. (If a person turns 55yo in 2027, the required FRS is $228,200, and the figure will continue to climb over the years!)

After deducting the FRS, there won't be much left to apply towards the next HDB purchase, and need to take loan again?


The original idea of downgrading is to fully pay off the HDB and chill a bit.

But now it seems that we cannot do that anymore? Like go left, go right also jammed?


Seems that the only way is to bite the rental bullet and make the "move" before 55yo, in order to avoid topping up the FRS.

Or maybe just hold on to the condo and passed it on to his kids later on?


Are there further things to take note of?

Any insights or advice please?

Or what would you do if you are in a similar case?

Thanks!

Why go ask edmwer for this complex question? Who did you voted for? Go ask them.

 

[Forever84]

Just write in and appeal la

if hdb owner can appeal for early mop to earn 400k so they can upgrade to condo, I don’t see why condo owner can’t appeal to do the reverse

 

[1982-1994]

After deducting the FRS, there won't be much left to apply towards the next HDB purchase, and need to take loan again?

Condo downgrade to HDB ,there should be a sum going back into his OA too right? Which he still can use it for the next HDB purchase

4r resale for BTO flats built after 2001 in non mature estate should be $700+k at max ,average $500+K