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

[s7460597]

How to do this, since it's not legal and therefore not enforceable by HDB or police? civil suit?

/

If a contract is illegal then TS would have difficult enforcing the contract in court.


http://www.singaporelaw.sg/content/ContractLaw.html#section12

 

[vinz]

In spore, many things are actually illegal but people are still doing in.

Eg. Jaywalk, chewing gum, download songs/movies, spitting, smoking in public places, urine at corridor etc.

For housing matter especially on this issue, there is not much at the present moment anyone (government included) can do. Bridging loan by bank will usual incur admin cost and interests 2k up, which person would want to cough out this money when they can save it?

At the moment, it is basically based on gentleman agreement and trust between the two party on this matter.

Maybe if HDB have a bridging loan scheme, with a low admin fee and interest, then everyone can actually buy first and not request for this extension of stay.

-vinz

 

[khroness]

is it true buyer does not have to pay for agent commission if buying condo?

 

[bryando]

Hi, Not sure if I am posting in the right place, but I am looking at a private property loan after selling off my HDB. For such, can I get loan and bridging loan dispersement based on OTP of my HDB? Cause I figured I need to push back my HDB 1st appt so I may have time to take over the new property and do my reno. Any advice?

Thanks in advance.

 

[yeungho]

Can someone help me with my query? Thanks in adv

Parents' current flat will be sold. How will the proceeds be split? Assuming this flat will sell at 300K

Mum and me are sourcing for a resale flat. We have seen one which owner is asking for 380K.

My ultimate question is: roughly how much HDB loan is required for the 380K flat? I'm eligible for purchase of resale flat and assuming my CPF ord a/c has 100K. I understand I can eligible for the HDB loan at premium interest rate but mum isn't cos she has utilitised her 2 chances already. What are the complications?

 

[yeungho]

Hi vinz

I saw this on page 1

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

income below 3K got 11K grant and can get concession HDB loan
income above 3K no grant and cannot get concession HDB loan. Right on both?


If I and mum joint purchase a resale flat, will we then be subjected to the 8K income limit? Meaning in this case, mum cannot get the concession HDB loan but I can (1st time HDB flat buyer)?

 

[slang]

Not the same agent as there's conflict of interest.

As mentioned previously that buyers agent will get 1% from the buyer, and seller's agent will get 2% commission from the seller, does this also applies to Private and landed property transaction, where the co-broke agent does not get 50% of commission from the seller's agent?

 

[slang]

any idea which way is better to be done first?

- Sell off current flat then buy the new resale flat
or Put the deposit to buy the resale flat, then rush off to sell away current flat?

Sounds like chicken and egg issue...what is the opinion from u guys?

 

[s7460597]

As mentioned previously that buyers agent will get 1% from the buyer, and seller's agent will get 2% commission from the seller, does this also applies to Private and landed property transaction, where the co-broke agent does not get 50% of commission from the seller's agent?

It's the same in there's possible conflict of interest. For HDB resale, HDB has the say in how things are regulated hence the difference with private property.

If you really want to avoid this then you may want to offer to pay the comm to your agent to help you buy and not be influenced by the comm from the seller. Not many people want to do that.

Otherwise buy the property on your own. Process wise is easier then buying HDB resale.

 

[brood]

Hi everyone. Need some advice.
I'm presently doing contra, selling off my 5 room flat and buying another 5 room flat.
1st appointment has already been done and settled. On my 2nd appointment, my buyer could not come up with the cash required to pay HDB (he's taking bank loan), so the date was delayed for 2 weeks.

I'm now very worried. What are my options should my buyer fail to come up with the required cash by the new 2nd appointment date? FYI, I have already started renovations on the new 5-room I'm buying, as my seller has graciously vacated the place 2 weeks prior. How will this impact all of us?

Hope anyone can provide us with advice, thanks.

 

[yeungho]

Hi vinz and all

asking about the division of sales proceeds

our current place costs 100K
mum paid 30K cpf
pa paid 20K cpf
remaining 50K unpaid


assuming flat will sell at 300K
how will this 300K be divided and distributed?

 

[s7460597]

Hi vinz and all

asking about the division of sales proceeds

our current place costs 100K
mum paid 30K cpf
pa paid 20K cpf
remaining 50K unpaid


assuming flat will sell at 300K
how will this 300K be divided and distributed?

Are your parents under or over 55?

From sales proceeds the outstanding loan of $50k is repaid. In under 55 the money withdrawn from their cpf account in repayment of the loan and interest is returned to cpf. They can check with cpf on the exact amount. These will be credited back to their cpf account.

If over 55 and they do not meet minimum sum requirement then the pledged amount is returned to cpf.



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[yeungho]

Are your parents under or over 55?

From sales proceeds the outstanding loan of $50k is repaid. In under 55 the money withdrawn from their cpf account in repayment of the loan and interest is returned to cpf. They can check with cpf on the exact amount. These will be credited back to their cpf account.

If over 55 and they do not meet minimum sum requirement then the pledged amount is returned to cpf.



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Hi s7460597, thanks for your reply!

Mum is 58 already.
This minimum sum - is it the 20K minimum sum that is "locked" in the ord. a/c?

how about the "profit"?
cos there will be about 100K each parent right?
What happens to the profit?

in a nutshell, my mum is 58 already, would she still be eligible to purchase a hdb flat with me?

 

[s7460597]

Hi s7460597, thanks for your reply!

Mum is 58 already.
This minimum sum - is it the 20K minimum sum that is "locked" in the ord. a/c?

how about the "profit"?
cos there will be about 100K each parent right?
What happens to the profit?

in a nutshell, my mum is 58 already, would she still be eligible to purchase a hdb flat with me?

Best to check with CPF on the refund required for your parents. I'm not sure about the eligibility part have to leave it to the experts.

Q: If I sell my flat after I turn 55 years, how much should I refund to my CPF account under Public Housing Scheme?

A:
You are required to refund the Minimum Sum deficiency, or the principal CPF withdrawn for the property plus the accrued interest, whichever is lower. The Minimum Sum deficiency is the Minimum Sum applicable to you when you turn 55 less the balance in your Retirement Account (excluding interest earned).

For members who had turned 55 before 1 July 1995, the required CPF refund will be the principal amount pledged for part of the Minimum Sum plus the accrued interest on the pledge. However, if the property is not pledged for part of the Minimum Sum, no refund is required.

http://ask-us.cpf.gov.sg/explorefaq.asp

 

[vinz]

Hi, Not sure if I am posting in the right place, but I am looking at a private property loan after selling off my HDB. For such, can I get loan and bridging loan dispersement based on OTP of my HDB? Cause I figured I need to push back my HDB 1st appt so I may have time to take over the new property and do my reno. Any advice?

Yes you can, based on your existing flat OTP (exercised). But do note the amount may not be very big, it's just a bridging loan.

 

[vinz]

our current place costs 100K
mum paid 30K cpf
pa paid 20K cpf
remaining 50K unpaid
assuming flat will sell at 300K

Cash proceed (profit) = Selling price - (HDB outstanding loan + CPF used)
= 300k - (50k + Mum Cpf 30k + Dad Cpf 20k)
= 200k cash.

If both parents are still legally married, then HDB will issue a cashier order in both person's name on 2nd appt. This must be bank into a JOINT ACCOUNT.
Once banked in, how much each one gets will be up to both of them to decide.

If parents are divorced, then the cash proceed will be spilt according to what is stated by the court in the divorce document.

Mum and me are sourcing for a resale flat. We have seen one which owner is asking for 380K.

My ultimate question is: roughly how much HDB loan is required for the 380K flat? I'm eligible for purchase of resale flat and assuming my CPF ord a/c has 100K. I understand I can eligible for the HDB loan at premium interest rate but mum isn't cos she has utilitised her 2 chances already. What are the complications?

Single income below 3K got 11K grant and can get concession HDB loan
Single income above 3K no grant and cannot get concession HDB loan. Right on both?

If I and mum joint purchase a resale flat, will we then be subjected to the 8K income limit? Meaning in this case, mum cannot get the concession HDB loan but I can (1st time HDB flat buyer)?

Let us be very clear on your option.

1) Are u above 35yrs old?
If below 35yrs old , u can't buy a HDB flat , even resale flat, at all.

2) If you are above 35yrs old, are you earning more than 3k a month?
If salary below 3k, then you eligible for a Singles grant, and HDB loan.
If salary above 3k, then you not eligible for Single grant and HDB loan, can only buy using bank loan.

3) Buying with your mum? As long as its Parent with child, the income ceiling become $8k for HDB loan, subjected to BOTH PARTY BEING ELIGIBLE.

Your mum is not eligible for HDB loan , so if you are buying together with her as joint owner, then you will not be eligible for HDB loan, or singles grant at all. Its not a case where both of you buy the same house, she take bank loan, you take HDB loan as a single. For this scenario, only BANK loan only.

Choose one of the option above. From what I can see, most likely it's option 2 or 3.

 

[vinz]

Hi everyone. Need some advice.
I'm presently doing contra, selling off my 5 room flat and buying another 5 room flat.
1st appointment has already been done and settled. On my 2nd appointment, my buyer could not come up with the cash required to pay HDB (he's taking bank loan), so the date was delayed for 2 weeks.

I'm now very worried. What are my options should my buyer fail to come up with the required cash by the new 2nd appointment date? FYI, I have already started renovations on the new 5-room I'm buying, as my seller has graciously vacated the place 2 weeks prior. How will this impact all of us?

Hope anyone can provide us with advice, thanks.

You can choose to cancel the deal, sue him, concurently find another buyer to buy your flat again. Of course this will delay the completion for your purchase, in which the seller (of the flat u had started reno) may do the same to you too. (sue you)

The one who cause this whole deal to fall apart, will actually have to pay off the differences.

Let say u sold to him at 300k, another buyer come after you decided not to wait for the first buyer, u decided to sell to him at 280k, this original first buyer will have to pay u the 20k difference. (sueing him is one thing, ever getting the money is another thing).

You better hope and pray he get the cash, if not it is going to be very complicated for you. Unless you have the neccessary means to pay off the downpayment, and your loan amount is enough to cover the balance.

Or you can take a bridging loan and proceed to buy first (own house must be sold and OTP signed and exercised show to the bank), this will of course incurred admin fee and daily interests.

vinz

 

[yeungho]

Hi vinz, thank you very much for the detailed explanation

need more clarification and I'm providing more info

regarding this extracted from hdb

Flat buyers can apply for an HDB loan if you and / or your essential occupiers (if any):
(a)
have at least one buyer who is a Singapore citizen;

mum is PR; I'm citizen
I just checked, mum & dad had only utilised one chance of the hdb loan previously
meaning in future (after parents' flat is sold), I & mum joint-purchase a resale flat, we'll be eligible for the hdb loan, right? my 1st time and our combined income is below $8K

is my mum's age (58) an issue on resale flat purchase and loan?
thanks again

 

[vinz]

any idea which way is better to be done first?

- Sell off current flat then buy the new resale flat
or Put the deposit to buy the resale flat, then rush off to sell away current flat?

Sounds like chicken and egg issue...what is the opinion from u guys?

Is your house in a HOT area and there is huge demand, and your asking price is within the expectation of most buyers? If yes, then you can buy first and sell later since the selling time will be quite short.

Is the next house you buying at a HOT area and asking for COV within your expectation of paying? If yes, you can buy first and hopefully be realistic about the selling price of your house and hope it can sell off fast.

Is the next house you buying at a area where there is many units for sale and you can take your pick? If yes then you should settle your own selling first before you go and buy?

You can also do both concurrently, and let the buyer of your house know you need some time for purchasing another unit (if you sell first), or let the seller of the flat you buying know you need time to sell off your own flat (if you buy first). As long as its all properly communicated among all party, I dont see any issue.

It's basically about adjusting your own expectation of the selling price of your place. I am sure a good agent can guide you on what should be a good way to go about doing all the above.

If you need my help/advice, feel free to email me vinz@hotmail.com directly.

vinz

 

[vinz]

mum is PR; I'm citizen
I just checked, mum & dad had only utilised one chance of the hdb loan previously
meaning in future (after parents' flat is sold), I & mum joint-purchase a resale flat, we'll be eligible for the hdb loan, right? my 1st time and our combined income is below $8K

You want to buy with your mum, is she legally divorce with your dad? If not, then dad must be listed as occupier too, do take note.

Are you above 35yrs old? Do you really need your mum to be included if you are?

if you are below 35yrs old, of course it's no choice , that I understand.

To be sure of the HDB loan eligiblity, do a online HLE application.
No point guessing. Put yourself as owner, your mum as occupier if she isnt working, or her salary is not very high and there is no need to use her salary to increase your loan amount etc.

Of course you can put both as owner if that is what you want.

Pls click : Application For HDB Loan Eligibility(HLE)

is my mum's age (58) an issue on resale flat purchase and loan?

The older the age of the owners, the shorter the duration of the loan, the smaller the loan amount, the higher the monthly loan repayment.

vinz