Free advice/discussion on buy/sell of Resale flat (Part 6)

[vinz]

From my pt of view, that’s the dumbest thing to do. U will not see a penny of it ever.

Cold hard cash should be use to do investment, plan for yr retirement.

If u still think yr CPF can cover u for old age, u are in la la land n I wish u best of luck.

There are situation when the monthly installment is not enough just by using the owner's cpf, and of course those staying inside the flat (children etc) who doesn't want to put their name into the flat have to use their cash to pay.

If their CPF is to be used, they have to be added as owners, and they have to take out their name when they want to purchase another flat with their future spouse, causing a lot of headache to the existing household.

I don't see it as being dumb, in fact it save them the future hassle of having to remove their name from the flat. I am sure many of those whose name was added to their parents' flat had a lot of problem trying to get another flat with their spouse now if they cant find enough parent's CPF or cash to buy over their CPF used.

Nobody is talking about using their CPF as retirement fund in this discussion.

-vinz

 

[henrylbh]

From my pt of view, that’s the dumbest thing to do. U will not see a penny of it ever.

Cold hard cash should be use to do investment, plan for yr retirement.

If u still think yr CPF can cover u for old age, u are in la la land n I wish u best of luck.

Dumb or not depends on individual's finance.

 

[henrylbh]

Er, some time the children have no choice but to add their name into the parents flat, else they would end up with no roof.

Cos 1 parent salary is not enough to service the monthly payment
.
Esp for divorce case or those who parents do not have money in their CPF OA.

They need to use the children’s CPF contribution or to secure a new loan.

That the harsh reality for the majority of Sporean.

What's so unfair if cannot afford. If still want and drag in children, then there must be restriction.

 

[yuichiroyt]

hey there. neeed some advise on a story:-

say my gf and i are planning to buy a house and get married within the next 3 years. but she's already an owner of a HDB and staying with her dad. the dad has no income so it's solely dependant on her.

in cases like this, is it possible for us to own 2 hdb? 1 transferred to her dad's ownership but she continues to help him pay, whilst the other is under our name? or is private really the only way out. unfortunately, we're rather stuck in the middle income group where condo's too pricey and on the verge of not qualifying for hdb anymore.

 

[eyz]

1 qns guys, if my monthly payment comprises of 1 part CPF and 1 part cash. In future when I sell my flat, will I be able to take back whatever I had paid in cash, provided the property has appreciated jn value?

 

[Ronaldo88]

1 qns guys, if my monthly payment comprises of 1 part CPF and 1 part cash. In future when I sell my flat, will I be able to take back whatever I had paid in cash, provided the property has appreciated jn value?

Cash back= selling price minus cpf use+interest..tat is suppose to be..correct info chk with cpf

 

[Ronaldo88]

hey there. neeed some advise on a story:-

say my gf and i are planning to buy a house and get married within the next 3 years. but she's already an owner of a HDB and staying with her dad. the dad has no income so it's solely dependant on her.

in cases like this, is it possible for us to own 2 hdb? 1 transferred to her dad's ownership but she continues to help him pay, whilst the other is under our name? or is private really the only way out. unfortunately, we're rather stuck in the middle income group where condo's too pricey and on the verge of not qualifying for hdb anymore.

There r few similar cases in the thread ..pls chk with hdb for any restrictions. .better get it sort out 1st or it will disrupt ur plan later on.

 

[yuichiroyt]

lemme give them a call tmr

 

[twinklingstars]

Cash back= selling price minus cpf use+interest..tat is suppose to be..correct info chk with cpf

So meaning not guarantee we can get our cash component back?

 

[Ronaldo88]

So meaning not guarantee we can get our cash component back?

Nt all..depending how u finance the hse..

 

[henrylbh]

So meaning not guarantee we can get our cash component back?

As long as you put back principal plus accrued withdrawn, the excess you keep. But if you above 55, you only need to top up your min sum and medisave required amount from the said principal plus accrued withdrawn.

 

[Ronaldo88]

As long as you put back principal plus accrued withdrawn, the excess you keep. But if you above 55, you only need to top up your min sum and medisave required amount from the said principal plus accrued withdrawn.

Meaning after putting bk principal n interest accumulated, still hve to top to min sum if above 55..like tat nt much cash on hand..is tat so?

 

[vinz]

Meaning after putting bk principal n interest accumulated, still hve to top to min sum if above 55..like tat nt much cash on hand..is tat so?

W"hatever CPF which was used must be put back into the CPF ordinary account.

And if the person is 55yrs old and above, then the CPF which he can used for the next flat will be any access which is above half the minimum sum (according to his age).

HDB or CPF will not ask the owner to use his cash proceed/profit from selling his existing house to top up the CPF minimum sum.

Cash back= selling price minus cpf use+interest..tat is suppose to be..correct info chk with cpf

Wrong.

Cash proceed / profit = Selling price minus (cpf used + interests) , and minus HDB outstanding loan amount if any (usually there is outstanding loan unless owner had paid fully for the flat)

Put it in a simple layman term:

Cash proceed = Selling price - (HDB outstanding loan + CPF used with accured interests)

vinz

 

[henrylbh]

Meaning after putting bk principal n interest accumulated, still hve to top to min sum if above 55..like tat nt much cash on hand..is tat so?

Just need to know that you CAN'T put in more than what you take out. Even if you want to, they wont allow except by way of voluntary contribution which has an annual limit.

 

[Ronaldo88]

From my pt of view, that’s the dumbest thing to do. U will not see a penny of it ever.

Cold hard cash should be use to do investment, plan for yr retirement.

If u still think yr CPF can cover u for old age, u are in la la land n I wish u best of luck.

So any investment ideas u had which can guarantee min 2.5% interest?

 

[allways]

So any investment ideas u had which can guarantee min 2.5% interest?

I believe many would also like to know what investments can guarantee min of 2.5% yield with no risk. I got more than enough to pay fully a 4rm flat by CPF and would be willing to dump all into such investments.

 

[marxace]

who pays for the flat valuation fees for resale hdb? Buyer or seller?

 

[henrylbh]

who pays for the flat valuation fees for resale hdb? Buyer or seller?

A valuation report is not required in a purchase and sale transaction.

If the seller wants it as a guide to decide on his selling price, he should pay for it.

If the buyer wants it because he is required to produce it for purpose of borrowing from HDB or bank, he should pay for it.

 

[Densocool]

Actually last time I ever heard some agents who offered to pay for the valuation report cost if you let them sell your unit.

 

[vinz]

A valuation report is not required in a purchase and sale transaction.

If the seller wants it as a guide to decide on his selling price, he should pay for it.

If the buyer wants it because he is required to produce it for purpose of borrowing from HDB or bank, he should pay for it.

Not many buyers can actually afford to pay off one lump sum in full without taking a loan like yourself.

So 99.99% of the time, a valuation report is required.

who pays for the flat valuation fees for resale hdb? Buyer or seller?

A fair value as deem by the HDB Valuer is given on the Valuation report,
and it will guide buyer on his selling price, and of course let a potential buyer know the COV which he have to pay if he commits to the price after negotiating with the seller.

Usually its the seller or seller's agent who pays for the valuation report to be done first. When a buyer comes along , they will usually buy over the valuation report and submit it to HDB or the bank to apply for their housing loan.

vinz