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

[zensushi]

HDB InfoWEB: Who Can Apply : Financing your flat

 

[therat]

Why >10k cannot apply Hdb loan ?
I tot resale no restriction ?

no restriction provided you take bank loan and don't apply grant.

If you want to take HDB loan, follow HDB rule like you are apply BTO
If you want to apply grant, follow HDB rule like you are apply BTO

 

[ParkJinYoung]

no restriction provided you take bank loan and don't apply grant.

If you want to take HDB loan, follow HDB rule like you are apply BTO
If you want to apply grant, follow HDB rule like you are apply BTO

Ah I see
Understand now

 

[FandiAhmad17]

On paper, no.

If you want to try appealing, you must have some compelling reasons to back up the plea.

You may be better off with a bank loan after all. You may need to make prudent financial decisions for the duration of the loan to ensure viability...but that applies to all aspect of financial planning. ^_^

Hmm... What are the examples of compelling reasons? Cos I just changed job not long ago and now income just exceeded $10k combined. Like not here not there.

And why I will be better off with a bank loan?

 

[zensushi]

Hmm... What are the examples of compelling reasons? Cos I just changed job not long ago and now income just exceeded $10k combined. Like not here not there.

And why I will be better off with a bank loan?

That may be one. Your income just exceeds due to new job. Or if you may have some difficulty getting a bank loan for whatever reasons. There are other points of appeal. Seek proper advice.

Banks loans may be better for at least 2 reasons

(1) interest rates are lower
(2) can re-finance the loan after the lock-in period

There are risks, of course. So again, get professional advice. Do not base your hundreds of thousands of dollars asset purchase on "forum advice" alone. ^_^

 

[FandiAhmad17]

That may be one. Your income just exceeds due to new job. Or if you may have some difficulty getting a bank loan for whatever reasons. There are other points of appeal. Seek proper advice.

Banks loans may be better for at least 2 reasons

(1) interest rates are lower
(2) can re-finance the loan after the lock-in period

There are risks, of course. So again, get professional advice. Do not base your hundreds of thousands of dollars asset purchase on "forum advice" alone. ^_^

To be honest, I did some research earlier and wanted to settle on HDB loan until I recently hit this $10k income ceiling. As for lower interest rate, it's only for these few years for bank loans.

 

[zensushi]

To be honest, I did some research earlier and wanted to settle on HDB loan until I recently hit this $10k income ceiling. As for lower interest rate, it's only for these few years for bank loans.

Since it's very early into your "just exceeding $10k" period, quickly appeal for eligibility to take up the HDB loan.

 

[FandiAhmad17]

Since it's very early into your "just exceeding $10k" period, quickly appeal for eligibility to take up the HDB loan.

Now comes the next issue, I haven't found the resale flat which I want. If I find it by end of the year, do you think I will still be able to appeal for eligibility?

 

[vinz]

Now comes the next issue, I haven't found the resale flat which I want. If I find it by end of the year, do you think I will still be able to appeal for eligibility?

all appeal are on a case by case basis.

i guess if its $10,001 to $10,500 there is a slim chance your appeal will be successful.

If in the range of 11k or above, I don't really think there is much chance unless your "reason" is really that compelling for them to consider your case.

anyway for any appeal , be prepared to write in at least 3 to 4 times.

Good luck

-vinz

 

[FandiAhmad17]

all appeal are on a case by case basis.

i guess if its $10,001 to $10,500 there is a slim chance your appeal will be successful.

If in the range of 11k or above, I don't really think there is much chance unless your "reason" is really that compelling for them to consider your case.

anyway for any appeal , be prepared to write in at least 3 to 4 times.

Good luck

-vinz

Thanks for the information!

 

[mcyf12]

Hi,

I recently applied for a BTO for a 3 room flat in Whampoa, and the price listed is about $328,000 - $388,000

I went on to research a little bit about the selling price of the same flat in the resale market. HDB sets it as $465,000 - $500,000.

But most of the resale flats listing(in the same area on PropertyGuru) I have seen is, surprisingly, around 300k to max 400k for 3 room flats. I am a little baffled as to why flats in areas such as Towner road or Saint George Road is going for such low prices, considering the fact that they are in a mature estate, so near to Boon Keng Mrt, and being so close to Town.

I am also a bit concerned that if I do buy the HDB BTO 3room flat at 388k, it will turn out to be a bad investment for me to sell after 5 years of staying. And I don't understand why HDB would list the transacted price of resales flats as $465,000 - $500,000, and yet, houses are going for much lesser right now.

Could someone please help to explain to me the pricing system used? And if I am mistaken somewhere? Much thanks in advance.

 

[roomer]

Question regarding Letter Of Offer from Banks.
Is it standard practice that on issuing the Letter Of Offer to us, buyers, we need to sign on the letter signifying an acceptance of the Letter Of Offer even before exercising the OTP ? Or should it be signed after exercising of the OTP before the 1st appointment ?

 

[fire]

Hi,

I recently applied for a BTO for a 3 room flat in Whampoa, and the price listed is about $328,000 - $388,000

I went on to research a little bit about the selling price of the same flat in the resale market. HDB sets it as $465,000 - $500,000.

But most of the resale flats listing(in the same area on PropertyGuru) I have seen is, surprisingly, around 300k to max 400k for 3 room flats. I am a little baffled as to why flats in areas such as Towner road or Saint George Road is going for such low prices, considering the fact that they are in a mature estate, so near to Boon Keng Mrt, and being so close to Town.

I am also a bit concerned that if I do buy the HDB BTO 3room flat at 388k, it will turn out to be a bad investment for me to sell after 5 years of staying. And I don't understand why HDB would list the transacted price of resales flats as $465,000 - $500,000, and yet, houses are going for much lesser right now.

Could someone please help to explain to me the pricing system used? And if I am mistaken somewhere? Much thanks in advance.

for me i learnt not to trust hdb pricing.

listing of prices higher than current can be to their advantage to justify their high selling prices.

 

[vinz]

Hi,

I recently applied for a BTO for a 3 room flat in Whampoa, and the price listed is about $328,000 - $388,000

I went on to research a little bit about the selling price of the same flat in the resale market. HDB sets it as $465,000 - $500,000.

But most of the resale flats listing(in the same area on PropertyGuru) I have seen is, surprisingly, around 300k to max 400k for 3 room flats. I am a little baffled as to why flats in areas such as Towner road or Saint George Road is going for such low prices, considering the fact that they are in a mature estate, so near to Boon Keng Mrt, and being so close to Town.

I am also a bit concerned that if I do buy the HDB BTO 3room flat at 388k, it will turn out to be a bad investment for me to sell after 5 years of staying. And I don't understand why HDB would list the transacted price of resales flats as $465,000 - $500,000, and yet, houses are going for much lesser right now.

HDB transacted price are real prices of flat sold. Where did u get this information which you don't believe?

this is the most accurate : http://services2.hdb.gov.sg/webapp/BB33RTIS/BB33PReslTrans.jsp

Could someone please help to explain to me the pricing system used? And if I am mistaken somewhere? Much thanks in advance.

Flats available for resale (3room) at most estate in Singapore are actually around the age of 30 - 50yrs. HDB had actually stop building 3room BTO for many years before they start doing so a few years earlier recently.

There is a restriction on the use of CPF money to pay for a HDB flat with lease less than 60yrs left, and thus the pool of buyer who have ready cash to pay for the resale 3room is limited. Of course this will depends on the age of the flat for buyers to make their decision together with their own financial status.

Not many buyers = flat seller pricing their price lower in order to just sell their flat.

I am quite sure the newer 3room (those who are going to be just 5 years) will be selling at a pretty profit compare to the price the owner paid for 4-5yrs ago as BTO flat as there is no restriction on the CPF use, and flats are newer.

Do take note, 15yrs ago a profit of 60k-100k is considered a good range for any BTO flat.

Recent price hike had cause many mature estate owners to actually gain a profit of 100-300k just by selling their unit, which is actually why the government starts to clamp down on the runaway resale price.

A HDB flat is primarily a roof over our head, but seems like many youngsters are using it as a investment tool.

No wrong or right actually , but the hardest hit will be the one with the greatest expectation when the economy turns for the worst.

-vinz

 

[vinz]

Question regarding Letter Of Offer from Banks.
Is it standard practice that on issuing the Letter Of Offer to us, buyers, we need to sign on the letter signifying an acceptance of the Letter Of Offer even before exercising the OTP ? Or should it be signed after exercising of the OTP before the 1st appointment ?

Before you exercise OTP , a proper loan should be granted by the bank and u thus need to sign on the Acceptance of the Letter of offer first, then you can exercise the OTP (sign on the OTP and pay 2nd deposit).

-vinz

 

[livinginanavatar]

Hi Vinz,

Should we be concerned about the age of a flat when we are buying one, say if we are planning on selling and upgrading after MOP? Or should it be a major make or break decision on the purchase of a flat?

 

[bendi85]

Hi just to get some sensing.
What's the minimum income level to get a loan of $300k+ from bank or hdb?

 

[noel13]

Hi just to get some sensing.
What's the minimum income level to get a loan of $300k+ from bank or hdb?

If you are talking about 25 years max loan.

Combined income have to be around 4100.

 

[noel13]

Hi Vinz,

Should we be concerned about the age of a flat when we are buying one, say if we are planning on selling and upgrading after MOP? Or should it be a major make or break decision on the purchase of a flat?

Older flat will played a part. Buyer will prefer newer resale flats.

And if is too old. The buyer will have problem withdrawing out cpf for buying the flat. The lease left for the flat will affect his cpf withdrawal limits.

 

[Crescy]

hello TS,

I'm very new to housing matters and currently looking at buying a resale.
From websites like property guru, i see some terms and dont quite understand.

Example

Price: $400,000 - Price on application
Valuation Price: $430,000

What does the price and valuation mean?

Then if the valuation is not shown on some units, should I be concerned?

Thanks in advance