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Old 09-09-2018, 11:58 AM   #1
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Arrow Need advice downgrade

Hello

I am 49 now. Living in a hdb mansionette roughly value $600000 northern area.
I would like to downgrade. Question is what are my best choices . I have come out 3.

1. Apply for 4 room bto,which subjected to levy, I think ard $55000 ? Estimated completion for upgraders 4 years ? Cost average $300000

2. Resale 4 room,which escape levy,but have to factor reno cost total average $400000

3. Lastly ,stay put in mansionette,renovate and service existing loan $180000

Lets discuss, any input is appreciated

Thanks
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Old 09-09-2018, 12:09 PM   #2
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Sure or not maisonette $600K only? Even 4 & 5 roomers are going for over $500K.
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Old 09-09-2018, 12:33 PM   #3
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Service loan diligentlly, donít waste money on Reno Liao. Life is more than hdb,. Whichever way we configure, canít make much and will even lose big from reselling, esp those that bought at 2012 to 2014ers.. Gana screwed left right centre.. wanna sell also lose Chao Chao 80k .. wanna keep buy lease keeps getting shorter.
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Old 09-09-2018, 01:32 PM   #4
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If you intend to buy again, do it before you turn 55. Not sure about your financial situation, at the end is whether is a must or think of downgrade.
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Old 09-09-2018, 01:59 PM   #5
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Hello

I am 49 now. Living in a hdb mansionette roughly value $600000 northern area.
I would like to downgrade. Question is what are my best choices . I have come out 3.

1. Apply for 4 room bto,which subjected to levy, I think ard $55000 ? Estimated completion for upgraders 4 years ? Cost average $300000

2. Resale 4 room,which escape levy,but have to factor reno cost total average $400000

3. Lastly ,stay put in mansionette,renovate and service existing loan $180000

Lets discuss, any input is appreciated

Thanks
1. Resale levy why 55k? Not 30k meh? Cost of 300k includes reno? Now 4 room not so cheap unless low floor.

2. I would get a newly MOP 4 room in northern or northwest with nice reno done. Do minimum reno.

3. Do you need such a big space? Left how many years lease?
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Old 09-09-2018, 05:52 PM   #6
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Do whatever before 55 years old.
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Old 09-09-2018, 07:42 PM   #7
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Do whatever before 55 years old.
If over 55, what happen?
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Old 09-09-2018, 09:12 PM   #8
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Sure or not maisonette $600K only? Even 4 & 5 roomers are going for over $500K.
Northern part around that price, no valuation yet, but if beyond $600k is a bonus
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Old 09-09-2018, 09:15 PM   #9
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Service loan diligentlly, don’t waste money on Reno Liao. Life is more than hdb,. Whichever way we configure, can’t make much and will even lose big from reselling, esp those that bought at 2012 to 2014ers.. Gana screwed left right centre.. wanna sell also lose Chao Chao 80k .. wanna keep buy lease keeps getting shorter.
You refering to option 3? My house interior going to collapse haha.... old cabinets, looks moody, but wont spend so much on reno if i opt for 3
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Old 09-09-2018, 09:17 PM   #10
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1. Resale levy why 55k? Not 30k meh? Cost of 300k includes reno? Now 4 room not so cheap unless low floor.

2. I would get a newly MOP 4 room in northern or northwest with nice reno done. Do minimum reno.

3. Do you need such a big space? Left how many years lease?
I estimate levy around that price because i upgrade 4 to mansionette. Will enquire from hdb for accurate figures. Now want to dwngrade to 4 again, future is kids going to move out, so no need big house. Lease left 70+ years

Last edited by xxfdamxx; 09-09-2018 at 09:20 PM..
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Old 09-09-2018, 09:21 PM   #11
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If over 55, what happen?
Your CPF will be locked up for good.
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Old 09-09-2018, 09:21 PM   #12
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Do whatever before 55 years old.
Yup, i'm 49,need to query now
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Old 10-09-2018, 12:44 AM   #13
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1. Apply for 4 room bto,which subjected to levy, I think ard $55000 ? Estimated completion for upgraders 4 years ? Cost average $300000
BTO are empty units. You would need to spend money on lightings, aircon, heater, kitchen cabinets, any build in wardrobes etc. It will most likely be 50-80% of your resale flat reno cost depends on what you going to do.
2. Resale 4 room,which escape levy,but have to factor reno cost total average $400000
Resale 4 room at 350k ? and reno cost 50k maybe.
Most resale unit at good location are not so cheap. I assume you are talking about older unit, and far from mrt? Or where do u have in mind?
3. Lastly ,stay put in mansionette,renovate and service existing loan $180000
Nowadays you have the option of 3 room BTO too. And maybe at age 60-70yrs old, 2 room flexi BTO unit with shorter lease (cheaper price)
I estimate levy around that price because i upgrade 4 to mansionette. Will enquire from hdb for accurate figures.
Levy is based on the flat which you enjoyed the subsidy.

If this EM is resale with grant , or direct BTO from hdb 29yrs ago, then you are subjected to levy of $50k cash nett once u sell, and wish to stay in a BTO unit.

If this EM is resale with no grant, then you may be talking about your previous 4 room flat (which I assume BTO or resale with grant). For this it depends on when it was sold.

Sold after 3rd March 2006, levy of $40k cash .
Sold before 3rd March, levy will be 22.5% of sale price, with 5% interests charged annually
until the levy is paid (this will be a hefty amount by today)

Pls click : Resale levy

-vinz
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Last edited by vinz; 10-09-2018 at 12:55 AM..
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Old 10-09-2018, 08:40 AM   #14
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Your CPF will be locked up for good.
If exceed BRS in CPF, will still lock?
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Old 21-02-2019, 11:37 AM   #15
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Hello

I am 49 now. Living in a hdb mansionette roughly value $600000 northern area.
I would like to downgrade. Question is what are my best choices . I have come out 3.

1. Apply for 4 room bto,which subjected to levy, I think ard $55000 ? Estimated completion for upgraders 4 years ? Cost average $300000

2. Resale 4 room,which escape levy,but have to factor reno cost total average $400000

3. Lastly ,stay put in mansionette,renovate and service existing loan $180000

Lets discuss, any input is appreciated

Thanks
It depends on a few things.

First: Calculate your sale proceeds
Second: Calculate your cash proceeds
Third: Decide how much of this you need to use/keep, based on your reasons for downgrading
Fourth: Calculate your affordability
Finally: Actually decide which one to go with

Do the calculations for each of the cases you mentioned above.

I hope this helps.
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