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

[kimkuan]

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!

50years old still cannot meet FRS but can afford condo? he self employed didn't top up CPF?

 

[darkelf]

Our advise?

Sell the condo cheap cheap ba. Let the younger gen able to afford housing.
Tell your friend already old. Just do one last good deed for society before kicking the bucket.

 

[alvincy]

Even a fully paid studio can easily paid up the FRS with extra for a resale 4 rm in non matured estate.

 

[Tony.Manero]

Earn from condo riao mai ngiao

 

[randomph]

The best way is to rent out condo and rent a cheaper hdb. If want to wait out can even find a place to stay for 15 months. Just stay somewhere slightly inconvenient for a cheaper rental.

 

[Hayate84]

at today's market. his cash profit will easily fully pay the 4 room resale hdb leh. even slums condo seeing profit in hundreds of thousands.


Read HWZ Forum Rules!

 

[Iamdone]

TS, if your friend is PR, can just sell, withdraw CPF, retire millionaire in home town with freehold ppty, easy.

If sinkies, LLST and be slave for PAP. Nothing is yours, everything becomes complicated.

 

[s-ghost]

orbitgoot?

want to song song upgrade to condo back then, now want to reap benefits?

 

[shodan99]

you (your friend) made a mistake. Should have topped up his RA to FRS. 2ndly, should have repaid his loan using cash instead of CPF.

If these were done when you were younger, no issue. As for sale before age55, no choice. have to appeal. Whatever your reason is, just try to paint a sad story hope they accept. if not, just suck it up and rent first. Actually, you need 2yr rent as still need to wait for HDB completion date and reno to be complete before moving in.

 

[Water Bottle]

Not an expert but your friend can try writing in to MND for a waiver of the waiting period (case-by-case basis)

https://www.mnd.gov.sg/newsroom/par...ait-out-period-after-selling-private-property

Not use... And Their reply usually takes at least 2 months.

 

[shodan99]

Not use... And Their reply usually takes at least 2 months.

you appeal before ah?

 

[C_boliao]

the crazy rental price originates from the crazy property prices.
In a way, what goes around comes around.

Its from the interest rates plus tons of unnecessary ft.

 

[Water Bottle]

Should ask property agent. They are the best ppl to ask for financial advise

They might not know it all. Even they do, they might not telling you. As it might jeopardize their sales..

 

[uniqlo]

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!

ur friend

no need huanlo so much

friends come and go

 

[Water Bottle]

you appeal before ah?

Yes. Even you spam appeal letters with MP letter also no use

No means No..

 

[game goondu]

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!

Ts, why you worry about frs... sell condo is already smelly smelly 1.5m to 2m..
What is 60k rental also...

 

[SG SUPERMAN]

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!

After deduct FRS there won’t be much left?

his condo is studio apartment ar? Even if it’s studio apartment sell liao top up FRS remaining amount should at least able to get 3room hdb easily la

 

[coyote]

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!

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.

 

[shodan99]

Ts, why you worry about frs... sell condo is already smelly smelly 1.5m to 2m..
What is 60k rental also...

If use CPF to pay downpayment or repay loan, the proceeds from sale need to go back to CPF first with accrued interest. May end up nett nett no cash on hand

 

[diminishin]

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!

You sell your condo still not enough to buy hdb meh? Your condo one bedder at Yishun one isit