Just reach age 35! Need some advise on buying resale HDB from my Parents!

[Ye_Rongtian]

because my end intention is to have 2x4RM properties under me and my parents.... 1 for staying, 1 for renting out mah (generate those passive income better thn pocket the 1 time profit in my perpective).

Will only work if the rental $$$ u get > loan. And that is assuming you are able to keep it rented consistently.

 

[drkcynic]

No hor. if possible, they could use the proceedings i pay them to offset the new bto flat?

If they sell you at $1, someone needs to come up with the money to pay CPF back. Do you have it?

You need to pay stamp duty on market valuation. Do you have it?

Then you own the flat.

Your parents go out to buy a flat with no cash from selling their flat, only got CPF amount, so likely need to top up or borrow again. They are old they can't borrow too much. You can borrow more.

Question is why don't you just get a flat on your own instead of taking theirs? You have a longer milege to borrow. Then you don't have to pay 2 sets of stamp duty.

 

[ghregular]

camping for experts

experts waiting at hdb office

 

[benedium]

Why not both u and parents buy? Maximise every opportunity with 2 flats mah no?

 

[gumbokins]

but resale hdb is the buyer and seller determine the price what.

if ts parents willing to sell to him at 250k, hdb should not be stopping them what

when i bought my parents place (also fully paid already), HDB officer said my parents want to sell to me for $1 also can

in the end was sold $10k below valuation (family discount)

my parents then bought a resale and paid in full for that one from the sale

this was 6 years ago

 

[harbinger255]

Yes they can sell you at any price they want... provided they can pay back CPF used + accrued interest (I'm assuming hdb is fully paid)

All duties and taxes dues will be charged at valuation prices though.

 

[galaxy_henry]

TS:

1) Sell below valuation price need to seek approval from HDB
2) Have your parent managed to get new BTO?
3) Assume your parent cannot take up any loan, so have to pay Full cash + levy for 2nd BTO unit.

 

[AreYouNoob]

i suggest u buy resales near ur parents...

den move them over.. ur parents place rent out to JHK... woohoo... double win... PAP wanshui !!!!

i got consider this too. but 4RM resale damn expensive in my area.

sian!

 

[JaeC2107]

are your parents above 55? If yes once the house is sold most of the money will go into their RA the remaining will be cash out and those remaining money can get 5 rooms bto ma?

 

[notbui]

Hi all,

So I just reached the legal age to buy resale flat as a single and I have some questions to ask:

1) Can my parents with existing 4-RM HDB flat (fully paid) just go ahead and apply for BTO and eventually sell their flat to me (i am the son) for a minimum amount and use the proceedings to contra for their new flat?

2) If point 1 is valid, does the minimum amount needs to be a certain figure? Lets say 4-RM flat is 450,000 but I pay my parents 250,000 to cover their CPF+ accrued interest that they have spent on the flat over the years.

3) Even if it is legal, will HDB block the transaction if the selling price is too low compare against the actual valuation price?

Need some advise from all the saxpert here, thanks in advance.

what price did your parents pay for the hdb when they buy it?

Maybe you should calculate how much is the original amount + accured interest?

I think the accured interest amount can be seen when you login singpass into cpf account.

 

[gnoes85]

1. Yes u can.
2. Everything is done through HDB, if negative sales, your parents can appeal to waive the accrued interest.
3. No idea.

 

[coyote]

because my end intention is to have 2x4RM properties under me and my parents.... 1 for staying, 1 for renting out mah (generate those passive income better thn pocket the 1 time profit in my perpective).

You are certainly no noob.

 

[AreYouNoob]

TS:

1) Sell below valuation price need to seek approval from HDB
2) Have your parent managed to get new BTO?
3) Assume your parent cannot take up any loan, so have to pay Full cash + levy for 2nd BTO unit.

Galaxy_henry:

1) Ok, gd to know, didnt know abt this
2) Not yet, just a thought, need to ensure it can work then I ask them to do it
3) I thought can contra (use the proceedings from my payment to them to offset the new BTO they are applying)

 

[drkcynic]

because my end intention is to have 2x4RM properties under me and my parents.... 1 for staying, 1 for renting out mah (generate those passive income better thn pocket the 1 time profit in my perpective).

If you buy from your parents, you can't rent out before MOP.

If your parents buy a new resale HDB, they can't rent out before MOP too.

 

[Ye_Rongtian]

For my case.

My parents bought 10kkj 4 room BTO flat back in the 1980s under their name, paid using cash (no cpf). I applied for 4 room BTO in slumkang under the family nucleus (me being main applicant, parents as occupants - 2nd timer scheme) in 2015. They sold their flat and pocketed 400k profit as their retirement funds. They moved in with me. New flat paid using my CPF.

 

[䏣炆玧示老太]

How chiur parents who own a flat apply for bto?

can apply as 2nd timer

 

[bIkErS]

i got consider this too. but 4RM resale damn expensive in my area.

sian!

first time grant + near parent + CPF

if that 4rm is 480k

u shall be able to clear 200k

 

[harbinger255]

Galaxy_henry:

1) Ok, gd to know, didnt know abt this
2) Not yet, just a thought, need to ensure it can work then I ask them to do it
3) I thought can contra (use the proceedings from my payment to them to offset the new BTO they are applying)

Do rbr that you cannot rent out the new BTO before the MOP.... meaning you have to rent out your resale... then if you used CPF housing grants to "pay" for your resale flat, there is a MOP too before you can rent it out

 

[galaxy_henry]

Galaxy_henry:

1) Ok, gd to know, didnt know abt this
2) Not yet, just a thought, need to ensure it can work then I ask them to do it
3) I thought can contra (use the proceedings from my payment to them to offset the new BTO they are applying)

The contra part I never did before.

I did the same things 10 years ago. I bought my parent HDB (@valuation price) and they went to ballot new BTO. They sold to me first before getting BTO. So once they managed to get a unit, they paid full + levy (40k for 4rm).

 

[eatingtunic]

HDB will know that you buying from parents.
So if sell at valuation, no question ask. If sell way below valuation, then need to settle some issues.

Some of the issues:
1) Levy
2) CPF Basic Retirement Fund
3) Cash proceed percentage to pay for new bto

Dont think, sell $250k, go back cpf then can buy new bto. Not that simple.