Need advices on decoupling EC!

[AMD_FREAK]

Hi all!

Currently my wife and I are staying in an EC. I understand that upon the 5 year mark, we can decouple the EC.

We have paid about 40% of the property by cash.

I would want to transfer this EC to my wife's name so that I can buy a private property using my name (and just need to pay 25% downpayment using cash).

May I know what are the costs / hidden costs involved at government, lawyer's fees and bank?

 

[henrylbh]

If got outstanding loan, the loan need to be rescheduled and there is some cost involved. The main considerations are whether the remaining owner is eligible and able to bear the outstanding loan alone and return outgoing owner's CPF and accrued interest, if CPF was used?

Besides, there will be stamp duty for the remaining owner to buy over the outgoing owner's share.

 

[Broadwalk]

Hi all!

Currently my wife and I are staying in an EC. I understand that upon the 5 year mark, we can decouple the EC.

We have paid about 40% of the property by cash.

I would want to transfer this EC to my wife's name so that I can buy a private property using my name (and just need to pay 25% downpayment using cash).

May I know what are the costs / hidden costs involved at government, lawyer's fees and bank?

Will you have job when the time comes?

 

[starry9t]

Is decoupling still allowed? Or need to do divorce first?

 

[Brown24]

Hi all!

Currently my wife and I are staying in an EC. I understand that upon the 5 year mark, we can decouple the EC.

We have paid about 40% of the property by cash.

I would want to transfer this EC to my wife's name so that I can buy a private property using my name (and just need to pay 25% downpayment using cash).

May I know what are the costs / hidden costs involved at government, lawyer's fees and bank?

U sure can decouple after 5 years?
My info is 10 years only can decouple for EC. pls correct me if I'm wrong

 

[NiShiZhu]

From what I understand, once u satisfy the 5 years MOP for EC, u can decouple as it is considered as private. Whereas for HDB, u cannot decouple even u satisfy the MOP.

https://www.propertyguru.com.sg/question/240562/hi-i-own-an-ec-will-it-be-possible-to-transfer-own

To decouple, your Wife needs to buy over your shares.
U need to engage evaluator to evaluate the price of your EC based on current market transaction.
If the share is 50-50%, and assuming your EC is worth 1 mil based on evaluation, your Wife will need to pay a stamp duty based on 500k (I.e 3% x 500000 -5400 = $9600)
Plus legal fee is about $5600 to $6000.
(Normally, U should ask the evaluator to slightly lower the estimated value of EC so that ur Wife will pay slightly lesser stamp duty, of cos the evaluator cannot go too Low lah, else their job will be jeopardised)

The couple should also take into account the cash difference between $1 million and the new mortgage granted to the sole owner. This is treated as new purchase and you need bank’s approval to see if your wife’s income qualify the new loan. All your CPF u contributed previously in your EC will also be returned to u.

For me, because previously I’m staying in a terrace and thus, my quantum is much higher than 1 mil, so it doesn’t make sense for me and Wife to decouple cos the cost incurred from stamp duty is very high.
Furthermore, still need to get bank’s loan approval for the sole owner.

In the end, we decided to sell it away so me and my Wife can buy one property each using our own name.

Any bros can correct me if im wrong.

 

[infernolord]

Hi all!

Currently my wife and I are staying in an EC. I understand that upon the 5 year mark, we can decouple the EC.

We have paid about 40% of the property by cash.

I would want to transfer this EC to my wife's name so that I can buy a private property using my name (and just need to pay 25% downpayment using cash).

May I know what are the costs / hidden costs involved at government, lawyer's fees and bank?

just curious, in the 1st place how u guys get to buy EC.. 14k cap.. based on your income, i think u are way above..lol

 

[Pokémon]

just curious, in the 1st place how u guys get to buy EC.. 14k cap.. based on your income, i think u are way above..lol

They might have bought the EC during the $12k cap instead, but does it matter?

The cap is only applicable during the application for the EC. The couple could be getting increment or changing jobs that give them much higher income than before over the years, or even running their own business now.

 

[AMD_FREAK]

just curious, in the 1st place how u guys get to buy EC.. 14k cap.. based on your income, i think u are way above..lol

We are prudent in our spendings

 

[Clazav]

Hmm this strategy is good. Buying a soon-to-be private condo at subsidised rate and later still able to decouple in 5 (or 10 years) years time to free up one's name for the next property. Before 2016, couples buying HDB can decouple too so the fact that EC can decouple doesn't make it any special. But not HDB cannot decouple, and only EC can decouple make purchasing EC more attractive.

Hi all!

Currently my wife and I are staying in an EC. I understand that upon the 5 year mark, we can decouple the EC.

We have paid about 40% of the property by cash.

I would want to transfer this EC to my wife's name so that I can buy a private property using my name (and just need to pay 25% downpayment using cash).

May I know what are the costs / hidden costs involved at government, lawyer's fees and bank?

 

[AMD_FREAK]

From what I understand, once u satisfy the 5 years MOP for EC, u can decouple as it is considered as private. Whereas for HDB, u cannot decouple even u satisfy the MOP.

https://www.propertyguru.com.sg/question/240562/hi-i-own-an-ec-will-it-be-possible-to-transfer-own

To decouple, your Wife needs to buy over your shares.
U need to engage evaluator to evaluate the price of your EC based on current market transaction.
If the share is 50-50%, and assuming your EC is worth 1 mil based on evaluation, your Wife will need to pay a stamp duty based on 500k (I.e 3% x 500000 -5400 = $9600)
Plus legal fee is about $5600 to $6000.
(Normally, U should ask the evaluator to slightly lower the estimated value of EC so that ur Wife will pay slightly lesser stamp duty, of cos the evaluator cannot go too Low lah, else their job will be jeopardised)

The couple should also take into account the cash difference between $1 million and the new mortgage granted to the sole owner. This is treated as new purchase and you need bank’s approval to see if your wife’s income qualify the new loan. All your CPF u contributed previously in your EC will also be returned to u.

For me, because previously I’m staying in a terrace and thus, my quantum is much higher than 1 mil, so it doesn’t make sense for me and Wife to decouple cos the cost incurred from stamp duty is very high.
Furthermore, still need to get bank’s loan approval for the sole owner.

In the end, we decided to sell it away so me and my Wife can buy one property each using our own name.

Any bros can correct me if im wrong.

As I gotten grant when buying the EC (I think it's $30k), I also need to top up my own CPF 15k + accured interest when I do the transfer right?

For bank's part, I can get in-principle approval for loan before we decide whether to go ahead with decoupling right?

Is there any 1-stop service I can go to get everything settled? eg: evaluator, banker, law firm? Much like when I first buy a property and the property agent pulled in his banker, law firm.

 

[NiShiZhu]

As I gotten grant when buying the EC (I think it's $30k), I also need to top up my own CPF 15k + accured interest when I do the transfer right?

//This one u need to check with cpf, I never bought an ec before.

For bank's part, I can get in-principle approval for loan before we decide whether to go ahead with decoupling right?

//yes. In fact U should do this first before u find a lawyer to do the decoupling.

Is there any 1-stop service I can go to get everything settled? eg: evaluator, banker, law firm? Much like when I first buy a property and the property agent pulled in his banker, law firm.[/QUOTE]

//Basically u need to get the bank for in-principle approval first, then law firm to do the decoupling and evaluator ($300) to evaluate the value of your EC.

Before doing all these, u need to ask yourself is it worthwhile to keep your EC or might as well sell it away. Selling it away more straight forward. Because even such decoupling would cost u around 15k in total, assuming your EC is valued at 1 mil with 50-50% share.

Unless u have very good reason to keep your EC. (Such as good rentability or good rental yield etc)
Of cos, some decided to keep the EC because afterall, u need a roof above your head, especially if u decided to buy 2nd property which is still under BUC. That will help u save money spent on the need to find a place to rent while waiting for new property to TOP.