HDB-78% rule

[Kojinanbu]

I hope you're not talking about your farkbuddy friend who got his FB preggie So his wife decided to divorce him or he decided to marry his preggie FB???

[Roborovskii]

Yep, correct. Buying and selling HDB not as profitable these days. 30 years is also super long... and factoring in the accrued interest over that 30 years can be moreover with the CPF life thing, your money is pretty much locked.

 

http://www.hdb.gov.sg/fi10/fi10203p.nsf/WP...ds?OpenDocument

[Driven]

Nope. Not him. His latest story is super interesting. Will post one day.

[Spidercool]

My house fully paid. So does this rule 78 still apply?

[Princey_anne]

You sure got some interesting friends

[Whiteice78]

Sounds weird to me. I just got an EA too. also 30 year loan. But the HDB officer told me I could repay in denominations of $5000 as early repayment should I have the cash. He told me it was safer to go for the full loan tenure then pay back as and when rather than commit to a higher per month repayment albeit a shorter tenure. He even joked that early repayment is welcomed. In his words "U wanna pay us back early, we sure take, as long as not borrowing more". So how come got penalty when your friend do a full repayment of his loan?

[Lv3338]

our Garment.... with temasek and gic. from day 1...always win...u see...

 

ever since when they lost before...beside the suzhou investment...

[Will_I_Am]

Even if your house is fully paid, as long as the money comes from your CPF, you still have to pay back to your CPF account, with interest. This is like paying interest to yourself when you use your own money. Welcome to Singapore

[Driven]

Tonite im going to dig out my hdb documents to seriously look thru.

[Tjkbeluga]

Maybe it's 2nd subsidised unit they purchased. In that case kena resale levy when they sell.

http://www.hdb.gov.sg/fi10/fi10203p.nsf/WP...29?OpenDocument

 

You sure it's 5000? HDB site mentioned it's 500. Maybe it's a typo lor...

http://www.hdb.gov.sg/fi10/fi10207p.nsf/WP...ts?OpenDocument

[Whiteice78]

Sorry, my bad. It's $500. So am I right to say that since this is my first HDB loan, there will b no penalty if I were to repay everything once the 5 years is up?

[Tjkbeluga]

I don't think HDB has such thing as penalizing citizens for settling loan in less than 5 years. In fact, if you can pay up all right from the start they lagi happy. However, if you wish to sell this unit and buy another HDB at consessionary rate again, you'll have to pay a resale levy:

 

http://www.hdb.gov.sg/fi10/fi10004p.nsf/EC...Enq_FAQG.htm#Q2

 

So if you are currently holding a executive, you'll have to pay 50K!

[Solar]

how about those who sell their 2nd subsidised flat? levy not mentioned right?

[Tjkbeluga]

3rd unit onwards is confirmed no levy. Thats because you are no longer able to buy a 3rd unit at subsidized rate anyway. Likewise, if you sell your 1st unit bought at subsidized rate and buy 2nd unit from open market, you'll not be subjected to pay this levy.

Edited September 26, 2008 by Tjkbeluga

[Napoot]

My fren bought his EA for $306,000 with 30 years loan repayment of $248,000 with 2.6% interest.

He is about to sell the house at $460,000.

He was caught dumbfounded when HDB officer told him of this 78% rule.

He suppose to pay 78% of the unconsumed interest of the outstanding loan. He thought he would have net near $200,000 gain.Now... its very very much lesser.

Anyone can advise on this.

 

Read lah... that's why ppl who dont read..blame who?

[Solar]

since we're at this topic on hdb flats... one noob question.

in a similar estate, one flat is 5yr old, and another just across 2 roads is 5 yrs (10yr) older. would their resale value be the same/similar?

my friend's argument is that the newer flat would fetch a higher price, just because its newer and nearer the mrt.

my argument, not much diff as the location age is very near (only 5yr diff).

 

your views?

[Tjkbeluga]

This one hard to say laa... this is open market, name a price and if got buyer want to buy, buy lor. But then it's true, those units just matured after 5th years generally has higher selling price. It's something I don't understand too. They tend to have the highest depreciation value. Anyway, if the location is good (near to amenities, good school, MRT, etc), it's still fetch a good price later on.

[Ultramega]

25% . Wa. very inconsistent leh.

I better dig out my hdb loan agreement and screen.

Best thing is the property duno about this or simply ignore to tell seller. If the agent keep customer in the dark , den its very unprofessional. Its a rule den should let the seller beware. KNN

 

Please la. everything also blame agent. ka ki don't know how to read ah? somemore it's HDB loan leh, not loan from agent. want to blame, blame HDB loan officer mah.