HDB loan...can anyone explain.

[Songsong]

Still staying in my HDB for now but looking at geylang area for second property. My wife and i like east area Since katong too ex geylang is second best for us.

Some where between lor 28-32

[Ilovemoney]

No! My paper gain will be more than 200k! But for those buying now sound like getting a bad deal from the gov!

 

So does that mean you voted for MIW? anyway I envy you, where to find such good deals nowadays.

[Jim]

i got my hdb 11 yrs ago. in the first two years i paid about 600+/pm in installment. Then i soon realise i am only paying half of the principle the rest goes to interest, like $300 goes to interest per month. So me and wife made decision to pay $1800 pm. now i loan free and loooking to buy second property.

The HDB is a real asset ow since the rental of $2400 will help finance my second property.

 

I always believe not to owe $$ if possible.

 

You know that's illegal right, renting your HDB out while you stay in a private property?

 

Also, if the money stayed in CPF, and you borrowed using HDB's subsidised loan rates, your net interest cost per month is really just 0.1%... in fact you could even lose money if some of your OA money qualifies for extra 1% interest.

[Cyborg007]

You calculation is based on car loan or rule 78 calculation which is not correct.

 

If you took a loan of 300k from HDB at 2.6% over 30 years,

 

The total interest = $ 132,367.

 

Total Payment (Loan Amount + Total Interest) = $ 432,367

 

Total Payment Spent on Interest : 31%

 

Monthly installment = $1201

 

The interest per annual is reducing when you are paying off the loan amount / principal amount. It's not fixed at $7800 yearly

 

I cannot agree with this. Even though the calculation is based on the depreciating principle amount every year, did we borrow the loan 1 time or 30 times? Cos' to me the total amount from the interest works our pretty high for what the gov claimed is affordable for its citizens.

 

Even the new HDB prices are ridculous. HDB peg their sell price to the market while the market also peg their price against the new launches...which makes even the new HDB flats out of reach for many in the low income or newly weds...why? Even the rising costs of building materials would not have costed the new HDB flats to have appreciated to such levels.

 

Furthermore, we are not even owners...just "leasee" status. This ,to me, is not public housing.

Edited June 5, 2012 by Cyborg007

[Cyborg007]

You know that's illegal right, renting your HDB out while you stay in a private property?

 

Also, if the money stayed in CPF, and you borrowed using HDB's subsidised loan rates, your net interest cost per month is really just 0.1%... in fact you could even lose money if some of your OA money qualifies for extra 1% interest.

 

FYI, If owner has stayed the 5 years (used to be only 3 years) Minimum Occupation Period, then it is legal to purchase a 2nd private property and rent out their HDB.

[Deckbuild]

Age gap very far due to some unfirtunate incidents! But i oso prefer it this way!

Was never told of the IP factor when i signed the agreement, they just state monthly payment is 478. Maybe thats y some pple get into trouble thinking they can cover the monthly instalments but fail to check on the IP monthly payment. And i am sure the amount will snowballed!

 

Correct me if I'm wrong, isn't the IP factor the compound interest which is calculated by

 

2.6% / 12 mths = 0.2167% per mth interest

 

0.2167% per mth interest X balance loan amount = IP 2.6 (appear in your HDB statement)

 

I loan around 400k, by end of 30 yrs, the total I pay will be $591840, exclude COV and downpayment...

[Bencts]

I cannot agree with this. Even though the calculation is based on the depreciating principle amount every year, did we borrow the loan 1 time or 30 times? Cos' to me the total amount from the interest works our pretty high for what the gov claimed is affordable for its citizens.

 

Even the new HDB prices are ridculous. HDB peg their sell price to the market while the market also peg their price against the new launches...which makes even the new HDB flats out of reach for many in the low income or newly weds...why? Even the rising costs of building materials would not have costed the new HDB flats to have appreciated to such levels.

 

Furthermore, we are not even owners...just "leasee" status. This ,to me, is not public housing.

 

You are confused with the interest rate. The loan is set upon a specific interest rate in PER ANNUM basis, not per tenure.

 

 

[Royho1979]

i got my hdb 11 yrs ago. in the first two years i paid about 600+/pm in installment. Then i soon realise i am only paying half of the principle the rest goes to interest, like $300 goes to interest per month. So me and wife made decision to pay $1800 pm. now i loan free and loooking to buy second property.

The HDB is a real asset ow since the rental of $2400 will help finance my second property.

 

I always believe not to owe $$$ if possible.

 

Another way is to collect left-over OA and make lump sum payments.... My 5room flat bought in 2006 should be done in 4-5 years time.

[Royho1979]

FYI, If owner has stayed the 5 years (used to be only 3 years) Minimum Occupation Period, then it is legal to purchase a 2nd private property and rent out their HDB.

 

I think the rule also said you have to finish paying for the loan too. I cold be wrong though.

[Unltd]

I think the rule also said you have to finish paying for the loan too. I cold be wrong though.

 

Nope you don't have to finish off the loan before renting out your property after the MOP.

[Joseph22]

You know that's illegal right, renting your HDB out while you stay in a private property?

 

Also, if the money stayed in CPF, and you borrowed using HDB's subsidised loan rates, your net interest cost per month is really just 0.1%... in fact you could even lose money if some of your OA money qualifies for extra 1% interest.

it is not illegal if you had fulfil the mimum requirement and apply to loan out the flat with HDB.

[Joseph22]

I think the rule also said you have to finish paying for the loan too. I cold be wrong though.

You are wrong. dont need to finish paying the loan. just live there for 5 years can liao.

[Jim]

FYI, If owner has stayed the 5 years (used to be only 3 years) Minimum Occupation Period, then it is legal to purchase a 2nd private property and rent out their HDB.

 

Hmm...you're right...used to be flat out illegal, but now it is subject to approval.

 

 

http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/...es?OpenDocument

Subletting the HDB Flat Flat owner(s) and their families must continue to stay in their HDB flats after buying private residential properties. However, exception is made for those who have obtained prior approval from HDB to sublet their flats under the Subletting of Flat policy.

[Evillusion]

Correct me if I'm wrong, isn't the IP factor the compound interest which is calculated by

 

2.6% / 12 mths = 0.2167% per mth interest

 

0.2167% per mth interest X balance loan amount = IP 2.6 (appear in your HDB statement)

 

I loan around 400k, by end of 30 yrs, the total I pay will be $591840, exclude COV and downpayment...

bro i really donno!

I took a loan donkey yrs ago and have been paying such!

Unit price =$137500

D/P =$34 000

Loan amount =$103 000

Monthly (25 yrs) =$478

IP =$90 (previously was 100++)

 

So my total monthly installment for 25 yrs will be $143 400

And i have been paying IP of average $90 for 25 yrs=$27000

So beside the accumulated interest of $143 000-$103000=$40 000

I still need to pay $27000 of IP.

And one MIW says its cheap....1000 salary can buy 3 room flat but the loan repayment will be siao liao

 

[Fishy]

FYI, If owner has stayed the 5 years (used to be only 3 years) Minimum Occupation Period, then it is legal to purchase a 2nd private property and rent out their HDB.

 

In addition to this, an agent told me I need to have 60k combined in OA and SA before purchasing the 2nd private property, is this true?

[Evillusion]

Hmm...you're right...used to be flat out illegal, but now it is subject to approval.

 

 

http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/...es?OpenDocument

Subletting the HDB Flat Flat owner(s) and their families must continue to stay in their HDB flats after buying private residential properties. However, exception is made for those who have obtained prior approval from HDB to sublet their flats under the Subletting of Flat policy.

once approve standby to pay tax twice a year! :angry: :angry: my friend kana...not me!

[Joseph22]

once approve standby to pay tax twice a year! :angry: :angry: my friend kana...not me!

your friend got it wrong liao.

 

do note, if we are staying in a property, the Property will be taxed at 4%. but loan out, it will be taxed at 10%.

 

so on first approval, say in June, they will send you the letter to collect the 6% for remainder of the year starting from when you loan out the flat.

 

when your tenure ended and you decide to cancel and move back to the house, say in June next year, they will re-imburse you back the amount from time you stay back in.

 

nothing to get angry, it is a benefit that is given to those staying in the property to pay lesser tax, but if you loan out, you pay more tax.

[Deckbuild]

bro i really donno!

I took a loan donkey yrs ago and have been paying such!

Unit price =$137500

D/P =$34 000

Loan amount =$103 000

Monthly (25 yrs) =$478

IP =$90 (previously was 100++)

 

So my total monthly installment for 25 yrs will be $143 400

And i have been paying IP of average $90 for 25 yrs=$27000

So beside the accumulated interest of $143 000-$103000=$40 000

I still need to pay $27000 of IP.

And one MIW says its cheap....1000 salary can buy 3 room flat but the loan repayment will be siao liao

 

Bro, I think if you add all the IP from donkey years ago, it will total up to around 40k, the IP that you have been paying is included into the total monthly installment, you will not be forking out additional $27,000 for IP.