Enye Hypersonic July 2, 2015 Share July 2, 2015 (edited) since we are on upgrade, i think i can post it here.. a buddy gives me an idea recently on how to cash out some money and upgrade, just want to get your thought on this idea.. pros and cons... i have a fully paid-up 4-rm flat, should be able to fetch around $430-$450 (used to be smelly smelly $500K+ 1.5 yr ago)... he suggested me to upgrade to a new 5-rm BTO (going as 2nd timer) if sell 4-rm at $430, $197K+$30K(interest)+$81.5K (half of profit) will go back into cpf, -40K(levy to gov for nation building). balance left $81.5K cash roll out from this deal. (total proceed of 308.5K goes back into cpf OA account) Then, buy a new BTO 5-rm flat at $400k. take $20K from the cash profited as DP, then the rest from CPF can clear, no loan necessary). now, i have a new 5-rm BTO and 61.5K cash on hand for new car DP.. hehe... the down side is my OA amount drop by 71.5K (use to fully pay up the new flat) and have to start accumulating again.... those who has done this before, what is the pros and cons, can share?.. why must 81.5k half of profit to go back to cpf? isn't it only loan amount + accrued interest needed? have you factored in agent commissions, stamp duties and legal fees(need cash?) and reno etc when determining your cash balance Edited July 2, 2015 by Enye ↡ Advertisement Link to post Share on other sites More sharing options...
Blackyv Turbocharged July 2, 2015 Share July 2, 2015 i bet this new bto location is less convenience compare to your current place right? that is the trade off. bingo..one of the cons... Link to post Share on other sites More sharing options...
Coltplussport Turbocharged July 2, 2015 Share July 2, 2015 since we are on upgrade, i think i can post it here.. a buddy gives me an idea recently on how to cash out some money and upgrade, just want to get your thought on this idea.. pros and cons... i have a fully paid-up 4-rm flat, should be able to fetch around $430-$450 (used to be smelly smelly $500K+ 1.5 yr ago)... he suggested me to upgrade to a new 5-rm BTO (going as 2nd timer) if sell 4-rm at $430, $197K+$30K(interest)+$81.5K (half of profit) will go back into cpf, -40K(levy to gov for nation building). balance left $81.5K cash roll out from this deal. (total proceed of 308.5K goes back into cpf OA account) Then, buy a new BTO 5-rm flat at $400k. take $20K from the cash profited as DP, then the rest from CPF can clear, no loan necessary). now, i have a new 5-rm BTO and 61.5K cash on hand for new car DP.. hehe... the down side is my OA amount drop by 71.5K (use to fully pay up the new flat) and have to start accumulating again.... those who has done this before, what is the pros and cons, can share?.. Don't put any cash into your new home, use them to pay more down payment on your new car better. Link to post Share on other sites More sharing options...
Blackyv Turbocharged July 2, 2015 Share July 2, 2015 why must 81.5k half of profit to go back to cpf? isn't it only loan amount + accrued interest needed? have you factored in agent commissions, stamp duties and legal fees(need cash?) and reno etc when determining your cash balance dont know leh... this buddy said one... maybe i should google for more detail ont hat 50% profit back into cpf rule a true or false.... agent commission, stamp duties , etc few k's.. yeah.. maybe the reno and new furniture might cost a few 10's of K... i dont like fancy reno, only simple basic type will do.. .. ok, use 30K for that and left around 30K cash lor... Link to post Share on other sites More sharing options...
Airwaver 4th Gear July 2, 2015 Share July 2, 2015 since we are on upgrade, i think i can post it here.. a buddy gives me an idea recently on how to cash out some money and upgrade, just want to get your thought on this idea.. pros and cons... i have a fully paid-up 4-rm flat, should be able to fetch around $430-$450 (used to be smelly smelly $500K+ 1.5 yr ago)... he suggested me to upgrade to a new 5-rm BTO (going as 2nd timer) if sell 4-rm at $430, $197K+$30K(interest)+$81.5K (half of profit) will go back into cpf, -40K(levy to gov for nation building). balance left $81.5K cash roll out from this deal. (total proceed of 308.5K goes back into cpf OA account) Then, buy a new BTO 5-rm flat at $400k. take $20K from the cash profited as DP, then the rest from CPF can clear, no loan necessary). now, i have a new 5-rm BTO and 61.5K cash on hand for new car DP.. hehe... the down side is my OA amount drop by 71.5K (use to fully pay up the new flat) and have to start accumulating again.... those who has done this before, what is the pros and cons, can share?.. You havn't count renovation leh? Lets say 40k for reno, you are left wil 21.5k, not enough DP for a new car. LOL BTW the 81.5k (Half of Profit) must go back CPF? Is there a ruling for this? Link to post Share on other sites More sharing options...
Blackyv Turbocharged July 2, 2015 Share July 2, 2015 Don't put any cash into your new home, use them to pay more down payment on your new car better. actually, i might be able to pay full cash if coe drop some more ...... good if i could upgrade to fully paid up 5-rm and fully paid up new car.... wow... Link to post Share on other sites More sharing options...
Passat57 3rd Gear July 2, 2015 Share July 2, 2015 since we are on upgrade, i think i can post it here.. a buddy gives me an idea recently on how to cash out some money and upgrade, just want to get your thought on this idea.. pros and cons... i have a fully paid-up 4-rm flat, should be able to fetch around $430-$450 (used to be smelly smelly $500K+ 1.5 yr ago)... he suggested me to upgrade to a new 5-rm BTO (going as 2nd timer) if sell 4-rm at $430, $197K+$30K(interest)+$81.5K (half of profit) will go back into cpf, -40K(levy to gov for nation building). balance left $81.5K cash roll out from this deal. (total proceed of 308.5K goes back into cpf OA account) Then, buy a new BTO 5-rm flat at $400k. take $20K from the cash profited as DP, then the rest from CPF can clear, no loan necessary). now, i have a new 5-rm BTO and 61.5K cash on hand for new car DP.. hehe... the down side is my OA amount drop by 71.5K (use to fully pay up the new flat) and have to start accumulating again.... those who has done this before, what is the pros and cons, can share?.. After selling your current 4 room flat, where do you stay? Link to post Share on other sites More sharing options...
Jman888 Moderator July 2, 2015 Share July 2, 2015 After selling your current 4 room flat, where do you stay? he is getting the bto mah, sell after he move into the new flat. Link to post Share on other sites More sharing options...
Passat57 3rd Gear July 2, 2015 Share July 2, 2015 he is getting the bto mah, sell after he move into the new flat. BTO flats need to wait for years and also need to renovate. Link to post Share on other sites More sharing options...
Kangadrool Supersonic July 2, 2015 Share July 2, 2015 you must pray very hard that your new BTO does not have the features similar to Changirila Resort. 1 Link to post Share on other sites More sharing options...
Jman888 Moderator July 2, 2015 Share July 2, 2015 BTO flats need to wait for years and also need to renovate. he has enough cpf to cover the 20% down, they allow you 6 months to sell off your old flat upon taking the key. Link to post Share on other sites More sharing options...
Enye Hypersonic July 2, 2015 Share July 2, 2015 actually, i might be able to pay full cash if coe drop some more ...... good if i could upgrade to fully paid up 5-rm and fully paid up new car.... wow... 5 room bigger than your 4 room or not? later T2 will come in to pay his respects to you again for no debt btw this thread is upgrade to EC but you post about upgrade to bigger hdb flat Link to post Share on other sites More sharing options...
Airwaver 4th Gear July 2, 2015 Share July 2, 2015 Don't think it's worth the hassle if his intention is to make $ out of his current unit, unless the cash back is more than 150k. 1 Link to post Share on other sites More sharing options...
Coltplussport Turbocharged July 2, 2015 Share July 2, 2015 actually, i might be able to pay full cash if coe drop some more ...... good if i could upgrade to fully paid up 5-rm and fully paid up new car.... wow... After that can start your Rolex collections! Link to post Share on other sites More sharing options...
Passat57 3rd Gear July 2, 2015 Share July 2, 2015 he has enough cpf to cover the 20% down, they allow you 6 months to sell off your old flat upon taking the key. In 4 years' time, we don't know what is the selling price of his current 4 room flat. Link to post Share on other sites More sharing options...
Kangadrool Supersonic July 2, 2015 Share July 2, 2015 if it's not up, it's down. In 4 years' time, we don't know what is the selling price of his current 4 room flat. 2 Link to post Share on other sites More sharing options...
Enye Hypersonic July 2, 2015 Share July 2, 2015 In 4 years' time, we don't know what is the selling price of his current 4 room flat. his OA bah bah....can absorb any unexpected decrease Link to post Share on other sites More sharing options...
Blackyv Turbocharged July 2, 2015 Share July 2, 2015 5 room bigger than your 4 room or not? later T2 will come in to pay his respects to you again for no debt btw this thread is upgrade to EC but you post about upgrade to bigger hdb flat hehehe... still upgrade mah... from 93sqm to 110sqm not too shabby hor.... Don't think it's worth the hassle if his intention is to make $ out of his current unit, unless the cash back is more than 150k. actually, after checking, the cash is more than 160K , no need to put 50% profit into cpf unless i take up 2nd time HDB loan, something like that... the idea is not so much about cash out but more like utilize the 2nd timer to upgrade from 4-rm to 5rm for "free"..... ↡ Advertisement Link to post Share on other sites More sharing options...
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