Ec_2008 1st Gear November 26, 2014 Share November 26, 2014 Hi all, Would like to ask some questions regarding whether to apply for Bulid to order or Sale of balance flat. 1. Currently have a 5 room flat in woodlands. I am the sole owner. Taking bank loan. Left 11 yrs and $68K. 2. As a 2nd time applicant for HDB flat. Which one have a higher successful rate to get a new flat? Bulid to order or Sale of balance flat? 3. Also as a 2nd time applicant to apply for HDB flat. There will be a levy of $45K impose by HDB if i change new flat. Can i pay back HDB this $45K only after i sold away my old flat? 4. Let's say i am sucessful to get a flat, i need to pay 10% down payment and 1% to 3% of stamp fee and legal fee within 3 months after sucessful application. Can i do another mortage loan from bank using my current flat to get cash to pay for the down payment? Although i still own bank $68K. Can any property agent or guru or expert help? Thank you! ↡ Advertisement Link to post Share on other sites More sharing options...
ShepherdPie 5th Gear November 26, 2014 Share November 26, 2014 errr.. are you applying as a single ? in any case, do check your hle first. Link to post Share on other sites More sharing options...
Ec_2008 1st Gear November 26, 2014 Author Share November 26, 2014 errr.. are you applying as a single ? in any case, do check your hle first. Current flat as a sole owner as i am not married then. But this time i am applying together with my wife. What's HLE? Is it housing loan eligibility? Link to post Share on other sites More sharing options...
Darryn Turbocharged November 26, 2014 Share November 26, 2014 The very first question I would be asking myself - WHY do you want to change? Is there anything wrong with your current flat? With a 5 roomer with only $68k left on mortgage why go looking for something new? An alternative MIGHT be to "sell" half shares in the flat to wifey to use her CPF to wipe out mortgage and then see what the two of you can do together to buy a Condo for rental (the market is dropping right now, so maybe prepare yourselves and start looking first) Link to post Share on other sites More sharing options...
ShepherdPie 5th Gear November 26, 2014 Share November 26, 2014 i agree with Darryn. With the current uncertain on flat prices, i would rather sell and buy resale immediate then to wait 5 yrs then and later kena force sale. Link to post Share on other sites More sharing options...
Dafansu Turbocharged November 26, 2014 Share November 26, 2014 Hi all, Would like to ask some questions regarding whether to apply for Bulid to order or Sale of balance flat. 1. Currently have a 5 room flat in woodlands. I am the sole owner. Taking bank loan. Left 11 yrs and $68K. 2. As a 2nd time applicant for HDB flat. Which one have a higher successful rate to get a new flat? Bulid to order or Sale of balance flat? 3. Also as a 2nd time applicant to apply for HDB flat. There will be a levy of $45K impose by HDB if i change new flat. Can i pay back HDB this $45K only after i sold away my old flat? 4. Let's say i am sucessful to get a flat, i need to pay 10% down payment and 1% to 3% of stamp fee and legal fee within 3 months after sucessful application. Can i do another mortage loan from bank using my current flat to get cash to pay for the down payment? Although i still own bank $68K. Can any property agent or guru or expert help? Thank you! 2. In my opinion successful rate for sales of balance flat will always be much lower than BTO. Reason is applicants rate is always high and many people will want a flat that will complete earlier. These are leftover flats and the number of good units might not be many. 3. The resale levy payable is determined at the point of booking your second subsidised flat. You can pay the resale levy immediately at the point of resale, i.e. when selling your subsidised flat or defer the payment until you buy another flat from HDB. If you come under the previous resale levy policy and opt for this, an interest at the prevailing rate of 5% per annum will be charged. 4. you need to pay 10% of the purchase price of the flat as downpayment if you are taking a housing loan from the HDB or not taking any loan. You can use your CPF savings to make the downpayment. If your CPF savings are not enough, you will have to pay the balance in cash. For stamp duty you can pay using cpf or cash you might want to read about contra http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyingNewFlatContraFacility?OpenDocument Link to post Share on other sites More sharing options...
Myxilplix Turbocharged November 26, 2014 Share November 26, 2014 Already got flat and relatively small mortgage remaining, why want to change? Link to post Share on other sites More sharing options...
Joseph22 Turbocharged November 26, 2014 Share November 26, 2014 Hi all, Would like to ask some questions regarding whether to apply for Bulid to order or Sale of balance flat. 1. Currently have a 5 room flat in woodlands. I am the sole owner. Taking bank loan. Left 11 yrs and $68K. 2. As a 2nd time applicant for HDB flat. Which one have a higher successful rate to get a new flat? Bulid to order or Sale of balance flat? 3. Also as a 2nd time applicant to apply for HDB flat. There will be a levy of $45K impose by HDB if i change new flat. Can i pay back HDB this $45K only after i sold away my old flat? 4. Let's say i am sucessful to get a flat, i need to pay 10% down payment and 1% to 3% of stamp fee and legal fee within 3 months after sucessful application. Can i do another mortage loan from bank using my current flat to get cash to pay for the down payment? Although i still own bank $68K. Can any property agent or guru or expert help? Thank you! Www.hdb.gov.sg Link to post Share on other sites More sharing options...
Ec_2008 1st Gear November 26, 2014 Author Share November 26, 2014 The very first question I would be asking myself - WHY do you want to change? Is there anything wrong with your current flat? With a 5 roomer with only $68k left on mortgage why go looking for something new? An alternative MIGHT be to "sell" half shares in the flat to wifey to use her CPF to wipe out mortgage and then see what the two of you can do together to buy a Condo for rental (the market is dropping right now, so maybe prepare yourselves and start looking first) That's nothing wrong with my flat. Minor reason- me and my wife wanna change new enviroment. 1. The main reason is to get some cashout from the sale of my 5 room flat as i am going to downgrade to new 4 room flat. Then wait for 5 yrs, we can buy private property for rental. This money keep for condo down payment. 2. Wife just became PR. About to start work next month. So no CPF yet. But with her starting to work next month, we can apply together and use both our CPF to pay for our new 4 room flat. Than hope can get some precentage of HDB loan for the new flat. Link to post Share on other sites More sharing options...
Darryn Turbocharged November 26, 2014 Share November 26, 2014 (edited) That's nothing wrong with my flat. Minor reason- me and my wife wanna change new enviroment. 1. The main reason is to get some cashout from the sale of my 5 room flat as i am going to downgrade to new 4 room flat. Then wait for 5 yrs, we can buy private property for rental. This money keep for condo down payment. 2. Wife just became PR. About to start work next month. So no CPF yet. But with her starting to work next month, we can apply together and use both our CPF to pay for our new 4 room flat. Than hope can get some precentage of HDB loan for the new flat. It's really not my place to be giving you advice, and it is probably worth about as much as you are paying for it.... BUT (nothing counts before the but) I would not be downgrading if I were in your situation. Why go from a five room to a four room? Later got kids, got inlaws, that extra space is going to a huge difference... and when the kids are starting to play, do homework etc it also makes a big difference We currently have a five room - I couldn't imagine living in a four room WITH FAMILY - we often host 10-15 pax for festival lunch etc etc, that extra space makes a really big difference. A $68k mortgage is virtually nothing... Yeah, take the cash from the downgrade etc etc - but in a falling market? BTO is probably "trailing" the fall, won't be ready for 3 years and you are paying price of today BTO, but HAVE to sell your five roomer at 3 year later price - where will the price be then? Who really knows, all we now right now is that price is falling. That leaves "balance of flats" - this is really a "crap shoot" IMHO - if you find something you like, at a suitable price, then maybe worth it. But again - I personally wouldn't be downgrading if I were you. If REALLY REALLY want a change of environment - have you considered renovating? A "clean sweep" through the house with new paint, some new decor might be just what the doctor ordered? Edited November 26, 2014 by Darryn 2 Link to post Share on other sites More sharing options...
Jman888 Moderator November 26, 2014 Share November 26, 2014 A $68k mortgage is virtually nothing... how can you say that!! that could be 25% of a new flat. balance flat give priority to first time applicant family with kids. Link to post Share on other sites More sharing options...
Darryn Turbocharged November 26, 2014 Share November 26, 2014 how can you say that!! that could be 25% of a new flat. balance flat give priority to first time applicant family with kids. Hee... 68k at 2.5% over 25 years is $300 per month in repayments.... DBS don't even offer a mortgage that low..... (their minimum is $80k) Link to post Share on other sites More sharing options...
RadX Moderator November 26, 2014 Share November 26, 2014 another thread here http://www.mycarforum.com/topic/2669371-hdb-bto-and-sale-of-balance-flat/?hl=balance Link to post Share on other sites More sharing options...
Ec_2008 1st Gear November 26, 2014 Author Share November 26, 2014 2. In my opinion successful rate for sales of balance flat will always be much lower than BTO. Reason is applicants rate is always high and many people will want a flat that will complete earlier. These are leftover flats and the number of good units might not be many. 3. The resale levy payable is determined at the point of booking your second subsidised flat. You can pay the resale levy immediately at the point of resale, i.e. when selling your subsidised flat or defer the payment until you buy another flat from HDB. If you come under the previous resale levy policy and opt for this, an interest at the prevailing rate of 5% per annum will be charged. 4. you need to pay 10% of the purchase price of the flat as downpayment if you are taking a housing loan from the HDB or not taking any loan. You can use your CPF savings to make the downpayment. If your CPF savings are not enough, you will have to pay the balance in cash. For stamp duty you can pay using cpf or cash you might want to read about contra http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyingNewFlatContraFacility?OpenDocument Thnaks for the advice in point 2 and 3. But as of point 4, i don't have so much cash on hand to pay the 10% down payment. My cpf ordinary account also $0 due to i using it to pay for my current loan every month. Wife going to start work next month. So also no CPF to pay for the down payment. Therefore i am asking can i do another mortage loan from bank or HDB using my current flat although i still have an outstanding loan of $68K. Thanks Link to post Share on other sites More sharing options...
Darryn Turbocharged November 26, 2014 Share November 26, 2014 Thnaks for the advice in point 2 and 3. But as of point 4, i don't have so much cash on hand to pay the 10% down payment. My cpf ordinary account also $0 due to i using it to pay for my current loan every month. Wife going to start work next month. So also no CPF to pay for the down payment. Therefore i am asking can i do another mortage loan from bank or HDB using my current flat although i still have an outstanding loan of $68K. Thanks Note - Wifey NEW PR, that means for year 1 her CPF contribution very low, (maybe 4-5%) year two I think around 10%, year 3 12%, only year four does she get full amount (I can't remember exactly, but it is graduated - go and check) $0 in Ordinary + no savings? Bear in mind that for BTO you will have to make progressive payments as well as servicing your current loan....SOME of these payments will have to be made before you can sell your current flat... Link to post Share on other sites More sharing options...
Hussaini20 3rd Gear November 26, 2014 Share November 26, 2014 Thnaks for the advice in point 2 and 3. But as of point 4, i don't have so much cash on hand to pay the 10% down payment. My cpf ordinary account also $0 due to i using it to pay for my current loan every month. Wife going to start work next month. So also no CPF to pay for the down payment. Therefore i am asking can i do another mortage loan from bank or HDB using my current flat although i still have an outstanding loan of $68K. Thanks Bro, My advice.. Don't sell. stay put. finish your mortgage. 68k is not a big number to settle. resale market now very unpredictable albeit low priced.. one month of sale period now got diff of at least 25k.. same area some more.. do check out hdb for median price transacted.. Furthermore, since your cpf is zero, try to see out the mortgage.. at least you have a small sum of money.. woodlands 5rm min sale price is 430k. I'm not sure where you might be going next but to downgrade to a 4rm, you have to deduct 45k from that 430k.. then deduct another 65k for the old mortgage. you're left with 320k.. You would have only 320k to play around with. if you plan to pay full for your new house (bto or sobf) its ok. you would probably have some money in the pocket after simple reno. Resale you can't do so.. still need top up.. very dangerous if you dont have cpf to back you up.. or extra savings for the matter.. My calculations may not be accurate but the idea is there.. the idea of cashing out is not feasible imho.. wait it out.. have a bit of savings in your cpf. garmen give you phantom money, might as well use it.. Link to post Share on other sites More sharing options...
Ec_2008 1st Gear November 26, 2014 Author Share November 26, 2014 Bro, My advice.. Don't sell. stay put. finish your mortgage. 68k is not a big number to settle. resale market now very unpredictable albeit low priced.. one month of sale period now got diff of at least 25k.. same area some more.. do check out hdb for median price transacted.. Furthermore, since your cpf is zero, try to see out the mortgage.. at least you have a small sum of money.. woodlands 5rm min sale price is 430k. I'm not sure where you might be going next but to downgrade to a 4rm, you have to deduct 45k from that 430k.. then deduct another 65k for the old mortgage. you're left with 320k.. You would have only 320k to play around with. if you plan to pay full for your new house (bto or sobf) its ok. you would probably have some money in the pocket after simple reno. Resale you can't do so.. still need top up.. very dangerous if you dont have cpf to back you up.. or extra savings for the matter.. My calculations may not be accurate but the idea is there.. the idea of cashing out is not feasible imho.. wait it out.. have a bit of savings in your cpf. garmen give you phantom money, might as well use it.. Hi, You have calculated correct. I only have 320K to play around if i got new flat after paying my outstanding loan from bank and the resale levy. Most of the selling price of new 4 room is around $250K to $300K according to HDB website Therefore hope that i can get a HDB loan of $200K whereby me and my wife will use our CPF to pay. Hope that we can have $200K hard cash on hand, than wait for 5 yrs before we went to get a condo. We can than use this $200K for the condo down payment and renovation. Thanks Link to post Share on other sites More sharing options...
Jman888 Moderator November 26, 2014 Share November 26, 2014 why everyone must buy condo for second property? ↡ Advertisement Link to post Share on other sites More sharing options...
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