Angcheek Hypersonic May 9, 2019 Share May 9, 2019 (edited) This is a tremendous booster for old leasehold. how come benefit old flat ? The CPF part easy to understand . Property lease now needs to cover S’poreans until 95 for CPF withdrawal above Basic Retirement Sum https://mothership.sg/2019/05/property-lease-withdraw-cpf-95/?fbclid=IwAR04df16OTjQPdO0Igk2zZF69AYWompAyK_PY4B8TGZvA23JK9gYIejaY_A The CPF loan part : https://mothership.sg/2019/05/hdb-housing-loan-95-years/?fbclid=IwAR3PraKT3L_rJMkf8UuAuqEmW6dGvcFdJHHgLYIIGvR-A8FVhMNMXeA6bXQ How it will work But with the new rules, the criteria has changed. The updated HDB loan rules now focus on lease coverage for the buyer. The flat being bought needs to cover the age of the youngest buyer until the age of 95. Let’s say the buyer is 40 years old, then the flat needs to have a lease of 55 years. But if the buyer is purchasing the flat together with a 30-year-old partner, then the lease on the flat needs to have 65 years left. Once this criteria is met, the HDB loan of up to a LTV limit of 90 percent will be extended. A buyer can still get a HDB loan if he or she doesn’t meet the age requirement, although it will be pro-rated from 90 percent. But if the property has a lease of 20 years remaining or less, then you don’t get a loan at all. Edited May 9, 2019 by Angcheek ↡ Advertisement 3 Link to post Share on other sites More sharing options...
Angcheek Hypersonic May 9, 2019 Share May 9, 2019 (edited) I suppose it will prevent some people from using up all their CPF to buy an expensive but old HDB. He might be forced to move out of the HDB when the lease is up, and got no CPF left. Homeless, and penniless. Double whammy. i kind of see it the other way . First , they restrict you drawing off ur CPF at 55 even U have alot of money in it . So if U no property or HDB to cover u till 95, they will lock in the MS. The CPF loan . now Age+lease >=95. In other word , old couple say 50 wan to downgrade , u must buy flat with >45 lease. If you buy say 30 yr lease flat ( ie 50+30 =80 ...) , you can use pro rate CPF amt only + since u cant cover up to 95 , your CPF still kana lock in MS . basically stopping U to withdraw the excess out at 55 . What i see , this will restrict buyers to older flat ........ your suggestion is also possible , some crazy people will pay alot for a old flat . But I think not many will do that . In the past , some did that . Eg. Old parent sold their flat very high to their son . Old parent got alot of money in CPF or profit . They draw out and give to son etc ... Edited May 9, 2019 by Angcheek 10 Link to post Share on other sites More sharing options...
Tiger1 6th Gear May 9, 2019 Share May 9, 2019 Aiya. Solider come General block. Water come soil cover. An la an la. 1 Link to post Share on other sites More sharing options...
Evillusion Supersonic May 9, 2019 Share May 9, 2019 i kind of see it the other way . First , they restrict you drawing off ur CPF at 55 even U have alot of money in it . So if U no property or HDB to cover u till 95, they will lock in the MS. The CPF loan . now Age+lease >=95. In other word , old couple say 50 wan to downgrade , u must buy flat with >45 lease. If you buy say 30 yr lease flat ( ie 50+30 =80 ...) , you can use pro rate CPF amt only + since u cant cover up to 95 , your CPF still kana lock in MS . basically stopping U to withdraw the excess out at 55 . What i see , this will restrict buyers to older flat ........ your suggestion is also possible , some crazy people will pay alot for a old flat . But I think not many will do that . In the past , some did that . Eg. Old parent sold their flat very high to their son . Old parent got alot of money in CPF or profit . They draw out and give to son etc ... dome buys older flat because they wanted to wait for en-bloc as this flats are usually in old, matured and highly sought after neighbourhood. But with the 99 yrs lease saga these older blocks have lost it shines thus the gov needs yo do something about it. But then again, not many would want to buy this old flats......they have become a liability since the lease have become shorter. In your example, if downgrade, assuming new smaller flat you are buying is cheaper than the flat you are selling, you should have more CPF than is required to buy ? It seems they only limit how much CPF you can use to buy flat < 45 lease, not say you cannot buy if it doesn't use up your CPF ? Parent sell to son at above market rate to withdraw son's CPF ... this loophole .. [laugh] Shh .. thats a crazy preposition.........the son will be deeply in debt with an older unit! Link to post Share on other sites More sharing options...
Tiger1 6th Gear May 9, 2019 Share May 9, 2019 dome buys older flat because they wanted to wait for en-bloc as this flats are usually in old, matured and highly sought after neighbourhood. But with the 99 yrs lease saga these older blocks have lost it shines thus the gov needs yo do something about it. But then again, not many would want to buy this old flats......they have become a liability since the lease have become shorter. thats a crazy preposition.........the son will be deeply in debt with an older unit! What crazy shit? This is not so crazy anymore if, you think of the father as the govt and the son as us then it all make sense right? Link to post Share on other sites More sharing options...
Kopites Supersonic May 9, 2019 Share May 9, 2019 example. a fully paid up hdb when reach 55 the lease left only 39. so can or cannot withdraw cpf at 55? Link to post Share on other sites More sharing options...
Angcheek Hypersonic May 9, 2019 Share May 9, 2019 In your example, if downgrade, assuming new smaller flat you are buying is cheaper than the flat you are selling, you should have more CPF than is required to buy ? It seems they only limit how much CPF you can use to buy flat < 45 lease, not say you cannot buy if it doesn't use up your CPF ? Parent sell to son at above market rate to withdraw son's CPF ... this loophole .. [laugh] Shh .. Im just thinking out loud ... hahaha The concern is not the buying but the selling ... Say by the time U downgrade ur flat left 40 yr lease. Who will buy ? maybe those over 55 will buy . Those in their 40s will buy flat with 55 - 50 yr lease flat , they wont buy ur 40 yr lease flat. At the end , old flat hard to sell. Those bought old flat , instead of new flat , will likely to kana from this change. e.g. those sell off their new BTO to get older flat .. Say those who bought 60 yr-lease-left flat in their 30s ... 10 / 20 yrs later , they will have difficulty in selling off. Limited buyer . Any couple better to buy 70 yr lease min i think . once the lease period drop to 50 or less , hard to sell. Another problem is , at 70 yr lease u likely pay more for it ......... 20 yr later , value will drop alot and only those in the 45s will buy your flat . end up buyer will cut price . So Flat now become depreciation asset ? hahaha I think the last batch of flat any one will buy maybe those 41 yr lease left with buyers at 54 yrs old. AFter that , even lesser buyer. 4 Link to post Share on other sites More sharing options...
Angcheek Hypersonic May 9, 2019 Share May 9, 2019 example. a fully paid up hdb when reach 55 the lease left only 39. so can or cannot withdraw cpf at 55? meaning u dont meet the 95 requirement ...... so they will lock up min sum . BSR . Left over u can withdraw ...... I think only . 2 Link to post Share on other sites More sharing options...
Angcheek Hypersonic May 9, 2019 Share May 9, 2019 (edited) dome buys older flat because they wanted to wait for en-bloc as this flats are usually in old, matured and highly sought after neighbourhood. But with the 99 yrs lease saga these older blocks have lost it shines thus the gov needs yo do something about it. But then again, not many would want to buy this old flats......they have become a liability since the lease have become shorter. thats a crazy preposition.........the son will be deeply in debt with an older unit! yes ... thats true ...... I heard many bought Mensionate bec they know these will be claim back by hdb. so call enbloc . but these mensionate are rather old ... about 40 yrs , left 59 years or less. Now owner jialiat ...... sell to who later ? The G very smelly one ..... I think they will let these flats depre until cheap cheap then buy over . No enbloc ... Edited May 9, 2019 by Angcheek 2 Link to post Share on other sites More sharing options...
Old-driver 5th Gear May 9, 2019 Share May 9, 2019 Why make it so complicated?? CPF is our money and yet wanna use it buy house still got so many restrictions? Hmm.... 3 Link to post Share on other sites More sharing options...
Tiger1 6th Gear May 9, 2019 Share May 9, 2019 Why make it so complicated?? CPF is our money and yet wanna use it buy house still got so many restrictions? Hmm.... It is not complicated at all. Just that many of us have difficulties understanding them. They, the creators, find it damn easy to understand. Link to post Share on other sites More sharing options...
Showster Twincharged May 9, 2019 Share May 9, 2019 Behind all the 95 years confusion is this basic idea: Previously can loan and use CPF up to the time the property is 30 years old. Now can still loan and use CPF until the property is 20 years old. Restrict here restrict there the main financing difference is this point only. The rest of the issues, the agents will sort it out to filter in the right buyers. 1 Link to post Share on other sites More sharing options...
Staff69 Hypersonic May 9, 2019 Share May 9, 2019 (edited) Kiss your cpf good bye Just want to lock in your cpf monies Edited May 9, 2019 by Staff69 4 Link to post Share on other sites More sharing options...
Kopites Supersonic May 9, 2019 Share May 9, 2019 meaning u dont meet the 95 requirement ...... so they will lock up min sum . BSR . Left over u can withdraw ...... I think only . this mean someone at 30yo now cannot assume ownership of a unit with left than 64 yr lease now. right? Link to post Share on other sites More sharing options...
Icedbs Turbocharged May 9, 2019 Share May 9, 2019 (edited) this mean someone at 30yo now cannot assume ownership of a unit with left than 64 yr lease now. right? Can, but unlike the past, you cannot use 100% cpf since the age + lease left is not equal to 95. Basically, with this new ruling, they encourage young buyers to buy newer flats and old people to buy old flats. Which means the old flats will lose some demand from younger crowd. Edited May 9, 2019 by Icedbs 3 Link to post Share on other sites More sharing options...
Angcheek Hypersonic May 9, 2019 Share May 9, 2019 this mean someone at 30yo now cannot assume ownership of a unit with left than 64 yr lease now. right? you can still buy ....... but u will face some complication . 1) CPF loan is pro rated ..... how much they will pro rate is unknown . That means , cannot take 90% loan from CPF . 2) bec u dont have a flat that covers u till 95 , so they will lock up BRS amt from ur cpf at 55 . if u totally no flat at 55 , they will lock up FRS at 55 ........ anything left , u can withdraw 1 1 Link to post Share on other sites More sharing options...
Angcheek Hypersonic May 9, 2019 Share May 9, 2019 Kiss your cpf good bye Just want to lock in your cpf monies why u so smart ......... 1 Link to post Share on other sites More sharing options...
Kopites Supersonic May 9, 2019 Share May 9, 2019 (edited) you can still buy ....... but u will face some complication . 1) CPF loan is pro rated ..... how much they will pro rate is unknown . That means , cannot take 90% loan from CPF . 2) bec u dont have a flat that covers u till 95 , so they will lock up BRS amt from ur cpf at 55 . if u totally no flat at 55 , they will lock up FRS at 55 ........ anything left , u can withdraw I don't mean buying but if someone continue to live in a flat at 55yo with the lease add up left than 95 than he/she withdraw the cpf? if cant withdraw cpf than can he/she withdraw ownership from that unit but staying as tenant. can withdraw cpf? Can, but unlike the past, you cannot use 100% cpf since the age + lease left is not equal to 95. Basically, with this new ruling, they encourage young buyers to buy newer flats and old people to buy old flats. Which means the old flats will lose some demand from younger crowd. old people to buy old flat? old flat already there are many old people. Edited May 9, 2019 by Kopites ↡ Advertisement Link to post Share on other sites More sharing options...
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