Questions & Advises
Hi, on this page, I would like to share with everyone the common Questions & Advises I had come across since joining this trade way back in end 2010.
Hope the scenario you have in mind appears here and the advises work well with you. Otherwise, I would be pleased to hear you out and see what I can offer as an advise.
Q1: Can I own a HDB and buy a Private Condominium later on?
Advise: Yes you can, provided certain criterias have been met, such as:
You must have met your Minimum Occupation Period (MOP) of 5 years before you are allowed to purchase a Private unit. This means you have to physically stay in this unit for 5 years. If at any point in time you have rented the whole unit out for a period of X year, this X year would not be taken into consideration of 5 years MOP. Room rental however, does not apply.
Do take only SCs are allowed to concurrently own a HDB & a private property. PRs are not allowed to own a HDB & a Private property. A PR has to sell his/her HDB within 6 months of acquiring the private property.
You must set aside the Minimum Sum of $83,000 in your CPF (OA & Special Account can be used to meet this sum)
Q2: Do I have to pay stamp duties when I purchase the private property as my 2nd property?
Advise: Yes, you need to pay 2 stamp duties, namely:
For SC:
3% - Stamp Duty (SD) (deduction of $5400 is a formula)
7% - Additional Buyer's Stamp Duty (ABSD)
Eg. Purchase Price of Private property = $1,000,000
3% SD = $24,600 ($1M x 3% - $5400)
7% ABSD = $70,000 ($1M x 7%)
Q3: How much loan can I apply for, for my 2nd property?
Advise: Under the current banking regulation, if you still have outstanding loan from your first property, you can only borrow up to 50% of the purchase price or market valuation (whichever is lower) of your second property, provided the loan tenure does not exceed 30 years and that the sum of loan tenure and age of borrower at the time of applying does not extend beyond retirement age of 65 years.
Do also note that you need to pay the first 25% STRICTLY BY CASH, while the balance 25% can be paid by cash or CPF.
Eg. You need to pay a minimum upfront cash $250,000 for a property purchased $1M.
Take note, you can only use your CPF to make payment after you have set aside $83,000, which is half of the prevailing CPF minimum sum in your CPF OA & SA (the other half can be in the form of a pledge from a property purchased with CPF savings).
IF YOU DO NOT HAVE ANY OUTSTANDING MORTAGE LOAN, THAN YOU CAN LOAN UP TO 80%!!!
(subject to bank's assessment)
