bepgof

The 120% rule applies for 1st & 2nd property, but when buy 2nd property, (OA+SA)must keep at a balance of 117k. Believed many bank loan takers do not really aware a risk that one day their accumulated instalment payment(by cpf) reachs 120% of valuation price of their property, and eventually receiving bank letter ask them to pay the instalment by CASH, though their OA still have million dollar. This is especially true with "high" loan tenure, say 30 years. Example as follow: 1. Property price=520K 2. Valuation = 500k 3. COV=20k 4. Maximum allowable amount to use in OA to pay for this pty=500k x120%=600k 5. 5% paid in CASH (inc deposit + OTP fee) = 500k x 5% = 25k 6. COV paid by CASH 7. Bankloan amount = 500k x80% = 400K 7-1. Stamp duty = 500k x 3% -5,400=$9,600 (cpf) 8. So, OA has been used up to pay at this point = (20%-5%)x500k +9600=$84,600 8-1. You are therefore allowed to use only =600k-84600=$515,400 to pay the remaining! Say: 8. Loan tenure =30 year = 360 mnthly instalments 9. Intestest=3%, presumed un-variable thoughtout 360 mnthly instalment 10. Monthly payment = $1686.42 = $1,000(interest) + $686.42 (payment toward principal) 11. 3 years will pay = $60,711.12. 12. 30 years will pay = $607,111.2, See 8-1, u are allowed to use only $515,400, the balance of 607.1112k-515,400=91,711.2 has to be settle by CASH! though you have a million in your OA. 13. You will receive bank letter at 360-55 = 305 instalments, ask u to pay remaining monthly instalment in CASH! 14. If interest rate increase? Will get bank's letter faster! 15. Advice: cut tenure period as short as possible to cut down interest! Did I miss out anything?

Anyone know is it there a a minimum sum that we must set aside for our cpf acct for resale flat if we are using cpf to repay our hdb loan. I heard that cpf board will only allow us to withdraw cpf from our acct at lower of valuation price or purchase price. If we din have the minimum sum set aside inside our ordinary + special acct, we are unable to use cpf to repay our loan anymore. Anyone encounter that? 1st property: OA amount can be activated = 120% of valuation price. Example: Valuation =$500K COV=$10K (CASH) Stamp duty = ($500K x 0.03)-5400 =$9,600 (can use cpf to pay) 5% cash (hdb), inclusive of $5,000 as deposit & OTP payment. 2nd property: - Presently you must keep minimum sum(OA+SA)=$117,000 in these accounts, any amount in excess can be used to purchase Pty(only OA can be activated) - Start from 2013 July, this amount will be raised to $134,000 5% cash + 15% cpf(for Private)

Wow bepgof, your valuation is really high for a 5 rm! I actually want to get an EA unit at bdk north ave 4 too...but the price there abit high..... At last I settle for an EA at bedok reservoir (17yrs estate) for $500 + COV 18k = $518. I stayed in 94D/BDN Ave4 for 13 yr @ sold off in 2006 @450K. Windy & quite/good air/good mkt, got ;got lot of nice landed houses, good for jalan jalan during evening time, but need feeder service. I paid 10K COV late Aug for this "love at first sight" unit- saliva dripped!Before this, I've shortlisted to 3 pt-blks only, and actively searching, criteriors: morning sun/>20fl/"original condition"/ok neighbour. Wife, mom-in law, myself told seller's agent to act on my behalf and stopped all upcoming viewings, 20 mins after entering the unit, deposit paid,OTP signed on the spot!Beautiful! I spent near 100k for the reno, done end jan this year.

Try Xynde Goh(97384814)from DWG, 20 yr experience, mention to her my name: Terence from bedok north blk 414.

Do not overjoy, you yet to pay "miscellaneous costs" like: 1. Agent fee, usually 1% of sale price + 7% GST. 2. Valuation report, usually absorbed by buyer, but could be you also, if buyer wants to "re-valuate" and absorb the "re-valuation" = $180 3. Legal +admin fee whether your outstanding loan is from HDB or bank. Laywer prefers to talk to lawyer. If OL is from bank and u want to pay "lump sum" then need to give banks "3 months" advance notice, if loan within "lock-in" period, then penalty comes, etc... COV will be paid about 10 day after 1st appointment if buyer get loan from HDB, otherwise, got to wait till 2nd appointment. Sale proceed wii be received only after 2nd appointment. One thing, make sure you meet the MOP(5yr for 1st hand, 1 yr for resale). But I anticipated this rule is going to be "modified" very soon, act fast.

From HDB website, we can calculate the estimated sales proceed of a flat. If the amount after offsetting against any outstanding loan, levy & return of CPF monies is still postive, will you receive this sum of money in CASH or Refund to CPF? If valuation of a flat is at $400K and agreed resale price as $430K, is it a compuslory for the difference of $30K as cash payable by seller to buyer? 1. Proceed-(cpf+interest)-outstanding loan-miscellaneous = CASH, will go into your pocket 2. 430k-400k=cov=CASH, will go into yr pocket.

In 2006, I sold my 5-rm(whole unit was on rent), I wasn't on the spot!. The TO called me after inspection to remove a bar. I did, no paper signed??? You can log into "HDB Portrait" using your SingPass and ask them questions. Will be waiting yr time to be present(buying) during inspection. If there is any wall hacking in yr reno application, likely the TO will come down to inspect. Last yr dec, TO fm HDB informed me (before reno starts) he would be present for wall/floor hacking and he did some measurement, too bad I wasn't around. One interesting one to share about those "vent stacks", or layman term -"wind pipe" in tiolet(master) and kitchen. You are not allowed to change, but can seal up the "vent pipes". These smaller pipes are "supposed" to be connected to the WC, basin, to allow "air" to be vent into "vent stacks" which leads to roof top and "vent". BUT, nowaday, I asked many people and saw with my own eye, these "vent pipes" are not connected to WC or basin , but just "sealed at one end. I have written in to HDB asking to cut away these (2 #)vent stacks - Answer is "NO"- until now this issue is still puzzle me. Anyone come across this, pls share your experience. Next, If you intend to do pastering to whole house, inspect the finished work and ensure make good to your satisfaction, before painting starts.

LS stuff can be handled by police, so it is "manageable". But if u have bad neighbour, only God can handle him/her. Seriously, when I sourced for unit last year, LS matter is not in my list. Law on LS is now very tough also. If any LS comes & damge my property or disturb me, I'll get to the bottom and make sure he pays twice the cost.

Congrat ! COV seem skews toward righ. Say valuation =500,000,COV=6%=$30,000.

I'm in blk414, but, staying in bedok for more than 30 yr, may be can help you.

DC meant to deter developers "anyhow" tender land price in good time, indirectly jerk up price of end product. This should be a "temporary" measure, anyway, lets's see if to remove soon. The "holes" by GIC/Temasek, only in paper, so long as no "exchange hand", paper remains as paper. As what Mah/Paper put it recently that mkt now is : 1. Low interest 2. econ recover 3. mkt is very "liquid", created very +ve sentiments for property "investment/speculation". This is reflected in stock marker. Prop stocks vol rather volatile. Price will anytime "chiong" awaiting for Mar's announcement and GE. All?? Singaporeans know property have rather high yield (hdb resale average has 8.1% ROI for 2009 alone)cos land scare.Uncles/Anuties/Divorcee especially "tempted" by hear & say, then take part in SELLing without really understand the rules of the "game", causing so much "problems" to buyers. Now Singapore is in a sensitive situation of "General Election vs property market". As "standard", "soft" measures will be used before GE then follow by "hard" measures, if "soft" measures no "good enough". Sure "time bar" approach will be used first. No harm to anticipate, this tests yr understanding of mkt. I believed what proverb says "He who knows nothing doubts nothing".

Let's back to basic facts: 1. Resale mkt demand: WHO buy?? 1.1 - PRs buy 1.2 - Young couples buy. cos BTO, DSS wait too long or location/price/grant,etc factors. Combined income excess $8000. 1.3 - "rich" pte pty owners(S'porean, PRs)buy 1.4 - Upgraders/Downgraders (sell/buy). Still in a loop. 2. Resale mkt supply: WHO sell?? 2.1 - Owners move to pte pty/oversea 2.2 - Upgraders/Downgraders (sell & buy) 2.3 - pte pty owner with HDB unit True fact is resale mkt is under supply. Let's look at effects 1.1 If time bar up, PRs will rent resales/pte pty or buy pte pty. Indirectly created hdb rental demand & pte pty demand. 1.2 If up cash portion, they will generate noises and those income exceed 8k will seriously considering buyer pte pty. Pte pty demand created. 1.3 1.4 Impose limit on number of buy/sell. This is an efective measure to dim resale mkt transaction. These people will be unhappy and likely to "anyhow" cast the votes in GE. Uncles/Anunties/divorcee fall into this category. 2.1 Gov should really consider giving these people somekind of "grant" who directly generate supply in a tight resale mkt. Anyway, encourage these to migrate and creates pte pty demand. 2.2 Same as 1.4 *****Surely need to do something to these people. Remembered what LSL has said: "Home is for stay, not for speculation". 2.3 These people should be encouraged to give up their HDB units, but how? Very headach leh, let Mah & Lee to worry. Put input your precious views.

Time bar method has been prove an effective way to clamp down the spike, like what was adopted in 1996 or 1997 - must stay 10 yr before selling away, etc. Believed this time round, gov will use the "Soft-methods" first like: 1. Rise time interval for first timer to sell. As what LSL say: home is to stay, not for speculation... 2. Rise time bar for resale owner to sell 3. 5% cash, revised to 10% or 15%... "Hard method" like: 1. Imposing 2-way stamp duty or increase stamp duty(gov benifitted), likely to be used only after election. 2. Impose some levy on who rents out HDB, yet holding private property.

Owner-occupied unit subjects to 4% tax on annual value. The second property is 10%..... URA sudmits your purchasing data to IRAS.....IRAS will always "presume" the owner stays at second property of higher annual value and 10% tax. You applied water/electricity/gas before reno and reno takes some time... End of reno is the proof of start of stay in new place and therefore entitled to 4% tax. I'm now staying in hdb 5rm, annual valuation = $9k, previously stayed in condo(119 sqm)for 3 years, annual valuation = $15K!l Valuation of hdb for taxation purposes,has been revised (increased) by IRAS in NOV 2009.

Valid point, I'm 46. That was part of reasons I sold the 99-yr condo unit and moved to resale hdb 5 rm, though condo has been fully paid.

Sorry, "reconstructed" house, u mean landed property?

Hello st167, can advise how yr friend got the door keys. As understand, no TOP, cannot apply for water/gas/electricity.

Advise u quickly contact bank for you intend & what need to be done. My UOB loan has a clauses which states if loan not disbursed within 6 month from letter of offer, penalty(2% of total amount?? can't recall)will follow. Cancellation of loan also needs $$$. No play play. Last year, I, as a buyer, got caught much delay during 1st appointment, by the seller who contra the unit he bot with another seller, become 3 parties invloved. The last seller "lost" the title deed of property & yet wait and wait and "dare" to present his body in front of hdb officer tellinf such during 1st appointment. Because submission of resale application was "late", as seller to me need to find a house, 1st appt delay...The 6-month period was round the corner, I called up bank and followed by a letter explaining the situation. Now ok. Badminton, tennis, ping-pong, etc all players governed by RULES, property sale alikes. Without understanding the RULES and take part in, you're bound to pay "expensive school fee". I learnt these rules(HDB & private)by experience, through books,agents, web sites, this forum as well..... I've paid some "school fee" before, so now trying to advise people when I got time.

Well, HK gov has just increase stamp duty fee to cool the "heat".

Addition: Truely feel sad that, seller/agents' irresponsible/igorant act which resulted in your expenses. You ought to get back these expenses. 1. U need not to pay agent a single cents, because sale not through ! 2. If you've paid $180 for valuation report, can return the report & get back the $. 3. Demand rental fees from seller due to failed sales? No such thing, common sense tells. Advise is: get back $5K and whatever $paid to agents(if u have done) and let matter rests, start search for new one. Understand the rules of game before you take part in it. HDB web has many info.

Your are LEGALLY ENTITLED to get back the $5k + compensation. See OTP document, page 2/10, clause 3.2 - "The buyer MAY pursue any other claim againt the seller". Other claims can refer to many things like: (Make sure the seller has signed the OTP in the first place !) A. Tangible losses/damage (Best to provide receipts, black & white doc, etc) 1. Transport fee (to & from), visit unit, banks and so on 2. Time loss (how much you are currently paid, based upon hourly rate) 3. Bankloan cancellation penalty. 4. Valuation report..... B. Intangible losses/damage (difficult to assess) 1. Stress, face Suggest u to write down a list of those tangible losses, attached with receipt, attachement, photocopies, etc. Address the list to the Seller, cc to agent and his/her company's head, writedown date, ask for response within 14 days...

Let me start: 1. HDB owner with private property sure kena...... 2. Buy, stay, then sell interval control? 3. COV payment in 1st appointment for bank loan?

Some "cooling measures" on HDB mkt will be announced in March. Care to input your anticipations as to what will these be ? And the effects of such invisible hand?

My porfolio as below: 2 children (1B-15yr/1G-13yr),wife, mom-in-law, hdb resale 5-rm 1. Boy-(135)+(5x30)+30(mobile), Girl-(20)+(5x30)+30(mobile),both have insurance plans each $250. Total 565+450=$1,115 2.Mine=120+(2100/12)=295, wife=135, total=$430. Medishield not counted. 3. $420 +(1200/12)=insurance, + (500/6)=road tax, fuel=300, cp=65 total =$968 , not including parking exp, maintenance, lience fees. 4. (9000x4%)/12 + 400(combined) = $430. Note: feel very boshiog paying this to gov. 5. $300 6. Nil, no sick, no buy bk, no holiday..... 7. Cannot disclose 8. $1820 (cpf alone, use no cash), within a month's time, intend to pay bank a lumpsum to remain 100k outstanding for 1 yr 9. $400(wife) + $600(mine) = $1000 10. $800 to in-law. She cooks. Total(cash), monthly =1,115 +430+968+430+300+1000+800 = $5,078. Money not enough! Raising children is expensive! Car is good but also expensive. Still got many items not included in the list. Having just "downgraded" from condo, if not kena need to pay $430 maintenance fee for nothing(cp)-hardly use facilities. So, income 8K, take home=$6,400, it is enough to buy a 99-yr lease condo, say at 900K?? No insurance, no kids, no parents maintenance no wonder can have PETS !

Berry, u said u paid COV during 1st appointment? U need not to pay anything besides the $5K, before 2nd appointment. Pay valuation price + COV only during 2nd appointment. I noticed in mkt there is a "reverse" way of paying the deposit & OPT fee aginst the paper written in the HDB web. Mkt = deposit 1k, otp=4k. Paper put deposit 4k, otp 1k. funny, isn't it. Who bothers?