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flameboy

Can I Buy A Condo Even Though I Currently Have A Hdb Loan

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Brother ... remove your real name bah... not safe you know...

No name not real, anyway, i've removed. Thank for the concern.

Edited by bepgof
 

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simple.. go to a mortgage planner and get them to get a bank to assess your and provide you with the AIP (Approval in principle) based on your current financial status. From there, you can work backwards if you have sufficient to make your loans.

 

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hi everyone,

I'm a newcomer to this forum... though im a fresher, i came to know many things about which i dont have knowledge. Assuming that you withdraw your OA to the max limit permitted in excess of the minimum sum cash component, and from now till June next year you use the monthly contributions in the OA to service the mortgage which means that your OA will not grow significantly, so when it comes to July next year, the higher limit kicks in and you won't be able to use your OA to service the monthly mortgage and you'll have to match the shortfall in cash. This can be painful. So the idea is that if you only marginally meet the minimum sum cash component, you need to set aside a greater buffer or restructure your HDB mortgage so that both mortgages can be comfortably serviced taking into consideration increases in the minimum sum cash components each July, especially if you are not planning to sell your flat.

Tinting

 

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so, i'm confused.

the minimum sums stated (those > 100k) are combined of joint applicants?

if so, do the amounts in each person's account have to be 50:50 eg. husband 58,500 and wife 58,500 equally, or husband can be 100,000 and wife 17,000?

ps: one more (unrelated) question: when selling a completed property, is the 4% for exercise of the option paid to the seller upon exercise or held by the seller's lawyers till completion (assuming that the exercise of the option is communicated to the seller's lawyers and exercise money also paid to lawyers).

Thanks!

Edited by random_username
 

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so, i'm confused.

the minimum sums stated (those > 100k) are combined of joint applicants?

if so, do the amounts in each person's account have to be 50:50 eg. husband 58,500 and wife 58,500 equally, or husband can be 100,000 and wife 17,000?

ps: one more (unrelated) question: when selling a completed property, is the 4% for exercise of the option paid to the seller upon exercise or held by the seller's lawyers till completion (assuming that the exercise of the option is communicated to the seller's lawyers and exercise money also paid to lawyers).

Thanks!

the min sums is 50:50

From 1 July 2010, the prevailing CPF Minimum Sum (MS) will be revised to $123,000, up from $117,000.

http://mycpf.cpf.gov.sg/CPF/News/News-Rele...N_14May2010.htm

4% pay when you exercise the OTP.

It pay to the your lawyer. Your lawyer will do the need.

 

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ps: one more (unrelated) question: when selling a completed property, is the 4% for exercise of the option paid to the seller upon exercise or held by the seller's lawyers till completion (assuming that the exercise of the option is communicated to the seller's lawyers and exercise money also paid to lawyers).

Thanks!

Private resale:

1. Pay 1% to seller in exchange of otp. Look for banker for money to lent(for buyer).

2. Within 14 days, in front of yr lawyer, exercise the otp & pay 4% through lawyer.

3. Pay stamp duty(buyer) through lawyer.

4. Legal completion take 8-12wk, remaining bal pay by cash, loan or cpf.

In standview of buyer, will receive money (100%-1%) only at completion from lawyer.

Edited by bepgof
 

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^^ thanks, begpof for the cash-flow mechanics behind selling.

sorry to flood this thread, just some more questions to ask about buying albeit not all to do with the original title:

1) so, hypothetically speaking, if my husband has $200k in cpf and i have $50k (all sums hypothetical too), and i wanted to use my cpf, i would have to top up till i reach at least $61,500 (assuming after 1july '10)

there's no way my husband's cpf can "make up" for mine at all, right?

so, if we still wanted to use cpf, an alternative would be to just use my husband's cpf without using mine?

2) what is now the minimum loan amount to be borrowed to qualify for interest rates packages? 500k?

3) what financial ratios should i be paying attention to make sure i am well buffered? eg. loan liabilities:income, savings:income, etc etc. i know can get banker or financial planner to calculate, but i figure i should also do my own calculations to make sure i have a better picture of my financial landscape.

thanks! all and any input from every and any body most appreciated.

Edited by random_username
 

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^^ thanks, begpof for the cash-flow mechanics behind selling.

sorry to flood this thread, just some more questions to ask about buying albeit not all to do with the original title:

1) so, hypothetically speaking, if my husband has $200k in cpf and i have $50k (all sums hypothetical too), and i wanted to use my cpf, i would have to top up till i reach at least $61,500 (assuming after 1july '10)

there's no way my husband's cpf can "make up" for mine at all, right?

so, if we still wanted to use cpf, an alternative would be to just use my husband's cpf without using mine?

2) what is now the minimum loan amount to be borrowed to qualify for interest rates packages? 500k?

3) what financial ratios should i be paying attention to make sure i am well buffered? eg. loan liabilities:income, savings:income, etc etc. i know can get banker or financial planner to calculate, but i figure i should also do my own calculations to make sure i have a better picture of my financial landscape.

thanks! all and any input from every and any body most appreciated.

1. I don't know yr cpf portfolio, should be able to use yr husband's $150K & yr $50K, together. Advise u to use both yr singpass to check your own's cpf account for maximum use.

2. Can be as "low" as 100K or even less, but of higher interest, got to calculate & optimise your best "leverage".

3. Generally, for me (46 yr old), I'm using 60: 40, meaning 60 %(cpf + cash) to pay, 40% loan. The 100% inclusive of stamp duty + legal fee...Of course, some cash on hand for contigencies.

- Previously posted one UOBKayHian report mentioning Singaporeans' condo: income ratio is about 13.8. Total price/combine annual income =13.8, HK & China is much more higher of this ratio. As I said earlier, there are "rooms" for this ratio to go up.

- Can PM me with yr email, I will send a loan calculation file (spreadsheet) to you, so can do your "homework".

- Expect coming next half yr, price will start sliding down. Gov is serious abt the house using issue. More lands, break record, will released for tender. More DBSS, BTO will come too. If this measure can't solve the issue, "legislation" will come in next.

Edited by bepgof
 

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thanks, therat and begpof

regarding the factor 13.8 - i assume, therefore, that a lower number would be even more "safe". is the annual income in that denominator gross or disposable income?

what would be an appropriate cash:loan ratio for property for a couple below 46 (where begpof's is 60:40).

also, "safety" aside, what is the optimal ratio for efficient use of monies (is there such an optimal ratio, to begin with?).

begpof, will pm you. thanks. also, i don't really understand the part you mentioned cpf 150k + 50k. i thought, per previous posts in this thread, the minimum sum combined must be 50:50 from each account.

Edited by random_username
 

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thanks, therat and begpof

regarding the factor 13.8 - i assume, therefore, that a lower number would be even more "safe". is the annual income in that denominator gross or disposable income?

what would be an appropriate cash:loan ratio for property for a couple below 46 (where begpof's is 60:40).

also, "safety" aside, what is the optimal ratio for efficient use of monies (is there such an optimal ratio, to begin with?).

begpof, will pm you. thanks. also, i don't really understand the part you mentioned cpf 150k + 50k. i thought, per previous posts in this thread, the minimum sum combined must be 50:50 from each account.

Pls read my post #88 under thread: "Buy Now Or Wait......" dated 16/5/10, an article there, print it out & slowly digest it. I considered the report "too brief", good for general reading for comparing countries'....Singapore will more or less follow the trend...that was part of the reasons Mah went to HK for studying recently & concluded singaporeans can afford to buy house...

- File has been sent.

- A scenerio here: say a 1 mil condo(incl stamp..) & paid 60%, $400k loan for 20yr, interest @2%, mnthly instalment = $2023.54. If the same for 10yr = $3680.54, 30yr=$1478.48, so on so for.

- Personally perceived that most ppl here would use "monthly instalment amount" as a yardstick to draw the financial comfort zone as to property. Say mnthly instalment = $2K, one may then further decide $1k cash? $1kcpf? (couple combined).

- Worth mentioning, 30yr tenure loan = dangerous, likely will hit the 120% Valuation Limit rule at year 25st or so...if I calculate & remember correctly. Sorry memory getting poorer. Minimum sum is another issue.

- Must study and understand the "rules of the game" carefully before taking part.

Edited by bepgof
 

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thank you for the file - received, and thanks for the article too :D

i'm not too keen on maxing out on loans based on current income (current income, can, afterall, stall or reduce) since i prefer to have plenty of buffer. thanks again for the precautionary note :)

Edited by random_username
 

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