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rotp

Financing Help - Downgrading

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Hi all,

I am seeking advice from all the experienced folks here. We are a first time condo owner of 2 yrs now and we are financiing our loan via our CPF. Lately, after some discussion with my wife, we decided to downgrade to HDB and have a debt free life. We checked the recent market transactions and are confident that the proceeds from the sales of our condo will be sufficient to cover the cost of resale HDB, remaining bank loan and repay back to CPF. Or at least, we will try to find one HDB that fits these criteria.

But our main problem now is that we lack liquid cash. We have combined savings of slightly more than 50k and we do not know during the transition period - between selling and buying of the properties, how do we finance the resale HDB if the proceeds from the condo has not gone through. We thought of a 'bridging loan' but seems like there is no such loan available. Another option is we sell first, then rent for 3mths, once money is transacted, we buy the resale? What is the best options for our situation?

Do appreciate any valuable input! = )

 

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Hi all,

I am seeking advice from all the experienced folks here. We are a first time condo owner of 2 yrs now and we are financiing our loan via our CPF. Lately, after some discussion with my wife, we decided to downgrade to HDB and have a debt free life. We checked the recent market transactions and are confident that the proceeds from the sales of our condo will be sufficient to cover the cost of resale HDB, remaining bank loan and repay back to CPF. Or at least, we will try to find one HDB that fits these criteria.

But our main problem now is that we lack liquid cash. We have combined savings of slightly more than 50k and we do not know during the transition period - between selling and buying of the properties, how do we finance the resale HDB if the proceeds from the condo has not gone through. We thought of a 'bridging loan' but seems like there is no such loan available. Another option is we sell first, then rent for 3mths, once money is transacted, we buy the resale? What is the best options for our situation?

Do appreciate any valuable input! = )

1. Need to sell pty within 6 months after completion of resale HDB.

2. Cash needed for resale:

2-1. COV(0-100K??),broker fee(1%), booking fee+OTP ($5K),valuation rpt($180), stamp duty (3%-5,400)(cash first then reimburse from cpf), reno($$$?), downpayment (5%-5K)utilities account deposits($$$?)etc

2-2 LTV(70% for 1st loan, 60% for 2nd loan)

3. Bridging loan validity usually 6 months. Abt 14% interest monthly-rest (not yearly!)

4. 50K cash can pay for COV only. May be not enough!

5. If insist to "downgrade" , ONLY sell, rent, buy is the option to you.

 

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Some points worth considering:

- Pty transaction takes 8-10 weeks to complete.

- HDB resale, from submission of resale application to 2nd appt(completion)take 12-14 weeks.

- 3 months rental is too short, i think, should always consider "worst case" scenario = 6 month rental.

- Discard/sell those bulk items before moving to rental.

- Know actually WHEN is the completion date for pty first.

- 2-3 week before completion can start the "search" for resale, learn skills of various aspects wrt home searching during such. Very interesting & rewarding, I assure you.

- learn & play delay tactics if found love home while waiting $$ to come ino pocket/account.

- Create spreadsheets, build formular, key in figures as to those items need CASH, prepare a few scenarios. Have Big picture first, then zoom in/out to pictures-within-pictures.

- Got kids?

 

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Some points worth considering:

- Pty transaction takes 8-10 weeks to complete.

- HDB resale, from submission of resale application to 2nd appt(completion)take 12-14 weeks.

- 3 months rental is too short, i think, should always consider "worst case" scenario = 6 month rental.

- Discard/sell those bulk items before moving to rental.

- Know actually WHEN is the completion date for pty first.

- 2-3 week before completion can start the "search" for resale, learn skills of various aspects wrt home searching during such. Very interesting & rewarding, I assure you.

- learn & play delay tactics if found love home while waiting $$ to come ino pocket/account.

- Create spreadsheets, build formular, key in figures as to those items need CASH, prepare a few scenarios. Have Big picture first, then zoom in/out to pictures-within-pictures.

- Got kids?

hi guys! thks for all the inputs! no, we are "DINK" couple.. will definitely bear those things in mind. was talking to a trusted friend who is a agent recently, he said he handled many of such cases like mine and assured me that i dn't have to worry over such matter and leave such worries to him. he's confident to hv the transactions done without me getting any rentals or loans..etc. well, we will play by ear and we are still in the "wait and see" stage.

 

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