Buy old Condo and incur SSD when enbloc?

[Movehouseloh]

I have a question for all gurus out there.
If I buy an old condo > 13 years for own stay and the condo is put up for collective sale within 4 years from purchase does this mean I will incur the SSD? :doh:
What if I oppose the collective sale but is part of the minority camp, is there a case for appeal?
Would llike to know if this is a risk I need to consider before buying old condos...

Thanks

[AAA]

I have a question for all gurus out there.
If I buy an old condo > 13 years for own stay and the condo is put up for collective sale within 4 years from purchase does this mean I will incur the SSD? :doh:
What if I oppose the collective sale but is part of the minority camp, is there a case for appeal?
Would llike to know if this is a risk I need to consider before buying old condos...

Thanks

Relax. If the estate can go enbloc, your profit is more than enough to make up for the SSD and still have spare cash. For enbloc sales, sellers will not incur "financial loss" as the rest of the residents MUST compensate you (in case you are worried your profit is not enough to cover the costs and SSD). The only thing is you make less than your neighbours. Also, there is a chance you can appeal to the ministry.
Hopefully, SSD will be removed by the time your estate goes enbloc. Don't forgive, enbloc can take a long time to finalise.

[Movehouseloh]

Thanks, pardon my ignorance...can you elaborate a little on what you mean the other owners will compensate for any loss? Wouldnt proceed from collective sale be distributed based on unit size..?

I would like to know if I need consider a buffer (say 16%) vs. enbloc prices in the same area when I make an offer...

Nowaday seemingly "not too old looking" condos are being for collective sales..

Thanks

[rattydrama]

My friend was not that lucky he did not make much profit from en bloc sales which was handled by ivy lee. I am not sure if he can make any with the 16% Ssd should it happen to him.

[Geylang OKT]

Thanks, pardon my ignorance...can you elaborate a little on what you mean the other owners will compensate for any loss? Wouldnt proceed from collective sale be distributed based on unit size..?

I would like to know if I need consider a buffer (say 16%) vs. enbloc prices in the same area when I make an offer...

Nowaday seemingly "not too old looking" condos are being for collective sales..

Thanks

Other owners when they see it that it is worth their while will pool together and pay you some compensation from their own pockets. This usually happens when they stand to make a hefty profit of 1 million or more and merely need to fork out between 10k to 20k per sole proprietor to pay you off ;)

[Geylang OKT]

My friend was not that lucky he did not make much profit from en bloc sales which was handled by ivy lee. I am not sure if he can make any with the 16% Ssd should it happen to him.

Could be discouraging those jokers who jump in (buy) at the last minute and form the sales committee to push their own agendas i.e. enbloc. These mercenary folks (nothing wrong with that) donch care a hoot about nostalgia and sentiments. They just want to make money from selling enbloc. :D

With the 16% SSD, now that's a super huge deterrent :D

[Movehouseloh]

My friend was not that lucky he did not make much profit from en bloc sales which was handled by ivy lee. I am not sure if he can make any with the 16% Ssd should it happen to him.

Has this already happened for your friend...? Wondering if there are grounds for appeal...

Hate to forgo old condos since they tend to have better layouts and bigger space with lower psf....

[Douk]

Has this already happened for your friend...? Wondering if there are grounds for appeal...

Hate to forgo old condos since they tend to have better layouts and bigger space with lower psf....

go for the huge condo development (>400/500 units). the enbloc for this size will take time to happen.. too risky for developers now...

[Judas]

I have a question for all gurus out there.
If I buy an old condo > 13 years for own stay and the condo is put up for collective sale within 4 years from purchase does this mean I will incur the SSD? :doh:
What if I oppose the collective sale but is part of the minority camp, is there a case for appeal?
Would llike to know if this is a risk I need to consider before buying old condos...

Thanks

You can appeal under Section 84A(4)/(7)/(8) of LT(S)A CAP. 158.
You can object under Sect.84A(7)(a).....any objector, being a SP, will incur a financial loss;.........
Sect. 84A(8)(a).....shall be taken to have incurred a financial loss if the proceeds of sale for his lot, after deduction allowed by the Board, are less than the price he paid for his lot;...........

[Movehouseloh]

Thanks Judas. I will check out the sections you mention.