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cyto
16-04-12, 22:42
Hi all,

I humbly seek the advices from fellow forumers on my concerns with regards to the timeline involved in selling and purchasing.

Background:
- 3 properties (one home stay and the other 2 rental)

- 1 paid up, the other 2 with mortgage loan (including home stay unit)

- recently sold off homestay unit, buyer exercised option, now in the midst of legal conveyancing, completion in 12weeks time

- after selling off, I will have only 1 mortgage loan left

- Going to purchase a larger 3 bedder for homestay, due to expansion of family nucleus.

- I need the monies (both cash and CPF) from completion to pay for the 40%, while taking a 60% loan

- Both me and my spouse are Singaporean

Scenario:
- I have enough savings for the 5% d/p and stamp duty (3%-$5400)

- assuming property price is $1.xM (not really important for this discussion)

- I hope to start searching and probably buy a completed unit now, if I can find one. SO as to reduce the timeframe of getting alternative lodging, as we still need a roof to stay


My questions are:

A. Will I be subjected to ABSD, if I am to purchase now, since it will be the 3rd property with mortgage loan, although I have sold off my homestay unit but still in conveyancing period.

B. If not subjected to ABSD, what would be the ideal timeline for the purchase?

C. It's been a long while since I made any purchase, so can't remember the payment sequence. I know 1% for OTP, 4% upon exercising option (14days later), how about the buyer stamp duty? When to pay?

D. When do I need to get the remainder 35% ready?

E. When do the CPF monies go back to CPF, and how soon can I apply to withdraw it for the new purchase.

F. Lastly, is this a good idea to purchase now? WIth consideration of the general market condition, of course. Or is it prudent to wait for completion of the sales of my homestay unit, to be 100% sure, since money would be back to my bank account and CPF.

Really appreciate the advices in advance. Need to do this homework before I start to approach the bank mortgage specialist.

Thank you.

carbuncle
16-04-12, 23:24
Two words to ask the bank. Bridging loan. AFAIK, until your sale is completed, you are still the legal owner. Thus you will subject to ABSD if you commit on another now. It is payable 14 days from otp exercise if not mistaken. If you buying resale, then all monies need to be paid upon completion of purchase usually 10 weeks after exercise otp. If buying uncompleted unit, you will pay according to stage of completion. As for whether to wait, it really depends if you found something good value and you really like. Esp resale.

amk
16-04-12, 23:29
I thought no matter what u always get ABSD ? Since u already have 2 and are buying the 3rd ? ABSD is not on nb of loan but on nb of pty.

cartman
16-04-12, 23:44
think you have to pay 3% for your 3rd property. else if your spouse name is in only one of your properties, can use her name for the new property so she can avoid the 3% ABSD.

price
17-04-12, 00:30
think you have to pay 3% for your 3rd property. else if your spouse name is in only one of your properties, can use her name for the new property so she can avoid the 3% ABSD.

Unless the first 2 were not shared names.

Changing of names these days subject to SD too :D

price
17-04-12, 00:31
I thought no matter what u always get ABSD ? Since u already have 2 and are buying the 3rd ? ABSD is not on nb of loan but on nb of pty.

Ya thats correct.

Only loans are affected. when u have 1 outstanding loan the 2nd only 60%LTV.

price
17-04-12, 00:32
Hi all,

I humbly seek the advices from fellow forumers on my concerns with regards to the timeline involved in selling and purchasing.

Background:
- 3 properties (one home stay and the other 2 rental)

- 1 paid up, the other 2 with mortgage loan (including home stay unit)

- recently sold off homestay unit, buyer exercised option, now in the midst of legal conveyancing, completion in 12weeks time

- after selling off, I will have only 1 mortgage loan left

- Going to purchase a larger 3 bedder for homestay, due to expansion of family nucleus.

- I need the monies (both cash and CPF) from completion to pay for the 40%, while taking a 60% loan

- Both me and my spouse are Singaporean

Scenario:
- I have enough savings for the 5% d/p and stamp duty (3%-$5400)

- assuming property price is $1.xM (not really important for this discussion)

- I hope to start searching and probably buy a completed unit now, if I can find one. SO as to reduce the timeframe of getting alternative lodging, as we still need a roof to stay


My questions are:

A. Will I be subjected to ABSD, if I am to purchase now, since it will be the 3rd property with mortgage loan, although I have sold off my homestay unit but still in conveyancing period.

B. If not subjected to ABSD, what would be the ideal timeline for the purchase?

C. It's been a long while since I made any purchase, so can't remember the payment sequence. I know 1% for OTP, 4% upon exercising option (14days later), how about the buyer stamp duty? When to pay?

D. When do I need to get the remainder 35% ready?

E. When do the CPF monies go back to CPF, and how soon can I apply to withdraw it for the new purchase.

F. Lastly, is this a good idea to purchase now? WIth consideration of the general market condition, of course. Or is it prudent to wait for completion of the sales of my homestay unit, to be 100% sure, since money would be back to my bank account and CPF.

Really appreciate the advices in advance. Need to do this homework before I start to approach the bank mortgage specialist.

Thank you.


I'm curious. How did u sell ur own stay home without thinking through all these

roly8
17-04-12, 09:29
I'm curious. How did u sell ur own stay home without thinking through all these

maybe pple offer him $900k for his HDB leh?
:D:D:D

Montaigne
17-04-12, 11:48
Good location new launch at reasonable price can consider. Resale can wait, will drop more.

thomastansb
17-04-12, 15:38
A. Will I be subjected to ABSD, if I am to purchase now, since it will be the 3rd property with mortgage loan, although I have sold off my homestay unit but still in conveyancing period.


Yes. Payable. Fyi, exercised option means sold already. So in your case, if you have 2 exercised option, you will not get the ABSD.


B. If not subjected to ABSD, what would be the ideal timeline for the purchase?

Anytime. Since you are taking 60% loan and paying ABSD. Check with bank to see if your income is high enough since you mentioned you have 1 property loan.


C. It's been a long while since I made any purchase, so can't remember the payment sequence. I know 1% for OTP, 4% upon exercising option (14days later), how about the buyer stamp duty? When to pay?

1% OTP
4% Exercise
3% - $5400 stamp duty within 14 days of exercising
35% when completion



D. When do I need to get the remainder 35% ready?

See above


E. When do the CPF monies go back to CPF, and how soon can I apply to withdraw it for the new purchase.

When you sell your property, you should be able to see your funds in CPF 2 to 3 working days. After completion date I mean. The most is 4-5 days but I don't think so la.


F. Lastly, is this a good idea to purchase now? WIth consideration of the general market condition, of course. Or is it prudent to wait for completion of the sales of my homestay unit, to be 100% sure, since money would be back to my bank account and CPF.

No one knows.. If you can predict, I rather you go predict toto numbers. Property price can stay this way for the next 5 years or drop within this year. Or go up 20%. No one knows.


Really appreciate the advices in advance. Need to do this homework before I start to approach the bank mortgage specialist.