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Thread: Buying now or later?

  1. #1
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    Default Buying now or later?

    Hi guys, just wanted to get some general opinons. If one is currently staying in a hdb and waiting for about 4 yrs to fulfil MOP before he can get a pte pty. Would it make more sense to just wait for MOP to be over before getting a pte pty or get a pte pty using say parents' name 1st and do a transfer to own name upon end of MOP.

    1st option can be bad cos by end of MOP, prices may have soared much compared to now. 2nd option also has its drawbacks as in he would have to pay for the stamp duties to transfer the pty back to his name from his parents' after MOP.

    Asking for my good friend. Pls advise.

  2. #2
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    I suppose you are asking this because of the 30% downpayment required for a second property mortgage ? hence, using you parents name to circumvent this.

    If you use your parents name, it would depend whether you parents quality for a 80% loan. If your parents are loaded, can use their properties, stocks, FD etc to secure the loan. But if they are older, nearing retirement age, limited leverage for securing loan then this may not be an option. (go talk to your banker)

    As for waiting it out, i think this would be a personal decision. You can argue that prices might chiong through the roof in a couple of years (but seriously, if it does, the economy is in trouble). But one can also argue the other way around that price may have corrected by then, you may have struck a big promotion or 4D and money would no longer be an issue...

    Buy within your means if it's for own stay. If you are buying for investment then you would have to do your own risk management assessment.

    My two cents.

  3. #3
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    Quote Originally Posted by med80009
    I suppose you are asking this because of the 30% downpayment required for a second property mortgage ? hence, using you parents name to circumvent this.

    If you use your parents name, it would depend whether you parents quality for a 80% loan. If your parents are loaded, can use their properties, stocks, FD etc to secure the loan. But if they are older, nearing retirement age, limited leverage for securing loan then this may not be an option. (go talk to your banker)

    As for waiting it out, i think this would be a personal decision. You can argue that prices might chiong through the roof in a couple of years (but seriously, if it does, the economy is in trouble). But one can also argue the other way around that price may have corrected by then, you may have struck a big promotion or 4D and money would no longer be an issue...

    Buy within your means if it's for own stay. If you are buying for investment then you would have to do your own risk management assessment.

    My two cents.
    20 or 30% dnpayment is not a consideration here as the HDB is paid up. It is more of whether which option makes better financial sense.

  4. #4
    I sell Cheese Pie

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    Quote Originally Posted by KC76
    Hi guys, just wanted to get some general opinons. If one is currently staying in a hdb and waiting for about 4 yrs to fulfil MOP before he can get a pte pty. Would it make more sense to just wait for MOP to be over before getting a pte pty or get a pte pty using say parents' name 1st and do a transfer to own name upon end of MOP.

    1st option can be bad cos by end of MOP, [B]prices may have soared much compared to now.[/B] 2nd option also has its drawbacks as in he would have to pay for the stamp duties to transfer the pty back to his name from his parents' after MOP.

    Asking for my good friend. Pls advise.
    On the flip side, prices may have [COLOR="Red"][B][SIZE="5"]corrected downwards by 20% to 30%.[/SIZE][/B][/COLOR] Nothing goes up forever you know

  5. #5
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    Quote Originally Posted by Geylang OKT
    On the flip side, prices may have [COLOR=red][B][SIZE=5]corrected downwards by 20% to 30%.[/SIZE][/B][/COLOR] Nothing goes up forever you know
    Wah, the wise one has spoken!

  6. #6
    Junior

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    Quote Originally Posted by Geylang OKT
    On the flip side, prices may have [COLOR=red][B][SIZE=5]corrected downwards by 20% to 30%.[/SIZE][/B][/COLOR] Nothing goes up forever you know

    The question is WHEN will this be happening?

    And what are the chances?

  7. #7
    Junior

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    I'm sorry, but one should not do this kind of thing. Parents are not the tools to use for financial gain. One should make his investment decisions based on his own constraints and capabilities.

  8. #8
    CCR Only

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    I did the same. I bought the property under my parent's name during my MOP. My dad had retired so i secure the loan as the financer. I do not intend to transfer the property back under me after my MOP. Just leave it as it is since we are one family. Just collect some rental or sell it when price is price. Unless u intend to stay in this pte pty, den thats a different story.

  9. #9
    Exalted

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    Quote Originally Posted by shauntanzs
    I did the same. I bought the property under my parent's name during my MOP. My dad had retired so i secure the loan as the financer. I do not intend to transfer the property back under me after my MOP. Just leave it as it is since we are one family. Just collect some rental or sell it when price is price. Unless u intend to stay in this pte pty, den thats a different story.
    u r the only child den ok la(1 family)....if u got other siblings and ur parents nvr write a Will....den tats it...shared among ur siblings next time...be careful

  10. #10
    Junior

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    Doesn't make any sense to me. I don't believe in future-proofing your life. Why would you buy something that you think you MIGHT need 5 years later? Maybe 5 years later, your taste have changed. Worst still, using your parent's name and financing for that to circumvent some "loophole" in the rules. Looking at the way the government tries to cool the market, the probability of property cheonging through the roof is close to zero. Why not you just live through your MOP and decide where you want to move later?

    It makes no common sense - let alone financial sense.

    Quote Originally Posted by KC76
    20 or 30% dnpayment is not a consideration here as the HDB is paid up. It is more of whether which option makes better financial sense.

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