[Advise-Needed] HDB + Private

[chestnut]

with ref = https://www.icompareloan.com/resourc...an-asset-rich/
because old parents are not working, hence only Hong Leong Finance can do
equity loan ... is based on 50% of valuation
2M Valuation ... 50% = 1M
but because there is a 1M charge on the property by CPF,
therefore total eligible equity loan = $0

the equity loan is actually based on 50% of the valuation, then less the CPF charge if any and if there is remaining, that's the loan that one can take.
in this case, equity loan not available.

After 65, CPF money is your money minus retirement sum set aside. As your PIL is in the 80s, there is no retirement sum for those in that age group and they could withdraw even earlier.

[Kelonguni]

Master Shifu is wise. Thanks for solving the puzzle.

After 65, CPF money is your money minus retirement sum set aside. As your PIL is in the 80s, there is no retirement sum for those in that age group and they could withdraw even earlier.

[chestnut]

After 65, CPF money is your money minus retirement sum set aside. As your PIL is in the 80s, there is no retirement sum for those in that age group and they could withdraw even earlier.

Typo error. Should be 55 instead of 65

https://www.cpf.gov.sg/Members/Schem...avings-from-55

[Laguna]

just find the payment of BSD and ABSD very painful.
how many years to take to save $200,00

[x11]

After 65, CPF money is your money minus retirement sum set aside. As your PIL is in the 80s, there is no retirement sum for those in that age group and they could withdraw even earlier.

Typo error. Should be 55 instead of 65
https://www.cpf.gov.sg/Members/Schem...avings-from-55

i agree with you. you are correct but i just cannot get around the CPF rules.
CPF rules that because the old parents used the property to offset the 50% requirement of the RA, the total CPF sum used must be returned to CPF first and then deducted for the requirement to top-up RA account to full sum, before dispersing back to the old parents 1 week later.

so in essence, for their case, there must be a 1M returned to the CPF, let CPF deduct say 100K each so that each of the their RA can be topped-up in full sum, then the remaining 800K will be dispersed to them 1 week later.

to make things happen, the 1M must appear first. that's painful.

just find the payment of BSD and ABSD very painful.
how many years to take to save $200,00

exactly my point as well. saying it as plainly ... why cannot wait till old parents kick the bucket, after all, they are 80 plus already. law of averages say less than 20 years? but to the old parents, there is now a possibility of spending some $$$ in order for them to get $500K now. so for them, that's the result they are eyeing, so the son has to work it out.

[anythingwhatever]

Based on current regulations, the Thread Starter should just sell off the HDB, get the Gifted Property under his name only. If got spare cash then can buy another private under wife's name only.

No painful ABSD.

[chestnut]

http://eresources.nlb.gov.sg/infoped...005-01-05.html
1 Jan 1987 : Minimum Sum scheme introduced at S$30,000.

i agree with you. you are correct but i just cannot get around the CPF rules.
CPF rules that because the old parents used the property to offset the 50% requirement of the RA, the total CPF sum used must be returned to CPF first and then deducted for the requirement to top-up RA account to full sum, before dispersing back to the old parents 1 week later.

so in essence, for their case, there must be a 1M returned to the CPF, let CPF deduct say 100K each so that each of the their RA can be topped-up in full sum, then the remaining 800K will be dispersed to them 1 week later.

to make things happen, the 1M must appear first. that's painful.



exactly my point as well. saying it as plainly ... why cannot wait till old parents kick the bucket, after all, they are 80 plus already. law of averages say less than 20 years? but to the old parents, there is now a possibility of spending some $$$ in order for them to get $500K now. so for them, that's the result they are eyeing, so the son has to work it out.

[chestnut]

In their 80s, their cpf scheme is totally diff from us. Do check.

[chestnut]

Curious, why don't your PIL sell the condo?

i agree with you. you are correct but i just cannot get around the CPF rules.
CPF rules that because the old parents used the property to offset the 50% requirement of the RA, the total CPF sum used must be returned to CPF first and then deducted for the requirement to top-up RA account to full sum, before dispersing back to the old parents 1 week later.

so in essence, for their case, there must be a 1M returned to the CPF, let CPF deduct say 100K each so that each of the their RA can be topped-up in full sum, then the remaining 800K will be dispersed to them 1 week later.

to make things happen, the 1M must appear first. that's painful.



exactly my point as well. saying it as plainly ... why cannot wait till old parents kick the bucket, after all, they are 80 plus already. law of averages say less than 20 years? but to the old parents, there is now a possibility of spending some $$$ in order for them to get $500K now. so for them, that's the result they are eyeing, so the son has to work it out.

[Laguna]

I am not too sure, there is this reverse mortgage where a fixed sum can be drawn monthly...and may need to sell at the end to repay the outstanding.
U can check with mortgage specialists in the market, may have solution

[Arcachon]

Curious, why don't your PIL sell the condo?

FH Landed

[Arcachon]

http://eresources.nlb.gov.sg/infoped...005-01-05.html
1 Jan 1987 : Minimum Sum scheme introduced at S$30,000.

Already inform him, guess he must have check with CPF or he is AssUming all the way.

[Arcachon]

I am not too sure, there is this reverse mortgage where a fixed sum can be drawn monthly...and may need to sell at the end to repay the outstanding.
U can check with mortgage specialists in the market, may have solution

Parents want him to learn, don't want to bottle feed. Very good parents who want the best for the child. The child will become stronger after this excecise. Coming to this forum to seek help is the first step.

[x11]

Cannot agree more. Learning from the forum, self exploration, search and read. That's probably a lot better than just walking to a bank and listen blindly to the loan banker. But at the end of the day, the wealth of experience and wealth of knowledge in this forum, that's what makes it special.

[limfc]

just find the payment of BSD and ABSD very painful.
how many years to take to save $200,00

Can still try HDB ownership transfer?
http://www.hdb.gov.sg/cs/infoweb/res...e-in-ownership

[anythingwhatever]

Can still try HDB ownership transfer?
http://www.hdb.gov.sg/cs/infoweb/res...e-in-ownership

Can't be done between Married Couple.

[Arcachon]

Can still try HDB ownership transfer?
http://www.hdb.gov.sg/cs/infoweb/res...e-in-ownership

https://www.99.co/blog/singapore/hdb-decoupling/

HDB decoupling has been a cost saving tactic since around 2013. Once the Additional Buyers’ Stamp Duty (ABSD) was announced, several investors quickly caught on to what was essentially a legal loophole. By transferring full ownership of their flat to a spouse, they could attain their second property at a much lower cost. This has since been changed, but it leaves us wondering why it took so long in the first place: