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HDB BTO

Build To Order HDB flats

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What are the penalties if I missed the date to pay my housing loan?
If you're on a HDB loan: The computation of the late payment charge is based on 2% above the Ministry of Finance's average prime lending rate (PLR). The current late payment rate is 7.5% (average PLR of 5.5% + 2%) per annum. The late payment rate is reviewed annually and fixed on 1 April. Late payment charges will be imposed on the outstanding instalment as at the end of every month, rounded up to the nearest $0.05. Do note that for now, late payment charges are not in effect due to COVID until 31 March 2021. If you're on a bank loan: It would depend on your bank, but usually there will be late repayment charges, that will increase if you do not pay it off. Some banks do have certain relief schemes if you are unable to pay due to involuntary job loss to ease the burden. Do check with your bank to confirm the details.

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Sale of balance flats (SBF)?
SBF will allow you to shorten the waiting time for your flat (since most SBF have already begun construction or on rare occasion, even completed construction, as opposed to BTOs), and will be cheaper than resales (although still more expensive than BTOs). Do note that often SBFs are quite limited in quantity and the location offerings so you might not be able to get a unit that you want. Moreover, if I'm not mistaken, SBF offerings only occur twice per year so it might be a long wait if the locations you want are not offered. Good luck!

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Should I put savings for future house renovation and wedding into a cash management account or invest in ETFs using a robo-advisor?
Thats a decently long time horizon to invest. I would personally invest into ETFs with a roboadvisor using a lower risk portfolio. Depending on the roboadvisor of your choice this might vary. But expect to see bond etfs in your portfolio.

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Is private property still a good investment today with loan rate at all time low?
When you ask something if it's good, it's always come backs to the question on what are you comparing pte ppty investments with? If you compare it with commercial property, it has it's pros and cons too. 99 vs freehold both has it's pro's and con's. But i don't think that's an impt point of view you should be looking at. If you're looking for investments, consider the location that you're buying. See where are all the tenants that will be coming from. Look into the master plan and see what's coming up next. Will it spur future growth? Consider the rental yield and how much you need to top up. Good to consider investments near MRT as it has a higher take-up rate compared to the rest. If you need help, let me know Whatsapp me:)

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Should I make large financial decision after I have sign my job contract or after the probation period?
Set aside emergency funds when doing anything. You don't know what will happen. The worse case is a pro-longed unemployment that causes you to not be able to pay your monthly installment. That's the worse it gets. So set aside 12 months of M.I be it in CPF or Cash.

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Why should I buy HDB when I can buy condo?
There are no right or wrong options here if you can afford both. But, do know that there is an opportunity cost in buying a condo as the money you have left over (if you had bought a HDB) could have been invested. And while yes, your condo is likely to appreciate much more than your HDB (even better if freehold), if you're staying in your condo and with no intention to downgrade to a HDB in future then the value in your condo is "locked up" in it.

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How quickly should a young couple repay our HDB loan? Which is more important - avoiding debt or having a cash buffer?
R

Ryan

Level 5. Genius

Answered 2d ago

All are important. 1. Need at least 6 - 12 months of household expenses. Track all expenses to have a feel of it. 2. Are you considering to have a kid soon? Factor in expenses and think about how you want to care for the kids. Possibly maybe a maid, childcare or someone not working. All these need $. 3. Do you invest? If you do not, better learn but do not do it for the sake of doing it. Otherwise you might lose sleep or money. HDB loan interest is actually very low. 4. One possible way is contribute to SA $7000 per year for tax relief and earn 4% inside but this money can only be used when you reach 65 and assume no change in interest rate.

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If I intend to sell my BTO right after MOP, should I take up a 25 year or 20 year loan?
R

Ryan

Level 5. Genius

Answered 3d ago

The difference possibly will be the amount of interest you need to pay. Especially if you are taking a bank loan. Does the bank have any terms and conditions for loan period? If not, paying in a shorter time means more of your monthly payment goes into the loan more than the interest.

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Can I take on HDB loan now and pay 10% down and switch to a bank loan before key collection est in 2026?
You can choose to take a HDB loan first to reduce the amount required for your downpayment now. You then have the option of "switching to" a bank loan before collecting your keys, but do note the following: 1) Since you haven't collected the keys yet, it will still be considered a "new purchase", so you will probably still need to pay the additional 15% downpayment (of which at least 5% of the purchase price must be in cash) 2) The application, approval and loan disbursement process with the bank will take about 2 months. This may end up delaying the key collection (since you cannot collect the keys until loan disbursement) Alternatively, you can collect the keys first, and then refinance to a bank loan after you have paid the HDB loan for about 3 months (to prove to the bank that you're credit-worthy). This also means you don't need to worry about the downpayment since it is refinancing. Hope this helps!

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How do I increase my monthly salary as I'm currently earning less than 3k and recently graduated from my part time university studies with 4 years of experience?
Depending on how open your manager is (and how your past performance/attitude has been), I feel you should have a sit-down session with your manager and tell him/her about your concern. Try and seek advice from your manager. If your manager is an understanding individual, he/she will know that we are all trying to make a living and especially after you've spent your time and salary to upskill yourself, you should be deserving of a higher pay. Alternatively, see if your manager has any connections / networks that might be able to offer you the salary you are seeking for.

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