Help needed! Please advise on what is the better option for my current situation.

Hi Seow Soo,

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In my opinion, I would arrange for the 4 room HDB flat to be under your mother's name and the 2 room BTO (2023 delivery) to be under your name.

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Assuming you go for Option 1 to cancel 2 room BTO, retain 4 room and purchase a Condo.

• Do note that when your mother passes on, upon inheriting the HDB, you will have to dispose off your condo within 6months.

Assuming you go for Option 2 to retain 2 room BTO, Sell 4 room and puchase condo under your mother's name

• Do note that there are 2 redflags you need to caution on:

(1) Purchase Condo under your mom name Redflag 1 Sustaining housing loan under your mom name might be a problem if she is unemployed.

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(2) Inherit Condo Redflag 2 Inheriting before 5 years MOP - HDB approval needed to inherit a condo while in MOP Inheriting after 5 years MOP - no problem, no additional buyer stamp duty for inheritance.

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If redflag 1 is not a problem in getting loan under mom name. Option 2 will be better option

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I have an Option 3 for your consideration: To retain 2 room HDB and Sell 4 room HDB

i) Use funds from proceeds to pledge for loan under mom name in condo if she is unemployed.

ii) Buy a 2 bedder and stay with your mother

iii) After pledging period, funds become available again

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Thereafter, you can rent out hdb and use the rent to partial pay for the instalment while giving the rest to your mother for retirement.

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Regards,

Colin Lim

Thanks for the question, I am also interested in what you asked (following). Option 2 sounds brillant. Just some thoughts to share:

• Under Option 2 - after you sell the flat u need to have somewhere to live with your mum (b4 she passes on and b4 you get your BTO) - rental cost to consider / you will be staying in the condo you are buying?
• If the condo is just solely under your mum's name - just thinking if the banks will extend a loan to her (if she's not working/don't have HDB flat under mortgage) / will she have issues getting the mortgage insurance - good to check out by talking to banks? If so, mortgage insurance can cover the repayment after death. I am sure the insurance is needed w the bank loan.
• How soon you can get the condo (old or new), affordability(+ maintenance fee) aka servicing of loan/rentability/marketability, locations of both condo vs your BTO + factor cost of renovation for condo/BTO might be some areas for consideration.
• Managing the ability to own two properties, your next 3-5 years finances vs retirement goals (when you plan to work until/if no rent etc.) could be some very impt considerations in my opinion.
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