09 Jun 2021
Currently, I'm in the dilemma of wanting to sell off my 5-room resale HDB in a good mature estate with 45 years of tenure left and downgrade to a 4-room BTO HDB (SBF).
With most of my children grown up in university and soon to leave the nest within the next 5 years, I thought about wanting to downgrade in hopes of reducing the bills, provide better amenities for my remaining little ones and just wanting a new change of pace.
However, the only problem going about is that I'm reaching my age (I'm 54 this year) into retirement and was unsure if I could still use my CPF and how much of my CPF money could I use to fund to pay off the new building?
Would appreciate any expertise on this issue especially in my case of being considered as a second-timer BTO buyer. Thank you in advance!
I just sold my 5 room resale and downgraded to a 3 room to free up cash. 4 rooms are always high in demand and even for a BTO, it's often the most expensive per sq ft. To maximise the monies returned, I chose a 3 room instead. In addition as age catches up, the subsidies and rebates that come with a 3 room flat are way more than those in 4rooms receive.
Just sharing what i know, should consult an experience property agent
1) Approximate your property price, similar size around your area . Thru propertyguru or similar platform.
(Actually should look at recent transaction price, using squarefoot, but need to subscribe, we not property agent so dont waste $$$)
2) Then look at the the house, you want to buy. How much?
3) Then check your cpf. How much u paid for house and accured interest. Because after u sell need to pay back.
4) if is it a positive sale, proceed, if not stay.
5) another problem is because your house less than 60 lease, difficult to find buyer. Because the buyer age + hdb lease must be 80 years else cant use CPF to buy. If your house less than 30 than buyer cant use cpf. Will have difficulty to find buyer
6) you must do it before 55 years old. Before your RA is created. Else once you sold your house. Your money will go straight to RA till BRS reach. Only excess $$$ will remain in ur OA. Then u will have problem.
7) another thing is bank loan is up to 65 years old. Means shorter loan tenture... u need to pay more monthly.
The whole paper works is actually quite complicated, best to consult an agent
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