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Zuhdy Farhan

Your Urban Kaki - a Real Estate Consultant and Marketing Professional

Zuhdy Farhan

Real Estate at National University of Singapore

6Upvotes

About

Your Urban Kaki - a Real Estate Consultant and Marketing Professional

Credentials

Real Estate at National University of Singapore

Zuhdy Farhan

Real Estate at National University of Singapore

6Upvotes
  • Answers (9)
  • Questions (0)
  • Reviews (0)

PFF Panel 1

Bank Account

Seedly PFF 2019

CPF

Loans

Property

Zuhdy Farhan
Zuhdy Farhan, Consultant at Jna Real Estate Pte Ltd
Level 3. Wonderkid
Answered on 03 Mar 2019
Using your CPF for housing will deplete your cash proceeds from the sale of your flat in future. Because: Sale proceeds = Sale price - outstanding loan - CPF used - CPF accrued interest The more CPF you use, the less cash you receive = more money locked up in CPF. Therefore unless you are sure that you will be staying in this flat for the rest of your life, it is more advisable to not use it for housing wherever possible. Feel free to contact me for more information.

PFF Panel 2

Property

Seedly PFF 2019

Zuhdy Farhan
Zuhdy Farhan, Consultant at Jna Real Estate Pte Ltd
Level 3. Wonderkid
Updated on 03 Mar 2019
Unless you are extremely sure that you will not be selling this flat and moving to a new one, I would strongly recommend NOT to get the old flat that is above 40 years. Yes, cheaper, but depreciation for HDB flats are imminent after 40 years, which makes selling it in future a huge challenge + you would potentially be making losses. < 10 year old flats still have some depreciation, but not as much. (In fact, there was an article by CNA which allegdly mentioned that up to 10/20 years, HDB flats depreciate less than condos of a similar age) And depending on external factors (i.e. new MRT? new nearby amenities?) there may be a chance for appreciation. This has to look at URA's Master Plan to see if there's any potential. Otherwise, it's pretty tough. Of course, there are other factors to look at, and this suggestion is purely based on the provided context and how the financing of HDB flats work. Feel free to contact me for more information.

PFF Panel 3

Property

Seedly PFF 2019

Zuhdy Farhan
Zuhdy Farhan, Consultant at Jna Real Estate Pte Ltd
Level 3. Wonderkid
Answered on 03 Mar 2019
1. Calculate the amount of cash proceeds you have from the sale of your BTO. Cash Proceeds = Sale of BTO - Outstanding Loan - CPF used - CPF Accrued Interest. BTOs in the market today experience decent capital appreciation right after MOP, i.e. Buangkok Vale owners have profited over $100K This makes it easier for them to upgrade to a condo without tapping on their savings. Simply because, Purchase of condo: 75% loan -- 25% Downpayment Buyer's Stamp Duty Additional Buyer's Stamp Duty Conveyancing Fees Can be covered with the Cash/CPF proceeds. What's important also is your future mortgage payments, which can be calculated through the TDSR (which is limited to 60% of your income) and lastly, how long you can survive in your property assuming that you lose your job and use mainly your CPF to cover the remaining mortgage.

Property

PFF Panel 2

Seedly PFF 2019

Zuhdy Farhan
Zuhdy Farhan, Consultant at Jna Real Estate Pte Ltd
Level 3. Wonderkid
Answered on 03 Mar 2019
Understand that using CPF for your home means incurring accrued interest from the sale of your home, which strongly depletes your cash proceeds from the sale of your flat. Essentially, Cash Proceeds = Sale Price - Outstanding Loan - CPF used - CPF accrued interest Which means, the more CPF you use, the more interest accrued, the less cash you have. This means the profits you earn from your property all go back to your CPF, locked in, until you retire. If you're confident of your returns, as much as possible, reduce the use of CPF.

PFF Panel 2

Property

Seedly PFF 2019

Zuhdy Farhan
Zuhdy Farhan, Consultant at Jna Real Estate Pte Ltd
Level 3. Wonderkid
Answered on 03 Mar 2019
HDB - Resale, or BTO? A Resale flat makes less financial sense, especially older ones, 1. because it is generally more expensive 2. because it may already start to depreciate 3. you're absolutely right, it will be returned back to the government However, if you are looking to at least make a profit from staying in a HDB flat, a BTO would make more financial sense because of the potential capital appreciation after 5 years MOP period. Owners in Buangkok Vale easily make over 100K in profits, for example. Of course, at the end of the day, it makes sense to upgrade to a condo because of land ownership rights, which in turn lead to possible en bloc in future. In this case, you are not returning the land to developers, but selling it to them. And as seen for the past 2 years, sellers aim to reap high profits. With that being said, if a condo does not go en bloc (which has not really happened before), it will also go back to the government after the end of its lease, just like a HDB.

Family

Lifestyle

Property

Zuhdy Farhan
Zuhdy Farhan, Consultant at Jna Real Estate Pte Ltd
Level 3. Wonderkid
Answered on 02 Mar 2019
Hi! Generally, mature estate resale HDB flats are more expensive, that's why those who manage to get a BTO in these areas enjoy high capital appreciation. Which mature estate in particular - Tampines/Toa Payoh/Ang Mo Kio? This is an important question to ask as there are new towns that are springing up and BTOs are coming fast, i.e. Bidadari, Whampoa and you should consider trying out at these areas if you have not done so. If you plan to stay in the resale flat until the end then the only worry you should look at are your finances: 1. If you are able to afford the downpayment + stamp duties 2. If you would be able to offset the mortgage loan with your CPF and income 3. See if the resale flat is close enough for a Proximity Housing Grant The reason this is so is because resale HDB flats trends generally depreciate a lot, especially after 20 years. If you are not planning to move out until the end, then this does not matter at all. However, for those who are not certain on where their final homes would be, buying a resale flat can be a huge mistake as they have already bought it at a high price and are forced to sell it lower because of the depreciation. It is unlikely that condo prices will be lower than HDB resale prices in the same area. Although depreciation is less for condos in the long term and there is a potential for en bloc, the upfront payments and mortgage may take a bigger toll on your wallet. There's a lot of questions to ask here - family size, TDSR, future plans but if I may provide you with general advice based on your question, its this: Keep trying for BTO, especially in New Towns (that are close to where your parents live) or Keep track of resale prices, if you don't plan to move out and plan to retire in that flat and get one close enough to qualify for a proximity housing grant. If you need any clarification on the above information, feel free to contact me. Will be more than happy to help you out.

General

Family

Property

Zuhdy Farhan
Zuhdy Farhan, Consultant at Jna Real Estate Pte Ltd
Level 3. Wonderkid
Updated on 02 Mar 2019
I have the same worries as you, being a second year undergraduate and having a long term relationship. The biggest question to ask yourself is if you and your boyfriend are financially ready. Although the government has come up with schemes to help younger couples, a BTO is still a huge investment and there are many cases where couples make huge financial mistakes and incur losses. A brief outlook on finances: $10 Application Fee $2000 Flat Selection/Option Fee 5% Downpayment $5,000 Stamp Duties Then construction, which takes 3 years, means you would be in year 4 (if you are doing a 4 year course) and still not having a full time job. After construction: Remaining 5% Downpayment during key collection $275 Survey Fee $28.30 Registration Fee $178.66 Home Protection $5.50 Fire insurance for 5 years $30-60K Renovation So if you can't cough out this cash yet, do reconsider buying now. Don't worry about the time - there will be plenty of new BTOs to come, especially in New Towns. Look at Tengah, Whampoa, Bidadari, Punggol, just to name a few. Your time will come. If you are confused with any of the above finances, feel free to contact me. Will be more than happy to help you out.

PFF Panel 3

Seedly PFF 2019

Property

Investments

Zuhdy Farhan
Zuhdy Farhan
Level 3. Wonderkid
Answered on 02 Mar 2019
The market was at its peak in 2018, until the government announced cooling measures which slowed down demand for buying properties. In 2019, experts are mixed with where the market is going - some expect prices to stabilise and continue rising steadily while others believe it will drop. Personally, it seems that prices are dropping, after analysing different properties and looking at URA's PPI. This has a positive effect on the rental market as more foreigners are less keen to buy properties because of ABSD and are looking to rent instead. The biggest thing in the market in 2019 are New Launches. So for yourself, if you would like to buy a new property, the biggest setback would be the ABSD (the stamp duty on the purchase price). Questions you should ask yourself: 1. Are you a Singaporean, PR or Foreign Resident? 2. How many properties do you currently own? If you are a Singaporean with no properties at hand, then you're in luck - no ABSD will be payable on your first property. However, you would have to pay 12% for your second property and 15% for your third and subsequent properties. If you are a PR, your first property is subjected to 5% ABSD, followed by 15% for subsequent ones. If you are a foreigner, it's 20% for all properties. ABSD aside, if you are keen to invest, it is i mportant to know your financial needs and projects that have potentially higher capital appreciation - perhaps a new MRT that will be built nearby, or the price trends of the project. Location wise, look to growth areas and follow trends to see how properties in these areas will be affected. So in summary, it depends on what kind of investment you are looking at - passive income or capital appreciation and your financial situation. In this market in 2019, it is a challenge to find both.

Property

Zuhdy Farhan
Zuhdy Farhan, Consultant at Jna Real Estate Pte Ltd
Level 3. Wonderkid
Answered on 27 Feb 2019
Hi, Flat viewing comes before HDB loan, following the procedures with the new resale portal. after registering your intent to buy, you would have to search for a flat, get the OTP then go through the mode of financing. Here are the full procedure according to HDB: From 1 January 2018, resale flat buyers and sellers will need to login to the HDB resale portal using their singpass, to start their buying or selling journey. The portal will guide you through the following steps:- 1. register intent to buy 2. search for suitable flat and get option to purchase (OTP) 3. choose mode of financing 4. submit request for value to hdb 5. submit resale application 6. acknowledge resale documents 7. pay fees (online payment) 8. approval of resale 9. completion of resale Hope that helps.
Level 3. Wonderkid
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