HDB BTO

Build To Order HDB flats

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HDB BTO
  • Asked by Anonymous

    Josh Tan Jian Liang
    Josh Tan Jian Liang
    25 Answers, 34 Upvotes
    Answered 5d ago
    I think Hariz has given a good rule of thumb for home affordability. It can help you stay financially prudent. :) Ive this video description to share with you on “should i buy a $750k HDB”
  • Asked by Anonymous

    Tan Yin Loo
    Tan Yin Loo
    2 Answers, 3 Upvotes
    Answered 3w ago
    I would say use a huge portion of CPF as you might not know whether how CPF board choose to let you withdraw money from CPF when you hit your retirement age. see https://www.theonlinecitizen.com/2019/01/28/totally-illogical-to-suggest-cpf-payout-term-of-28-years-where-there-is-no-one-to-receive-balance-payout/
  • Asked by Anonymous

    Gerard Ong
    Gerard Ong, Tax consultant at Ernst & Young
    11 Answers, 37 Upvotes
    Answered on 06 Sep 2018
    Yes of course, because it is akin to "borrowing" a loan from your own cpf account. The 200k would have generated interest had it remain in your cpf; so since it is being taken account the interest will need to come from you. Having said that, do take note that accrued interest will only be applicable if you sell that BTO subsequently. If you don't sell, no need to return accrued interest.
  • Asked by Anonymous

    Kenichi Xi
    Kenichi Xi, nᴉʍ oʇ dǝnᴉʇsǝd 不能说的秘密 at Tag Team with Gabriel Tham
    149 Answers, 329 Upvotes
    Answered on 25 Sep 2018
    Sorry to tell you this. Only Singapore Citizens are allowed to rent out the HDB flat. Singapore Permanent Resident flat owners are not allowed to do so. The above is the RIGHT way. If u catch what i meant. Hope my reply helps. If you feel this reply have Quality, please upvote and check other Quality Reply. https://seedly.sg/profile/a-kenichi-xi Thank you.
  • Asked by Anonymous

    Teo See Hwa
    Teo See Hwa, MArketing Associate at Propnex
    44 Answers, 52 Upvotes
    Answered on 21 Oct 2018
    When one is young leverage, when old de-leverage.
  • Asked by Anonymous

    Serene Toh
    Serene Toh
    40 Answers, 80 Upvotes
    Answered on 04 Jan 2019
    The first property you buy should alway be the one you want to live in (and can tahan living in for life). The investment part should only be secondary and not your main reason for buying the house. This is my personal opinion only. This way, even if rental market is bad, you can alway move into your unit, and you also won't get "stuck" with a property that's inconvenient for you live in, when the property market is down. My unprofessional 2 bits worth of opinion is, HDB actually can potentially gave you a higher rental yield compared to private condos if you do it right, but you will be subjected to HDB rules. As the cost of HDB is lower, you can potentially get a higher monthly rental compared to your monthly mortgage, meaning you can get extra income per month. But you have to research to find out the average rental in the area and compare against the cost of the unit & your estimated monthly mortgage The best earnings from private condos is the capital gains you get from selling the condo, especially if you bought it at launch, rental usually will just try to cover mortgage & maintenance fees where possible, so its difficult to get a high enough rent for income, until your mortgage is fully paid up. In both cases, you need to consider that you can afford to pay the monthly mortgage, even without rental. I understand where you are coming from. It's the 6K Cap that is pushing you to make a decision so you don't regret missing the boat when you go beyond the salary cap. But don't buy for the sake of buying. If you do decide to get a HDB, it should be for the right reasons, and not just to avoid missing a boat. In the mean time, it doesn't hurt to shop around for a property while you are trying to decide. Was viewing private earlier for 1-2 years but couldn't find one at reasonable price. Took me about 1 year to find the right house after I decided to go for a resale instead. Knew it was the fated one, because I manage to get all emo viewing a house with no reno.
  • Asked by Anonymous

    Nicholas Woon
    Nicholas Woon, Marketing Director at ERA Realty Network Pte Ltd
    19 Answers, 42 Upvotes
    Answered on 25 Sep 2018
    Hi, Short Answer I would recommend you to stick to BTO and upgrade later! Long Answer EA Affordability (I assume you're referring to resale EA) from $4xxK at Jurong West/Pasir Ris Executive flats cost an average of $6xxK in Singapore Assuming you are both earning about $3500 and age 25-30 with no outstanding loan, HDB Loan: Max loan of $419,000 (90% of property price) which translates to a property price of $465,000 if you are taking 90% loan and 10% CPF/Cash. Bank Loan: Max loan of $419,000 (75% of property price) which translates to a property price of $558,000 if you are taking 75% loan, 20% CPF and 5% Cash. I assume you would use the CPF Housing Grant to offset/partially pay the CPF portion in the payment. (ie. $40,000 CPF Housing Grant for both Singapore Citizens for 5 room and bigger HDB resale) From this calculation, EA is a viable option if you are comfortable with the locations which are further away from the city. However, you would need to prepare more cash savings or CPF OA if you intend to purchase an average EA that cost more than $600K. EC Affordability There is no outstanding new ECs in the market and the next launch would be next year in Sumang (Punggol). For the past 2 launches, there are no 2 Bedrooms so the most affordable option is a 3 Bedroom unit. The lowest price unit from the last launch (Rivercove Residences in Sengkang) was $830,000. Rivercove land bid price was $355psf while the next EC launch's (Sumang Walk/Punggol) land bid price was $583psf. We would expect this EC price of a 3 Bedroom to be at least $9xxK. (You can only apply for bank loan for EC) Bank Loan: $467,000 (75% of property price) which translates to a property price of $622,000 if you're taking 75% loan, 20% CPF OA & 5% Cash. You would be eligible for $30,000 CPF housing grant if both you and your partner are both Singapore Citizens and I assume you would use it to partially pay the 20% CPF portion. From the above calculation, I would not advise you to go for an EC as you would need a combined cash/CPF OA savings of more than $400K (ie. $9xxK - $467,000 - $30,000). As a rule of thumb, usually we advise couples with more than combined monthly income of $8000 to consider for EC unless you have cash savings or financial support from your parents. Conclusion Hence, I would suggest going for BTO first before upgrading! Hope I provided a clear explanation! :)
  • Asked by Anonymous

    Yixiong Chang
    Yixiong Chang
    188 Answers, 244 Upvotes
    Answered on 06 Nov 2018
    This is a very tricky and sensitive problem. Since your ultimate goal is to buy your own flat. He will need to be able to stop paying the mortgage, other you might have problem getting a mortgage for your home. As debt servicing will limit to how much loan is available (thus limiting the type of flat u can buy). There are some ways: #1: First you might need to cancel the CPF payment for the mortgage by your spouse. The mortgage will have to be serviced using cash in the name of his parent. (This will have to be kept secret). There after you will be in better debt servicing ratio to apply for a loan for your new flat. For HDB loan, repayment only starts when u receive your keys for the BTO. After the new flat is ready for move in, the parent's flat could be sold where they can move in with u. Or other solutions as below.. #2: Lease buy back scheme - Sell the tail end lease back to HDB. The owners' age need to be 65. The proceeds, if any, must be used to topup owners' CPF retirement account up to the current full retirement sum. Government will grant a Cash bonus of a $1 for every $3 topped up this way up to $20k. Parents will be able to stay in existing flat this way. #3: Right sizing - More troublesome as u have to sell and buy a smaller unit. A loan can still be taken on the new smaller flat but it will be a smaller amount. If there are any proceeds, it can be used to topup the CPF RA to be eligible for cash bonus of up to $20k from the government. Without details it is really hard to suggest appropriate solutions . Are u currently staying together with his parents? What is the unit type of his parent's flat, how much mortgage left to pay? How Old are the parents? I also assume the flat is in the name of both his parents and they have been living there for more than 5 years? Are there anyone else living in the flat? Does your husband have sibilings? Income levels for both of u? Let me know if u would like to discuss further.
  • Asked by Anonymous

    Gabriel Lee
    Gabriel Lee
    366 Answers, 558 Upvotes
    Answered on 09 Dec 2018
    As always, all investments carry risks and the returns are not guaranteed as compared to your study loan's interest. Therefore, you should try to clear off your loan asap before beginning investing and only invest with money that you can afford to lose.
  • Asked by Anonymous

    Jessica Chuah
    Jessica Chuah
    4 Answers, 16 Upvotes
    Answered on 10 Jul 2018
    I'm making the assumption of taking a loan with HDB for the answers below. Number 3 and 4 may defer a little if you choose to opt for bank loan Fees involved include the following: 1. Upon submission of choice of ballot location and flat type: $10 Application Fee (via Credit/Debit card online) 2. Upon attaining a queue number and going down to HDB Hub for flat selection: $2000 option fee applies (via NETS) 3. Upon signing of option to purchase: 5% downpayment (via CPF and/or cash/cheque/cashier's order) 4. Upon signing of sale and purchase agreement: Balance downpayment and 1 to 3% legal fee and stamp duty (via CPF and/or cash/cheque/cashier's order)
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