Below, we list all the implications of keeping your HDB and buying a private property in Singapore. Keeping the HDB you own as an investment property and upgrading to a condo definitely sounds tempting to many Singaporeans, especially if the rental income is close to or more than the mortgage payable every month. This would typically cost you a few hundred dollars. If a particular Upgrading Programme’s bill was issued while you were the owner of the flat, you still have to pay for the Upgrading Programme’s Costs before selling the HDB. We can see a side-by-side comparison between selling and keeping the HDB with the same income, below: You can see that there is a difference of almost $266,000 between the maximum property values when you sell the HDB vs when you keep it. Ah, the thorn on every 2nd home buyer’s side – Additional Buyer’s Stamp Duty (ABSD). But since they are keeping it and have an outstanding loan which requires a payment of $1,000 per month, their maximum loan amount to buy a condo is $1,600. Upfront Cash/CPF Needed = You can find the timeline of events for upgrading from an HDB flat to a private property such as a condo as shown in the infographic below. But, if you buy a condo first, it would be your “additional” or “2nd” property (assuming you don’t have any others), so you will be liable to pay an ABSD. However, note that the limitations stated above on the withdrawal amount based on the condo’s remaining lease still applies. When such an Upgrading Programme is undertaken in a block, the residents have to pay the Upgrading Programme’s Costs. Find condos for sale, condos for rent & in foreclosure at Condo.com™. + Buyer’s Stamp Duty (BSD) ), Price of a 55-sqm 2BR condominium unit = 138,000 * 55 = 7,590,000 PHP, Add another 435,000 PHP for the parking. Due to this, some restrictions apply on the amount of CPF you can withdraw for the purchase. Service and Conservancy Charges are charges for the maintenance of the common facilities in your HDB block. Note that the timeline to rent out your HDB is not covered below. – Other costs (Legal, Property Agent etc. Check out our ultimate guide on the HDB and EC Resale Levy which covers everything you need to know about it. 8. For a new launch, they could make anywhere between 3-6% of the property value, whereas for a resale, they make between 0.5-1%. So for an AV of $24,000, you would pay nothing on the first $8,000 and pay 4% on the remaining ($24,000 – $8,000 = ) $16,000 which would come up to $640. When to sell a condo The good news is that condos tend to sell faster than single-family homes even in a down market, because condos are typically smaller, cost less, and have lower maintenance costs. We’d like to make you a fair all-cash offer. However, the percentage to pay as tax is different for Owner-Occupied properties compared to Non-Owner-Occupied properties. What this means is that you need to keep a certain amount of money in your combined CPF accounts, and can only withdraw the amount in excess of that. We’ll cover the below topics: Before you can find out if you can afford to upgrade to a private property, you need to check if you’re even eligible to do so. So for an AV of $24,000 for a non-owner-occupied property, the property tax would be $2,400 (when it is owner-occupied, it is $640). This includes your home loan, car loan, student loan, credit cards, etc. . Note that by right, you need to be occupying your HDB after you buy private property, but you can, Since you are keeping your HDB, the condo you are buying will be your second property (assuming you don’t own any other properties). Below, we list all the implications of keeping your HDB and buying a private property in Singapore. Instead, we want to guide you so you can calculate your affordability, identify the benefits and prepare for the pitfalls of selling vs keeping your HDB before upgrading to a condo. If you buy a condo before selling your HDB, it will be considered your “second property”. Is the building currently under litigation? A resale levy only applies when you’re selling a subsidised HDB flat to buy another subsidised HDB flat. You can see from that table that if the loan for the new condo you are purchasing is considered a second home loan, then you will be allowed to borrow only 45% of the value of the condominium, meaning that you need to pay the remaining 55% using cash or CPF. However, at Propseller you can find top agents who charge a commission of 1%. BedsAny1+2+3+4+5+ Use exact match Bathrooms Any1+1.5+2+3+4+ Home TypeHouses Manufactured Condos/co-ops Multi-family Apartments Lots/Land Townhomes Max HOA Homeowners Association (HOA)HOA fees are monthly or annual charges that cover the … HDB flat Sale Price Summary: side by side comparison between selling and keeping the HDB. ( *Note: to calculate maximum property value based on maximum loan amount (mortgage) payable per month: Don’t have an agent yet? . Unique Features Factors such as floor number and the unit being garden or swimming pool-facing can also add value to the price of your property. Since you are not selling any property, you do not have to worry about Seller’s Stamp Duty (SSD). Since you are keeping your HDB, the condo you are buying will be your second property (assuming you don’t own any other properties). Since the condo you purchase will be at least your second property, you will have to pay an ABSD. + Cash savings If your unit was Upgraded, you will have to pay an Upgrading Levy of 10% of the selling price or 10% of 90% of the market value of your flat, whichever is higher. Disclaimer: All information and materials contained in these pages including the terms, conditions and descriptions are subject to change. Condo owners in Los Angeles County, though, can sell a condo in from 84 days to 100 days as of October 2012. It is okay for you to have an outstanding HDB loan on your current HDB flat when you buy a condo and want to keep both of them. Provided that your eligibility is not a concern, your ability to keep the HDB flat or the need to sell it before upgrading will depend on your finances. Make sure you give your HDB branch a written notice of at least one month in advance to make the repayment. BEST SELLER QUALITY CONDO in TENNYSON HEIGHTS -preselling 2021 turnover -2533 Concepcion Aguila St. , Quiapo, Manila -Studio unit... 1 1 ₱ 14 200 000 If you’re renting the HDB instead of selling, the process is a lot more straightforward. If you buy a condo before selling your HDB, it will be considered your “second property”. + Previous HDB Sale’s Cash Proceeds Basically, the Upgrading Programme Costs is to pay for the Upgrading work itself, whereas the Upgrading Levy is a kind of “fee” to pay when you sell an HDB flat that previously participated in the Upgrading Programme. It is important to get an agent experienced with renting out HDBs in your area to ensure you get the highest possible rental amount and in the shortest amount of time, so that you do not have many weeks of vacancy, which could impact your overall income from the unit. Reach 10,000's of potential buyers weekly, and sell your items through NL Buy Sell, Newfoundland's best place to Buy & Sell it! This would typically cost you a few hundred dollars. Search by size, use our custom deal meter, receive listing notifications & view past sales data. Assuming your HDB flat’s loan is not yet paid off, it matters whether you buy your condo first or sell your HDB first. Potential Sale Proceeds = The rates above were set on July 6, 2018. Since Mark and Josephine want to buy a condo, they want to determine the upfront cash/CPF needed for buying a condo worth $1,000,000. Assuming $75 per share value for both, this is $825 per month in maintenance. What are the steps to upgrade from an HDB to a condo? It’s hard to do this, but you have to face the reality and move on with life.3. Assuming they only have enough money to make the downpayment, the maximum property value will be $426,135. Here's how to juggle buying and selling at the same time. If you’re not sure what the AV of the condo you intend to buy is, you can find it on. To put these numbers into perspective, for a $1M condo, getting you to buy a new launch could potentially make them $60,000 whereas if you buy a resale condo, it could only (in relative terms) get them up to $10,000. jQuery(document).ready(function(n){n("input.submit-country").on("click",function(){var i=n(this).closest(".home-widget-form");n(this).val("Searching..."),"Singapore"==n("select.country-field",i).val()?window.location.href="/contact-property-agent/":window.location.href="/contact-property-agent/?call-back"})}); Propseller is Singapore's No1 tech-powered real estate agency offering the most reliable way to successfully and efficiently sell, buy or rent a property. Before we go into the specific differences for you between buying a new launch or a resale condo, one very important thing to note is this –. Enjoy a cozy fireplace in the living room and a slider out to your serene private balcony! Buy. To calculate your affordability, you can use the formula below: Affordability = to your CPF Ordinary Account (OA). To find out if you’ve completed your MOP, you can visit. Josephine and Mark’s “couple age” or their Income Weighted Average Age (IWAA) is based on their combined income and age as shown below: Hence, even if the loan amount they are eligible for is higher, their time to pay it off is much shorter, thus increasing the amount they need to pay per month. Let’s say you choose to “sell one, buy two”. Since you are keeping your HDB, you do not have to worry about this. You can see from here that their sale and cash proceeds from the HDB sale more than cover this amount, hence it should be entirely feasible for them to purchase such a condo without dipping into additional savings, if they take a loan for 75% of the condo’s value. What are the financial implications if I. Most people in this situation need to sell their condo first in order to get the money for a down payment on a house. Downpayment Thus, you will be liable to pay it for the condominium you are purchasing. If you don’t already know of such an agent, you can find one on. We Buy Condos Sell My Condo Fast! For selling your HDB, an agent will typically charge you 2% of the HDB’s selling price (this is the standard market practice). See our comprehensive list of Property For Sale in Singapore. The two most important factors in the sale of a … PARTIES: This legally binding Agreement (“Contract”) To Buy and Sell Real Estate is entered into by: Buyer(s), (“Buyer”), and Seller(s), (“Seller”). For the table below, we are assuming that in the case of “sell the HDB”, the sale of the HDB is made before the purchase of the condominium for simplicity sake. The kitchen opens to a … In the case of upgrading from an HDB flat to a condo, the. At first glance, that represents a 16.4% yield ($9,000 divided by $55,000). Buy and Sell Condo, Makati City. This is different from Upgrading Programme Costs. Total Loan Payment = Maximum Monthly Mortgage Payable x Loan Tenure x 12 Newfoundland & Labrador's largest marketplace of FREE classifieds for cars, trucks, tires, campers, generators, furniture, clothes, real estate, new and used. Mark and Josephine own a 5-Room HDB flat and want to upgrade to a condo. Thinking about buying or selling a condo or co-op? Since this is too low for a condo, they would need to use other cash savings and the proceeds from their HDB sale. If you buy a condo first. That’s not to say that buying a new launch is a bad deal, it means that developers are simply able to pay more than individual sellers are to property agents. Let’s assume the same costs stated before for Mark and Josephine, in addition to a monthly mortgage payment of $1,000 for their existing HDB. 2-Room, 5-Room, etc.) Whether you're looking to buy a home in Dallas, sell a Dallas condo or town home, or rent an urban loft in Downtown Dallas, we've got you covered! Below, you can find the property tax rate for a property that you own and occupy i.e. You must pay the service and conservancy charges for your HDB flat up to the HDB sale completion appointment date. In conclusion, there are a few main things to remember when upgrading from an HDB flat to private property such as a condominium or landed property. Timeline for upgrading from an HDB flat to a condo, our ultimate guide on the HDB and EC Resale Levy, Additional Buyer’s Stamp Duty (ABSD) here, this ultimate guide on the HDB and EC Resale Levy. is the “sell one HDB, buy two condos” a wise property investment move right now? If you are using HDB lawyers for your sale, you can estimate the legal fee using the. Find great deals on new items shipped from stores to your door. Also, if you owe more on your condo than it's worth selling it could prove difficult. Can I afford to sell my HDB and upgrade to a condo? Typically, you need to have been living in your HDB flat for a minimum period of 5 years before you can upgrade to private property. It is $40 for 1 and 2-Room flats and $80 for 3-Room and bigger flats. You can read more about who needs to pay an Upgrading Levy and examples of how to calculate it here. To see the rates and an example of how BSD is calculated based on the property price, you can see this earlier section in the article. How to Sell Your Condo and Buy a House Many condo owners decide that they want a little more space, and start looking for a home to buy. 7. Our team of experts has dedicated itself to bringing the condo market into the modern age, powered by technology that makes it easier than ever for you to buy and sell condos Depending on whether you buy a condo first or sell your HDB first, the CPF amount you can use for buying is impacted. If a dozen members struggle with paying dues in any given month and your community has 500 condos, you aren't likely to feel the … If they are older and only qualify for an 8 year loan tenure based on their IWAA calculated above, they can get a maximum principal loan amount of ~$217,426, meaning the maximum value of the condo will be ~$289,902. – Upgrading Costs You would follow the steps shown below with your property agent (condo buyers don’t have to pay their property agents, so you can use this service for free). 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