PROS & CONS OF BUYING PROPERTIES UNDER TRUST


It is getting more & more common nowadays that property is purchased under Trust. But are you fully aware of the pros & cons of this mode of purchase? To make an informed decision, attend this free-of-charge Consumer Webinar on Saturday, 8 May 2021 at 10am.

You can pm me for the Zoom Meeting ID and passcode.

Those who are still on the fence as to whether to buy your 2nd property or not, you may want to make a decision soon. In the past few days there have been many newspaper articles on how the government is now monitoring the market and may issue new regulations to slow down purchases.

zac's mum\" post_id=\"2010698\" time=\"1609732996\" user_id=\"53606:[quote=\"zac's mum\" post_id=2010698 time=1609732996 user_id=53606]
This is fine advice. Provided the relationship is truly solid. Legally, the party who is not listed as Owner will stand to lose out if the marriage ever ends in divorce, no?[/quote]

As the flat was acquired by the couple under the HDB fiancé-fiancee scheme, then it is a matrimonial asset. This means that in the event of a divorce, it will be divided between them as determined by the courts.

REMEMBER THIS TERM \"HDB ESSENTIAL OCCUPIER”


I met an old friend a couple of days ago and during our conversation, she told me her son had applied for a BTO flat together with his girlfriend. My immediate question to her was “Did he and his girlfriend both apply as owners?”, to which she answered with a “Yes”. Being aware of the fact that her son intended to purchase a private property in the future, I told her that there was a way to cut unnecessary spending and save money on taxes. I suggested to her that they should apply as Owner + Essential Occupier instead.

As a parent myself and seeing how purchasing the 1st HDB flat is such a big milestone in our children’s lives, I would like to share this important piece of information with you all.

HDB requires applicants to form a family nucleus in order to become eligible to purchase an HDB flat. The flat can be registered either under at least 2 Owners or Owner + Essential Occupier. When your child wants to purchase an HDB flat with his/her partner, please do advise them to apply as Owner + Essential Occupier. Please advise them not to apply as 2 Owners unless there is a need to use both persons’ CPF. If they do happen to apply as 2 Owners, they would have to pay ABSD, a whopping 12% tax for citizens buying their 2nd property, if they were to buy a private property in the future. The government no longer allows decoupling on HDB flats.

On the other hand, if your child and his/her partner were to apply for an HDB flat as Owner + Essential occupier, they would not have to pay ABSD if they purchase the private property under the person who is registered as Essential Occupier of the HDB flat as the private property would be considered as his/her first property.

So, please keep in mind the term “Essential Occupier” and you and your family will be all set.

I have seen 2 condos with around same number of units and same age but the management fee differs by about $ 500 per quarter. The one with lower management fee actually has more facilities i.e. have sauna room, karaoke room, etc. However, because the owners do not want to increase the management fee, their sinking fund is very low. So, whenever the condo needs to paint the whole condo or resurface tennis court, etc, they will raise special levy. The other condo never need to raise special levy but their management fee is higher. Which one do you prefer?

starlight1968sg\" post_id=\"2009085\" time=\"1608630786\" user_id=\"14025:

Why some condos have higher mgmt fees as compared with others?

Coast, Zeal Mummy and Zac's Mum are all correct.

zac's mum\" post_id=\"2008809\" time=\"1608598031\" user_id=\"53606:[quote=\"zac's mum\" post_id=2008809 time=1608598031 user_id=53606]

Property Agent\" post_id=\"2008718\" time=\"1608563746\" user_id=\"189958:[quote=\"Property Agent\" post_id=2008718 time=1608563746 user_id=189958]Hi Zac's Mum. You can consider Normanton Park. It is going to be launched in January 2021 (preview is 2 January 2021). Right behind Normanton Park is Kent Ridge Park so you'll get fresh air all year round and you can exercise there. It is like living next to Botanic Garden but at a fraction of the cost. Normanton Park also has a swimming pool that is 500m long! Maybe this weekend you would like to visit Kent Ridge Park to see whether you would like to exercise there when you retire?

It is near NUS, NUH, Science Park, Metropolis, Biopolis, Fusionopolis, UWC (Dover Campus) and MediaCorp so you will have a huge pool of potential tenants if you want to rent out your unit before you retire there.

TOP is estimated Q2 2023.

You can pm me if you are interested. Thank you.[/quote]

LOL thank you for your enthusiastic sales talk. I already have more than 10 property agents trying to spam me in Whatsapp. Join the Q.

I am VERY familiar with that district cos I used to work in NUS/Science Park area..DH and I used to go exercising + dating at Kent Ridge Hill too...plus a few friends benefitted from the Normanton Park enbloc payout.[/quote]

LOL. Ok, I'll join the queue

Zeal mummy\" post_id=\"2008725\" time=\"1608572348\" user_id=\"58173:[quote=\"Zeal mummy\" post_id=2008725 time=1608572348 user_id=58173]
May I ask how much psf Normanton Park will be?[/quote]

Indicative price is between $ 1,750 - $ 1,900 psf. The exact price will only be known on 16 January 2021.

For comparison, here are other projects’ prices in District 5:
•\tOne North Eden (at One North), TOP March 2023, est. $ 2,000 psf
•\tKent Ridge Hill Residences (at South Buona Vista), TOP December 2023, transacted $ 1,8xx - $ 1,9xx psf

Normanton Park’s management fee is very low too:
•\t1 bedroom: est. $ 225 – 270/mth
•\t2 bedroom: est. $ 270/mth
•\t3 to 5 bedroom: est. $ 315/mth
•\tTerrace house: est. $ 360/mth (yes! Normanton Park has terrace houses inside it)

zac's mum\" post_id=\"2008466\" time=\"1608370411\" user_id=\"53606:[quote=\"zac's mum\" post_id=2008466 time=1608370411 user_id=53606]
Hi all, for my next property (hopefully to retire in), I wish to buy one near a PCN (park connector network) so that we can cycle for exercise. Any suggested condo developments (existing ones)?

Had a very nice ride from Satay by the Bay to Marina Bay Sands/Esplanade this morning. Wish we can do this daily instead of just turning into couch potatoes.

Alternatively, any condos with huge internal jogging track or cycling path as part of their facilities, also keen to consider.

Previously considered Pebble Bay area...but open to others.[/quote]

Hi Zac's Mum. You can consider Normanton Park. It is going to be launched in January 2021 (preview is 2 January 2021). Right behind Normanton Park is Kent Ridge Park so you'll get fresh air all year round and you can exercise there. It is like living next to Botanic Garden but at a fraction of the cost. Normanton Park also has a swimming pool that is 500m long! Maybe this weekend you would like to visit Kent Ridge Park to see whether you would like to exercise there when you retire?

It is near NUS, NUH, Science Park, Metropolis, Biopolis, Fusionopolis, UWC (Dover Campus) and MediaCorp so you will have a huge pool of potential tenants if you want to rent out your unit before you retire there.

TOP is estimated Q2 2023.

You can pm me if you are interested. Thank you.

xueyan\" post_id=\"2008184\" time=\"1608169196\" user_id=\"6643:

May I know how much is the commission to property agent for sale and purchase of HDB?

Is it 1% or 2% ?

For HDB resale flats, the seller usually pays about 2% commission to seller's agent while the buyer pays about 1% to buyer's agent.