Property Views

[pirate]

tankee:

other factors
- sudden death or missing
- separation

Wait. Is that a pro or a con?

[jetsetter]

pirated:

jetsetter:

Not divorce but removal of one occupier's name only. I think it's possible.

http://jkfund.blogspot.sg/2014/06/hdb-decouple-topic-spr-sc-household.html


The impt thing is to get your spouse become a first-time buyer.

Not first time buyer. Is first housing loan borrower without EXISTING housing loan. If previous loan fully paid, new loan is first loan

Actually now that ngl2010 flagged this out, I notice your second statement is irrelevant to our discussion on decoupling to avoid paying the 7% ABSD

Maybe you could explain why you brought in that statement that if the previous loan has been fully paid, new loan becomes first loan? It's immaterial.

Yesterday, we were talking about getting the outgoing owner to complete the part-share sale (in HDB's case, I understand it must be \"transfer by gift\" according to that blogger) with the remaining owner first, so that the outgoing owner no longer owns anything in his name. By removing his name from the previous contract thru selling his 50% share to the remaining owner, he can then proceed to buy the second property like a new buyer (I used \"first time buyer\" loosely), and hence able to take up 80% loan and 'siam' the ABSD.

It doesn't matter if his first property's mortgage has been paid up fully or not. He is already out of that first contract and the remaining owner will have to work out with the bank to refinance the outstanding loan, or he/she can fork out some cash to pay up the loan fully if he/she is an unemployed housewife or retiree (which means some banks might hesitate to extend loan to this remaining owner).

[jetsetter]

pirate:

tankee:

other factors
- sudden death or missing
- separation

Wait. Is that a pro or a con?

Both are cons.

There are implications involved so decoupling isn't for every couple!

Most of us own properties in joint tenancy. If your spouse dies (touch wood), your joint property goes to your surviving spouse who becomes the sole owner. The latter just gets the lawyer to lodge a Notice of Death and property will be transferred to his/her sole name.

BUT, for tenant-in-common or sole ownership (in the case of Decoupling), you need a grant of probate or grant of letters of administration, etc. very mafan. So it's a con.

And if you divorce or dispute with your spouse in the future, and want to claim back that property you decoupled from...good luck!

But despite all these cons, many couples still consciously decouple because the pros include substantial monetary savings! It's not just saving of the ABSD, but also seller stamp duty for part share sale of the first property and so on. Better consult your financial consultant or banker to calculate the sums before decoupling. And ensure the remaining owner fulfils the TDSR requirement and LTV too. Don't leave the spouse in a lurch!

[pirate]

jetsetter:

And if you divorce or dispute with your spouse in the future, and want to claim back that property you decoupled from...good luck!

Sounds like a 'pro' to me from the point of view of \"your spouse\".

[pirated]

JS -


It is possible that in the decoupling process the out-going owner may still be joint borrower of the mortgage. Hence if he buys a new ppty he may siam the ABSD but cannot take 80% loan because he has an existing housing loan.

Ownership and borrowing need not be mirror image. You can be a borrower but not the owner. Or be the owner but not the borrower.

[starlight1968sg]

pirated:

Ownership and borrowing need not be mirror image. You can be a borrower but not the owner. Or be the owner but not the borrower.

I want to be the owner but not the borrower

[pirated]

starlight1968sg:

pirated:

Ownership and borrowing need not be mirror image. You can be a borrower but not the owner. Or be the owner but not the borrower.

I want to be the owner but not the borrower

Yes you can when you have no income, and / or your spouse / joint-owner can single income pay for the mortgages, or you pay cash - no need to borrow

[jetsetter]

pirated:

JS -


It is possible that in the decoupling process the out-going owner may still be joint borrower of the mortgage. Hence if he buys a new ppty he may siam the ABSD but cannot take 80% loan because he has an existing housing loan.

Ownership and borrowing need not be mirror image. You can be a borrower but not the owner. Or be the owner but not the borrower.

PRT - Thanks for your clarification...Was wondering why you brought in \"first loan\" out of the blue

But in your scenario, it's not going to amount to much savings, so why bother going through the hassle of decoupling? You still must bear the 3% BSD, lawyers fee, blah3...

When couples decouple (NB: \"couples\" could be father and DS/DD, siblings, or unrelated investors), they will go for a \"clean break\" in a part sale/purchase. The remaining owner becomes the sole borrower whereby the CPF monies (if used to pay for that first ppty) of the outgoing owner (\"seller\") must also be fully returned (with accrued interest) by the remaining owner (\"buyer\").

The new loan will be shouldered by the remaining buyer , which is why it's very impt to do very precise calculations before going into decoupling.

Btw, I'm talking about pte ppty decoupling, not HDB decoupling here, just want to make sure we're on the same page. :evil:

[jetsetter]

starlight1968sg:

pirated:

Ownership and borrowing need not be mirror image. You can be a borrower but not the owner. Or be the owner but not the borrower.

I want to be the owner but not the borrower

Assuming you're the joint owner of your current ppty, the minute you tender your resignation and go on strike without an income, you can have that scenario instantly! :rahrah:

[ptb7476]

https://sg.finance.yahoo.com/news/going ... 00948.html

Going once, going twice: More prime homes go under the hammer as owners go bust