HDB Flat (Buy First or Sell First)

[Daddy D]

If u need the $$ from selling your current flat, to help finance your new flat… I think more or less u have no choice but to sell 1st… else u might get stuck with 2 properties to finance.


And u have to sell off your current flat within 6 mths after buying new flat right? So give u less bargaining power then.

Or arrange for some temporary housing, then u will can take your time to sell your current flat and to choose your new flat.

[titank]

Now the problem is that I have saw my ideal unit but not yet action.

Also my existing property I not yet done any valuation loh & into marketing.

Guess buy 1st sell later or the other way round still having pressure.

[Daddy D]

titank:

Now the problem is that I have saw my ideal unit but not yet action.

Also my existing property I not yet done any valuation loh & into marketing.

Guess buy 1st sell later or the other way round still having pressure.

Just dun get caught in their web of new policies... I bet most HDB officers dunno what's going on as well... later they just trial and error... and u become their guinea pig!

[toddles]

titank:

Now the problem is that I have saw my ideal unit but not yet action.

Also my existing property I not yet done any valuation loh & into marketing.

Guess buy 1st sell later or the other way round still having pressure.

I'm guessing your ideal unit is a private apt?

if you can, you should hold on to yr hdb and buy yr private apt as a second ppty....

[hquek]

titank:

Now the problem is that I have saw my ideal unit but not yet action.

Also my existing property I not yet done any valuation loh & into marketing.

Guess buy 1st sell later or the other way round still having pressure.

Well, if yours is hdb, you can find out the latest resale price using this http://services2.hdb.gov.sg/webapp/BB33RTIS/BB33PReslTrans.jsp. My understanding is that the valuation is about close to the average transacted prices - cov is up to seller/buyer.

If yours is private property, you can find out latest transacted prices from ura webpage. http://www.ura.gov.sg/realEstateWeb/realEstate/pageflow/transaction/TransactionController.jpf

if you have seen your ideal unit, better to act fast becos one cheque from someone else and it's gone. Good luck!

[cantbearit2]

titank:

Now the problem is that I have saw my ideal unit but not yet action.

Also my existing property I not yet done any valuation loh & into marketing.

Guess buy 1st sell later or the other way round still having pressure.

You may wish to do some calculations to see if you can keep both units.

Selling price less:
CPF (with accrued int) to put back
Outstanding loan from HDB/bank
valuation fee (reimbursement fr buyer later on)
legal fee + admin fee
agent fee
The balance will be your net proceeds.

IMHO, it is really a waste to let go of an HDB flat with this current policy in place.

If you do not intend to keep the HDB flat, do be mindful of the time lapse in transactions. HDB usually take around 5 mths (including mktg, nego, first apptm, completion) all in all. You may wish to consider temp lodging if $$ permits. The cost of renting will need to be taken in for calculation of your cash proceeds as well.

Good luck!

[Xmasbaby]

Assumption: Sell current HDB & Buy resale HDB


1. Buy First Sell Later

You need to take note that in order for you to buy first, must make sure that you have sufficient CPF OA for the downpayment (10%-HLE, 20%-bank loan) + legal fees + stamp duties & HPIS & miscellaneous (around 3%) and CASH component COV ($30-50K average) depending on location & house model & renovation etc.

In my view, not so advisable because in this current market, you would still buy at near the peak & when you sell later, chances are market soften in terms of COV.

2. Sell First Buy Later

You need to take note that by choosing this option, you must make sure that you have a house to stay during the lapse period (after you handover current flat to the time you takeover new flat). If you have a place to stay, no issue.

In my view, this option is more feasible provided you have a place to stay during lapse period. Chances you still be able to sell at near peak, and buy when market soften in 2011.

3. Buy & Sell at the same time (CONTRA)

A. you only can do contra if you are taking HDB loan for current & new flat, so if bank loan involved, no contra.

B. Contra means the OTP for both flats will submitted to HDB at the same time for HDB 1st appt. It also means that yopu will handover current flat & takeover on the same completion day. You need to engage a good agent to help you on this option. Agent will ask for extension (free stay after handover) on your current flat so that you have time to renovate your new flat and at the same time agent may ask for early move-in for your new flat, of course, all subject to buyer/seller mutual agreement. HDB don’t recognise all these ‘outside arrangements’ so please take note.

C. This option is the most highly pressured because of time constraint. Even if you do contra, there will be 2 possibilities that can happen.

You managed to sell first with your expected price, but you got limited time to source for your new flat. Normally agent will request around 30-60 days submission date to HDB. That means you have to buy within the time frame. If not in time, you will revert to OPtion 2. (Sell first Buy Later).

You managed to buy new flat first, so you must sell within the time frame given. You may not sell at your expected price because of time constraint given. To be able to sell is no problem, issue is WHAT price. If can’t sell within time frame, revert to Option 1 (Buy first Sell later) provided sufficient COV, downpayment etc.

The good thing about this option is that don’t need to worry for COV, downpayment as can be deducted from current flat sale proceeds.

Most of the time, people only choose this option if they got no house to stay during lapse period or they need sales procceeds to settle COV or downpayment.

Most importantly, please do a financial planning for the whole process so that you know what to expect at the end of the day. ($$$). Nevertheless it depends on other factors as well, like when you need to shift to new flat, reason to shift, etc

Just my 2 cents worth

[titank]

Guess I have to use contra as we are not entitled to take HDB loan, we must use bank loan. Looking at sell first buy later or buy first sell later both way still have pressure in one way or another.

[chatelaine]

I would suggest sell first then buy. But have to negotiate with buyer to wait till you find your desired unit. Maybe give a time frame to them.

[dicky]

Just my humble opinion only. Buying and selling owner-occupied units are usually an emotional issue, never rational. If the reason to move is solely based on flat getting old, it is not worth the hassle at all. Newer flat doesn't mean better. I had personally noticed newer flats having hollow walls, at ridiculus prices etc... Worst, all it takes is one neighbour borrow from ah-longs, and there goes your peaceful neighbourhood and pride in your new home....


My experiences and observations is that it doesn't matters buy 1st or sell 1st, you are bound to have pressures on way or another, and to be very frank, lose money one way or another. Home is never an asset until sold at some capital gains, only a liability as we are paying loans.....

The only way to relieve any such pressures or losses, is when you have another roof over your head for a period when you sell. I sold mine and stay with parents for 9 months at one stage, and also on another stage stay with them for 3 months while re-renovate our hdb flat again (decided against selling as 5 mins walk to up-coming downtown line 3 station)

Good luck