HDB and Condo

[janet88]

Did think of upgrading to a newer HDB flat...but that means I have to top up cash monthly. My flat is finally fitted with lifts on every floor and MRT is ready in 2015. After 20 years, the interior like pipes are old...how much you renovate is not worth. Prob is new flats are smaller and further. :roll:

I thought of DBSS at Clementi but it's so ex.

[prata_queen]

what i gather is that unless one has paid off entire housing loan of first property, then the minimum cash we need to have for downpayment for 2nd property is 40% of S$1mil ie S$400k.

(this is assuming that the first property is to be retained)

add emergency cash + unforeseen expenses that come with shifting house, we need S$450k-S$500k and above IN CASH!

[ahkeong]

caught in this situation as well

dunno whether to move or not… to be in debt for the next 20-30 yrs sound scary

[cherrygal]

20 - 30 yr loan is not that scary. You can buy then sell when the market is good and get profit too. You dun need to keep it till you pay off the loan unless you wanna pass it to the kids…


If you buy a 2nd property with a loan and rent it out now, the tenant is technically paying your monthly instalments.

Yes, the 40% cash outlay for a 2nd property now is tough and home prices aren’t that low. Would advise you to hold your 2nd purchase unless you have fully repaid your 1st property (then you can apply for 80% loan). Many of my friends fully repaid their flats and bought a 2nd private property with the 80% loan. They then rented out their flats. Very popular now that’s why lesser resale HDB flats available.

You better do this fast if you want coz I think the HDB may clamp down on this "buy new condo, rent out old flat" practice soon. Logically, it’s not right as you should be staying in the HDB flat and renting out the condo.

[xueyan]

So do I understand correctly that


- If HDB loan is not fully paid, one can only get 60% loan for private property
- If HDB loan is fully paid, one can get 80% loan for private property

?

[verykiasu2010]

xueyan:

So do I understand correctly that


- If HDB loan is not fully paid, one can only get 60% loan for private property
- If HDB loan is fully paid, one can get 80% loan for private property

?

that is correct

[raynreg]

Is there something like "overtrade" for property as there is for cars. Meaning that the outstanding HDB loan is loaded to the condo loan and we get the 80% financing? Assuming that there is no problem to fully repay the HBD loan just that interest rates are so low, might as well roll it over. Possible?

[verykiasu2010]

before the commercial bank could approve your loan for a private property, you have to show a print screen from HDB website showing you have no outstanding loan with HDB, so practically no way to roll the old loan into the new loan - the bank will breach housing loan lending conditions stipulated by MAS – double financing


the over trade you propose is like inflating the purchase price, which will not work because the bank loan is still subject to valuation of the property by valuer appointed by the bank

to inflat the purchase price to get the loan amount sounds fraudulent, be careful ! CAD will come after you and the bank

[Imp75]

I dont recall coughing up cash (if yes, probably minimal) for my second property purchase. I think can use CPF once set aside the minimum sum plus no other existing loan

[verykiasu2010]

Imp75:

I dont recall coughing up cash (if yes, probably minimal) for my second property purchase. I think can use CPF once set aside the minimum sum plus no other existing loan

second property purchase not to be confused with second mortgage taken up by buyer

one could have 10 properties all paid in cash and zero loan, the 11th property will still get 80% loan if needed, and the 12th property will have max 60% loan - just an illustration on the LTV on 2nd or subsequent mortgages

http://www.housingloansingapore.com/loan-to-value-singapore-limit-and-ratio-ltv-mortgage-explained