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Thread: Questions on getting a new flat or resale flat.

  1. #1
    Member skeletonman's Avatar
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    Default Questions on getting a new flat or resale flat.

    I know, this must have been posted somewhere before so tahan with me. I am interested in getting a resale flat or new HDB flat.

    My application for resale flat from HDB had been rejected. From the letter that I got from them, there will be need developments from HDB at Dawson, Sembawang and Pasir Panjang. It will be opened for application somewhere end of this year.

    It is BTO so have to wait for at least 3 years or more. I have the time but just that right now my parent's place is kinda cramp as my elder bro and sis in law are staying here. Therefore looking at other alternatives.

    So am thinking about getting one from real estate company.
    But I do not know what are the procedures and process?

    • Things that I need to know?
    • How much $ is enough for first down payment?
    • Is loan needed if I am eligible for using CPF?
    • How much interest for agent's commission?


    All these things $$$ is making me going crazy lol. Would appreciate anyone with the experience can guide me along! Thanks!
    Last edited by skeletonman; 13th December 2009 at 09:18 PM.
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    Senior Member melvin's Avatar
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by skeletonman View Post
    I know, this must have been posted somewhere before so tahan with me. I am interested in getting a resale flat or new HDB flat.

    My application for resale flat from HDB had been rejected. From the letter that I got from them, there will be need developments from HDB at Dawson, Sembawang and Pasir Panjang. It will be opened for application somewhere end of this year.

    It is BTO so have to wait for at least 3 years or more. I have the time but just that right now my parent's place is kinda cramp as my elder bro and sis in law are staying here. Therefore looking at other alternatives.

    So am thinking about getting one from real estate company.
    But I do not know what are the procedures and process?

    • Things that I need to know?
    • How much $ is enough for first down payment?
    • Is loan needed if I am eligible for using CPF?
    • How much interest for agent's commission?


    All these things $$$ is making me going crazy lol. Would appreciate anyone with the experience can guide me along! Thanks!
    Alternatives is u can choose to rent a unit till your BTO is ready or buy one in the Open market.

    Assuming u are the later:
    1) Getting one from Real Estate Company? FYI Real Estate Co dun sell flats they Broker the deal. So u mean getting a resale flat from the open market?

    2) What things u need to know depending on what things u dun know? Some of the info can be found Here!

    3) As long as CPF or CPF+ savings can cover abt 20% of purchase price.

    4) Unless u are either cash or CPF rich (ie can buy using ur CPF alone or plus cash) u will need a loan. Either with HDB or Banks. I would say go with HDB loan.

    5) Agent's Commission got no interest! Buying will be 1% of purchase price!


  3. #3

    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by skeletonman View Post
    I know, this must have been posted somewhere before so tahan with me. I am interested in getting a resale flat or new HDB flat.

    My application for resale flat from HDB had been rejected. From the letter that I got from them, there will be need developments from HDB at Dawson, Sembawang and Pasir Panjang. It will be opened for application somewhere end of this year.

    It is BTO so have to wait for at least 3 years or more. I have the time but just that right now my parent's place is kinda cramp as my elder bro and sis in law are staying here. Therefore looking at other alternatives.

    So am thinking about getting one from real estate company.
    But I do not know what are the procedures and process?

    • Things that I need to know?
    • How much $ is enough for first down payment?
    • Is loan needed if I am eligible for using CPF?
    • How much interest for agent's commission?


    All these things $$$ is making me going crazy lol. Would appreciate anyone with the experience can guide me along! Thanks!
    Just gotten a resale flat myself. Tired of waiting for HDB flats and tired of getting so many disappointments and the impossible-to-get ballots. The new flats are so far away from my parents and in-laws and its important for me to stay near my in-laws as they can help out in taking care of my kid. I know can have transport to ferry them around but its time, money and effort. The nearer I stay near them, the faster and lesser effort i need to go to them or they come over to my place.

    [*]Things that I need to know?
    Do you want your in-laws and parents to help out in taking care of the kid(s)? Then look around for resale nearby. Otherwise, if you dun plan to have kids and have a car, you can stay anywhere in singapore.

    [*]How much $ is enough for first down payment?
    Typically, if you dun have enough money in your CPF, then you'll need to take a HDB loan. You have to submit a form to HDB in order to know how much can you loan. Once you know that, you can them use that amount to deduct from the cost of the flat to see how much do you have to topup in cash for the place. If its lesser, then u do not need.

    You need to know that the COV (cash over valuation) is really cash, cannot use CPF. Its the amount where you pay on top of the valuation value of the flat. For example, the flat is valuated at 300,000. The seller wants 10,000 cash. Then you have to pay 10,000 in cash. The amount is usually negotiable but if its a hot property, then that amount can go up, especially if you are involved in a bid for it with other couples eyeing for the place.

    [*]Is loan needed if I am eligible for using CPF?
    Unless you are rich enough to pay everything in cash, then u need the loan. Best is to take HDB loan cost the interest is low and its fixed. Repay using the longest repayment period. And if you strike Toto or 4D or when you are able, then try to clear the loan to incur less interest.

    [*]How much interest for agent's commission?
    No interest for agent's commission but its 1% of the total selling price of the place inclusive of the COV. Citing the earlier example, if you buy the place at 310,000 then the agent commission is 3,100.

    I know I am kinda long-winded but I prefer to upload as much info as I can to you. So ask away.
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    Default Re: Questions on getting a new flat or resale flat.

    Thanks to Skeletonman for the thread and bigger thanks to Melvin and Andeelym for taking the time to answer.

    If I may piggy-back on this thread, I'm looking to get our own flat from the open market as well next year (hopefully). I do have some questions that I found vaguely answered in the HDB site and other real-estate site, hoping for a more straight-forward answer from CS folks that may be of use for relatively "new" SG dwellers like myself.

    1) Who determines valuation and COV? How much COV is "normal" and what warrants the owner from asking for COV?
    2) What's the normal % for down-payment here in SG? Can you use CPF to pay for the DP? What if it's insufficient? Can you take a short loan to furnish this DP amount?
    3) What's the average interest rates for a 20+ year loan?
    4) Assuming it's a unit from the open market, once you paid the down-payment and obtained the approved loan, can you move in already?

  5. #5

    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by theveed View Post
    Thanks to Skeletonman for the thread and bigger thanks to Melvin and Andeelym for taking the time to answer.

    If I may piggy-back on this thread, I'm looking to get our own flat from the open market as well next year (hopefully). I do have some questions that I found vaguely answered in the HDB site and other real-estate site, hoping for a more straight-forward answer from CS folks that may be of use for relatively "new" SG dwellers like myself.

    1) Who determines valuation and COV? How much COV is "normal" and what warrants the owner from asking for COV?
    2) What's the normal % for down-payment here in SG? Can you use CPF to pay for the DP? What if it's insufficient? Can you take a short loan to furnish this DP amount?
    3) What's the average interest rates for a 20+ year loan?
    4) Assuming it's a unit from the open market, once you paid the down-payment and obtained the approved loan, can you move in already?
    1) Who determines valuation and COV? How much COV is "normal" and what warrants the owner from asking for COV?
    The seller will engage an evaluator to evaluate the house you are selling. COV is really what the seller wants and if you want the unit, you will pay the seller the requested amount to buy the flat. If you bargain, the owner might sell or might just sell to the person who offers higher. Its simply, highest bidder/offer wins.

    2) What's the normal % for down-payment here in SG? Can you use CPF to pay for the DP? What if it's insufficient? Can you take a short loan to furnish this DP amount?
    Downpayment to confirm the flat sale is usually 1000. Then you have to prepare the cheque for the COV by the first appt. And prepare agent fees by the 2nd appt.

    3) What's the average interest rates for a 20+ year loan?
    I think its 2.6% pa for HDB loan.

    4) Assuming it's a unit from the open market, once you paid the down-payment and obtained the approved loan, can you move in already?
    I bought paid downpayment in June, first-appt in Oct to sign all the paperwork and 2nd-appt in Dec to collect keys, and finish the rest of the paperwork. You have to arrange for a final viewing before the second appt to see and make sure you are getting what you should get. Otherwise have to trash out there and then. Advisable 1 month before 2nd appt so that the seller got time to act.

    Hope it helps.
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by skeletonman View Post

    My application for resale flat from HDB had been rejected. From the letter that I got from them, there will be need developments from HDB at Dawson, Sembawang and Pasir Panjang. It will be opened for application somewhere end of this year.

    I don't understand the above-mentioned. What are you trying to say?

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    Default Re: Questions on getting a new flat or resale flat.

    @Andeelym: You're a godsend, thank you so much.

    So in SG, there's no usual "downpayment lumpsum" thing like in other countries? In other countries, for example, if the contract price of the unit is 500K, for example, there usually is a requirement to pay 20% (100K) of the total value of the unit up front, then the remaining amount will be on loan (400K goes through the amortization).

    So hypothetically, in SG, if the unit cost 500K, you're actually loaning that entire 500K assuming you have zero CPF or cash stashed up?

    Sorry for the seemingly silly question, it's just a different property buying system for me, it's quite alien. Thanks.

  8. #8

    Default Re: Questions on getting a new flat or resale flat.

    No problems, its always good to help others. Anyway, knowledge is best when passed around.

    Actually, if you buy private properties such as Condos/landed properties, you'll have that. But I cannot advise on the procedures cos I have not reach that level yet. Hee hee.

    In SG for HDB as its govt propeties, the system is slightly different from private properties. The downpayment is used to confirm your buying intention. You give the money to the owner and he is not suppose to accept offers from other pple for 14 days. Once 14 days are up, you then have to decide whether or not you want to pursue in the purchase. Should you choose not to, you'll have to forfeit the 1000, otherwise, you'll be the new owner and the rest of the procedures follows.

    Yes, you need to loan 500k otherwise pay up in cold hard cash.

    No problems. Feel free to ask. I'll try my best to help.
    Last edited by andeelym; 16th December 2009 at 12:29 AM.
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    Default Re: Questions on getting a new flat or resale flat.

    Splendid, thank you so much!

    (Seriously, can't thank you enough as I've spoken with a couple of agents and they failed to explain it well, language barrier, perhaps...)

    Another batch, I hope you don't mind pesky folks...

    1) If you're getting a unit from the open market, can you still avail a loan from HDB?
    2) If you're getting a unit from the open market, are there any restrictions in terms of how soon you can re-sell or rent out that unit that's still under mortgage (let's say you got a windfall like winning the lottery and you opt to get a bigger unit or move to a condo)?

    Thanks thanks and happy holidays

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    Default Re: Questions on getting a new flat or resale flat.

    best to come early saturday morning to hdb hub, take queue number and ask the officer.
    remember to bring check list of questions.
    the answer from her (mostly her, very few him) will be most correct as they know the regulation better (it is their job).

  11. #11

    Default Re: Questions on getting a new flat or resale flat.

    1) If you're getting a unit from the open market, can you still avail a loan from HDB?
    Open market, I am assuming that its a resale flat? If that's the case, yes you can. I recently bought a resale and took a loan from HDB. But for your case, you have to check your eligibility for the loan in the first place.

    2) If you're getting a unit from the open market, are there any restrictions in terms of how soon you can re-sell or rent out that unit that's still under mortgage (let's say you got a windfall like winning the lottery and you opt to get a bigger unit or move to a condo)?
    If you took a grant from HDB, you'll have to wait for 5 years before you sell it off or move off to a bigger unit (HDB). The grant will be given to you into your CPF acc after the one-time deduction from it for the first payment (this is not the payment you have to make for the COV, but the amount HDB will deduct from your CPF to lower down the loan amount). Yes, you can rent it out as soon as you get the flat. But you have to "stay" in the flat, unless you get a permit that allows you to rent the whole unit out. The reasons you can cite for the permit is that you would like to stay with ageing parents to take care of them, or you have a newborn/kid that needs your parents to help, something long that line. But I think you can still purchase a private property and choose to stay there if you like.

    I have to disclaim that I am by-no-means an expert but just sharing what I know and its kinda limited. You can check some info from HDB officers but they will only give you a textbook answer that might not be practical and will definitely not divulge policy workarounds.

    Feel free to question away!
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    Default Re: Questions on getting a new flat or resale flat.

    What you shared was clear as ice, thanks

  13. #13

    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by theveed View Post
    What you shared was clear as ice, thanks
    You are most welcome.
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    Senior Member melvin's Avatar
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    Default Re: Questions on getting a new flat or resale flat.

    Just to add on missing portion.

    1) Who determines valuation and COV? How much COV is "normal" and what warrants the owner from asking for COV?
    The seller will engage an evaluator to evaluate the house you are selling. COV is really what the seller wants and if you want the unit, you will pay the seller the requested amount to buy the flat. If you bargain, the owner might sell or might just sell to the person who offers higher. Its simply, highest bidder/offer wins.

    The Valuation of the flat is determine by a panel of Valuers working with the HDB. They method for valuation will be by Comparative Market Anylisation ie Pass Market Transcation. Valuation is only needed when u are taking loans. Full cash payment no need Valuation.

    No amount of COV is normal, it is most of the time up to the buyer to decided on whether the COV is it worth the amount.




    2) What's the normal % for down-payment here in SG? Can you use CPF to pay for the DP? What if it's insufficient? Can you take a short loan to furnish this DP amount?
    Downpayment to confirm the flat sale is usually 1000. Then you have to prepare the cheque for the COV by the first appt. And prepare agent fees by the 2nd appt.

    For DP, the procedure in buying a flat goes like this: u go viewing u like the place u pay an Option fee of not more then $1k. After which within the next 14 days u need to excercise your Option which is not more then $4k. This will make up your deposit of not more then $5k of Option Fees + Option Exercise Fees. By this time u should have ur HLE (HDB Loan Eligiblity) ready this u can get it done at the HDB HUB.
    Eligibility Conditions for HDB Concessionary loan!

    With the HLE u will be able to know how much HDB will loan to u so u will know where ur budget is in getting the flat.

    During the 1st appt with the HDB the officer will calculate the amount of money need to pay for your monthly installment if u are taking HDB Loan. In which ur CPF will be totally wipe out regardless of amount!
    If not enough CPF u need to Top up with Cash. Min CPF or CPF+Cash to have is 20% of purchase price will be ideal.
    The cash here is not ur COV, COV will be another payment.
    HDB loan will be 80% of Valuation or Purchase Price which ever is lower! So do ur sums carefully before buying ie before paying the Option Exercise Fees!

    If you are a PR u are not eligible for HDB Loan, so u will need a Bank Loan. The procedure will be almost the same as HDB loan the difference is that u will need to prepare 5% cash ie. CPF + 5% of if CPF not enough will be CPF + Cash inclusive of the 5%.
    As for loan to all this u can try to get them from other others like Ezycash etc...

    During first appt all ur financial will be finalised that is why the whole 1st appt will last at least 1hr to 2hrs depending on the complexcity of the case.




    3) What's the average interest rates for a 20+ year loan?
    I think its 2.6% pa for HDB loan.

    Interest rate IIRC is 2.65% PA. try to get the longest tenure available for the loan cos it is easier to redeem then extend ur outstanding loans.




    4) Assuming it's a unit from the open market, once you paid the down-payment and obtained the approved loan, can you move in already?
    I bought paid downpayment in June, first-appt in Oct to sign all the paperwork and 2nd-appt in Dec to collect keys, and finish the rest of the paperwork. You have to arrange for a final viewing before the second appt to see and make sure you are getting what you should get. Otherwise have to trash out there and then. Advisable 1 month before 2nd appt so that the seller got time to act.


    Estimate time from submission to 1st appt date is approx 6 weeks and another 6weeks from 1st appt to completion ie 2nd appt.
    Some time it will take longer then 6weeks due high transaction volume ie. alot of buy sell in the market.
    Moving in will only be after Completion ie 2nd appt.

  15. #15
    Senior Member melvin's Avatar
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by theveed View Post
    @Andeelym: You're a godsend, thank you so much.

    So in SG, there's no usual "downpayment lumpsum" thing like in other countries? In other countries, for example, if the contract price of the unit is 500K, for example, there usually is a requirement to pay 20% (100K) of the total value of the unit up front, then the remaining amount will be on loan (400K goes through the amortization).

    So hypothetically, in SG, if the unit cost 500K, you're actually loaning that entire 500K assuming you have zero CPF or cash stashed up?

    Sorry for the seemingly silly question, it's just a different property buying system for me, it's quite alien. Thanks.
    No lump sum payment. loaning up to 100% is not possible in Singapore unlike other countries like Malaysia etc....

    Again for payment for HDB refer to my previous post.

    If you are buying Private properties (ie condo n apartment. If u are a PR/Foreigners for Landed properties u will need approval by government due to land scarse.) in the open market ie Resale.

    Procedure will be 1% of the purchase price as deposit to the seller and within the next 14days another 4% to the lawyers as stake holders when u exercise Option at the lawyers office. The rest will be CPF + bank loan.

    Bank loan will be 80% or 90% of valuation or purchase price whichever is lower, depending on ur financial credibility, as for PR/Foreigners will be 70% or 80% again depending on ur financial credibility.



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    Default Re: Questions on getting a new flat or resale flat.

    MELVIN: Thank you for the additional info. If you don't mind, can you clarify on this comment?

    During the 1st appt with the HDB the officer will calculate the amount of money need to pay for your monthly installment if u are taking HDB Loan. In which ur CPF will be totally wipe out regardless of amount!
    Let's say my monthly CPF contribution (including employer's share) is 2K, will the financing company (HDB/Bank) always peg their monthly amortization at that amount? What if based on the total loan amount + loan period my amortization is only 1.5K? They'll still take the remainder 500 from my CPF?

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    Default Re: Questions on getting a new flat or resale flat.

    Anyone joining me to the BTO in Segar Road? hehehehe.... This will be my 7th attempt... LOL!

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    Default Re: Questions on getting a new flat or resale flat.

    Just received a newsletter from HDB about their units in Queenstown, too bad I'm not eligible (PR only). I think even if I'm a citizen, i don't think the odds are on my side anyway :P

  19. #19
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    Default Re: Questions on getting a new flat or resale flat.

    Quote Originally Posted by theveed View Post
    MELVIN: Thank you for the additional info. If you don't mind, can you clarify on this comment?

    Let's say my monthly CPF contribution (including employer's share) is 2K, will the financing company (HDB/Bank) always peg their monthly amortization at that amount? What if based on the total loan amount + loan period my amortization is only 1.5K? They'll still take the remainder 500 from my CPF?
    You can't use the full amount of your monthly CPF contribution for installment, you can only use the ordinary account portion. How much you want to use from the ordinary account portion is up to you. If the ordinary account portion is more then your installment amount then only the installment amount will be deducted, the rest will go into your ordinary account. If the installment amount is more then the ordinary portion then you'll need to top up the balance in cash each month.

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    Default Re: Questions on getting a new flat or resale flat.

    Ahh, I see, I thought the HDB/Bank will automatically take 100% of your OA contribution and adjust the monthly rate and automatically reduce the principal amount accordingly :P Sorry.

    Thanks

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