View Full Version : 40% Downpayment
I have an HDB flat and the current loan balance is about $50,000. So I don't qualify for the 80% bank loan to buy a 2nd property (private property).
For the sake of constructive discussion, how would you suggest people like me (who are looking to buy a private property) come up with the 40% downpayment? I am sure there are thousands wo are in a similar situation
and your answers/ideas would benefit.
Make more money until u can clear ur first loan or afford e 40% down payment. Other not so good options include going to casino, borrow from ah long, borrow from bank against e value of ur current house.
I have an HDB flat and the current loan balance is about $50,000. So I don't qualify for the 80% bank loan to buy a 2nd property (private property).
For the sake of constructive discussion, how would you suggest people like me (who are looking to buy a private property) come up with the 40% downpayment? I am sure there are thousands wo are in a similar situation
and your answers/ideas would benefit.
if you intend to sell yr hdb then there should be some bridging loan available, with a condition you MUST sell your hdb within 6 months or something like that. if you intend to keep your hdb then refer to hyenergix
proposal.
pay up the 50k then buy condo w 20% down lo
bargain hunter
20-09-11, 14:01
yeah, 50k doesn't seem like a lot of a loan in pte ppty terms.
pay up the 50k then buy condo w 20% down lo
buttercarp
20-09-11, 14:13
pay up the 50k then buy condo w 20% down lo
Yup, that's the only way.
Consider selling your car if you have one to raise the funds.
buy a new release project under construction? You only need to pay the first 20%. The next 10+10% will only come about 6 months to 1 year later.
:beats-me-man:
victorchoo
20-09-11, 15:04
two scenario:
1) outstanding HDB loan of $50k and buy another property with 40% down.
2) Clear outstanding HDB loan before you buy another property with 20% down.
The delta between the 2 is 20% of your new property. If this 20% is less than $50k, then you should go for option 1. But it is not possible to get a normal property nowadays for lesser than $250k. So i would recommend you to go for option 2.
Whether you clear the outstanding 50K or not, it is not advisable to touch private property unless you have in excess of 40% downpayment. :2cents:
I have an HDB flat and the current loan balance is about $50,000. So I don't qualify for the 80% bank loan to buy a 2nd property (private property).
For the sake of constructive discussion, how would you suggest people like me (who are looking to buy a private property) come up with the 40% downpayment? I am sure there are thousands wo are in a similar situation
and your answers/ideas would benefit.
1. Can you pay the condo mortgage at 30 % of your gross monthly income be it 20% or 40% deposit?
2. Do you have any $ in the CPF?
3. Do you have cash for 6 month of mortgage if your condo is not rented out?
If one of the above is no, think you should consider other investment.
My situation prettymuch similiar.... would like to hear you out.. (expert out there)
I have an HDB flat and the current loan balance is about $60,000. So I don't qualify for the 80% bank loan to buy a 2nd property (private property).
We missed the boat during 2009... went in Feb, suddenly the property market boom like nobody business in Apr 2009... thus force to stop shopping and relook into our finances. Damn...
We've cash available 200k for the down payment (after redeem our HDB). We did a quick calculation after deducting the 5%+15%+3%(stamp duty)... we could barely afford a new launch unit for family stay... (3+study & above)... sob.. sob...
What will you do if you're in my shoe?
1) take the risk and buy ATT? ($1m at least for 3+S), wait till TOP (3 years later) and rent out current HDB
2) get a resale unit for stay, quicky rent out HDB to earn rental?
3) wait for market dip... (may or may not)... then enter the market?
Please give in your opinion for reference... thanks!
I have a similar situation. I have a current loan so not enough vit M for 40% downpayment for another 4+1 room pte property. Any expert can advise me? :(
If I owned a HDB flat, I won't sell it unless there I forsee substantial deterioration of the property or environment (e.g. construction of highway, change in safety of neighbourhood, leakages).
Furthermore, if don't even have enough money for private property down-payment, should focus on making more money, not trying to squeeze money out from a rock.
不要打肿脸充胖子. :ashamed1:He who does this will only bring suffering to himself. :D
I have an HDB flat and the current loan balance is about $50,000. So I don't qualify for the 80% bank loan to buy a 2nd property (private property).
For the sake of constructive discussion, how would you suggest people like me (who are looking to buy a private property) come up with the 40% downpayment? I am sure there are thousands wo are in a similar situation
and your answers/ideas would benefit. Don't have the 40%, drop the idea, don't even dream of the 2nd property until u have this $, if not u are just stretching...If u have to borrow, imagine bad times hit us, 2nd property empty, party u borrow the $ from ask u to pay up, it will leave u pulling your hair, sleepless nites...:2cents:
We missed the boat during 2009... went in Feb,
:confused: "went in" means never buy?
Think u already weigh ur options, 1) or 2) should be workable.
1) can start saving bullets after paying ur down for new dev.
2) just don't over-stretch for resale.
If i were u I prefer 2), are u confident ur hdb can get tenants quick? Redeem ur hdb first. In the worst scenario let go hdb. Must do ur homework.:2cents:
:confused: "went in" means never buy?
Think u already weigh ur options, 1) or 2) should be workable.
1) can start saving bullets after paying ur down for new dev.
2) just don't over-stretch for resale.
If i were u I prefer 2), are u confident ur hdb can get tenants quick? Redeem ur hdb first. In the worst scenario let go hdb. Must do ur homework.:2cents:
Paiseh... My "went in" means started to shop for pte condo :P:spliff: .. but the sudden surge really scared us off... regretted....
thanks for replying... actually after visited ATT..... kind of know that we will never get a chance to buy new launch liao (this crazy taking up rate has made SimLian increased price :hell-hath-no-fury: )
I think 2) is the best choice for us now... but hor, the stupid resale market still asking for sky price leh... but now at least can see ppl ads to seel below valuation (not sure how true it is though).... hope and pray hard that it come down abit while we accumulate our:money-faced1:
If I owned a HDB flat, I won't sell it unless there I forsee substantial deterioration of the property or environment (e.g. construction of highway, change in safety of neighbourhood, leakages).
Furthermore, if don't even have enough money for private property down-payment, should focus on making more money, not trying to squeeze money out from a rock.
不要打肿脸充胖子. :ashamed1:He who does this will only bring suffering to himself. :D
So agree with your belief by not selling HDB... that's the reason why we still hold on till now... as it will be our passive income generator in future :D :D
I have an HDB flat and the current loan balance is about $50,000. So I don't qualify for the 80% bank loan to buy a 2nd property (private property).
For the sake of constructive discussion, how would you suggest people like me (who are looking to buy a private property) come up with the 40% downpayment? I am sure there are thousands wo are in a similar situation
and your answers/ideas would benefit.
I tink you already have the answer. You cant afford it.
I tink you already have the answer. You cant afford it.
he already said he cannot afford it. So he asked fellow forummers on how he can afford the 40% downpayment.
from his statement, he implies that he can afford 20% DP, but cannot afford 40% DP.
So my suggestion to him is: pool his money with friends, relatives or the thousands of people in similar situation as him to make up the 20% difference.
Proverb: A burden shared is a burden lessened.
rather than wanting to have 100% of nothing ('cos he cannot afford), better to have 20% of something (share property purchase).
since you can afford 20% but not 40% dp, just pay up the $50k loan... use CPF or something... wipe clean your cpf...
he already said he cannot afford it. So he asked fellow forummers on how he can afford the 40% downpayment.
from his statement, he implies that he can afford 20% DP, but cannot afford 40% DP.
So my suggestion to him is: pool his money with friends, relatives or the thousands of people in similar situation as him to make up the 20% difference.
Proverb: A burden shared is a burden lessened.
rather than wanting to have 100% of nothing ('cos he cannot afford), better to have 20% of something (share property purchase).
you will need to engage a good lawyer to draft out an agreement for this sort of buying arrangement. things to consider.
1) What if one wish to sell, who get to buy, who will pay for stamp duties.
2) How you split the rental income is assuming its rented or who get to live there, who is going to manage it? Will he be paid to manage it?
3) Who to decide how to renovate the house or how much to pay, which ID to use etc?
4) If someone fall behind on mortgage payment, how are you going to deal with such situation.
IMO, if you want to invest in property, do it yourself rather than getting friends and relatives to get involve. When it comes to money, things always end up very messy
you will need to engage a good lawyer to draft out an agreement for this sort of buying arrangement. things to consider.
1) What if one wish to sell, who get to buy, who will pay for stamp duties.
2) How you split the rental income is assuming its rented or who get to live there, who is going to manage it? Will he be paid to manage it?
3) Who to decide how to renovate the house or how much to pay, which ID to use etc?
4) If someone fall behind on mortgage payment, how are you going to deal with such situation.
IMO, if you want to invest in property, do it yourself rather than getting friends and relatives to get involve. When it comes to money, things always end up very messy Good pointers. Most of the times, parties will share-share, end of the day, who is the one doing all the "dirty" admin work sorting reno, rental, agent. If bad times hit, 1 or more party delay their contribution/mortgage payment, then jialat, who is going to be the "policeman"...Agree with you, could end up messy...
you will need to engage a good lawyer to draft out an agreement for this sort of buying arrangement. things to consider.
............
your points are valid. They have to be trashed out by the investors themselves.
I think there is this guy who run a property investment company and conduct seminars. He invites the participants to chip in their money to buy some commercial properties.
So perhap use that template?
your points are valid. They have to be trashed out by the investors themselves.
I think there is this guy who run a property investment company and conduct seminars. He invites the participants to chip in their money to buy some commercial properties.
So perhap use that template?
the sort of structure always end up benefiting the investment company because as investors, you have almost have no control abot how they invest and what they invest.
can play with investor money, but dont play with relative and friends money lah.
Jonathan0503
21-09-11, 17:41
I think the biggest problem would be the exit time, ie, when to sell and how much to sell.
If one party wants to sell and the rest not willing or no money to buy over his share, then how?
rattydrama
21-09-11, 22:02
sell away your HDB, go for duo key private condo and rent one one unit... EC units if you can find and utalised all the grants if you can get.
Practially will not be strained by 2 loans and perhaps your cash work harder for you.
sell away your HDB, go for duo key private condo and rent one one unit... EC units if you can find and utalised all the grants if you can get.
Practially will not be strained by 2 loans and perhaps your cash work harder for you.
Yup agree, this is a good option. However dual-key units tend to be very popular and hard to find in market nowadays...
Is the 40% down payment applicable if you pay off your HDB. I was under the impression that once you pay off your current property, your loan eligibility is reset back to 20% down payment for the next one:confused: .
Is the 40% down payment applicable if you pay off your HDB. I was under the impression that once you pay off your current property, your loan eligibility is reset back to 20% down payment for the next one:confused: .
yes you are right
ah..Thanks. :)
Jbond - Just pay off the hdb loan and go for the next one with 80% loan. You can use CPF as well if save or already meet the minimum sum requirement.
yes you are right
rattydrama
22-09-11, 22:02
ah..Thanks. :)
Jbond - Just pay off the hdb loan and go for the next one with 80% loan. You can use CPF as well if save or already meet the minimum sum requirement.
this option is possible but need to have a lot of cash...should have 40% cash outfront with 20% cash as buffer in case economy turns bad.
then one can sleep well.
rattydrama
22-09-11, 22:05
Yup agree, this is a good option. However dual-key units tend to be very popular and hard to find in market nowadays...
and have spare cash to hoot another property in the next 3-5 years @ rite location.....steady steady.. price go up happy.. go down ..buy somemore.
Thanks everyone for your advice and ideas!
As I have slightly less than $50,000 in my CPF, I cannot pay off my HDB loan completely. In about a year, I would be able to do that.
When discussing the 40% down payment, my accountant friend told me people can always go and get bank overdrafts and low interest balance transfers from credit cards (can be as low as 1.99% p.a.) to make up the 40% cash requirement. Still, it is very hard. For a $1 million property, need to accumulate $400K in balance transfers.
Moreover, the stamp duty would be close to $25K.
Thanks for letting forummers know about the dual-key unit. Never heard of it before. Will explore that option.
iwantgizmos
23-09-11, 11:00
Thanks everyone for your advice and ideas!
As I have slightly less than $50,000 in my CPF, I cannot pay off my HDB loan completely. In about a year, I would be able to do that.
When discussing the 40% down payment, my accountant friend told me people can always go and get bank overdrafts and low interest balance transfers from credit cards (can be as low as 1.99% p.a.) to make up the 40% cash requirement. Still, it is very hard. For a $1 million property, need to accumulate $400K in balance transfers.
Moreover, the stamp duty would be close to $25K.
Thanks for letting forummers know about the dual-key unit. Never heard of it before. Will explore that option.
These dual key units are designed for families to stay with their parents, without compromising privacy.
An additional benefit for dual keys is that, the studio apartment can be rented out, as it is considered as a "room" instead of a unit.
Depends on your temperament and personality.
Property is usually a leveraged investment and in SG so far it's usually safe and profitable. Hence the desire to 'stretch'.
So if you can sleep at night with all what your friend suggest - go ahead.
But the SSD and CMs were aimed right at marginal players like you...
Best if you have the cash down payment, cash to do the necc reno and some savings left over in case you loss your job to handle the mortgage for at least 6 months. Anything less means you're 'stretching' and if your timing is off ...well then your're done.
Those that say otherwise, are perhaps those who have succeeded and have better timing or those waiting for FIRESALES!
Thanks everyone for your advice and ideas!
As I have slightly less than $50,000 in my CPF, I cannot pay off my HDB loan completely. In about a year, I would be able to do that.
When discussing the 40% down payment, my accountant friend told me people can always go and get bank overdrafts and low interest balance transfers from credit cards (can be as low as 1.99% p.a.) to make up the 40% cash requirement. Still, it is very hard. For a $1 million property, need to accumulate $400K in balance transfers.
Moreover, the stamp duty would be close to $25K.
Thanks for letting forummers know about the dual-key unit. Never heard of it before. Will explore that option.
devilplate
23-09-11, 11:12
When discussing the 40% down payment, my accountant friend told me people can always go and get bank overdrafts and low interest balance transfers from credit cards (can be as low as 1.99% p.a.) to make up the 40% cash requirement. Still, it is very hard. For a $1 million property, need to accumulate $400K in balance transfers.
get OD, credit cards to fry ppty?:scared-1:
i rather u try ur luck at MBS! try baccarat, prolly higher chance of winning den frying ppty
Depends on your temperament and personality.
Property is usually a leveraged investment and in SG so far it's usually safe and profitable. Hence the desire to 'stretch'.
So if you can sleep at night with all what your friend suggest - go ahead.
But the SSD and CMs were aimed right at marginal players like you...
Best if you have the cash down payment, cash to do the necc reno and some savings left over in case you loss your job to handle the mortgage for at least 6 months. Anything less means you're 'stretching' and if your timing is off ...well then your're done.
Those that say otherwise, are perhaps those who have succeeded and have better timing or those waiting for FIRESALES!
:D
No risks no gains. And since everyone is betting props will go up forever wf the low interest rates. isn't good for mr jbond to leverage GAO GAO to ride the wave.
rattydrama
23-09-11, 11:54
:D
No risks no gains. And since everyone is betting props will go up forever wf the low interest rates. isn't good for mr jbond to leverage GAO GAO to ride the wave.
not now lah, my fren..this advice not sound leh...only if there is a 15% drop then suggest to do so.
Thanks everyone for your advice and ideas!
As I have slightly less than $50,000 in my CPF, I cannot pay off my HDB loan completely. In about a year, I would be able to do that.
When discussing the 40% down payment, my accountant friend told me people can always go and get bank overdrafts and low interest balance transfers from credit cards (can be as low as 1.99% p.a.) to make up the 40% cash requirement. Still, it is very hard. For a $1 million property, need to accumulate $400K in balance transfers.
Moreover, the stamp duty would be close to $25K.
Thanks for letting forummers know about the dual-key unit. Never heard of it before. Will explore that option.
1) Are you aware that you need to set aside a min sum in your CPF before you can use it to buy 2nd property?
2) If you have $50K in your CPF, how much cash to you have in hand? What is your household income and what other financial commitment do you have?
Not trying to pour cold water on you, but I honestly think that you should drop the idea of taking overdraft and CC balance transfer to buy property.
You accountant friend is just banging your head against the wall.
If you have a $50k loan that you cannot immediately settle, that I don't think you should consider leveraging to the hilt on properties.
1) Are you aware that you need to set aside a min sum in your CPF before you can use it to buy 2nd property?
2) If you have $50K in your CPF, how much cash to you have in hand? What is your household income and what other financial commitment do you have?
Not trying to pour cold water on you, but I honestly think that you should drop the idea of taking overdraft and CC balance transfer to buy property.
You accountant friend is just banging your head against the wall.The minimum sum for CPF for second property now is $65k. Its actually Ordinary and Special Account combined. :sleep:
Thanks everyone for your advice and ideas!
As I have slightly less than $50,000 in my CPF, I cannot pay off my HDB loan completely. In about a year, I would be able to do that.
When discussing the 40% down payment, my accountant friend told me people can always go and get bank overdrafts and low interest balance transfers from credit cards (can be as low as 1.99% p.a.) to make up the 40% cash requirement. Still, it is very hard. For a $1 million property, need to accumulate $400K in balance transfers.
Moreover, the stamp duty would be close to $25K.
Thanks for letting forummers know about the dual-key unit. Never heard of it before. Will explore that option.Never take overdraft and don't even think about credit cards. Its commit suicide. My recommendation is for you to clear your hdb loan which will qualify you for 80% loan. Use your $50k cpf and top with with a bit of cash. This is much better than paying 40% of your new purchase. Unless your hdb still have more than $200k loan to clear.
However, this option will likely prevent you from using your cpf for your new property because you may not meet the $65k minimum sum required unless your special account alone has that minimum sum already. All the best! :o
I wont recommend you to upgrade your HDB to private and then live with your parents or in laws for free either.
:D
No risks no gains. And since everyone is betting props will go up forever wf the low interest rates. isn't good for mr jbond to leverage GAO GAO to ride the wave.
Take average risks, have an average life. Take high risks, maybe will live the high life. Who wants to be average? :D
I have an HDB flat and the current loan balance is about $50,000. So I don't qualify for the 80% bank loan to buy a 2nd property (private property).
For the sake of constructive discussion, how would you suggest people like me (who are looking to buy a private property) come up with the 40% downpayment? I am sure there are thousands wo are in a similar situation
and your answers/ideas would benefit.
Going back to ur first post, thousands in smiliar situation but how many using OD & Credit card to buy ppty? Using OD & credit card to downpay for ride i come across but for ppty? :confused:
Are you in a hurry to buy? Why not clear ur outstanding loan first? :2cents:
Thanks for letting forummers know about the dual-key unit. Never heard of it before. Will explore that option..
Is there dual key below 1mil for PC? New EC have.
devilplate
23-09-11, 14:47
Going back to ur first post, thousands in smiliar situation but how many using OD & Credit card to buy ppty? Using OD & credit card to downpay for ride i come across but for ppty? :confused:
Are you in a hurry to buy? Why not clear ur outstanding loan first? :2cents:
Is there dual key below 1mil for PC? New EC have.
I tink caspian dk just above 1mil now?
I tink caspian dk just above 1mil now?
If you rent out half of such dual key unit, would you still be able to claim for owner stay concession property tax?
devilplate
23-09-11, 15:01
If you rent out half of such dual key unit, would you still be able to claim for owner stay concession property tax?
I tink so bcoz it shd b treated as room rental
However room rental nid to report income tax?
rattydrama
23-09-11, 15:06
I tink so bcoz it shd b treated as room rental
However room rental nid to report income tax?
no need so far as I know. HDB yes.
come to think of it, 2 duo key ppty rent to 4 families... only pay 2 property tax...
I tink caspian dk just above 1mil now?
Even can push down to 900psf, smelly smelly also need 1.15mil. 40% of 150k, need extra 60k vit M.
http://www.propertyguru.com.sg/listing/4460619/for-sale-caspian
http://www.propertyguru.com.sg/listing/5441694/for-sale-caspian
http://www.propertyguru.com.sg/listing/5459957/for-sale-caspian
Wonder if the showrooms will still be crowded with locals?
Allthepies
23-09-11, 22:24
im curious to know whether u can borrow credit card money to pay loan. under the loan clause, there is something like u need to declare all borrowing, and i think if u use credit card money, most probably they wont grant u the loan.any expert here can comment?
Believe that they want to know all your liabilities. Credit card can a serious liabilities as we can have credit limit of more than $100k.
im curious to know whether u can borrow credit card money to pay loan. under the loan clause, there is something like u need to declare all borrowing, and i think if u use credit card money, most probably they wont grant u the loan.any expert here can comment?
im curious to know whether u can borrow credit card money to pay loan. under the loan clause, there is something like u need to declare all borrowing, and i think if u use credit card money, most probably they wont grant u the loan.any expert here can comment?
I strongly suggest u dun use this to pay loan. Interest on credit card is like loan shark. I suppose u borrow from credit card means credit transfer. But once time is up, u need to pay, else interest set in.
Normally, they dun check credit card balance, but bank will check your credit standing with the Credit Bureau of Singapore, this is the SOP for all credit card and loan application.
So, u must maintain a clean credit history...dun play around with this..once there is a small red dot there, it is gg to be difficult to have credit line
If a couple owns 2 properties which have not been fully paid, does it mean that if wife becomes owner for both units, then husband can qualify for 3rd unit without 3% ABSD and also qualify for 80% LTV?
If a couple owns 2 properties which have not been fully paid, does it mean that if wife becomes owner for both units, then husband can qualify for 3rd unit without 3% ABSD and also qualify for 80% LTV?
[2] A person is regarded as owning a property for the purpose of ABSD as long as he owns part of that property.
http://www.iras.gov.sg/irasHome/page03a.aspx?id=12850#point_2
[2] A person is regarded as owning a property for the purpose of ABSD as long as he owns part of that property.
http://www.iras.gov.sg/irasHome/page03a.aspx?id=12850#point_2As such, if the couple ask lawyer to change sole ownership of the properties to the wife or husband, the other spouse can then qualify for both 60% LTV as well as being exempted from 3% ABSD?
As such, if the couple ask lawyer to change sole ownership of the properties to the wife or husband, the other spouse can then qualify for both 60% LTV as well as being exempted from 3% ABSD?
You are right. Do it before CM6, or else you wouldn't know what they will do next. Just curious, why are people still buying property like no tomorrow. Is the property really that good and there are still upward in price?
You are right. Do it before CM6, or else you wouldn't know what they will do next. Just curious, why are people still buying property like no tomorrow. Is the property really that good and there are still upward in price?
Yes, it is because resources are getting more expensive due to scarcity. Demand could be steady (or even decrease slightly) but costs of supply go up exponentially. The era of cheap and rapid growth is gone.
As such, if the couple ask lawyer to change sole ownership of the properties to the wife or husband, the other spouse can then qualify for both 60% LTV as well as being exempted from 3% ABSD?
By transferring to your spouse, it would be regarded as "sale". So stamp duty would apply. N since it would be considered as sale, would the bank loan your spouse your share of both loans? Something which you need to check with bank
By transferring to your spouse, it would be regarded as "sale". So stamp duty would apply. N since it would be considered as sale, would the bank loan your spouse your share of both loans? Something which you need to check with bankIts a sale if your spouse's name is not inside. If both names are co-owners, then withdrawing one name is not considered 'sale' so no stamp duty lah...
CondoInterested
05-05-12, 09:15
Just a point to note for the 60% loan / 40% deposit.
40% Deposit situation,
First 5% must be cash
Stamp Duty 3% cash, under some condition (not sure how) can use CPF
Of the Second 15%, 5% must be cash, 10% can be either cash / CPF
In general, do note that you need to keep at this moment OA+SA or SA alone (if you have enough) a min sum of $65.5k which you cannot use for payment of the property.
Another thing to note in general, if you read CPF rules carefully, excluding HDB loan, for other property loan, you can only use CPF for payment (include interest paid) up to 120% of the amount of loan you take up from the bank. That would mean those taking 80% loan will have to start paying cash about 10 years later and those 60% loan about 20 years later depending on the interest rate.
One more thing to note, if your loan stretch to max 30+ yrs payment period, do calculate that your CPF OA employer contribution start to change lesser from 45 years old onward.
im curious to know whether u can borrow credit card money to pay loan. under the loan clause, there is something like u need to declare all borrowing, and i think if u use credit card money, most probably they wont grant u the loan.any expert here can comment?
this loan will be part of the DSR, since credit bureau knows everything.
Its a sale if your spouse's name is not inside. If both names are co-owners, then withdrawing one name is not considered 'sale' so no stamp duty lah...
I recall HDB clarifying that if you remove one of the co-owners, SD will apply as it would be deemed a sale of the co-owner's share in the property to the other co-owner.
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