View Full Version : How to avoid forking 40% for 2nd properties onwards
How to avoid forking 40% for 2nd properties onwards? Not that we can't afford, just want to spread out the money.
Does anyone know what are the pros and cons of buying residential properties using company?
How to avoid forking 40% for 2nd properties onwards? Not that we can't afford, just want to spread out the money.
Does anyone know what are the pros and cons of buying residential properties using company?
buying residential properties under company name, u need to pay 10% stamp duty more
How to avoid forking 40% for 2nd properties onwards? Not that we can't afford, just want to spread out the money.
Does anyone know what are the pros and cons of buying residential properties using company?
join YW's company. they offer 90% loan for 2nd ppty. :D
Allthepies
10-09-12, 13:00
How to avoid forking 40% for 2nd properties onwards? Not that we can't afford, just want to spread out the money.
Does anyone know what are the pros and cons of buying residential properties using company?
I tot company even worst? All non human entity ie company after CM need to pay 50% downpayment?
join YW's company. they offer 90% loan for 2nd ppty. :D
Sorry to ask, what is YW's company.
Sorry to ask, what is YW's company.
u can PM yowetan... :cheers1:
tiverton18
10-09-12, 13:05
please refer to the thread on Flamingo Valley, and you will find the answer
Sleepyhead
10-09-12, 13:45
2 options:
1. you designate your first property as second (assuming value has gone up, or you have paid down since you purchased, so you now have 60% LTV), then buy your second property, call it the first, so only need 80% LTV.
or
2. you can take out the equity from your first property back up to 80% LTV, use the freed up cash to finance the 60% LTV on the second property.
primeesense
10-09-12, 13:51
2 options:
1. you designate your first property as second (assuming value has gone up, or you have paid down since you purchased, so you now have 60% LTV), then buy your second property, call it the first, so only need 80% LTV.
or
2. you can take out the equity from your first property back up to 80% LTV, use the freed up cash to finance the 60% LTV on the second property.
ooh wow, didn't know that is possible! do we just tell the bank that?
ooh wow, didn't know that is possible! do we just tell the bank that?
I just asked the banks a fortnight ago. Gearing up is now limited at 60% of market price, so you aren't going to get much money out of that first property. :(
2 options:
1. you designate your first property as second (assuming value has gone up, or you have paid down since you purchased, so you now have 60% LTV), then buy your second property, call it the first, so only need 80% LTV.
or
2. you can take out the equity from your first property back up to 80% LTV, use the freed up cash to finance the 60% LTV on the second property.Second option is not allowed by MAS. Equity loan cannot be used to purchase residential prop in SG.
Regulators
10-09-12, 14:19
if want to avoid paying 40% on third property, just pass on the borrower status for second property to another person (spouse) n you will be entitled to 80% loan. Banks look at the number of mortgages you hold, not how many properties you own.
Allthepies
10-09-12, 14:50
if want to avoid paying 40% on third property, just pass on the borrower status for second property to another person (spouse) n you will be entitled to 80% loan. Banks look at the number of mortgages you hold, not how many properties you own.
Loan borrowers and owners can be different? Any idea which bank is acceptable of this?
How to avoid forking 40% for 2nd properties onwards? Not that we can't afford, just want to spread out the money.
Does anyone know what are the pros and cons of buying residential properties using company?
Ok..now we know you are afford it :tongue3:
I just asked the banks a fortnight ago. Gearing up is now limited at 60% of market price, so you aren't going to get much money out of that first property. :(
yes, i did gear up and was upto 60% max only.
2 options:
1. you designate your first property as second (assuming value has gone up, or you have paid down since you purchased, so you now have 60% LTV), then buy your second property, call it the first, so only need 80% LTV.
You can't escape...so long you still have outstanding loan on hand, the bank will only allow 60% for your next property :rolleyes: ?
PM me if want to know more. I will share one of my most valuable insight.
Regulators
10-09-12, 16:17
you can try uob
Loan borrowers and owners can be different? Any idea which bank is acceptable of this?
you can try uob
If can then can siam ABSD liao :rolleyes: !
Allthepies
10-09-12, 16:42
you can try uob
Thanks! :D
Thanks to bros who contribute good info. The cock-a-nathan who send crap reply, go f spider. :doh:
Regulators
10-09-12, 18:49
Absd cannot siam coz that one tied to ownership
If can then can siam ABSD liao :rolleyes: !
if want to avoid paying 40% on third property, just pass on the borrower status for second property to another person (spouse) n you will be entitled to 80% loan. Banks look at the number of mortgages you hold, not how many properties you own.
I do not think so. My dad bought a property n I am the borrower. But when I check his status if he can buy a 2nd property under 80% LTV, UOB still gives him 60% only.
I do not think so. My dad bought a property n I am the borrower. But when I check his status if he can buy a 2nd property under 80% LTV, UOB still gives him 60% only.
U might want to check again.
Could be due to other reasons.
From what I know, equity term loan is up to 60% of the market value, less than the loan u have taken and amount need to pay back to CPF with accrued interest.
One word of cautious, the equity term loan cannot be used to buy property, if it is being found out, the options are :
1. payback the equity term loan or
2. prove that the loan is not used to buy property
From what I know, equity term loan is up to 60% of the market value, less than the loan u have taken and amount need to pay back to CPF with accrued interest.
One word of cautious, the equity term loan cannot be used to buy property, if it is being found out, the options are :
1. payback the equity term loan or
2. prove that the loan is not used to buy property
for only property loan, term loan LTV can be up to 80%. Find out more on the LTV banks are offering. (http://www.findahomeloan.sg/component/k2/item/122-how-much-can-i-borrow-from-equity-loan?)
there is no technical term to state can or cannot. however my advise to clients is the same as yours.
I do not think so. My dad bought a property n I am the borrower. But when I check his status if he can buy a 2nd property under 80% LTV, UOB still gives him 60% only.
You are right. I did that when I bought my property. Lawyer told me useless... as long as you are shown as a mortgagor, your property belongs to the bank. So in a way, you are like a borrower because the bank will just take back your property.
Regulators
11-09-12, 00:49
Depends whether your father's first property is fully paid. If it is not, your loan will still remain as 60%.
I do not think so. My dad bought a property n I am the borrower. But when I check his status if he can buy a 2nd property under 80% LTV, UOB still gives him 60% only.
Regulators
11-09-12, 01:01
To illustrate further, if wife is buying second property together with husband in joint name and wife already has existing loan but not husband, then husband can still apply for 80% loan for second property. Again this is subjected to bank's approval.
Absd cannot siam coz that one tied to ownership
How about purchase under brother/parent name but I'm the borrower? Can Siam Bo?
How about purchase under brother/parent name but I'm the borrower? Can Siam Bo?
That's asking for family problems to buy in other person's name, even if family member. The situation can change in the future, potential family feuds. Especially if the brother wants to purchase his own/gets married and the wife objects, etc etc :tsk-tsk:
Regulators
11-09-12, 13:05
If you got outstanding mortgage, you can't siam
How about purchase under brother/parent name but I'm the borrower? Can Siam Bo?
Sleepyhead
12-09-12, 18:26
Second option is not allowed by MAS. Equity loan cannot be used to purchase residential prop in SG.
That's right... but you dont' have to declare where you got the $$ from right? Anyway, that's what my UOB banker advised me to do... he says I can release equity up to 80% LTV, and use the cash to buy another property. If you want I can PM you his contact.
Then... CitiBanker told me I can designate my first property as second with 60% LTV... then purchase another at 80%.
Then... CitiBanker told me I can designate my first property as second with 60% LTV... then purchase another at 80%.
This is brilliant. Is it legal ? Thanks
Allthepies
12-09-12, 19:41
Any special from DBS? :D :D
Sleepyhead
12-09-12, 21:51
This is brilliant. Is it legal ? Thanks
I think it's a loophole.. Not explicitly mentioned anywhere that you are allowed or disallowed to do it.... So depends on bank/banker you deal with... Whether they have the guts /ingenuity to arrange that for you....
Any friends here spoken to all the banks to confirm this method can be used successfully? I wonder if they charged higher interest.
Hmmm... This just came to my mind... if you have existing loan (those that you signed within 3 years, there is a clause which doesn't allow re-finance), then you cannot use this method because they will charge you penalty.
That's right... but you dont' have to declare where you got the $$ from right? Anyway, that's what my UOB banker advised me to do... he says I can release equity up to 80% LTV, and use the cash to buy another property. If you want I can PM you his contact.
Then... CitiBanker told me I can designate my first property as second with 60% LTV... then purchase another at 80%.
While MAS may not be doing any checks on equity loans being used for property purchases but you can never know when they will decide to get a few guinea pigs to publicise. Picking up the suspicious casesfor investigation is not a problem for MAS especially if the equity loan and new property is purchased around the same time. Tracing the the flow of funds is also not a problem. So the only way to minimise the chances of being caught or give them some doubt is to show a break in the flow of equity funds. You will be a sitting duck if the equity loan gets deposited into you bank account and it goes straight towards the payment of the new property. You may have to do some creative diversions which will create some doubt on where the money ended. Troublesome but just to play it safe. Otherwise just imagine if forced to sell property and paying 16% stamp duty.
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