View Full Version : Dynamic Wealth Creation
Day 1.
https://www.youtube.com/watch?v=SifLTpmiyIE
Today learn
1. Cash out.
2. Gear Up / Equity Term Loan.
3. Stagger Purchase.
4. Improve Cash Flow and Maximizing loan.
https://scontent-sin6-1.xx.fbcdn.net/v/t1.0-9/22406425_10211700598203392_8491584656810230713_n.jpg?oh=0bd42298fc4aecbada55750178048505&oe=5A7D48CA
Day One
1. Cash out.
2. Gear Up / Equity Term Loan.
3. Stagger Purchase.
4. Improve Cash Flow and Maximizing loan.
Day Two.
5. Pledge & Unpledged.
6. ABSD - Decoupling.
7. ABSD - Trust.
8. ABSD - Part Share.
9. Commerical / Industrial Loan
Type of Leveraging
1. Income Leveraging
2. Assets Leveraging
Fixed Assets
Liquid Assets
3. CPF Leveraging
https://s3-ap-southeast-1.amazonaws.com/static.streetsine/CoolingMeasure/NLP_Resale_HD_2.jpg
Mod 1: Concept of Wealth Creation
Why Wealth Creation
Debt free verses Financially Free
Key Concepts of Wealth Creation
The First Step.
Karl's Mortgage app.
https://itunes.apple.com/sg/app/karls-mortgage-calculator/id1025852681?mt=8
https://www.drcalculator.com/mortgage/
Key Concepts
Partnering Inflation
OPM
The Wealth Generators
Start Early - The First Step.
https://scontent-sin6-1.xx.fbcdn.net/v/t1.0-9/22366572_10155125015213261_4871823093377747714_n.jpg?oh=fccc113e3e43f6f36c5371e05df8bfb5&oe=5A83BD50
The wealth Generators
Passive Income
Principal Repayment
Price Appreciation.
Purchase Price = $1,100,000
Investment (20% Down Payment) = $220,000
Rental Income (per month) = $4,000
less
Interest Expense (per month)$1,400
Principal Reduction $2,000
Net Passive Income (per month) $600
Net Income over 5 years
Principal Reduction $120,000 (2,000x12x5)
Passive Income $36,000 (600x12x5)
Potential Price Appreciated @3% $165,000 (1,100,000x0.03x5)
Potential Gain $321,000 (120,000+36,000+165,000)
Price and rental income slightly optimistic?
Seems more like 1.5million price for $4,000 rent in general?
Else may need more specifics like which development.
Purchase Price = $1,100,000
Investment (20% Down Payment) = $220,000
Rental Income (per month) = $4,000
less
Interest Expense (per month)$1,400
Principal Reduction $2,000
Net Passive Income (per month) $600
Net Income over 5 years
Principal Reduction $120,000 (2,000x12x5)
Passive Income $36,000 (600x12x5)
Potential Price Appreciated @3% $165,000 (1,100,000x0.03x5)
Potential Gain $321,000 (120,000+36,000+165,000)
Still need to deduct 1 mth of rental for maintenance fee, 0.5 mth for agent, 1 mth for property tax, maybe 0.5 month for income tax. Only can net 9 mths of rental havent add in bank interest rate and whether u using cpf or cash for 20%. If using cpf u got to deduct interest for the amount.
$4k is not possible for $1.1m... likely only can get $3k for now.
On the bright side:
If interest is assume at $1400 per mth
If rental at $3000 per mth
Net amount per mth is $3000- $1400= $1600
Net amount after deduction agent fee, maintenance fee, property tax, income tax. Assuming 3mths of rental. U get 9mths of rent per year.
So $1600* 9mth= $14400 net rent per year.
Down payment is cash (no cpf used) for 20% =$220k.
$14400/$220,000*100%= 6.54%.
6.54% per year is very good yield compare with bank interest. Plus your property might appreciate as time goes. If this is your second property u need 50% down payment and yield dropped to 2.6%...
Of course 50% down payment for second property is for those who still got property loan from bank for 1st property. If you own a property with your spouse, and you do not have a lot of your mortgage left to repay, you can refinance your current home loan from two borrowers to one. This allows the other party to take the full 80 per cent loan on the second property.
http://asset-progression-video.pagedemo.co/
https://www.youtube.com/watch?v=3dH3xlLpxNg
Purchase Price = $1,100,000
Investment (20% Down Payment) = $220,000
Rental Income (per month) = $4,000
less
Interest Expense (per month)$1,400
Principal Reduction $2,000
Net Passive Income (per month) $600
Net Income over 5 years
Principal Reduction $120,000 (2,000x12x5)
Passive Income $36,000 (600x12x5)
Potential Price Appreciated @3% $165,000 (1,100,000x0.03x5)
Potential Gain $321,000 (120,000+36,000+165,000)
This is just an example, if I use my Southbank the yield will shoot through the roof.
Which project in your opinion would be able to achieve this now? I mean base on current entry price.
Loan required $1,000,000.00
Monthly income $10,000.00
Interest 3.50%
Loan Tenure 25 years
Payment $5,006.24 0.6
TDSR Pay required $8,343.73
Loan Tenure 24
Payment $5,137.14 0.6
TDSR Pay required $8,561.90
Required pay rise $218.17
Loan Tenure 23
Payment $5,280.11 0.6
TDSR Pay required $8,800.18
Required pay rise $456.45
http://investmentmoats.com/wealth-building-2/singapore-home-condo-landed-and-hdb-property-prices-grow-over-time/
Summary
I hope this data serves you well. I came out of this exercise reinforced why wealth building through properties will always be a better option for many because of the low probability of people losing money.
There are some cautions, both on the positive and negative side:
Returns or Prices do not include Rental Cash Flow, which could improve the returns
Returns or Prices do not include leverage, which could improve returns or kill you faster
Returns or Prices do not include closing costs, and interest paid, which could drastically reduce your returns.
What interesting things could you draw from this data that I missed out?
http://www.calculator.net/interest-calculator.html?cstartingprinciple=200000&cannualaddition=0&cmonthlyaddition=0&cadditionat1=beginning&cinterestrate=2.5&ccompound=annually&cyears=25&ctaxtrate=0&cinflationrate=0&printit=0&x=117&y=23
start principal start balance interest tax end balance end principal
1 $200,000.00 $200,000.00 $5,000.02 $0.00 $205,000.00 $200,000.00
2 $200,000.00 $205,000.00 $5,125.01 $0.00 $210,125.00 $200,000.00
3 $200,000.00 $210,125.00 $5,253.11 $0.00 $215,378.12 $200,000.00
4 $200,000.00 $215,378.12 $5,384.45 $0.00 $220,762.58 $200,000.00
5 $200,000.00 $220,762.58 $5,519.05 $0.00 $226,281.64 $200,000.00
6 $200,000.00 $226,281.64 $5,657.04 $0.00 $231,938.68 $200,000.00
7 $200,000.00 $231,938.68 $5,798.48 $0.00 $237,737.15 $200,000.00
8 $200,000.00 $237,737.15 $5,943.42 $0.00 $243,680.58 $200,000.00
9 $200,000.00 $243,680.58 $6,092.00 $0.00 $249,772.59 $200,000.00
10 $200,000.00 $249,772.59 $6,244.32 $0.00 $256,016.91 $200,000.00
11 $200,000.00 $256,016.91 $6,400.43 $0.00 $262,417.33 $200,000.00
12 $200,000.00 $262,417.33 $6,560.43 $0.00 $268,977.76 $200,000.00
13 $200,000.00 $268,977.76 $6,724.45 $0.00 $275,702.21 $200,000.00
14 $200,000.00 $275,702.21 $6,892.56 $0.00 $282,594.76 $200,000.00
15 $200,000.00 $282,594.76 $7,064.86 $0.00 $289,659.63 $200,000.00
16 $200,000.00 $289,659.63 $7,241.48 $0.00 $296,901.12 $200,000.00
17 $200,000.00 $296,901.12 $7,422.53 $0.00 $304,323.65 $200,000.00
18 $200,000.00 $304,323.65 $7,608.09 $0.00 $311,931.74 $200,000.00
19 $200,000.00 $311,931.74 $7,798.30 $0.00 $319,730.04 $200,000.00
20 $200,000.00 $319,730.04 $7,993.24 $0.00 $327,723.29 $200,000.00
21 $200,000.00 $327,723.29 $8,193.09 $0.00 $335,916.37 $200,000.00
22 $200,000.00 $335,916.37 $8,397.92 $0.00 $344,314.28 $200,000.00
23 $200,000.00 $344,314.28 $8,607.86 $0.00 $352,922.14 $200,000.00
24 $200,000.00 $352,922.14 $8,823.05 $0.00 $361,745.19 $200,000.00
25 $200,000.00 $361,745.19 $9,043.62 $0.00 $370,788.82 $200,000.00
According to a CPF interest rate of 2.5%,
$200,000 will grow to about $328,000 in 20 years if left untouched.
http://www.sgadvisorsnetwork.com/what-you-need-to-know-about-cpf-after-mop
CPF Used: $200k
Interest (20 years): $128k
Property Sale Profit: $100k
Loss of income
= -$28k (Negative Sale!)
http://www.calculator.net/mortgage-calculator.html?chouseprice=1000000&cdownpayment=20&cdownpaymentunit=p&cloanterm=25&cinterestrate=3.5&cstartmonth=10&cstartyear=2017&caddoptional=1&cpropertytaxes=0&cpropertytaxesunit=p&chomeins=0&chomeinsunit=d&cpmi=0&cpmiunit=d&choa=0&choaunit=d&cothercost=0&cothercostunit=d&cmop=1&cptinc=0&chiinc=0&choainc=0&cocinc=0&cexma=0&cexmsm=10&cexmsy=2017&cexya=0&cexysm=10&cexysy=2017&cexoa=0&cexosm=10&cexosy=2017&caot=0&xa1=0&xm1=10&xy1=2017&xa2=0&xm2=10&xy2=2017&xa3=0&xm3=10&xy3=2017&xa4=0&xm4=10&xy4=2017&xa5=0&xm5=10&xy5=2017&xa6=0&xm6=10&xy6=2017&xa7=0&xm7=10&xy7=2017&xa8=0&xm8=10&xy8=2017&xa9=0&xm9=10&xy9=2017&xa10=0&xm10=10&xy10=2017&csbw=1&printit=0&x=31&y=16
Which project in your opinion would be able to achieve this now? I mean base on current entry price.
This is a $4299 a year question, you can pay $4299 to find out.
https://www.srx.com.sg/subscribe-srx-enterprise
Or you can try https://www.edgeprop.sg/ it is cheaper.
Loan required $1,000,000.00
Monthly income $10,000.00
Interest 3.50%
Loan Tenure 25 years
Payment $5,006.24 0.6
TDSR Pay required $8,343.73
Loan Tenure 24
Payment $5,137.14 0.6
TDSR Pay required $8,561.90
Required pay rise $218.17
Loan Tenure 23
Payment $5,280.11 0.6
TDSR Pay required $8,800.18
Required pay rise $456.45
https://scontent-sin6-1.xx.fbcdn.net/v/t1.0-9/22449844_10211729058834890_5189503584570646682_n.jpg?oh=74d9d22b72ec1eb62edadd8f1f7e0e95&oe=5A8869F0
Effects on loans
Loan Tenure will be shorten as one get older.
Interest Rate likely to increase in the mid to longer term
Maximum Loan amount will be reduced significantly.
Financial Techniques
1. Cash out.
2. Gear Up / Equity Term Loan.
3. Stagger Purchase.
4. Improve Cash Flow and Maximizing loan.
5. Pledge & Unpledged.
6. ABSD - Decoupling.
7. ABSD - Trust.
8. ABSD - Part Share.
9. Commerical / Industrial Loan
Just finish 2 hrs CreditSavvy.com.sg talk, cost $3595 for 2 days 1-night program.
http://www.creditsavvy.com.sg/
Good for those who think only of HDB and EC.
Financial Techniques
1. Cash out.
2. Gear Up / Equity Term Loan.
3. Stagger Purchase.
4. Improve Cash Flow and Maximizing loan.
5. Pledge & Unpledged.
6. ABSD - Decoupling.
7. ABSD - Trust.
8. ABSD - Part Share.
9. Commerical / Industrial Loan
Bro Arcachon, is it wise to take up term loan at say x% and deposit into CPF or other higher paying accounts at y%, assuming y is x+1%?
If x suddenly goes beyond y then can refinance at a later stage to reduce the amount?
Or better to stay put and continue to service, cheong to repay the mortgage?
Any pros and cons to advise?
Bro Arcachon, is it wise to take up term loan at say x% and deposit into CPF or other higher paying accounts at y%, assuming y is x+1%?
If x suddenly goes beyond y then can refinance at a later stage to reduce the amount?
Or better to stay put and continue to service, cheong to repay the mortgage?
Any pros and cons to advise?
Both are not leverage, risk are low.
Depends on age, if young take more risk, if old take less risk.
For me I want to take more risk Bank from far hear my name start to run.
In 2011 I took 660K than another 750K for a 899 psf property, now 2018 two bus stop from my property selling at 1600 psf.
Both are not leverage, risk are low.
Depends on age, if young take more risk, if old take less risk.
For me I want to take more risk Bank from far hear my name start to run.
In 2011 I took 660K than another 750K for a 899 psf property, now 2018 two bus stop from my property selling at 1600 psf.
Hi Bro Arcachon
I am planning to do repricing for my property under $200k. Currently with OCBC.
Any recommendation which bank i should go for?
Thanks
Hi Bro Arcachon
I am planning to do repricing for my property under $200k. Currently with OCBC.
Any recommendation which bank i should go for?
Thanks
How old are you.
Any bank that give you the best rate.
Have been with UOB since 2006, 1.38% about 1.5 million loan.
Bro, i m in early fifties.
UOB rate so low?? 1.38%.
OCBC i m now paying 2.11%
Bro, i m in early fifties.
UOB rate so low?? 1.38%.
OCBC i m now paying 2.11%
Time to look for another bank.
Cooperation is the in word now, gone were the day agent kill one another.
If you got bad experience with agent before do come and experience how Agent can help you.
No use keep crying all agent the same, one don't have a lot of 10 years to cry.
Many of my external cobrokes and buddies outside of Propnex had heard about the Dynamic Wealth Creation Program that I have put together. We are suppose to have coffee/tea to exchange ideas. However, everyone are always on the move, much less sit done for a few solid hours.
This coming Friday, organized by POC Dynamic Force Group, I will be sharing with my POC Group Agents some of the key techniques.
I have decide to open to all my Non-PropNex and my teammates Non-Propnexian friends too. (Good or not? ��)
Due to seating capacity, do let me know in advance if you will like to join me. Let’s catch up before of after the sharing. Cheers!
For Propnexians who had heard many positive feedback about this sharing that I had shared with several groups already, do be patient. I hereby promise to do another round for you guys during one of the Winning Wednesday.
Happy closing to all my FB Agents friends.
https://scontent.fsin3-1.fna.fbcdn.net/v/t1.0-9/37652002_1794199277338815_3992753726103224320_n.jpg?_nc_cat=0&oh=4550fb889a4538aa3dc3fb8e975fb185&oe=5C116DB3
https://scontent.fsin3-1.fna.fbcdn.net/v/t1.0-9/37922803_10213783753800980_2571886838444720128_n.jpg?_nc_cat=0&oh=2e541bc9450bd8790ffad0e2923e9d2c&oe=5BCF9C89
https://scontent.fsin3-1.fna.fbcdn.net/v/t1.0-9/38007823_10213805873833967_576869658959806464_n.jpg?_nc_cat=0&oh=ec7fb7e820537030cbb12b97b33a7321&oe=5BCE3BD6
TDSR income = 4000 x 0.6 = 2,400
Loan required 668,000
Monthly 3,000
shortfall = 3,000 - 2,400 = 600
income required for TDSR = 600/0.6 = 1,000
need to put FD = 1,000 x 48 = 48,000.
https://scontent.fsin3-1.fna.fbcdn.net/v/t1.0-9/37966931_10213805872153925_3502341741632028672_n.jpg?_nc_cat=0&oh=d692bf972326efe8d8cc52874d637eeb&oe=5BC842FF
https://scontent.fsin3-1.fna.fbcdn.net/v/t1.0-9/38130100_10213805872233927_5738224273374314496_o.jpg?_nc_cat=0&oh=f70976dd1b82ab4520580665bc3e7a3e&oe=5BCDF90A
https://media.licdn.com/dms/image/C4E12AQFCAxIxzu_9Aw/article-inline_image-shrink_1500_2232/0?e=2132524800&v=beta&t=Tz0aBHBmjgI5uNl5Pa88iT6vva39sWtI7DPH2yscNXw
https://media.licdn.com/dms/image/C4E12AQHUUSiR2xzw4A/article-inline_image-shrink_1500_2232/0?e=2132524800&v=beta&t=3VDnz06adwqZ9BXbL_J3X_8IJzvbhGV1Gfi_00co9MY
https://media.licdn.com/dms/image/C4E12AQE3Nr7Mv_kTJg/article-inline_image-shrink_1500_2232/0?e=2132524800&v=beta&t=o3orkHP1aZLwf7aXZoblTazTEZprCAR2SIcExu44f4E
https://media.licdn.com/dms/image/C4E12AQFVy_itTWl_XQ/article-inline_image-shrink_1500_2232/0?e=2132524800&v=beta&t=FMF8S2llUfO3w2Os-PUgq7ZpvVvHAtFu2Z9IVh4WlM0
De-coupling and Part-purchase
One method for a couple to avoid paying ABSD on a second residential property purchase is to do what is known as a de-coupling and part-purchase of the ownership of the first property. This essentially involves removing one spouse from the ownership of the first property. That way, he or she can buy a new property without paying ABSD for what is a second property owned by the couple. What does this entail?
As most married couples purchase their matrimonial home as joint tenants, de-coupling results in Spouse A becoming the sole owner of the existing property and Spouse B purchasing a new property. This would require the following steps:
1. Severance of joint tenancy
This requires the signing of an instrument declaring the severance of joint tenancy in the property. Your lawyer will prepare this instrument in the required forms for your signing, and subsequently register it with the Singapore Land Authority.
2. Part-purchase of one spouse’s share in the property by the remaining spouse
This means that Spouse A buys over all the shares owned by Spouse B in the property. This is commonly known as part-purchase because Spouse A is purchasing only a part of the property, since he/she already owns the other part. A part-purchase typically requires the following steps:
Transfer of ownership through a Sale and Purchase: This works exactly the same way as a normal sale and purchase. A sale and purchase agreement will have to be signed by the parties, and the agreement will have to be stamped.
While a transfer of ownership can also be effected by way of a gift by Spouse B to Spouse A of his/her share, it is advisable to go through with a sale and purchase instead. This is because a transfer by way of gift may be set aside as a transaction at an undervalue in the event of bankruptcy. This may have negative implications for the owner looking to sell the property, as it may be more difficult for the potential buyer to obtain a bank loan.
Stamp duties: Stamp duties have to be paid within 14 days of the execution of the sale and purchase agreement. BSD will have to be paid, based on the purchase price (or the market value, whichever is higher) of the share of the property being transferred. If the property was purchased less than 4 years ago, then Spouse B will also have to pay Seller’s Stamp Duty (SSD). Again, what is payable is also on the portion of the property being sold (ie, if Spouse A is buying over 1% of the property from Spouse B, then what is payable is on the purchase price/market value of that 1%).
Refund of CPF monies: All CPF monies used by Spouse B towards the purchase of the property will have to be refunded to his/her CPF account together with accrued interest upon completion of the sale. Your lawyer will also have to help you apply for a partial discharge of the CPF Board’s charge over your house, such that Spouse B’s name is removed. The refund of CPF monies can usually be completed within 10 working days of the sale, freeing up Spouse B’s CPF funds for the purchase of a new property.
Restructuring and refinancing of bank loan: If you financed the purchase of your property with a bank loan, you will need to speak to your banker about restructuring or refinancing of your home loan. This will typically involve removing Spouse B’s name from the loan. If you are looking to refinance with a different bank, you may find more tips and pointers here. If you are looking to complete your part-purchase within a shorter period of time, it may be easier to refinance with your existing bank, as they are more likely to allow for a shorter notice period for redemption of your existing loan if your new loan is also with them.
Similar to a normal refinancing process, your lawyers will also assist you in discharging the existing mortgage for the old loan and lodging the mortgage for your new loan.
Upon completion of the above transactions, Spouse B can go on to purchase another property without paying ABSD. This is because he or she no longer owns any property.
However, de-coupling the ownership of Housing Development Board flats might not be possible because the Housing Development Board (HDB) revised their regulations on 1 April 2016 to restrict the transfer of flat ownership. Flat owners will be allowed to transfer the ownership of their flats under six circumstances including marriage, divorce, death of an owner, financial hardship, renunciation of citizenship and medical reasons. All other reasons will be assessed by HDB on a case by case basis. More information on the new HDB regulation can be found here.
https://singaporelegaladvice.com/law-articles/beating-the-additional-buyers-stamp-duty/
http://www.ivoryheightsenbloc.sg/wp-content/uploads/2018/07/Signing-28.7.18.jpg
http://www.ivoryheightsenbloc.sg/
bargain hunter
31-07-18, 13:27
http://www.ivoryheightsenbloc.sg/wp-content/uploads/2018/07/Signing-28.7.18.jpg
http://www.ivoryheightsenbloc.sg/
wah, they copy your slogan. :onthego:
wah, they copy your slogan. :onthego:
Not me, from facebook.
Mother 70, Daughter 40.
Cash on Hand 700k.
self stay property o/s loan 700k.
How to buy another property without ABSD.
Mother 70, Daughter 40.
Cash on Hand 700k.
self stay property o/s loan 700k.
How to buy another property without ABSD.
Transfer to Mother with loan capped at 50% valuation. Possible?
Use remaining funds and 40 YO profile to loan and buy.
Transfer to Mother with loan capped at 50% valuation. Possible?
Use remaining funds and 40 YO profile to loan and buy.
https://propertynet.sg/cashing-out-property-home-equity-loan/
https://www.mortgagewise.sg/tdsr-removed/
What is equity term loan (ETL)? This is strictly not at purchase, but refers to the additional loan that is taken out against the property valuation on the part which has been fully paid for over the years. And there is a condition – the equity loan portion does not comprise more than 50% of the loan-to-value (LTV).
bargain hunter
31-07-18, 16:33
Transfer to Mother with loan capped at 50% valuation. Possible?
Use remaining funds and 40 YO profile to loan and buy.
even then the monthly cash repayment for the mother for the 700k loan also face green green already.
even then the monthly cash repayment for the mother for the 700k loan also face green green already.
Servicing one loan of 700K with no tenant versus 2 loans of 350K plus 350K and having a tenant help to pay for 1 to 1.5 of the loan. Which is better?
Servicing one loan of 700K with no tenant versus 2 loans of 350K plus 350K and having a tenant help to pay for 1 to 1.5 of the loan. Which is better?
OPM or no OPM there is a different, not many understand.
Our government know and understand that is why they need to stop people from OPM otherwise no worker everyone OPM.
Husband 38 years old, wife 35 years old own condo bought 2011 $1,200,000.
Husband SC wife SPR.
80k cash, 200k in CPF 50/50.
30 years loan outstanding loan 800K
Husband income $8,000 Wife $7,000
Husband OA 50K wife OA 100K
CPF refund with accrued interest is 150K husband 180K wife
50K cash FD and 100K in stock
Current valued at 1.8 million.
https://www.tracygoh.sg/property-news/singapore-removed-absd-removal-news/
Singapore, 10 March 2017
http://www.mas.gov.sg/News-and-Publications/Media-Releases/2017/Joint-Press-Release-on-Measures-Relating-to-Residential-Property.aspx
We will no longer apply the TDSR framework to mortgage equity withdrawal loans with LTV ratios of 50% and below.
Singapore, 5 July 2018 ---- Raising Additional Buyer's Stamp Duty Rates and Tightening Loan-to-Value Limits to Promote a Stable and Sustainable Property Market
http://www.mas.gov.sg/News-and-Publications/Media-Releases/2018/Raising-Additional-Buyers-Stamp-Duty-Rates-and-Tightening-Loan-to-Value-Limits.aspx
with effect from 6 July 2018 ---- GUIDELINES ON THE APPLICATION OF TOTAL DEBT SERVICING RATIO FOR PROPERTY LOANS UNDER MAS NOTICES 645, 1115, 831 AND 128
http://www.mas.gov.sg/~/media/MAS/Regulations%20and%20Financial%20Stability/Regulations%20Guidance%20and%20Licensing/Commercial%20Banks/Regulations%20Guidance%20and%20Licensing/Guidelines/TDSR_Guidelines_050718.pdf
https://www.mortgagewise.sg/decoupling/
Condo Valuation = $1.5m
Selling Price = 50% = $750,000
Existing Housing Loan = $700,000
Mr Tan’s CPF used todate (plus accrued interest) = $150,000
Mrs Tan’s CPF used todate (plus accrued interest) = $10,000
Mrs Tan’s CPF Ordinary Account Balance = $250,000
Financials For Seller (Mr Tan)
To sell 50% stake and receive $750,000 as follows:
Loan to be redeemed = $350,000 (also 50%)
Goes back to his CPF = $150,000
Cash proceeds = $250,000
Financials For Buyer (Mrs Tan)
To refinance her own 50% loan of $350,000 to the new bank
(at same time) Buy over 50% stake and pay $750,000 with breakdowns below.
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