40% Downpayment

[rattydrama]

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]

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.

[jbond]

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]

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.

[gn108]

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]

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?

i rather u try ur luck at MBS! try baccarat, prolly higher chance of winning den frying ppty

[jwong71]

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!

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]

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.

[Jadey]

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.

[kane]

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.

[ysyap]

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.

[ysyap]

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!

[Jadey]

I wont recommend you to upgrade your HDB to private and then live with your parents or in laws for free either.

[masterkey]

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?

[maisonjai]

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?
Are you in a hurry to buy? Why not clear ur outstanding loan first?

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]

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?
Are you in a hurry to buy? Why not clear ur outstanding loan first?


Is there dual key below 1mil for PC? New EC have.

I tink caspian dk just above 1mil now?

[Jadey]

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]

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]

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...

[maisonjai]

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/listi...r-sale-caspian
http://www.propertyguru.com.sg/listi...r-sale-caspian
http://www.propertyguru.com.sg/listi...r-sale-caspian

[DC33_2008]

Wonder if the showrooms will still be crowded with locals?

[Allthepies]

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?

[DC33_2008]

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?

[Laguna]

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

[ysyap]

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?

[Arcachon]

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/page...=12850#point_2

[ysyap]

[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/page...=12850#point_2

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?

[Arcachon]

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?

[hyenergix]

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.

[curio]

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