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Thread: Need advice on buying HDB for singles!

  1. #1
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    Default Need advice on buying HDB for singles!

    Hi gurus,

    my fren ask me this i am stuck. My friend is a married guy. He has a brother whom is single and already reach the age to buy hdb under single scheme. is there anyway this friend of mine pay for the hdb using cash, the hdb under the brother's name and yet my friend have the vested interest on it? e.g. will? nomination etc? such that the brother cannot sell the flat without approval from my friend whom funded the whole thing 100%

    my friend already have hdb, so cant out his name in.

  2. #2
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    Get a lawyer have a agreement on the loan.

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    Quote Originally Posted by leesg123
    Hi gurus,

    my fren ask me this i am stuck. My friend is a married guy. He has a brother whom is single and already reach the age to buy hdb under single scheme. is there anyway this friend of mine pay for the hdb using cash, the hdb under the brother's name and yet my friend have the vested interest on it? e.g. will? nomination etc? such that the brother cannot sell the flat without approval from my friend whom funded the whole thing 100%

    my friend already have hdb, so cant out his name in.
    Legally, there is no way. Tough situation. Why not let the brother save some more before purchase?

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    Quote Originally Posted by Kelonguni
    Legally, there is no way. Tough situation. Why not let the brother save some more before purchase?
    the brother is not highly educated and is doing odd job. the idea is that the hdb flat, one room can rent out and supplement the brother living expenses. but sekali the brother kena conned by people to sell hdb flat and my friend pawned.

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    Quote Originally Posted by leesg123
    the brother is not highly educated and is doing odd job. the idea is that the hdb flat, one room can rent out and supplement the brother living expenses. but sekali the brother kena conned by people to sell hdb flat and my friend pawned.
    To rent, must MOP 5 years then can, with certain exceptions.

    Not legal to rent immediately.

  6. #6
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    How come sounds so familiar, ur friend recently bot FV?

    How much is ur friend cash layout? Treat it as gamble lor.
    On rental,

    No prior approval from HDB is required if you rent out your bedroom(s) in the flat within the MOP. However, with effect from 1 Feb 2010, you must register the subletting of bedrooms with HDB within 7 days* of doing so. You are also required to notify HDB when you renew or terminate the subletting of bedrooms, and when there are changes to your subtenants’ particulars.

    http://www.hdb.gov.sg/fi10/fi10321p....e?OpenDocument

  7. #7
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    Yah rent a room possible. But very hard to share the proceeds from renting. May break a relationship. Depends on how strong the relationship. But actually if strong enough, can consider as gift without strings attached.

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    Quote Originally Posted by Kelonguni
    Yah rent a room possible. But very hard to share the proceeds from renting. May break a relationship. Depends on how strong the relationship. But actually if strong enough, can consider as gift without strings attached.
    The rent is to help my friend's brother to supplement his income as odd job worker. The concern here is how to put a cavaet on the hdb property. It is not meant to be agift, but a way to get rental from room and lessen the burden on my friend(currently fork out pocket money for the brother).

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    No way.
    Govt is smart alr, no caveat from third party other than banks and CPF.
    So, if that is the case...need to fight out in the court...and HDB will take back the flat as this is not legal in the first place...

  10. #10
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    With every cm comes more funny ideas

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    Quote Originally Posted by carbuncle
    With every cm comes more funny ideas
    Each CM will take a few months for buyers to find a way to bypass it or just live with it

    Next wave after MAS restriction will be equity loan and buy under children's names
    Ride at your own risk !!!

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    Quote Originally Posted by phantom_opera
    Each CM will take a few months for buyers to find a way to bypass it or just live with it

    Next wave after MAS restriction will be equity loan and buy under children's names
    Equity term loan on properties is on the same term as housing loan.
    Buy under children's name....nothing against the law lah

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    HK or SG, the problem is it hurts too many parties to deliberately lower prices:

    1. Land must be valued lower instead of peg to gold
    2. Property developers holding existing land banks will kpkb ...
    3. Reputation of Singapore is ruined ...foreign investors / developers will lose confidence
    4. They will lose the next election

    Only in China they can do it to a certain extent


    Peak of bubble could take super long time to achieve

    Last edited by phantom_opera; 13-10-12 at 20:21.
    Ride at your own risk !!!

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    Quote Originally Posted by leesg123
    Hi gurus,

    my fren ask me this i am stuck. My friend is a married guy. He has a brother whom is single and already reach the age to buy hdb under single scheme. is there anyway this friend of mine pay for the hdb using cash, the hdb under the brother's name and yet my friend have the vested interest on it? e.g. will? nomination etc? such that the brother cannot sell the flat without approval from my friend whom funded the whole thing 100%

    my friend already have hdb, so cant out his name in.
    Hi leesg123, perhaps your friend can lend the money to his brother and make him sign an IOU but your friend need not exercise the IOU unless his brother sells away the flat. Only thing your friend loses is the interest as it is illegal to charge interest for IOU unless he is a legal money lender.

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    Quote Originally Posted by Laguna
    Equity term loan on properties is on the same term as housing loan.
    Buy under children's name....nothing against the law lah
    Was just wondering.......
    If buy under children's name , then the parent cannot claim that it is a gift to the child, right?

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    Cannot do a PoA meh? Any restrictions on that?

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    Quote Originally Posted by Sleepyhead
    Cannot do a PoA meh? Any restrictions on that?
    POA is when the owner is not in town and requires the POA to sign documents eg receive keys, get tenants on behalf of the owner. POA does not give the person claim to the house. He is just acting on behalf of the owner, presumably under the instruction of the owner.
    There is no restriction on appointing a POA with regards to what type of property the POA owns.

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    So PoA does not give the holder the right to sell the property and keep the proceeds? I always thought PoA is like transferrin all rights to the holder.

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    Quote Originally Posted by Sleepyhead
    So PoA does not give the holder the right to sell the property and keep the proceeds? I always thought PoA is like transferrin all rights to the holder.
    No, definitely not.
    A power of attorney (POA) is a written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter.

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    Quote Originally Posted by buttercarp
    No, definitely not.
    A power of attorney (POA) is a written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter.
    Any Ah Long can help? Ah Long very good on POA, ATM card, etc...

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    Quote Originally Posted by Arcachon
    Any Ah Long can help? Ah Long very good on POA, ATM card, etc...
    Why would u appoint an Ah Long to be ur POA? Usually one will appoint a trusted relative or friend to be the POA.

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    I will still say not very advisable to do that. Various risks involved:

    1. If the brother refuses to honour earlier agreements or changes his mind, the case will become very messy. When people need money from you, you are their God, but to get it back, they become your God.

    2. Getting a HDB also entails cost. For example, the brother gets a resale 3-room at say 300,000. The cost upfront could be $60,000. Not only that, monthly installment is around $960 (assuming CPF interest rate of 2.6%). Also, there are other running costs like conservancy charges ($40 per month?), property tax (few hundred per year), electrical bills (variable) etc etc. Renovation costs are not cheap nowadays as well if required. How much were they intending to rent the room for? $650?

    3. Also, tenants can also result in depreciation costs of the stuff in the house. This is not inclusive of the damage that can be caused if there is fire (as what happened in Chinatown private estate recently).

    If the HDB is owned by oneself or if the whole apartment can be rented out, the risks are more manageable and worthy of taking. In this case it's possible to run into conditions that require one to pay more than current conditions.

    Renting out the whole unit before MOP is also to be avoided as it is clearly illegal.

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    i think when it comes to helping slibings, can afford to be more generous... esp if one can afford & has few (or just 1 slibing), they're our closest next-of-kin after spouse & parents... that's the greatest wish of a parent i think; for slibings to be there for each other in times of need

    if i already own pc and/or hdb & slibing has nothing... & have spare cash to pay the downpayment for a small hdb, y not help. since the hdb will be in the single slibing name... he has to service the hdb loan naturally. if his salary can't pay, he can rent out 1 room... that shld be sufficient

    if in the end still cannot pay... my lost will just be the downpayment; hdb can take back in the worst case scenario

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    Quote Originally Posted by auroraborealis
    i think when it comes to helping slibings, can afford to be more generous... esp if one can afford & has few (or just 1 slibing), they're our closest next-of-kin after spouse & parents... that's the greatest wish of a parent i think; for slibings to be there for each other in times of need

    if i already own pc and/or hdb & slibing has nothing... & have spare cash to pay the downpayment for a small hdb, y not help. since the hdb will be in the single slibing name... he has to service the hdb loan naturally. if his salary can't pay, he can rent out 1 room... that shld be sufficient

    if in the end still cannot pay... my lost will just be the downpayment; hdb can take back in the worst case scenario
    It depends a lot on how were your growing up years like with that sibling.

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    Quote Originally Posted by buttercarp
    Why would u appoint an Ah Long to be ur POA? Usually one will appoint a trusted relative or friend to be the POA.
    Ah Long very good in collecting debt. Can seek their advise on this.

  26. #26
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    On the surface, your friend sounds like a genuine nice brother but in fact he is just making use of his low income brother la!

    Your friend wants to pocket the profit from the sale of the HDB 5 years later right ?

    A nice brother will fork out the deposit for his low income brother and just tell his brother NEVER to sell the HDB without consulting him first. Coz once he sell, he no longer has a place to stay.

    If there is no trust between brothers, then dont bother about doing such things. Brotherhood should never be measured by money.

    Numbers doesn't lie - Office Boy is good with numbers as I need to count various items in the office each day. Your friend probably only need to help the brother with a few hundred dollars a month, with the tens of thousands put into the property, that can last his low income brother for years and years.

    The low income brother may qualify for rental flats which is subsidized.

    Anyway, doing too much FOC financial analysis work for someone I dont know ... haha!

    DKSG

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    hi hi, can I check with you guys - HDB owners can buy a private property after satisfying the MOP with no need to sell their HDB? is this right?

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    Quote Originally Posted by Emma
    hi hi, can I check with you guys - HDB owners can buy a private property after satisfying the MOP with no need to sell their HDB? is this right?
    yes.....but PC owner cannot buy HDB
    that is why, majority buy PC and still keep their HDB

  29. #29
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    Oh thanks! but sounds a bit unfair to me, no?
    this will still be creating the phenomenon of concurrent ownership of HDB and private property?


    Quote Originally Posted by Laguna
    yes.....but PC owner cannot buy HDB
    that is why, majority buy PC and still keep their HDB

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    Quote Originally Posted by Emma
    Oh thanks! but sounds a bit unfair to me, no?
    this will still be creating the phenomenon of concurrent ownership of HDB and private property?
    In June 2006, you need only 5 % deposit and your pay after TOP. It just a game and the rule changes when more people start to play.

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