Page 1 of 2 12 LastLast
Results 1 to 30 of 47

Thread: [Advise-Needed] HDB + Private

  1. #1
    Join Date
    Nov 2008
    Posts
    103

    Default [Advise-Needed] HDB + Private

    Situation.

    guy & wife own a fully paid up HDB flat.

    his parents, 80s, own a private property, fully paid up.

    parents want to "transfer" / "gift" it to him.

    parents used cpf to pay for the private property so there is a cpf "charge" on the property

    he say paying bsd + absd is not a problem

    (a) what is the most efficient manner to "transfer" / "gift" it to him considering the least amount of cash required to make this happen.

    (b) after everything settled, private property in his name, can he take loan against the private property so that he can take money from the loan and give parents.

    any advise?

  2. #2
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    guy & wife own a fully paid up HDB flat.

    -----Age of Guy & wife. Any Child, outstanding loan, etc.

    his parents, 80s, own a private property, fully paid up.

    ------- property LH or FH, what type

    parents want to "transfer" / "gift" it to him.

    parents used cpf to pay for the private property so there is a cpf "charge" on the property

    -------What is the charge amount.

    he say paying bsd + absd is not a problem

    --------Don't think of paying, think how not to pay first.

    (a) what is the most efficient manner to "transfer" / "gift" it to him considering the least amount of cash required to make this happen.

    ----------Not pratical.

    (b) after everything settled, private property in his name, can he take loan against the private property so that he can take money from the loan and give parents.

    -----------Not a good idea.

  3. #3
    Join Date
    Nov 2008
    Posts
    103

    Default

    thank you for your reply.

    ======

    guy & wife own a fully paid up HDB flat.

    -----Age of Guy & wife. Any Child, outstanding loan, etc.

    ====== late 40s

    his parents, 80s, own a private property, fully paid up.

    ------- property LH or FH, what type

    ====== FH

    parents want to "transfer" / "gift" it to him.

    parents used cpf to pay for the private property so there is a cpf "charge" on the property

    -------What is the charge amount.

    ====== total slightly more than 1M

    he say paying bsd + absd is not a problem

    --------Don't think of paying, think how not to pay first.

    (a) what is the most efficient manner to "transfer" / "gift" it to him considering the least amount of cash required to make this happen.

    ----------Not pratical.

    (b) after everything settled, private property in his name, can he take loan against the private property so that he can take money from the loan and give parents.

    -----------Not a good idea.

  4. #4
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by x11 View Post
    thank you for your reply.

    ======

    guy & wife own a fully paid up HDB flat.

    -----Age of Guy & wife. Any Child, outstanding loan, etc.

    ====== late 40s ,Any Child, outstanding loan, etc.

    his parents, 80s, own a private property, fully paid up.

    ------- property LH or FH, what type

    ====== FH, condition of the property need any major repair

    parents want to "transfer" / "gift" it to him.

    parents used cpf to pay for the private property so there is a cpf "charge" on the property

    -------What is the charge amount.

    ====== total slightly more than 1M How much you can get after paying 1 million

    he say paying bsd + absd is not a problem

    --------Don't think of paying, think how not to pay first.

    (a) what is the most efficient manner to "transfer" / "gift" it to him considering the least amount of cash required to make this happen.

    ----------Not pratical.

    (b) after everything settled, private property in his name, can he take loan against the private property so that he can take money from the loan and give parents.

    -----------Not a good idea.
    You are going to pay a million, how much do you think you can get from the bank after paying.

  5. #5
    Join Date
    Nov 2008
    Posts
    103

    Default

    ====== late 40s, 2 kids (teens), zero outstanding loan
    ====== FH, livable, probably need change aircon and some white goods
    ====== between the parents, charge amount with CPF is slight more than 1M
    ====== property valuation is 2M

    pardon my ignorance, but don't really understand the question = "You are going to pay a million, how much do you think you can get from the bank after paying."

  6. #6
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by x11 View Post
    ====== late 40s, 2 kids (teens), zero outstanding loan
    ====== FH, livable, probably need change aircon and some white goods
    ====== between the parents, charge amount with CPF is slight more than 1M
    ====== property valuation is 2M

    pardon my ignorance, but don't really understand the question = "You are going to pay a million, how much do you think you can get from the bank after paying."
    You need to pay back CPF, or your parent got the cash to pay.

  7. #7
    Join Date
    Nov 2008
    Posts
    103

    Default

    Quote Originally Posted by Arcachon View Post
    You need to pay back CPF, or your parent got the cash to pay.
    it seems like the following
    - valuation 2M
    - get loan from bank (1.2M)
    - pay BSD 3% = 60K
    - pay ABSD 7% = 140K (2nd property)
    - pay parents CPF (1M), then 1 week later, after making sure parents CPF enough in RA account, then money will be returned to them in cash
    - name change done, parents got 1M in cash
    - take back say 500K from parents and return to bank
    - owe bank $700K
    - name change done, parents got $500K in bank, and son got $700K loan

    that's the best?

  8. #8
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by x11 View Post
    it seems like the following
    - valuation 2M
    - get loan from bank (1.2M)
    - pay BSD 3% = 60K
    - pay ABSD 7% = 140K (2nd property)
    - pay parents CPF (1M), then 1 week later, after making sure parents CPF enough in RA account, then money will be returned to them in cash
    - name change done, parents got 1M in cash
    - take back say 500K from parents and return to bank
    - owe bank $700K
    - name change done, parents got $500K in bank, and son got $700K loan

    that's the best?
    - get loan from bank (1.2M)

    This one don't understand

    Can only get 50%

    Where parent stay after transfer?
    Last edited by Arcachon; 10-06-17 at 14:40.

  9. #9
    Join Date
    Nov 2008
    Posts
    103

    Default

    need to loan money to pay BSD + ABSD + parents CPF (1M)
    no money leh!

  10. #10
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by x11 View Post
    need to loan money to pay BSD + ABSD + parents CPF (1M)
    no money leh!
    ic, but can only get 50% of the valuation.

    Don’t get too excited yet like the stock market, it’s only applicable to those who take an equity term loan of not more than 50% of the current property valuation.

    http://www.mortgagewise.sg/tdsr-removed/

  11. #11
    Join Date
    Nov 2008
    Posts
    103

    Default

    parents got another FH property to stay. they are current staying in this one.

  12. #12
    Join Date
    Nov 2008
    Posts
    103

    Default

    property rich - cash poor ... lol!

  13. #13
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Your parent needs any God Son, 53 years old.

  14. #14
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by x11 View Post
    property rich - cash poor ... lol!
    Go for term loan then after transfer goes for cash out then return money to parent.

  15. #15
    Join Date
    Nov 2008
    Posts
    103

    Default

    Quote Originally Posted by Arcachon View Post
    Your parent needs any God Son, 53 years old.
    LOL - Submit your application

    Quote Originally Posted by Arcachon View Post
    Go for term loan then after transfer goes for cash out then return money to parent.
    Term loan ... ok.

    Loan from bank, that's what I am thinking to do.
    Loan from bank like doing a real purchase, maybe $1.2M
    pay BSD + ABSD, pay parents CPF, when parents CPF gets return to them, then ask them how much they want to keep
    if they want to keep $500K, then i return $500K to bank
    then I owe bank $700K

  16. #16
    Join Date
    Oct 2010
    Posts
    4,739

    Default

    why need to transfer/gift now?
    why not wait for parents to pass away and the guy can inherit?
    dont have long to wait since both are 80s. (how many 10-year will they have?)

    question: if inherit, still need to pay CPF charge or not when selling the inherited property?

    http://www.straitstimes.com/business...ers-stamp-duty
    from article, looks like by inheritance, no need to pay ABSD. so if inherit the 2 FH, also no ABSD?

  17. #17
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by x11 View Post
    LOL - Submit your application



    Term loan ... ok.

    Loan from bank, that's what I am thinking to do.
    Loan from bank like doing a real purchase, maybe $1.2M
    pay BSD + ABSD, pay parents CPF, when parents CPF gets return to them, then ask them how much they want to keep
    if they want to keep $500K, then i return $500K to bank
    then I owe bank $700K
    No,

    Loan for BSD and ABSD. Term Loan(bridging loan got to check with bank)

    CPF need to check with CPF whether Transfer still needs to pay back.

    Then Cash out.


    To buy need 25% cash and loan max 50%
    Last edited by Arcachon; 10-06-17 at 15:14.

  18. #18
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    You can get a million dollar loan but still, need 25% cash.

  19. #19
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by hopeful View Post
    why need to transfer/gift now?
    why not wait for parents to pass away and the guy can inherit?
    dont have long to wait since both are 80s. (how many 10-year will they have?)

    question: if inherit, still need to pay CPF charge or not when selling the inherited property?

    http://www.straitstimes.com/business...ers-stamp-duty
    from article, looks like by inheritance, no need to pay ABSD. so if inherit the 2 FH, also no ABSD?
    Cash poor. Need money now. Not many 10 years to go.

    Many forget when they are no more working their cash in hand can only reduce as time past.

  20. #20
    Join Date
    Nov 2008
    Posts
    103

    Default

    Quote Originally Posted by hopeful View Post
    why need to transfer/gift now?
    why not wait for parents to pass away and the guy can inherit?
    dont have long to wait since both are 80s. (how many 10-year will they have?)
    question: if inherit, still need to pay CPF charge or not when selling the inherited property?
    http://www.straitstimes.com/business...ers-stamp-duty
    from article, looks like by inheritance, no need to pay ABSD. so if inherit the 2 FH, also no ABSD?
    because parents want some money
    they have a place to stay
    they have enough for daily expenses
    but
    no money to buy gifts and presents to relatives
    no money to go play jackpot!

    Quote Originally Posted by Arcachon View Post
    No,
    Loan for BSD and ABSD. Term Loan(bridging loan got to check with bank)
    CPF need to check with CPF whether Transfer still needs to pay back.
    Then Cash out.

    To buy need 25% cash and loan max 50%
    guy and wife no more loan
    hdb all paid
    so technically if loan for the private property, will be 1st loan
    but they very little cash/cpf
    bridging loan possible i think

    Quote Originally Posted by Arcachon View Post
    Cash poor. Need money now. Not many 10 years to go.
    Many forget when they are no more working their cash in hand can only reduce as time past.
    yes, correct. i think the old parents mis-calculated. 2 FH properties. both paid up. roof covered, daily expenses covered but still want some money in hand.

  21. #21
    Join Date
    Nov 2008
    Posts
    103

    Default

    i think under the previous rules, cpf for transfer no need to return back. but i think nowadays, even transfer, cpf must pay back first, then after 1 week, the sum can be cashed out by the old parents. the rational was that 2 parties share of usage of CPF in the property is different, hence, must return all the CPF first then cash out accordingly. but of course, to cash out, CPF will then keep the full retirement sum before the release the rest. CPF very smart lor.

  22. #22
    Join Date
    Nov 2008
    Posts
    103

    Default

    bridging loan 15% only
    https://www.hsbc.com.sg/1/2/personal.../bridging-loan

    not enough to work for the "refund" of the 1M back to the CPF

  23. #23
    Join Date
    Nov 2008
    Posts
    103

    Default

    so now, at present, the follow current plan is probably still the only one workable.

    - FH valued $2M
    - son + wife HDB fully paid, no loan
    - son + wife go and take loan from bank to purchase the FH, 80% loan $1.6M (this will be son + wife 1st loan since HDB loan already fully paid)
    - son + wife cash pay BSD $60K
    - son + wife cash pay ABSD $140K (because FH is the son + wife 2nd property, hence 7% extra ABSD)
    - son + wife cash pay lawyer fee etc $5K
    - son + wife cash pay 20% deposit $400K

    once sale is done, FH property in name of son + wife

    - old parents will get $1M refunded into CPF
    - presume that they current only have 50% of RA minimum sum because of property pledge, CPF need to retain $100K each
    - so old parents will only get $800K cash out from CPF
    - old parents will also get $1M cash from sale of property
    - old parents will get $1.8M cash total
    - old parents keep $500K cash for themselves
    - old parents return $1.3M cash to son+wife
    - son + wife return $1.3M to bank
    - son + wife still own bank $300K

    but in order to make this happen
    - son + wife must get $1.6M loan from bank
    - son + wife must have cash for BSD $60K + ABSD $140K + Lawyer and Misc Fee $5K + 20% Deposit $400K = $605K

    any one has a better option?

  24. #24
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by x11 View Post
    so now, at present, the follow current plan is probably still the only one workable.

    - FH valued $2M
    - son + wife HDB fully paid, no loan
    - son + wife go and take loan from bank to purchase the FH, 80% loan $1.6M (this will be son + wife 1st loan since HDB loan already fully paid)
    - son + wife cash pay BSD $60K
    - son + wife cash pay ABSD $140K (because FH is the son + wife 2nd property, hence 7% extra ABSD)
    - son + wife cash pay lawyer fee etc $5K
    - son + wife cash pay 20% deposit $400K

    once sale is done, FH property in name of son + wife

    - old parents will get $1M refunded into CPF
    - presume that they current only have 50% of RA minimum sum because of property pledge, CPF need to retain $100K each
    - so old parents will only get $800K cash out from CPF
    - old parents will also get $1M cash from sale of property
    - old parents will get $1.8M cash total
    - old parents keep $500K cash for themselves
    - old parents return $1.3M cash to son+wife
    - son + wife return $1.3M to bank
    - son + wife still own bank $300K

    but in order to make this happen
    - son + wife must get $1.6M loan from bank
    - son + wife must have cash for BSD $60K + ABSD $140K + Lawyer and Misc Fee $5K + 20% Deposit $400K = $605K

    any one has a better option?
    you forget TDSR for Loan.

  25. #25
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    check with CPF, i don't think need to reply CPF.

  26. #26
    Join Date
    Aug 2009
    Posts
    3,943

    Default

    why so complicated, ask your parent takes an equity loan on the property of less than 50%
    No need to pay BSD, ABSD, no TDSR

  27. #27
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    Quote Originally Posted by Laguna View Post
    why so complicated, ask your parent takes an equity loan on the property of less than 50%
    No need to pay BSD, ABSD, no TDSR
    Parent want son to learn to walk, don't want to bottle feed.

    Every family got their own story(problem), I see this as a good problem for him to solve.

  28. #28
    Join Date
    Nov 2008
    Posts
    103

    Default

    Quote Originally Posted by Laguna View Post
    why so complicated, ask your parent takes an equity loan on the property of less than 50%
    No need to pay BSD, ABSD, no TDSR
    with ref = https://www.icompareloan.com/resourc...an-asset-rich/
    because old parents are not working, hence only Hong Leong Finance can do
    equity loan ... is based on 50% of valuation
    2M Valuation ... 50% = 1M
    but because there is a 1M charge on the property by CPF,
    therefore total eligible equity loan = $0

    the equity loan is actually based on 50% of the valuation, then less the CPF charge if any and if there is remaining, that's the loan that one can take.
    in this case, equity loan not available.

  29. #29
    teddybear's Avatar
    teddybear is offline Global recession is coming....
    Join Date
    Mar 2009
    Posts
    10,800

    Default

    Yes, you are right.
    Government regards your CPF as though it is "NOT your money" hence the CPF you took to pay loan MUST be considered a "LOAN" by the BANKS and not "EQUITY" to you when calculating TDSR/loan eligible from banks.....

    So max amount banks can loan you = LTV*property price - CPF owed

    Quote Originally Posted by x11 View Post
    with ref = https://www.icompareloan.com/resourc...an-asset-rich/
    because old parents are not working, hence only Hong Leong Finance can do
    equity loan ... is based on 50% of valuation
    2M Valuation ... 50% = 1M
    but because there is a 1M charge on the property by CPF,
    therefore total eligible equity loan = $0

    the equity loan is actually based on 50% of the valuation, then less the CPF charge if any and if there is remaining, that's the loan that one can take.
    in this case, equity loan not available.

  30. #30
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default


Similar Threads

  1. Advise needed- Tenant break rental contract
    By Scary in forum Singapore Private Condominium Property Discussion and News
    Replies: 38
    -: 30-12-13, 15:53
  2. Advice needed - decouple UnderCon Private
    By Ronan Loh in forum Singapore Private Condominium Property Discussion and News
    Replies: 9
    -: 06-09-13, 22:01
  3. Pls advise on purchasing a private property
    By lchunleo in forum Finance and Legal
    Replies: 19
    -: 08-05-10, 23:04
  4. need advise
    By firestarter in forum Singapore Private Condominium Property Discussion and News
    Replies: 12
    -: 25-06-09, 22:51
  5. need advise
    By Jas17 in forum District 12
    Replies: 6
    -: 05-10-08, 04:05

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •