Discussion About Single & Hdb Flat Ownership + Hdb Loan (Compiled)

[lonelyglobe]

https://www.straitstimes.com/singapore/9700-households-have-sold-part-of-their-remaining-leases-back-to-hdb-since-2009

 

70% recieved between 100 - 200K.

[LeanMature]

On 11/28/2022 at 12:20 PM, sgmaven said:

Well, for a single to buy a 2 room flexi flat from HDB, the flat cannot be in a mature estate. Which means it would likely fail "Guest Guest" criteria of location, location, location.

 

Can, if you are 55 and above.  It will be short lease, not buy though.

[LeanMature]

On 11/28/2022 at 7:30 PM, Why? said:

Many folks, particularly the elderly, were unaware of this "trap" in full.   Other than pressuring them to downgrade, our government, HDB, and CPF did not do enough to enlighten or educate the movement of their eventual HDB sale proceeds. They simply intended to lock the money belonging to the elderly into the CPF, which I feel to be quite unethical.

 

True.  When you downgrade, the CPF monies can also be used to fully paid up the new flat.

[Guest Aaaa]

1. Say if paid downpayment on BTO (sole owner for 2rm-flexi), ard 3 years to completion. From now until completion, if something happens to me, it will be taken back by HDB I suppose? Or given to NOK?

2. Then if already completion and I staying in it, something happens to me, similarly HDB take back or will go to NOK?

3. If I have a basic/normal/standard will stating 100% to partner, is the BTO automatically under assets, or excluded (i.e. need to explicitly state that wish the BTO to go to partner, not family/NOK)

Thank you.

[LeanMature]

16 minutes ago, Guest Aaaa said:

1. Say if paid downpayment on BTO (sole owner for 2rm-flexi), ard 3 years to completion. From now until completion, if something happens to me, it will be taken back by HDB I suppose? Or given to NOK?

2. Then if already completion and I staying in it, something happens to me, similarly HDB take back or will go to NOK?

3. If I have a basic/normal/standard will stating 100% to partner, is the BTO automatically under assets, or excluded (i.e. need to explicitly state that wish the BTO to go to partner, not family/NOK)

Thank you.

 

If you are the sole owner and single, the beneficiaries will be your parents (if they are still living), otherwise, it will be share among your siblings.  Sad to say, partner get nothing, unless he is the co-owner of the flat.  This had been HDB POLICY and this policy overrule any existing WILL you made with the lawyer. 

[Guest Aaaa]

On 2/18/2023 at 11:57 AM, LeanMature said:

 

If you are the sole owner and single, the beneficiaries will be your parents (if they are still living), otherwise, it will be share among your siblings.  Sad to say, partner get nothing, unless he is the co-owner of the flat.  This had been HDB POLICY and this policy overrule any existing WILL you made with the lawyer. 

 

Thanks for the reply

So it means that other than making my partner the co-owner of the BTO, there is no legal way to make him the beneficiary? (since I don't want it to go to my undeserving siblings; parents no longer ard).

[thickhead79]

HDB Flat Under the Joint-Tenancy Scheme

This means that after the death of a co-owner, the deceased's co-owner's share will be transferred to the remaining co-owner. The remaining co-owner must fulfil HDB's criteria for home ownership. The Notice of Death must be lodged with the Singapore Land Authority (i.e. SLA).

 

 

What happens to HDB flat when the owner dies?

 

 

Under section 114 of the Land Titles Act, when one joint tenant dies, the surviving joint tenant takes the entire estate. In other words, the deceased's interest in the HDB flat will simply cease to exist upon his or her death and devolves to the other joint tenant without the need for a will.

Edited February 19, 2023 by thickhead79

[thickhead79]

On 2/18/2023 at 11:57 AM, LeanMature said:

 

If you are the sole owner and single, the beneficiaries will be your parents (if they are still living), otherwise, it will be share among your siblings.  Sad to say, partner get nothing, unless he is the co-owner of the flat.  This had been HDB POLICY and this policy overrule any existing WILL you made with the lawyer. 

u very very very sure?

 

or anyhow bomb

Edited February 19, 2023 by thickhead79

[thickhead79]

Demise of sole owner/ tenant-in-common

If the flat’s sole owner or co-owner passes away, his interest in the flat will be distributed according to his will, or the provisions of the Intestate Succession Act if there is no will. A court order is required to obtain legal authority to administer the deceased’s estate.

state Succession Act if there is no will. A court order is Eligibility

As the remaining family or single occupier, you are allowed to retain the existing flat, provided you:

• are a Singapore Citizen (SC) or Singapore Permanent Resident (SPR)
• are at least 21 years old
• satisfy our eligibility rules and conditions to own a flat

If there is a will

The deceased’s interest in the flat will be distributed according to the will.

You will need:

• Grant of Probate

The deceased’s family should engage a private solicitor to apply for this court order, which gives legal authority to the Executor (the person named in the will) to manage the deceased's estate.

If there is no will

The deceased’s interest in the flat will be distributed according to the provisions of the Intestate Succession Act.

You will need:

• Grant of Letters of Administration

The deceased’s family should engage a private solicitor to apply for this court order, which gives legal authority to the Administrator to manage the deceased’s estate.

Edited February 19, 2023 by thickhead79

[LeanMature]

On 2/19/2023 at 5:10 PM, thickhead79 said:

u very very very sure?

 

or anyhow bomb

 

You can call and ask HDB.  A phone call away.

[LeanMature]

On 2/19/2023 at 5:10 PM, thickhead79 said:

Demise of sole owner/ tenant-in-common

If the flat’s sole owner or co-owner passes away, his interest in the flat will be distributed according to his will, or the provisions of the Intestate Succession Act if there is no will. A court order is required to obtain legal authority to administer the deceased’s estate.

state Succession Act if there is no will. A court order is Eligibility

As the remaining family or single occupier, you are allowed to retain the existing flat, provided you:

• are a Singapore Citizen (SC) or Singapore Permanent Resident (SPR)
• are at least 21 years old
• satisfy our eligibility rules and conditions to own a flat

If there is a will

The deceased’s interest in the flat will be distributed according to the will.

You will need:

• Grant of Probate

The deceased’s family should engage a private solicitor to apply for this court order, which gives legal authority to the Executor (the person named in the will) to manage the deceased's estate.

If there is no will

The deceased’s interest in the flat will be distributed according to the provisions of the Intestate Succession Act.

You will need:

• Grant of Letters of Administration

The deceased’s family should engage a private solicitor to apply for this court order, which gives legal authority to the Administrator to manage the deceased’s estate.

 

Maybe for private property.  Many old uncles want to WILL their HDB to foreign wives but not possible.

[LeanMature]

On 2/19/2023 at 4:58 PM, Guest Aaaa said:

 

Thanks for the reply

So it means that other than making my partner the co-owner of the BTO, there is no legal way to make him the beneficiary? (since I don't want it to go to my undeserving siblings; parents no longer ard).

 

I am afraid so.  HDB will not execute any WILL you had with the lawyer, but to your family members first.  If your family members already owned HDB, then they cannot take possession of the property.  They have to dispose off the property in the open market.  HDB had this rule long time ago, to prevent foreigners taking possession of HDB flats.

[thickhead79]

5 hours ago, LeanMature said:

 

Maybe for private property.  Many old uncles want to WILL their HDB to foreign wives but not possible.

stop yr bullshitting la

 

above info is from HDB website LOL 

[thickhead79]

4 hours ago, Sizzler said:

No .. it is possible. But the foreign wife will have to sell the property though .. and pocket the proceeds

he anyhow bomb only 

 

wan to act like hero

 

all info can google please 

[thickhead79]

4 hours ago, LeanMature said:

 

I am afraid so.  HDB will not execute any WILL you had with the lawyer, but to your family members first.  If your family members already owned HDB, then they cannot take possession of the property.  They have to dispose off the property in the open market.  HDB had this rule long time ago, to prevent foreigners taking possession of HDB flats.

of course foreigner cannot get our HDB 

 

but they can sell it to cash the money 

[Guest Revolver]

I thought many single people who had already passed away were left with empty HDBs.  The estates ultimately gained control while you are in paradise looking down.  The moral of the story is that the cheaper and smaller the apartment you stay in, the better and more productive your time will be. Everything you "owned" will eventually not follow you into the hereafter. The less assets you own, including large sums of cash that you don't use over your lifetime, the better.   As aging population began to peak, expect more single elderly to dump their flat for smaller senior apartment,  in part to monetize their asset for reitrement and have more manageable roof to stay. 

[Guest guest]

4 hours ago, Guest Revolver said:

I thought many single people who had already passed away were left with empty HDBs.  The estates ultimately gained control while you are in paradise looking down.  The moral of the story is that the cheaper and smaller the apartment you stay in, the better and more productive your time will be. Everything you "owned" will eventually not follow you into the hereafter. The less assets you own, including large sums of cash that you don't use over your lifetime, the better.   As aging population began to peak, expect more single elderly to dump their flat for smaller senior apartment,  in part to monetize their asset for reitrement and have more manageable roof to stay. 

Single staying in 2 rm or 3 rm is good enough.

[LeanMature]

On 2/23/2023 at 6:37 PM, Sizzler said:

No .. it is possible. But the foreign wife will have to sell the property though .. and pocket the proceeds

 

I already asked HDB when I went to select my 2-room flexi BTO.  It will be in this order of priority:

1.  Co-owner.

2.  Wife if married / Parents if single

3.  Siblings

4.  If there is no 1, 2 and 3, then it will go according to your WILL, if you have one.  But beneficiary cannot the property if he or she already owned a private or HDB flat.

5.  If there is no 4, then proceeds go back to Govt.

 

Google not accurate, best is go down to verify with HDB face to face.

[LeanMature]

Just now, Sizzler said:

This is utter garbage. You cannot sell your BTO if it is still within MOP and you are free to sell to anyone after MOP - it is your property and HDB does not dictate who you sell to (they could be infringing on your constitutional rights). Publicize HDB's message to you if it is in black and white or name the officer who told you so - IF YOU CAN. We will see how fast they backtrack.

 

Not talking about selling, talking about what happen to the BTO after you died.  You can backtrack to the first post by TS.

[Guest Aaaa]

Thank you LeanMature, thickhead79 and Sizzler for the valuable information.

Yes my initial query was what would happen to the BTO if I pass on before/after possession. My partner unfortunately has his name under his current place (HDB) with his mum. So I can only purchase as a sole occupier, unless I do joint with others.

My undeserving siblings, fortunately, have their own place too, so I doubt they are willing to take on my BTO (if I pass on before possession, i.e. the timeline between downpayment 10%[?] to possession), since they will need to sell off their place and top up whatever for mine. In that scenario, I believe it will come down to my will, which is 100% to my partner.

However if I pass on after possession, everything is paid up, then they can just sell their existing (much bigger), get a profit and stay in my much smaller BTO, which would be the worst possible outcome, profiting from my death.

If anything else, I would definitely clarify with HDB, thank you for the discussion, really appreciate it

[thickhead79]

Keeping your existing HDB

If you decide to hold on to your existing HDB and not the inherited one, you would need to sell your inherited HDB within 6 months of taking ownership, either to other beneficiaries such as your siblings or in the open market.

This only applies if the Minimum Occupation Period (MOP) for the inherited HDB flat has been met. However, if the inherited HDB flat has yet to meet its MOP, you need to approach HDB for assistance.

Given the time limits to complete the sale, many sellers engage a property agent to help them complete it in time and at a good price. It would further benefit you to engage an agent who has experience in inheritance sale cases.

[thickhead79]

6 hours ago, Sizzler said:

BTW .. I have the info in black and white (email) from HDB

just show the black and white here and the HDB officer name lo

 

[thickhead79]

Inherited HDB flat was purchased before 30th August 2010

In this case, you can keep both the properties. However, the following conditions apply:

If you are eligible to own an HDB flat

You have to meet the eligibility conditions to own the inherited HDB flat.  If you meet the criteria and you have decided to transfer the ownership of the inherited HDB flat to yourself, you and your family will have to live in the HDB flat.

If you are ineligible to own an HDB flat

In the scenario where you are ineligible to own an HDB flat, you have two options:

1. If the Minimum Occupation Period (MOP) of the inherited HDB has been met, you can sell the flat in the open market.
2. If the MOP has not yet been met, you should approach HDB for help and they will assess and see how best they can help.

[thickhead79]

Inherited HDB flat was purchased on or after 30th August 2010

Given that you own a private property, if the HDB you inherited was purchased on or after 30th August 2010 by the owner, you can only keep one property – either the HDB flat (provided you are eligible to own one) or the private property.

Keep the HDB flat

If you have decided to keep the inherited HDB flat, you must live in the HDB flat and sell your current private property within 6 months. 

Keep the Private Property

If you have decided to keep your private property such as your condo, you must sell the HDB flat if it has completed its MOP, within 6 months. If it has not yet completed MOP, get in touch with an HDB officer and they will assist in your exceptional case.

Given the timeline restrictions, we recommend you engage a property agent experienced in inherited HDB flat sales.

[thickhead79]

3 hours ago, Sizzler said:

 

Yes 

Case by case

[thickhead79]

2 hours ago, Sizzler said:

If the flat has appreciated in value (as in the case for most properties in SG) .. u think our lovely government will be so kind?

I believe they will buy back

 

They are not kind but not bad too

 

That why it stated approach then for help

 

[thickhead79]

39 minutes ago, Sizzler said:

In short the decision lies with them .. and .. knowing them .. they will buy back if there is money to be made. They are not kind .. just greedy .. As Jack Neo put it, other governments take money from citizens. Ours SUCK our money

It an accusation until a real case happen 

 

U show us 

[thickhead79]

1 hour ago, Sizzler said:

None so blind as those who will not see. Everyday u can see our lovely govt sucking our money ... then again, there are some bootllckers who will not see proof even when it is staring at them in the face

still wait for 1st case then we talk 

else is just yr dreming talking with accusation 

[Guest Guest]

From CNA

 

Commentary: Don’t ask, don’t tell when it comes to telling buyers about deaths in homes

[Firday]

Upon key collection, require to pay full lump sum what if both cash and cpf can afford - which one should i maximise?

 

Pro - cash so that cpf can continue to generate 2.5% interest

 

if cpf - can topup with cash as voluntary refund housing scheme.

 

the reason why i ask becasuse there will be a top up of silver bonus scheme about $30k from HDB due to downgrade.

 

i plan to ask chatgpt but dun know how to phrase into question

 

 

[appboy]

11 hours ago, Sizzler said:

In my opinion, money in my own pocket (cash) is better than money in the government's pocket (cpf) any time.

 

History has shown that the government changes rules and policies at random. If you remember, LKY promised we can take back our CPF at 55. Then the dishonorable son took over and reneged on that promise (probably because Ho Jinx lost all our monies). Hence you never know what our lovely garment will do next.

 

While the interest offered by CPF is higher than the banks, I made it a point to empty my CPF (buying multiple properties) at every opportunity. I have more than quadrupled my CPF with this approach. After all, where do you think the government gets the money to pay your interest? They also take your money to invest. Unfortunately, Ho Jinx and her MIDUST touch turns everything to dust instead of gold.

 

In short take your money out to invest if you can make more than 2.5% (or whatever they offer you).

 

Just curious. With crazily high Additional Buyer's Stamp Duty (ABSD), how to recover the capital? 

 

[cityhallguy]

On 3/6/2023 at 3:28 PM, Firday said:

Upon key collection, require to pay full lump sum what if both cash and cpf can afford - which one should i maximise?

 

Pro - cash so that cpf can continue to generate 2.5% interest

 

if cpf - can topup with cash as voluntary refund housing scheme.

 

the reason why i ask becasuse there will be a top up of silver bonus scheme about $30k from HDB due to downgrade.

 

i plan to ask chatgpt but dun know how to phrase into question

 

 

Share with you what I’m currently doing now and it may or may not suit you as we have different life. I decided to do this way, after discussing with my close friends and my partner about the pro and cons.

Also please note that, I still have set aside some emergency savings on hands.
 

I used my CPF to fully paid my 99yrs BTO 2-room flat and have started making voluntary refund housing scheme. 
 

Pro:

Once I fully refunding my flat, anytime I want to sell my flat, I can get back money in cash at whatever price I sell. But the chances of me selling my flat is like 0.01% lol unless I stop traveling and got other SG properties to live.
Alternatively, I can also exercise the lease buy back, as of now I’m 41 and don’t think I can live more than 100years old 😂. So got some cash in my pocket when I old and needed it.

I am not good in investing stocks, unit trusts, foreign exchange or blue chips. The Fixed Deposit in SG banks are not as high as what CPF SA can give. So once I did the refund to OA, I immediately transferred these fund from OA to SA to get that high interest. 
I am a NZ tax resident now, NZ taxes all incomes including overseas incomes such as bank interest, but not retirement fund or investment fund unless you have started to withdrawn the fund. So putting my cash saving into CPF, to me has become part of my retirement fund’s portfolio and I can avoid getting tax till I hit the age of receiving my payout. And by the time (age) for me to get the payout, I would have switched over to SG tax resident. 
 

Cons:

Cash locked up in CPF and volatile regulatory of the CPF (such as payout, age to receive the payout, etc…).

Missing other potential investments opportunities.

 

Yes, I think that’s about it. So far only my families think is not a good ideal and they can’t think of better ideal 😂.
For my close friends, they are neutral with this decision. They agree that my decision is okay but my money could be in other better investments. But they all know that i lost 😞 money in my investments before and have feared liao… Also when I asked them to help me invest, they said can’t help me to decide what investments or how to make good investments, I have to do it myself…. Which I think will lose more money 😂 . 
My partner is Ex-CFO, support my decision as he does not see any potential harm of losing money compared to me anyhow doing other investments 😂 

 

Thats all. Advice is written down all the pros and cons bah! Also, remember to have some emergency savings when you needed such as medical bills! 

 

[Guest Guest]

On 3/4/2023 at 2:03 PM, LeanMature said:

 

I already asked HDB when I went to select my 2-room flexi BTO.  It will be in this order of priority:

1.  Co-owner.

2.  Wife if married / Parents if single

3.  Siblings

4.  If there is no 1, 2 and 3, then it will go according to your WILL, if you have one.  But beneficiary cannot the property if he or she already owned a private or HDB flat.

5.  If there is no 4, then proceeds go back to Govt.

 

Google not accurate, best is go down to verify with HDB face to face.

Which estate have you selected? When is key collection?

[Guest guest]

On 3/9/2023 at 4:12 PM, cityhallguy said:

Share with you what I’m currently doing now and it may or may not suit you as we have different life. I decided to do this way, after discussing with my close friends and my partner about the pro and cons.

Also please note that, I still have set aside some emergency savings on hands.
 

I used my CPF to fully paid my 99yrs BTO 2-room flat and have started making voluntary refund housing scheme. 
 

Pro:

Once I fully refunding my flat, anytime I want to sell my flat, I can get back money in cash at whatever price I sell. But the chances of me selling my flat is like 0.01% lol unless I stop traveling and got other SG properties to live.
Alternatively, I can also exercise the lease buy back, as of now I’m 41 and don’t think I can live more than 100years old 😂. So got some cash in my pocket when I old and needed it.

I am not good in investing stocks, unit trusts, foreign exchange or blue chips. The Fixed Deposit in SG banks are not as high as what CPF SA can give. So once I did the refund to OA, I immediately transferred these fund from OA to SA to get that high interest. 
I am a NZ tax resident now, NZ taxes all incomes including overseas incomes such as bank interest, but not retirement fund or investment fund unless you have started to withdrawn the fund. So putting my cash saving into CPF, to me has become part of my retirement fund’s portfolio and I can avoid getting tax till I hit the age of receiving my payout. And by the time (age) for me to get the payout, I would have switched over to SG tax resident. 
 

Cons:

Cash locked up in CPF and volatile regulatory of the CPF (such as payout, age to receive the payout, etc…).

Missing other potential investments opportunities.

 

Yes, I think that’s about it. So far only my families think is not a good ideal and they can’t think of better ideal 😂.
For my close friends, they are neutral with this decision. They agree that my decision is okay but my money could be in other better investments. But they all know that i lost 😞 money in my investments before and have feared liao… Also when I asked them to help me invest, they said can’t help me to decide what investments or how to make good investments, I have to do it myself…. Which I think will lose more money 😂 . 
My partner is Ex-CFO, support my decision as he does not see any potential harm of losing money compared to me anyhow doing other investments 😂 

 

Thats all. Advice is written down all the pros and cons bah! Also, remember to have some emergency savings when you needed such as medical bills! 

 

Am i right to say that if i prefer to have some emergency savings, it is better to empty my CPF to pay for my flat? And continue using CPF to pay for the monthly house loan.

[thickhead79]

48 minutes ago, Guest guest said:

Am i right to say that if i prefer to have some emergency savings, it is better to empty my CPF to pay for my flat? And continue using CPF to pay for the monthly house loan.

cash is king

 

CPF cannot help u buy coffin 

[Guest guest]

6 minutes ago, thickhead79 said:

cash is king

 

CPF cannot help u buy coffin 

But thought CPF help you for your retirement? So if CPF no money, when old how esp if the person also do not have much cash.

[Healing Therapy]

8 hours ago, Guest guest said:

But thought CPF help you for your retirement? So if CPF no money, when old how esp if the person also do not have much cash.

Thats what they call "asset rich but cash poor", HDB got different scheme to help,  downgrade to smaller unit, buy a less lease flat or sell remaining lease to HDB. 

 

Anyway just like to point out something which I recently found out. My current flat's lease start from 1983 but my neighbour said they have been staying there since the 70s. So what happen? 

 

Well,  the flat was built in the 70s and it start off as a rental flat,  only till 1983, HDB decided to sell this flat therefore the lease start from 1983. So u bought a 40 years old flat (base on the lease) but the building could be already 50 years old or more.

 

Apparently this seem to be a common practice in those day,  like in bedok reservoir, lease can start in the 90s but actually the flat was already on renting basis in the 80s.

Edited March 11, 2023 by Healing Therapy

[thickhead79]

11 hours ago, Guest guest said:

But thought CPF help you for your retirement? So if CPF no money, when old how esp if the person also do not have much cash.

they give u little bit mth by mth 

 

anything inside belong to yr NOK

[Guest guest]

3 hours ago, Healing Therapy said:

Thats what they call "asset rich but cash poor", HDB got different scheme to help,  downgrade to smaller unit, buy a less lease flat or sell remaining lease to HDB. 

 

Anyway just like to point out something which I recently found out. My current flat's lease start from 1983 but my neighbour said they have been staying there since the 70s. So what happen? 

 

Well,  the flat was built in the 70s and it start off as a rental flat,  only till 1983, HDB decided to sell this flat therefore the lease start from 1983. So u bought a 40 years old flat (base on the lease) but the building could be already 50 years old or more.

 

Apparently this seem to be a common practice in those day,  like in bedok reservoir, lease can start in the 90s but actually the flat was already on renting basis in the 80s.

People always advise not to buy old hdb as the value of the flat no more by the time you want to sell or even cannot qualify the sell remaining lease tp HDB scheme. But i find usually those with good location and amenity estate, most of the flats there are old. 

[cityhallguy]

15 hours ago, Guest guest said:

Am i right to say that if i prefer to have some emergency savings, it is better to empty my CPF to pay for my flat? And continue using CPF to pay for the monthly house loan.

All of us should have some emergency savings in case raining days come (like retrenchment, family in needs of money, large medical fees). 
 

There’s nothing wrong with continue using CPF to pay monthly house loan. However, bear in mind that when you ever wanna sell that flat, whatever that amount you sold, it will have to go offset your flat principle amount plus the 2.5% (OA interest) compounding interest first then the remaining can be cashed out on to your hands. Also, but I think it never ever happen to anyone before unless you super unlucky! 😂. You might need to top up money back to CPF if the amount you sold can’t offset your flat principle plus the compounding interest. 
 

Simple example provided housing market never crushed very badly:

What you plan doing :

2020 bought BTO flat at $100k fully paid using CPF.

2040 you sell that BTO flat at $300k. 
Simple calculation, shows that you make a profit of $200k, but this $200k can not be totally in cash. 
(2040-2020) 20years of compound interest at 2.5%, is about 65k then plus principle sum is $100k, together have to put back to your CPF.

In the end, you got (300k-100k-65k) $135k cash in hand, and $165k in your CPF.

 

What I’m doing: 

2020 bought BTO flat at $100k fully paid using CPF.

2040, I sell that BTO flat at $300k.

I make the same profit of $200k like you. 

BUT I chose to make a volunteering refund to CPF housing, at $15k annually. 
At around 2028, I would have fully refunded my full principle amounts plus the interest which is about $109k. 

In the end, I got $191k cash in hand and $109k in my CPF.

 

I hope my examples above can provide a good picture for you  and not confusion 😂.

 

Also feel free to point out if you find my understanding is wrong. 
 

 

 

Edited March 11, 2023 by cityhallguy

[lonelyglobe]

10 hours ago, Guest guest said:

People always advise not to buy old hdb as the value of the flat no more by the time you want to sell or even cannot qualify the sell remaining lease tp HDB scheme. But i find usually those with good location and amenity estate, most of the flats there are old. 

Not only low value but old flat also comes with lots of problem, pipe leaking, choking, ceiling peeling off, floor tiles pop out and more than u can possibly think of.

 

Flats that are built in 60s and 70s even if the MRT just downstairs also not worth buying unless u r already 60 and above.

 

Yes,  for a single turning 35 this year,  they have to buy a flat that is not more than 19 years old or flat built in 2004 and after,  if they want to qualify for lease buy back.

 

 

Edited March 11, 2023 by lonelyglobe

[Guest guest]

8 hours ago, cityhallguy said:

All of us should have some emergency savings in case raining days come (like retrenchment, family in needs of money, large medical fees). 
 

There’s nothing wrong with continue using CPF to pay monthly house loan. However, bear in mind that when you ever wanna sell that flat, whatever that amount you sold, it will have to go offset your flat principle amount plus the 2.5% (OA interest) compounding interest first then the remaining can be cashed out on to your hands. Also, but I think it never ever happen to anyone before unless you super unlucky! 😂. You might need to top up money back to CPF if the amount you sold can’t offset your flat principle plus the compounding interest. 
 

Simple example provided housing market never crushed very badly:

What you plan doing :

2020 bought BTO flat at $100k fully paid using CPF.

2040 you sell that BTO flat at $300k. 
Simple calculation, shows that you make a profit of $200k, but this $200k can not be totally in cash. 
(2040-2020) 20years of compound interest at 2.5%, is about 65k then plus principle sum is $100k, together have to put back to your CPF.

In the end, you got (300k-100k-65k) $135k cash in hand, and $165k in your CPF.

 

What I’m doing: 

2020 bought BTO flat at $100k fully paid using CPF.

2040, I sell that BTO flat at $300k.

I make the same profit of $200k like you. 

BUT I chose to make a volunteering refund to CPF housing, at $15k annually. 
At around 2028, I would have fully refunded my full principle amounts plus the interest which is about $109k. 

In the end, I got $191k cash in hand and $109k in my CPF.

 

I hope my examples above can provide a good picture for you  and not confusion 😂.

 

Also feel free to point out if you find my understanding is wrong. 
 

 

 

I do not know about this volunteering refund to CPF housing. So i believe i would get lesser cash or even no cash when selling. Actually the money which goes back into CPF also not bad, if i plan to buy another HDB, still can use that money to pay for the house.

[Guest guest]

57 minutes ago, lonelyglobe said:

Yes,  for a single turning 35 this year,  they have to buy a flat that is not more than 19 years old or flat built in 2004 if they want to qualify for lease buy back. Flats that are built in 60s and 70s even if the MRT just downstairs also not worth buying unless u r already 60 and above.

If i only plan to buy house in my 40s or 50s but not 60 yet, should i buy flats built in 70s and 80s? 

[lonelyglobe]

5 minutes ago, Guest guest said:

Actually the money which goes back into CPF also not bad, if i plan to buy another HDB, still can use that money to pay for the house.

Yes,  provided when u buy u have not reach 55 yet,  upon reaching 55, u need to keep aside the minimum retirement fund 100+k , only can use whatever amount that is in excess.

[lonelyglobe]

20 minutes ago, Guest guest said:

If i only plan to buy house in my 40s or 50s but not 60 yet, should i buy flats built in 70s and 80s? 

It all depends on what u want:

 

Do u want the lease buy back? 

Do u intend to resell? 

Do u plan to rent out? 

 

Actually at 55, there is another option: the 40 years lease 2 room flexi bto. 

 

 

[Guest guest]

45 minutes ago, lonelyglobe said:

It all depends on what u want:

 

Do u want the lease buy back? 

Do u intend to resell? 

Do u plan to rent out? 

 

Actually at 55, there is another option: the 40 years lease 2 room flexi bto. 

 

 

Think if i plan to stay until i die after buying, should not be any problem buying 70s and 80s HDB. If need cash when older, still can have the option of renting out a room, even though no longer qualify for lease buy back.

 

Buying 2 room flat at 55, still need to wait 4 years for the flat to come. I don't think i would be interested. Although buying a new 2 room bto is cheaper than a resale.

[cityhallguy]

5 hours ago, lonelyglobe said:

It all depends on what u want:

 

Do u want the lease buy back? 

Do u intend to resell? 

Do u plan to rent out? 

 

Actually at 55, there is another option: the 40 years lease 2 room flexi bto. 

 

 

That’s another benefit options for me to chose volunteering CPF housing refund. After I fully paid back the amount to my CPF. When I know I won’t live longer than 90years old, I can opt for (50years to reach 90yrs old so my flat still got 49yrs lease value) lease buy back, so I can get more cash out and still have a home to live, which I probably need it when I older. No point holding on my flat till I die as I have no children to pass on so better spend whatever money I own. lol 😂 

Edited March 11, 2023 by cityhallguy

[Guest Guest]

Very old HDB may have embedded paranormal activity. If you are disturbed by the entity, you must live with it and unload the unit after MOP which can be 5 years away.

[Guest guest]

3 hours ago, Guest Guest said:

Very old HDB may have embedded paranormal activity. If you are disturbed by the entity, you must live with it and unload the unit after MOP which can be 5 years away.

Old HDB indeed might have embedded paranormal activity, esp the unit has been stayed by many owners. You don't know who have stay in the flat before and what might have happened in the unit. Unless you buy an old HDB with only 1 owner.

 

This is why still better to buy a brand new BTO or those just MOP HDB.

[lonelyglobe]

5 hours ago, Guest guest said:

Old HDB indeed might have embedded paranormal activity, esp the unit has been stayed by many owners. You don't know who have stay in the flat before and what might have happened in the unit. Unless you buy an old HDB with only 1 owner.

 

This is why still better to buy a brand new BTO or those just MOP HDB.

Just MOP also got ghost and more terrible is called "吸血鬼".

 

2.room buy at 160k selling at 320k and 3 room buy 300k can sell 500k.