EC | SGPD https://sgpropertydetective.com Investigate new launches - I.R.L. - Investability, Rentability, Livability | Share Must-Knows for new and existing property owners Thu, 14 Sep 2023 06:08:00 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.1 https://sgpropertydetective.com/wp-content/uploads/2023/08/cropped-cropped-Photo-14-8-23-2-49-52-PM-4-32x32.png EC | SGPD https://sgpropertydetective.com 32 32 SGPD 60-Sec Read: Do I need to pay an agent fee for buying a new launch condo? https://sgpropertydetective.com/60-sec-read/sgpd-60-sec-read-do-i-need-to-pay-an-agent-fee-for-buying-a-new-launch-condo/ Fri, 25 Aug 2023 09:55:04 +0000 https://sgpropertydetective.com/?p=1303 Do I need to pay agent fee for buying a new launch condo? No, you don’t need to. Agent fees/commission are paid by the developer. What if my agent asks for commission? If your agent asks for a commission to assist you on a new launch, question your agent if...

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Do I need to pay agent fee for buying a new launch condo?

No, you don’t need to. Agent fees/commission are paid by the developer.

What if my agent asks for commission?

If your agent asks for a commission to assist you on a new launch, question your agent if the commission is already paid by the developer. 

Property agents in Singapore are not allowed to collect commission from more than one party (except for referral fees for a third-party such as bank or law firm).

If I'm not paying my agent any fee, will they still help me?

You can still expect your preferred agent to be responsible for liaising with various parties to get your paperwork done and to manage the entire process for your new launch purchase. 

If your preferred agent is not familiar in a specific new launch you are interested in, your showflat visit will be accompanied by another agent who is a specialist of the new launch, together with your preferred agent.

It is illegal for property agents to give cashback based on their received commissions from the developer to the buyer of a new launch. 

Is it legal for my agent to offer me cashback?

It is illegal for property agents to give cashback based on their received commissions from the developer to the buyer of a new launch.

If caught, the agent in question will attract disciplinary action.

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]]> SGPD 60-Sec Read: How much downpayment do I need to purchase a new launch private condo? https://sgpropertydetective.com/60-sec-read/sgpd-60-sec-read-how-much-downpayment-do-i-need-to-purchase-a-new-launch-private-condo/ Fri, 25 Aug 2023 09:53:34 +0000 https://sgpropertydetective.com/?p=1333 How much downpayment do I need to buy a new launch condo? 25%, assuming that this will be your one and only home loan, and that you can get a loan for 75% of your purchase price. *Assuming condo purchase price is $1,000,000. How much cash do I need for...

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How much downpayment do I need to buy a new launch condo?

25%, assuming that this will be your one and only home loan, and that you can get a loan for 75% of your purchase price.

*Assuming condo purchase price is $1,000,000.

How much cash do I need for new launch condo?​

There are 2 components that require cash:

  • Downpayment – 5% cash + 20% CPF OA allowed to be used
  • Stamp Duty (BSD + ABSD) – if you choose not to use CPF or don’t have enough CPF left

Assuming condo purchase price of $1,000,000, you will need at least $74,600 in cash on hand to cover both Downpayment and Stamp Duty. You are allowed to use your CPF OA to pay your stamp duty as well, if you still have any left after paying the 20% downpayment. 

Note that, the more existing properties you have, the higher the ABSD you need to pay (up to 30% for Singapore Citizen).

Downpayment

BSD + ABSD (own 0 property before buying)

Assuming you own 0 property when buying this condo, Singapore Citizen only need to pay BSD and does not need to pay ABSD.

BSD + ABSD (own 1 property before buying)

Assuming you own 1 property when buying this condo, Singapore Citizen will need to pay 20% ABSD on top of BSD.

BSD + ABSD (own 2 or more properties before buying)

Assuming you own 2 or more properties when buying this condo, Singapore Citizen will need to pay 30% ABSD on top of BSD.

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]]> SGPD 60-Sec Read: What is Progressive Payment Scheme for new launch condo or EC? https://sgpropertydetective.com/60-sec-read/sgpd-60-sec-read-what-is-progressive-payment-scheme-for-new-launch-condo-or-ec/ Fri, 25 Aug 2023 08:30:40 +0000 https://sgpropertydetective.com/?p=1316 What is Progressive Payment Scheme (PPS)?​ For a new condo or EC that is still under construction at your point of purchase, your payment to the developer will be in phases called the Progressive Payment Scheme. The Progressive Payment Scheme allows you to defer your home loan instalments as you...

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What is Progressive Payment Scheme (PPS)?​

For a new condo or EC that is still under construction at your point of purchase, your payment to the developer will be in phases called the Progressive Payment Scheme.

The Progressive Payment Scheme allows you to defer your home loan instalments as you will not servicing the full 75% of your loan amount immediately upon purchase.

Advantage of Progressive Payment Scheme (PPS)

The Progressive Payment Scheme allows you to defer your home loan instalments.

You will not be servicing the full 75% of your loan amount immediately upon purchase.

Instead, your repayments will be in phases, according to the milestone timeline that is adhered by developers.

If the developer is late or the milestones are not reached, the loan repayments don’t increase.

An example of Progressive Payment Scheme (PPS)

Below is an example of a PPS schedule.

Disclaimer

Every development has a different timeline and depending on which phase you bought the condo or EC, the above timeline serves only as a general guide.

This is also assuming you get the full 75% home loan. 

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]]> Buying a HDB Flat: What is the HFE Letter and when should I apply? https://sgpropertydetective.com/must-knows/buying-a-hdb-flat-what-is-the-hfe-letter-and-when-should-i-apply/ Sun, 20 Aug 2023 08:16:29 +0000 https://sgpropertydetective.com/?p=422 Starting from 9th May 2023, HDB has introduced an updated document called the HDB Flat Eligibility (HFE) letter.  This new letter is designed to offer prospective flat buyers a comprehensive evaluation of their housing and financial possibilities prior to embarking on their home purchasing endeavour. Replacing the previous HDB Loan...

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Starting from 9th May 2023, HDB has introduced an updated document called the HDB Flat Eligibility (HFE) letter. 

This new letter is designed to offer prospective flat buyers a comprehensive evaluation of their housing and financial possibilities prior to embarking on their home purchasing endeavour.

Replacing the previous HDB Loan Eligibility (HLE) letter, the HFE letter will furnish flat buyers with: 

  • Upfront information regarding their qualification for either a new or resale flat purchase
  • CPF housing grants, and 
  • HDB housing loan. This will encompass details about the grants and loan sums applicable.

HLE will no longer be used moving forward.

When will I need the HFE letter?

You must have a valid HFE Letter when you want to:

  1. Apply for a flat directly from HDB when they are selling new flats (Build-to-Order a.k.a. BTO) or opening bookings for available flats (Sales of Balance Flats a.k.a. SBF).

  2. Get an Option to Purchase (OTP) from someone selling their flat and when you send an application to HDB for buying a resale flat.

When should I apply for HFE Letter?

If you plan to buy a flat, make sure to apply for an HFE letter ahead of time. Remember to consider the time HDB needs to process your application and the information you provide in the letter.

HDB can take up to 21 days to process your HFE Letter application.

If you’re thinking of getting a loan from a bank, you can also apply for an In-Principle Approval from them while you’re getting your HFE Letter. This letter will also give you an estimate of how much they might let you borrow.

 

How do I apply for the HFE?

Getting an HFE Letter is a simple process with just two steps.The HDB Flat Portal will guide you through both steps. To make the process smoother, have the required information ready, like your Singpass login and details of all applicants and occupants.

Step 1

After you provide your information, you’ll receive a quick assessment of your eligibility for buying an HDB flat, getting CPF housing grants, and taking an HDB housing loan. 

Step 2

Make sure to apply for the HFE Letter within 30 days after you start the Preliminary HFE Check. If you don’t, you’ll need to do the Preliminary HFE Check again. 

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]]> Selling Your HDB or EC: The Importance of Minimum Occupation Period (MOP) https://sgpropertydetective.com/must-knows/selling-your-hdb-or-ec-the-importance-of-minimum-occupation-period-mop/ Thu, 17 Aug 2023 11:49:49 +0000 https://sgpropertydetective.com/?p=257 Singapore’s thriving real estate market has long been a topic of interest for both locals and investors alike.  Among the various regulations and policies that govern property ownership in the city-state, the MOP stands as a critical facet.  Whether you’re a first-time homebuyer or an astute investor, understanding the ins...

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Singapore’s thriving real estate market has long been a topic of interest for both locals and investors alike. 

Among the various regulations and policies that govern property ownership in the city-state, the MOP stands as a critical facet. 

Whether you’re a first-time homebuyer or an astute investor, understanding the ins and outs of the MOP is essential to making informed decisions in Singapore’s property market.

What is the Minimum Occupation Period (MOP)?

The Minimum Occupation Period, commonly referred to as MOP, is a period of time imposed by the Housing and Development Board (HDB) in Singapore. 

It determines the minimum duration that a HDB or Executive Condo (EC) property owner must reside in their newly purchased property before being allowed to sell, rent out the entire unit, or transfer ownership. 

You are allowed to rent out bedrooms provided you are residing in the flat or EC as well. 

MOP Duration

The MOP duration varies based on the type of property:

  1. HDB Flats & Executive Condominiums (ECs): For HDB flats (new & resale) and new ECs, the MOP is typically set at 5 years. During this period, the owner must reside in the property as their main place of residence and is not allowed to rent out the entire house.
  2. Prime Location Public Housing (PLH): New HDB flats launched under the new PLH model will have a longer MOP period of 10 years.
MOP is calculated from the date of keys collection.

Consequences of Breaching the MOP

Failure to adhere to the MOP can have serious consequences. 

If a property owner sells, rents out, or transfers ownership of their property before the MOP expires, they may face legal penalties, including fines, and the new buyer or tenant could be evicted.

Navigating the MOP: Tips and Considerations

  1. Understand the Rules: Before purchasing a property, especially an HDB flat or EC, thoroughly familiarize yourself with the specific MOP duration and rules attached to the property. This will help you plan your living arrangements accordingly.

  2. Financial Planning: Factor the MOP into your financial planning. Consider your long-term living situation, family plans, and potential career changes that may arise during the MOP period.

  3. Investment Strategy: If you’re purchasing a property as an investment, be sure to consider the MOP’s impact on your investment timeline. Opt for private properties if you seek more flexibility in renting or selling your property.

  4. Plan for the Future: If you foresee changes in your circumstances that may require you to sell or rent out your property before the MOP ends, it might be prudent to explore alternative options to avoid complications.

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