The Transition Peroid Of Selling And Buying And Valuation

[Sam Lee Poh Huat 0]

so sorry to dash your dreams so fast

COV is required to be declared as part of the selling price

and if you valuation is not enough to cover your outstanding loan + cpf withdrawal amt (including accrued interest)

the COV will go towards repaying your cpf a/c

excess means after paying off outstanding loan

AND returning to your cpf a/c the withdrawn amt + accrued interest

the rest will go towards you in cash (if any)

e.g. you borrow $100k for your current flat, remaining loan is $50k. cpf withdrawal is $150k and accrued interest is $30k. you'll need to sell your flat for more than $230k in order to get any cash.

was a alittle confused when miss apple state cpf withdrawal is $150k so when on to CPF website.. n the following is what i got from CPF website;

A & B are the owners of a flat. They intend to sell the flat on the open market. The refund to their CPF accounts is calculated as follows:

Assume:

a Principal amount used: <Member A $150,000> <Member B $50,000>

b Interest accrued: <Member A $30,000> <Member B $10,000>

c Total CPF used (a+b): <Member A $180,000> <Member B$60,000 >

d Selling price <$500,000>

e Current market valuation <$500,000>

f Outstanding housing loan <$100,000>

g Balance Proceeds (d-f) <$400,000>

h Cash proceeds available for distribution between the parties (g-c) <$400,000- $240,000 = $160,000>

In this case, the sales proceeds after paying the outstanding housing loan is more than enough to pay the required CPF refunds for A & B. They have $160,000 in cash to divide between themselves. The CPF Board will not be involved in the distribution of the cash proceeds.

Edited April 25, 2008 by FD1976

[applefreak 1]

hehehe maybe i didn't make myself clear

in the example, it is assumed that the flat was bought at $200k

that's why cpf withdrawal is $150k and remaining loan is $50k

so anything that is above cpf withdrawal ($150k) + accrused interest ($30) + outstanding loan ($50k) is cash for the owner

get what i mean?

[Sam Lee Poh Huat 0]

hehehe maybe i didn't make myself clear

in the example, it is assumed that the flat was bought at $200k

that's why cpf withdrawal is $150k and remaining loan is $50k

so anything that is above cpf withdrawal ($150k) + accrused interest ($30) + outstanding loan ($50k) is cash for the owner

get what i mean?

Haha Roger.. i think most shldnt hv a prob earning abit of excess cash if flat is bought 1st time from HDB at a gd location and i guess thats why HDB impose the resale levy thingy when u need to buy a 2nd direct flat from them.

Anyway, in aid for any further confusion.. here some info fm CPF again;

For HDB flats bought with HDB loans

The sales proceeds (including the option monies) will be used to pay off the following, in this order:

1) Outstanding HDB loan

2) HDB resale levy (if any)

3) Required CPF refund

If the sales proceeds after paying (1) and (2) is not enough to make the required CPF refund, you do not need to top up the shortfall in cash, provided the flat is sold at fair market value. The net sales proceeds will be refunded to you and your spouse’s CPF accounts using the following formula:

(a) Refund to A’s CPF Account:

= Required CPF Refund for A X Net Sales Proceeds

--------------------------------------------

Required CPF Refund for A & B

(b) Refund to B’s CPF Account:

= Required CPF Refund for B X Net Sales Proceeds

--------------------------------------------

Required CPF Refund for A & B

Edited April 26, 2008 by FD1976

[applefreak 1]

do note that you don't have to pay levy if you are buying a resale flat

and have no intention whatsoever to get another new flat from hdb

[Junkay 1]

Just one more question.

If you take the contra facility, would the cash proceeds(if any) be makan by HDB towards the new flat?

Thank you

[Sam Lee Poh Huat 0]

Just one more question.

If you take the contra facility, would the cash proceeds(if any) be makan by HDB towards the new flat?

Thank you

Fm what i read from HDB website, assume u r the owner who is selling your existing HDB flat ("Flat A") and buying another HDB resale flat ("Flat B"), so u r the ("the contra party"). U may use the cash proceed to pay part of or the full amount of the purchase price for ("Flat B").

So dont think HDB will "makan" since its 2 separate loan proceedings. Ultimately u NEED to repay them an old loan of ("Flat A") b4 getting a new loan from them/bank for ("Flat B") . $_$. But there r some terms n condition in this contra facilty which has been discussed earlier.

Of cos, some may consider to use the cash proceeds to reduce the new loan (if purchase price "Flat B" > selling price of "Flat A").. Haiz, sadly we sporean seem to b working (indirectly) for HDB or banks.. haha

Edited April 26, 2008 by FD1976