Need Help!

[Sheila Ong 0]

Hi ppl..

after many months of applying for a new flat my husband & i went to search for a resale flat. I paid S$1000 OTP for the 2nd one we viewed as we really like it & think the asking price is a steal. It's a 4A unit at Bukit Batok Central. Though on the 2nd floor, location is very good and owner is asking 30k below valuation (valuation 360k asking 330k) i HAD to buy it.

But i'm really confused abt how much cash we have to come up with. Can any kind souls here help? If lets say, the seller's asking for 2k deposit when i exercise the OTP, and agent fees is 1%, totalling up all legal fees and stamp fees etc, how much cash do i have to pay if i'm taking loan from HDB?

One more thing, my HLE status says: 'has been processed, you will be receiving the letter by mail.' Does it mean my HLE is approved or just being processed?

Thanks!!!

[ahwee 0]

Hi ppl..

after many months of applying for a new flat my husband & i went to search for a resale flat. I paid S$1000 OTP for the 2nd one we viewed as we really like it & think the asking price is a steal. It's a 4A unit at Bukit Batok Central. Though on the 2nd floor, location is very good and owner is asking 30k below valuation (valuation 360k asking 330k) i HAD to buy it.

But i'm really confused abt how much cash we have to come up with. Can any kind souls here help? If lets say, the seller's asking for 2k deposit when i exercise the OTP, and agent fees is 1%, totalling up all legal fees and stamp fees etc, how much cash do i have to pay if i'm taking loan from HDB?

One more thing, my HLE status says: 'has been processed, you will be receiving the letter by mail.' Does it mean my HLE is approved or just being processed?

Thanks!!!

You mean you fork out 1k for the otp and another 2k as deposit to the owner?

Also on the otp itself the selling price is stated as 330k?

If as above, then 330k - 1k - 2k = 327k. The remaining amount will be settled from your hdb loan(after deducting what you have in your cpf...option of 10%/20% or all depending on how much you have inside, if i recall correctly)

Legal fees and stamp fees all deduct from cpf, not cash.

The agent commission of 1% is that of the purchase price meaning 1% of 330k=3.3k. Did you negotiate with your agent as to when to pay him his commission? When the deal is completed or anytime earlier?

Since you have received the sms from HDB about "HLE been processed, you can log on to hdb website using your singpass to check the results. Usually in a aday or two after receiving the sms, you will receive the letter.

Someone please correct me if i am wrong.

Edited December 6, 2008 by ahwee

[Sheila Ong 0]

You mean you fork out 1k for the otp and another 2k as deposit to the owner?

Also on the otp itself the selling price is stated as 330k?

If as above, then 330k - 1k - 2k = 327k. The remaining amount will be settled from your hdb loan(after deducting what you have in your cpf...option of 10%/20% or all depending on how much you have inside, if i recall correctly)

Legal fees and stamp fees all deduct from cpf, not cash.

The agent commission of 1% is that of the purchase price meaning 1% of 330k=3.3k. Did you negotiate with your agent as to when to pay him his commission? When the deal is completed or anytime earlier?

Since you have received the sms from HDB about "HLE been processed, you can log on to hdb website using your singpass to check the results. Usually in a aday or two after receiving the sms, you will receive the letter.

Someone please correct me if i am wrong.

Ya i paid 1K + 2K for deposit. So i do not need to pay HDB any cash? Hopefully i will receive my letter soon.. Thanks for the help!!

I think should be all done then pay the agent ba i didn't negotiate cos the agent is very kind to charge the seller 1% commission as they are a poor family. Plus there were others interested in the flat also.. Hee didn't want to lose my chances of getting the flat..

Edited December 6, 2008 by iluvmybeans

[ahwee 0]

Yup the legal and stamp fees are to be deducted from your cpf. I remembered cos i was shocked when my agent told me about my fees about 7k...then she mentioned deductible from cpf

You are sharing the seller's agent? Of you have your own agent dealing for you?

Another thing....sounds like its a fire sale due to financial difficulties?? Did you find out a bit more about the seller's family?

Edited December 6, 2008 by ahwee

[richman 0]

Hi iluvmybeans,

Congrats on your purchase. Is it near to the mrt? Well renovated? Beside the pricing, please do look at other factors such as could it be a loan shark unit, whether there problems etc with the neighbours? It quite fishy that they are willing to sell $30k below valuation. All sellers want to sell high

[Sheila Ong 0]

Yup the legal and stamp fees are to be deducted from your cpf. I remembered cos i was shocked when my agent told me about my fees about 7k...then she mentioned deductible from cpf

You are sharing the seller's agent? Of you have your own agent dealing for you?

Another thing....sounds like its a fire sale due to financial difficulties?? Did you find out a bit more about the seller's family?

hi ahwee & richman..

yes i'm sharing the seller's agent. It's true that the sellers have financial difficulties. they showed me a letter from MP approving them to sell their flat before 5 years. Very nice sellers actually.. A very young malay couple with 3 young children. Only husband working and not getting high pay. Heard that they owe HDB few months installment and want to sell fast if not interest accumulated will be very high. Not very sure how it works but i did look around the place and outside. No signs of loansharks. and they rent 2 rooms to Uni students so i don't think there will be a prob since if the house gt prob who want to rent and stay there rite..

Oh plus it's just less than 5 mins to the MRT. Not renovated but i intend to renovate nicely anyways so it's ok to me =')

[tydy 0]

hi ahwee & richman..

yes i'm sharing the seller's agent. It's true that the sellers have financial difficulties. they showed me a letter from MP approving them to sell their flat before 5 years. Very nice sellers actually.. A very young malay couple with 3 young children. Only husband working and not getting high pay. Heard that they owe HDB few months installment and want to sell fast if not interest accumulated will be very high. Not very sure how it works but i did look around the place and outside. No signs of loansharks. and they rent 2 rooms to Uni students so i don't think there will be a prob since if the house gt prob who want to rent and stay there rite..

Oh plus it's just less than 5 mins to the MRT. Not renovated but i intend to renovate nicely anyways so it's ok to me =')

hi iluvmybeans, is it the 600series? If yes, then its really a steal! Anyway congrats on ur purchase!

Edited December 9, 2008 by tydy

[richman 0]

hi ahwee & richman..

yes i'm sharing the seller's agent. It's true that the sellers have financial difficulties. they showed me a letter from MP approving them to sell their flat before 5 years. Very nice sellers actually.. A very young malay couple with 3 young children. Only husband working and not getting high pay. Heard that they owe HDB few months installment and want to sell fast if not interest accumulated will be very high. Not very sure how it works but i did look around the place and outside. No signs of loansharks. and they rent 2 rooms to Uni students so i don't think there will be a prob since if the house gt prob who want to rent and stay there rite..

Oh plus it's just less than 5 mins to the MRT. Not renovated but i intend to renovate nicely anyways so it's ok to me =')

If no such prob than it good, maybe u can try to talk to the tenants before u exercise the option etc.....better to play safe..if not, later alot of headaches

[Sheila Ong 0]

hi iluvmybeans, is it the 600series? If yes, then its really a steal! Anyway congrats on ur purchase!

Nope it's 10X series =')

If no such prob than it good, maybe u can try to talk to the tenants before u exercise the option etc.....better to play safe..if not, later alot of headaches

hmmm i just received my HLE letter last night. Should be exercising the option on thursday. What should i ask or talk to the tenant about? And any other points i should take note of? Rather confused hee..

[richman 0]

Nope it's 10X series =')

hmmm i just received my HLE letter last night. Should be exercising the option on thursday. What should i ask or talk to the tenant about? And any other points i should take note of? Rather confused hee..

Hi iluvmybeans,

Before you ask the tenants, ask the other neighbours first..arrive early....knock on the other neighbours door, ask them about the environment here, is it noisy? any issues here? how the owner family of the unit you are buying, than directly ask them whether did they see any people harassing them? quarrel etc?...

If everything ok, than proceed to ask the tenants the same kind of questions, start with how long they have been staying there etc. It better to be thick skin and ask everything rather than end up with a bad unit cos u have to stay there long term. If anything not right, just walk away from the deal cos there always a better home out there especially with the poor economic outlook now Just my 2 cents worth.

[Sheila Ong 0]

Hi iluvmybeans,

Before you ask the tenants, ask the other neighbours first..arrive early....knock on the other neighbours door, ask them about the environment here, is it noisy? any issues here? how the owner family of the unit you are buying, than directly ask them whether did they see any people harassing them? quarrel etc?...

If everything ok, than proceed to ask the tenants the same kind of questions, start with how long they have been staying there etc. It better to be thick skin and ask everything rather than end up with a bad unit cos u have to stay there long term. If anything not right, just walk away from the deal cos there always a better home out there especially with the poor economic outlook now Just my 2 cents worth.

Sorry been busy lately. Hmmmm we've exercised the option already. No chance to ask the neighbours. Actually only 1 neighbour cos it's those old flats that have 2 units in every part (sorry dunno how to explain). Means after lift upgrade will open the door to ur unit and 1 more only. On my left is the lift right is stairs nia. Haha sorry very long winded right..

I really like the place hope everything will be ok for me! Thanks!!! =')

[richman 0]

Sorry been busy lately. Hmmmm we've exercised the option already. No chance to ask the neighbours. Actually only 1 neighbour cos it's those old flats that have 2 units in every part (sorry dunno how to explain). Means after lift upgrade will open the door to ur unit and 1 more only. On my left is the lift right is stairs nia. Haha sorry very long winded right..

I really like the place hope everything will be ok for me! Thanks!!! =')

You welcome. Hope everything is ok for you.