Case Study
Cost of Condo: Suburb Properties – OCR
New Sale: $1.2 million
Currently Own HDB flat. Purchase Condo as 2nd House – Non-Residential.
Outstanding Bank Loan.
| (i) Down Payment | |
|---|---|
| Loan Tenure does not exceed 30 years and sum of loan tenure and age of borrower at the time of applying for the loan is below 65 years. Down payment is 50% of the purchase price or market valuation, whichever is lower. The first 25% in cash, next 25% in cash and or CPF. | 50% x 1.2 mil = $600,000 |
| Loan Tenure exceed 30 years (max 35 years) and sum of loan tenure and age of borrower at the time of applying for the loan is above 65 years. Down payment is 70% of the purchase price or market valuation, whichever is lower. The first 25% in cash, next 45% in cash and or CPF. | 70% x 1.2 mil = $840,000 |
| ABSD | – pay 12% of property value or purchase price, whichever is Higher |
| 12% x 1.2 mil = 144,000 | |
| – need to set aside CPF minimum retirement sum before you can use excess CPF money in your OA account | |
| Conveyancing Fee | |
| Professional Legal Fees | $2000 – $2500 |
| GST | 7% |
| – Stamp Duty paid in cash/ CPF: | |
| – First $180,000 – 1% | |
| – Next $180,000 – 2% | |
| – Next $640,000 – 3% | |
| – Remaining Amt – 4% | |
| Conveyancing Account Fee | $200 – $400 |
| Total Upfront Payment = Down Payment + ABSD + Stamp Duty = 600,000 + 144,000 + 3000 = $747,000 | |
| However, If able to pay off 1st housing loan | |
| – will be considered as 1st loan | |
| – 5% downpayment in cash, 15% downpayment in CPF | |
| – 3% stamp duty | |
| – 7% ABSD | |
| (ii) Monthly Re- Payment (Bank Loan) | |
| Depends on Bank Loan Interest Rates | Rough estimate for calculation purpose = $2100 |
| (iii) Monthly Maintenance Fee | Estimated $300/ month |
| (iv) Property Tax | |
| Depends on the Annual Value of the home. | |
| Based on rental income | e.g $3000 x 12 months = $36,000 |
| Residential Tax Rates (Non- owner Occupied Residential Properties) = (10% x 30,000) + (12% x 6000) = 3000 + 720 = $ 3720 annual | |
| (v) Renovation and Furniture | |
| Reno | $30,000 |
| Furniture | $20,000 |
Credits: Straits Time, EdgeProp, iCompareLoan, PropertyGuru, Dollars and Sense, 99.co, Ezbuy, HomeLoanWhiz