Hi,
Currently, my spouse and I cannot buy a private property since the flat is still within 5yrs. We are thinking of using our parent names to purchase the property and transfer the ownership to us after we sold off the flat. Can anyone advise on the implications of the loan as well the total cost of transferring the ownership? Thanks.
Buying a private property
Moderators: alvin, learner, Dennis Ng
dear new_user, you asked:"Currently, my spouse and I cannot buy a private property since the flat is still within 5yrs. We are thinking of using our parent names to purchase the property and transfer the ownership to us after we sold off the flat. Can anyone advise on the implications of the loan as well the total cost of transferring the ownership? Thanks.
My comments:
there might be many obstacles to your plan above.
1. your parents buy the house. Unless they can come up with 100% of the purchase price, otherwise, they might not be able to get bank loan as bank would look at their age, how much income they earn and their existing loan commitment. Of course, if possible, they can add you as borrower.
2. when they want to transfer the ownership to you, it's going to be a "sale and purchase". You need to pay stamp duty amounting to [(3% x Purchase price) - $5,400]. For purchase price of $500,000, that works out to $9,600. There's also legal fees involved about $2,500.
if they transfer the property to you via a "gift" say for nominal sum of $1, then any gift is void should your parents not be around in the next 5 years.
In view of above, I suggest that before you rush into it, you might want to email to us at info@HousingLoanSG.com or call us at 6737 8801 and we can discuss further and probably even help you get indicative loan approval from bank before you proceed.
Please note that we do NOT charge any fee for our service. So there's nothing for you to lose by seeking our advice.
Becos if you can't get loan approval, you might have to forgo the 1% deposit you paid on the private property should you just rush to do something now.
My comments:
there might be many obstacles to your plan above.
1. your parents buy the house. Unless they can come up with 100% of the purchase price, otherwise, they might not be able to get bank loan as bank would look at their age, how much income they earn and their existing loan commitment. Of course, if possible, they can add you as borrower.
2. when they want to transfer the ownership to you, it's going to be a "sale and purchase". You need to pay stamp duty amounting to [(3% x Purchase price) - $5,400]. For purchase price of $500,000, that works out to $9,600. There's also legal fees involved about $2,500.
if they transfer the property to you via a "gift" say for nominal sum of $1, then any gift is void should your parents not be around in the next 5 years.
In view of above, I suggest that before you rush into it, you might want to email to us at info@HousingLoanSG.com or call us at 6737 8801 and we can discuss further and probably even help you get indicative loan approval from bank before you proceed.
Please note that we do NOT charge any fee for our service. So there's nothing for you to lose by seeking our advice.
Becos if you can't get loan approval, you might have to forgo the 1% deposit you paid on the private property should you just rush to do something now.
Last edited by Dennis Ng on Sat Jan 27, 2007 10:51 am, edited 1 time in total.
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
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new_user
yes, I received your email. Please email us your contact no. as well as we might need to call you to clarify on certain things.
Cheers!
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
Dennis Ng - When You Master Your Finances, You Master Your Destiny
Note: I'm just sharing my personal comments, not giving you investment advice nor stock investment tips.
-
Guest1
Hi Dennis,
I am keen to look into possibly buying a pte condo now, but my hdb flat is still under 5 years.
Can you elaborate on "if they transfer the property to you via a "gift" say for nominal sum of $1, then any gift is void should your parents not be around in the next 5 years."
Does this mean that no additional stamp duty needs to be paid when transfering as a "gift". Does this apply to a new condo still under construction.
Thanks
I am keen to look into possibly buying a pte condo now, but my hdb flat is still under 5 years.
Can you elaborate on "if they transfer the property to you via a "gift" say for nominal sum of $1, then any gift is void should your parents not be around in the next 5 years."
Does this mean that no additional stamp duty needs to be paid when transfering as a "gift". Does this apply to a new condo still under construction.
Thanks