Question: Why Is Resale Flat More Expensive?

Can I get loan for resale flat?

Documents required for housing loan for resale flats The borrower can apply for a home loan in case of old properties, only after an agreement to sell has been signed between the buyer and the seller.

Based on the terms and conditions of the agreement, the bank may or may not approve your home loan application..

Is BTO cheaper than resale?

BTOs are always cheaper than resale flats, as they aren’t being sold by owners looking for capital gains. … That said, even taking different apartment sizes into account, BTOs are still substantially cheaper than resale flats. Sure, both of them have grants, but BTO still wins in cost.

How much does a resale flat cost?

HDB Resale Flat (HDB Loan) (Illustration)Fee payable / Stage purchase% purchase price / fees payableSource of fundsValuation fee$199.25Credit cardDeposit$4,000CashApplication fee$80Credit cardInitial payment$40,000CPF12 more rows

How much cash do you need for resale HDB?

Cash savings You must use cash for the following payments: Deposit to seller (a maximum of $5,000, paid in 2 stages: the option fee, and the deposit) Part of the initial payment (if you take a bank loan, or have insufficient CPF savings) Amount not covered by CPF savings and eligible housing loan amount.

How long does it take to buy a resale flat?

about 8 weeks12.1 A resale transaction takes about 8 weeks (from the date of HDB’s acceptance of the resale application) to complete. Both the sellers and buyers will be informed of the completion date in the completion letter, and to attend a completion appointment at HDB Hub.

Can a single person buy a 4 room flat?

Up to 4 single Singapore citizens who are at least 35 years old – for example, unmarried couples or best friends – can apply for a flat together. Apart from the BTO and resale HDB flat options, applying under JSS also unlocks the coveted executive condominium (EC) unit, which you can read more about below.

Should I buy old HDB?

Older flats are “worth less” because they have a limited number of years left on their lease; and in general, they’ll be worth less and less. … As much as its diminishing value could be a deterrent, it’s probably also a selling point for buyers looking for cheap HDB flats.

Should I buy a resale flat?

Resale: Buying a resale flat means competing in an open market against others who do not qualify for a BTO flat. … The value of a BTO would most likely appreciate and you could make money out of your sales while older resale flats could depreciate in value over time.

How does buying a resale flat works?

When you buy a resale flat, you are taking over the property from the previous owner. That also means you can collect your keys as soon as the transaction is completed. Unlike brand new BTO flats, resale flats do not come with a fresh 99-year lease. The older a flat is, the fewer years will be left on the lease.

Can I buy BTO after resale?

You can still buy a BTO if you can satisfy the criteria ie you can form a family nucleus and your combined household income is less than 12k. However, do note that if you have applied for CPF housing grant previously, you will need to pay a resale levy when you purchase a BTO.

Do I need to pay cash for resale flat?

HDB resale flat: Deposit of up to $5,000 which must be paid in cash. Private resale property: Deposit of at least 5%, including an option fee of at least 1% which must be paid in cash.

How can I buy a resale flat without an agent?

Without further ado, let’s dive into the process!Step 1: Register Your Intent to Buy. … Step 2: Plan Your Budget. … Step 3: Source for the HDB Flat of Your Dreams. … Step 4: Bargain With The Seller and Sign the Option to Purchase (OTP) … Step 5: Submit a Request For Value. … Step 6: Exercise the OTP and Pay Option Exercise Fee.More items…•