Most frequently asked questions from HDB upgraders.
Ask us anything you wish to find out.
What is Decoupling?
Decoupling (also known as part share), is a process whereby an owner of a property takes over the share of the other owner to make it a sole ownership. By doing this, the outgoing owner will be able to free up his property count and proceed to buy a new property without incurring ABSD. Sounds like a strategy you have been looking for? Make an appointment with us and we can make use of our Decoupling Calculator to work out the figures for you.
Is Decoupling Applicable for All Property Owners?
Except for current HDB owners who have both owners’ names under applicants, yes, this strategy is applicable to all other home owners! However, more detailed assessment and proper calculations need to be carried out before we can know if it is a feasible strategy for your current situation or not. Talk to us today to find out more!
How does Sell 1 Buy 2 Works?
Sell 1 Buy 2 is a strategy whereby a home owner sells off their current property, and from the sales proceeds of this sale, proceed to purchase 2 properties (1 under husband’s name usually for ownstay & 1 under wife’s name for investment). The objective of doing so is to fully utilize CPF usage and at the same time create wealth through property. However, this may not be applicable for everyone. Make an appointment with us and we will do a comprehensive and personalized assessment for you!
How does 99/1 Works? Is it really that easy?
First of all, 99:1 is a strategy whereby most agents will tell you it’s the complete foolproof plan for you to easily decouple 3 to 5 years later and use the outgoing owner’s name to buy a 2nd property without ABSD. But, is it really that straightforward? Do you think our government will allow people to take advantage of this ‘loophole’ and not do anything about it after so many years? Talk to us about this and you may get a shock after understanding how it really works.
Should I hold on to my HDB?
There is absolutely nothing wrong with staying in a HDB and calling it our home but you may realized that it may not be the best property asset to hold onto for long term especially if you treat your property as a form of investment. During our meetup, we will share with you how the Market Trend for HDB has been performing for the 10 years and from there, you can decide for yourself if you should continue holding onto it or not.
My HDB is already in Negative Sales. I’m stuck right?
If your current HDB is already in Negative Sales, all the more you should be looking to get out of it and transform this non-performing asset to a performing one. Most home owners do not realize it but do you know that when a HDB goes into Negative Sales, you are in fact losing 2 sources of income (asset value and CPF) the longer you hold onto it? If I tell you that you are losing hundreds of dollars every month and you’re not getting any interest from your CPF, how do you feel?
Can I upgrade to Private without selling my current HDB and also avoid paying ABSD?
Yes and no depending on how this current HDB was purchased. Was it purchased under the Public Scheme whereby both parties were put in as applicants? Was it purchased under a Singles Scheme and you subsequently got married? Was it purchased under a Non-Citizen Spouse Scheme with your spouse as an Essential Occupier and she has now gotten her citizenship? Only by having complete information will we be able to give you the correct answer. Have a discussion with us over coffee!
Which is better? New Launch or Resale?
Most agents will tell you New Launch without a second thought but for us, our answer is – it depends on what you want to achieve. Are you in your early 30s, raring to go for capital gains? Are you a person who prefers stable returns or more of a risk taker? Are you looking towards to a higher quality of lifestyle, convenience for your family or purely return on investment? Everyone has different needs and objectives at every stages of their life so there can never be a same answer for everyone. Talk to us today and let us discuss and explore with you what your best options are going forward.
I’m buying a 2nd Property purely for Investment. Should I go for New Launch or Resale?
There are primilarly 2 schools of thoughts in the market – Monthly Positive Cashflow vs Capital Gain. Which is better? Well, there are a lot of factors involved. At what price are you buying the Resale at for your monthly cashflow? Have you factored in all the monthly running costs involved? Are you just buying a New Launch because your friend just booked a unit there? Have you done enough market research and study the prices around that area? We have in fact developed a ROI Comparison Tool just for buyers like you. Let us do a short presentation for you and this question of yours will be clear as crystal.
How to Identify a New Launch Project with High Potential for Capital Gain?
We believe in data and we also believe that investors who consistently make good profits from the property market do not occur by luck. Working in the same direction, we painstakingly developed our own in-house tools (Detailed Financial Assessment Calculators, Decoupling Feasibility Calculator, Filterable New Launch Projects Database, ROI Comparison for Resale vs New Launch) to assist our clients in making the most informed and best decisions at all times. Let us run a small exercise with you and you can see how we are different from the rest.
Is it worth it to Rent a place so that I can upgrade to a Private New Launch without paying ABSD?
Most of the time, the answer is yes. Reason simply being the Capital Gain of the New Launch will be far more than what you’ll be paying for the rental, which means that financially wise, it is rationale and feasible to do so. On top of that, there are a number of strategies we can adopt to further minimize this rental ‘cost’ involved. By carrying out a financial assessment and adopting a good, planned out strategy, you can be sure that it will be a decision worth making.
My pay isn’t that high. Is it really possible for me to Upgrade?
As much as we would want all our clients to grow their wealth through property, it may not be applicable to everyone as we all have our own commitments to handle. Only by doing a detailed financial assessment will we be able to tell you if you’re suitable to upgrade, or not. Our goal is to ensure that our clients are upgrading under a worry-free and safe environment and we will never ask any of our clients to overstretch their finances, taking uncontrolled or unnecessary risk. Make an appointment and let us work out your finances today!