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SELL OR BUY FIRST? UPGRADING TO HDB PRIVATE? WHAT ARE THE BEST WAY TO TRANSIT TO ANOTHER PROPERTY?

  • Writer: Aaron Lin
    Aaron Lin
  • 46 minutes ago
  • 2 min read

The video discusses the complexities of property transitions, particularly when upgrading from HDB to private property or moving between HDBs or private properties (0:03). The speaker, Aaron Lin, advises against certain common practices that he considers risky, such as:

  • Doing a "contra" for HDB to HDB transactions (2:00-2:03). This involves buying and selling on the same day, which limits buyer/seller options and often requires extensions, causing delays (2:14-2:51).

  • Buying first in a private-to-private transaction with a long option period (3:10-3:31). This is risky because if the current property isn't sold within that period, the buyer could lose their option fee (3:41-3:45). Additionally, buying first in a private-to-private scenario incurs a significant Additional Buyer's Stamp Duty (ABSD) of 20% (4:18-4:32).

  • Attempting to synchronize buying and selling with a 3-month extension for renovation (5:07-5:33). This method often leads to rushed decisions and stress, as the actual renovation time is limited to about 1.5 to 2 months (5:51-6:32).

Aaron Lin emphasizes the following "golden rules" for property transitions:

  • Always sell your current property first (7:29, 12:53-12:58). This is especially crucial for new launch properties to avoid paying the 20% ABSD (13:53-14:10).

  • Always have an alternative place to stay, such as with parents or a rental unit (7:32-7:41, 12:59-13:05). This provides a buffer and reduces stress.

  • Use money to buy time (13:07-13:10). Avoiding rushing leads to more stable emotions and better decision-making (13:13-13:20).

He also highlights the differences in extension processes between HDB and private properties:

  • HDB extensions can delay key handover for buyers by 8-9 months and offer limited protection to the buyer during the extension period (8:24-9:20). They also require strict preconditions for legal approval (9:20-9:49, 11:55-12:03).

  • Private extensions are more flexible and are often completed faster, allowing buyers to take possession in about 6.5 months (10:07-10:17, 11:16-11:24).

Ultimately, the best approach varies for each individual, and seeking professional advice is recommended (12:39-12:46).



 
 
 

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