Hi Sifus,

I'm not sure if this issue have already been discussed before, please direct me to the right channel if it does, I try to search already about this topic but to no avail.

I bought my 1st property back in November 2019, and due to VP on Q4 2024. Due to COVID, my husband's business not doing so well and end up closing door, with the effort of keep our family afloat, I am forced to push all my loans to AKPK so that I am paying lesser, to cover up the portion that my husband usually cover.

I do still have 2 years ++ more to go, and with the refinance is out of my way due to AKPK status for other loans, thinking to sell my house once VP so that I can settle all my loans with AKPK, and maybe start fresh and buy another property next time.

First question, I was thinking how soon i can sell my property after VP with developer? Second question, is it wise to sell my house to sell the outstanding amount with AKPK? I heard some agents said better wait after 1 year of VP so that the market price already increase and proportionate to my loan amount and some cash back as well to pay any loans. right now i am not sure how much does property value appreciate after VP and want to see if anyone have any experience like this.

Thank you sifus! Really appreciate your thoughts

you can sell your house after obtain VP.

you can sell your house after vp...
if there are buyer..dispose asap to ease your financial situation right now.
rmb there are rgpt you need to pay..

If one have to sell to regularise your debt, one dont have much choice.

Any small capital appreciation will be wiped out by the housing loan interest payment in short term.

Another 2.5 years to go b4 vp ... is a long wait.

Think of ways to earn more during the 2 5 years .... hopefully by then, your dont need to sell.

Do take note that after selling the unit, your may face difficulties to borrow again.

This post has been edited by mini orchard: Apr 13 2022, 05:01 PM

before VP also can sell already

alot of people do that during property bloom.
buy buy buy... once appreciate make 5-10% then sell off. Then buy again

Rinse repeat

i thought will get charged 5% tax if didnt keep for like 5 years? If it exist then make sure what u sell is more than your loan minus x% profit

This post has been edited by kopiride: Apr 13 2022, 04:28 PM

There is no or small rpgt tax payable if the gain is minimal after deducting cost of purchase and sale plus rebate of 10k.

On the other hand, condo are now selling at future price ...
difficult to make profit.

This post has been edited by mini orchard: Apr 13 2022, 04:36 PM

You can sell your house as soon as you get the VP but bear in mind the extra cost that you will need to pay, RPGT, legal fees etc

Developers will reject because it involves the seller bank loan for progressive construction payment.

Looking at how much inflated developer selling price is, im not sure many people will be taxed for rpgt selling in the first year after VP.

You need to have a capital gain for there to be a tax. If you need to sell in a hurry most likely you’ll sell at a loss plus sales costs.

The only development that vped during Covid that I think has actually appreciated is DPC Southbrooks. Certain properties in well demand areas will do ok. The average ones will likely not even cover spa price particularly if developers gave big rebates.

I'm no sifu but these are the scenarios you can explore

1. Save as much possible towards VP, pay the MOT, fully furnish the property and rent out at cost enough to cover monthly installment and maintenance. In the end, you will own an asset

2. Save as much possible towards VP, pay the MOT, fully furnish the property and rent out at marginal loss (at an amount that you can topup comfortably). In the end, you will still OWN an asset

3. Sell after VP. Unless your unit is at prime location and has high demands, you most likely breakeven or realistically sell at a loss. If breakeven, good job. If make profit, congratulations.

4. Speak with banker to calculate what is the penalties if cancel SPA now. Will banker accept monthly repayment for the penalties or it's lump sum payment? Have to decide if cutting losses now is better than future

The question which is more important to ask is at what price you can sell. If sell at profit upon VP (actually near to VP also can) then go ahead. If break even, then looking at your situation, go ahead. If you sell at a loss but still can get back cash (after minus all expenses) then go ahead. If you can only sell at a loss but have to top up to pay back your bank loan then better focus on getting it rented out a.s.a.p upon VP.

Nowday hardly can sell with profit, if your selling price lower than purchase price, then no rpgt needed.

If you loan come with lock in period, then it may penalty you around 3% of the total loan amount

agree...but who knows..nothing is impossible rite?
maybe the unit number is lucky number for the new buyer..

What happen to progressive payment paid to developer ? I am sure the developer is not going to refund the money to the bank.

This post has been edited by mini orchard: Apr 13 2022, 06:41 PM

Woah so many replies already, thank you so much! okay i will slowly read and digest and reply ya! thanks for the suggestion! need to break my fasting 1st

Afaik , some banks mortgage loans specifically states that the loan must not be cleared within 5 years . Doing so will incur a penalty of x percent

Whatever amount paid/disbursed to developer will definitely be charged back to TS + penalties and etc. TS have to weight if pulling out now is better than full amount paid to developer.

What property is this ? U can sell before VP… just need draft spa a little bit different. No issue of selling after vp if there’s willing buyer