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Helping a client to own HDB flat after 55 years old

Helping a client to own HDB flat after 55 years old

Today, I would like to share a very interesting case which I have concluded couple of months ago.

A referral case from an existing client

A client which I had served (and served well, I guess) referred his relative to me to help with his housing needs. To me, the referrals from clients are very inspiring as it meant they are willing to put their own name to my work.

Clients referral to me are very important
Clients referral to me are very important

This new client has many unique circumstances. They are

(1) He is more than 55 years old and is not a high earner in terms of income

(2) He has never purchased any HDB flat before. He should be entitled to purchase a HDB flat with all the grants

(3) He has been added as an owner to a private property purchase which he did to help his own family member

(4) That private property has since been sold for a good profit and the funds have been returned back to his CPF and even has cash proceeds

The Challenges for this client

Let’s see what are some of the unique challenges for his purchase

(1) He is more than 55 years old. That means his retirement account has been created and in fact, the proceeds from his sale of the private property has been sent to the RA account. There is a need for me to consider how much of this RA account to be used for the new purchase. He is single and has no children. His retirement funds planning is very important. Agents, nowadays, have to be careful and do not just rush a client into a purchase without careful thoughts to a client’s future plans.

Financial planning is important skill

(2) He has not in his life, purchased a HDB BTO flat at all. Neither did he buy one from the open market. Yet, he has allowed himself to be an owner for a private property purchase as he has some CPF monies in his Ordinary Account (from his many years of working).

When that happens, he is NOT entitled to any grants (except the Proximity Grant) and honestly, it is such a waste as he did not use his entitlement as a Singaporean to these CPF housing grants.

More importantly, there are rules set aside for a private property owner who has sold his private property and now wants to buy a HDB flat. Read the technicalities here in this blog post.

(3) Even though he has some cash and CPF from his sale of the private property, he is not really a high income earner and he is already more than 55 years old. His usage of bank loans is hence tricky and requires many support from very competent and helpful bankers that I know.

In my line of business, I am grateful for the wide network of great supporting partners in banks, real estate business, renovation contractors, movers and even cleaning companies. 😉

A wide network helps support an agent

The Joy of Owning his Own Place

I helped my client in sourcing for a new place. We found quite a few three bedrooms HDB flat whose lease is reasonably old but as he is more than 55 years old and has no children.

We found a place where he loved and because it is a three room flat, he can, in the future, even rent out the other room to earn some income too.

The transaction went smoothly as all the planning has been done correctly and carefully for his unique case.

My client has moved into his new place recently. It was a great joy to see how much happiness my client has his own place after all these years of work. Such joy brings a lot more joy to my work.

Home Sweet Home

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