Your loved ones is itching to maneuver to a brand new dwelling. You’ve gotten made up your thoughts — you’ll promote your present dwelling in alternate for a much bigger and fancier dwelling. However there is only one drawback: You might be not sure of the bills to be paid earlier than promoting your home.
Listed here are the issues it is advisable pay earlier than promoting off your property:
- Excellent dwelling mortgage
- Authorized charges (often known as conveyancing charges)
- Property agent fee
- CPF financial savings plus accrued curiosity (to be paid again into your individual account)
- Vendor’s Stamp Obligation (if relevant)
- Property tax
- Upkeep price
Should you’re promoting your HDB flat, you may additionally need to pay for the next:
- Resale software admin price
- Resale levy
- HDB upgrading prices
Charges and prices to pay earlier than promoting your home
1. Excellent dwelling mortgage
If your property mortgage isn’t totally paid off but, you’ll have to repay the excellent quantity to HDB or the financial institution earlier than you possibly can promote your home.
On prime of that, if you happen to’re promoting your home through the lock-in interval of the house mortgage, the financial institution will cost you an early redemption price.
2. Authorized charges
Authorized charges are often known as conveyancing charges. That is for the method of transferring the property title from you to your purchaser.
For HDB flat
After HDB has obtained the resale software from each the client and vendor, you may be requested to endorse the resale paperwork through the HDB Resale Portal. That is when it is advisable pay the authorized charges.
You’ve gotten the choice to have interaction HDB’s solicitor to behave for you, or rent a personal lawyer to deal with the required paperwork. The associated fee will rely upon this.
If you wish to get a fast estimate of the authorized charges, you need to use HDB’s Authorized Charges Enquiry Facility.
Should you’re hiring a personal legal professional, the conveyancing price for the discharge of the housing mortgage would be the identical if it’s an HDB mortgage. However for the remaining, it would rely upon the lawyer.
Thus, it would be best to first talk about their charges earlier than appointing one to behave in your behalf.
There are three essential accepted cost strategies, particularly bank card, AXS and PayNow. You can too use your CPF financial savings to pay for the authorized charges portion (i.e. excluding Title Search Charge, Registration price and Miscellaneous charges).
For personal property
The conveyancing price is about S$2,500 to S$3,000. Relying on the regulation agency, you might be able to pay it with CPF.
3. Property agent fee
Should you’re utilizing a property agent to promote your home, you’ll need to pay the agent fee too.
Whereas there’s no mounted price as to how a lot it is advisable pay your agent, these charges (as a proportion of the promoting worth) are a typical observe:
- HDB flat: 2%
- Apartment: 2% – 4%
- Landed: 2% (or extra)
If the company is GST-registered, you’ll additionally need to pay GST on the fee.
There’s no exhausting and quick rule on the fee charges; it’s negotiable. Earlier than appointing a property agent that will help you promote the home, you’ll want to talk about with them on the fee price.
You may learn extra in regards to the property agent fee charges right here.
4. CPF financial savings plus accrued curiosity
If you promote your home, you’ll have to refund to your CPF account the CPF financial savings you’ve used to pay for the home. For example, you’ve used your CPF financial savings to pay for the downpayment and month-to-month instalments, so that you’ll need to refund the quantity again (in money) to your CPF account.
For HDB flats, if you happen to’ve taken CPF grants earlier than, you’ll have to refund the quantity again to your individual CPF account as effectively.
On prime of all these, you’ll need to refund the two.5% accrued curiosity that you’d have earned in case your CPF financial savings weren’t withdrawn to pay for the home.
Learn this text to search out out extra on how this impacts your property sale proceeds.
If it’s any comfort, the excellent news is that the refunded quantity (principal + accrued curiosity) can be utilized to pay to your subsequent home. So relying on the way you take a look at it, this will likely or is probably not a price.
HDB flats on the market
5. Vendor’s Stamp Obligation (SSD)
The Vendor’s Stamp Obligation (SSD) is payable if you happen to promote or switch your property inside three years. So for many HDB house owners, they don’t need to pay this as a result of five-year MOP.
(Though you might be able to take pleasure in a remission if the property is transferred as a result of a divorce or if it’s an HDB flat to be transferred throughout the household. Head over to IRAS’ web page on SSD for extra data on this.)
Right here’s the speed for properties purchased from 11 March 2017 onwards. The SSD payable is rounded to the closest greenback.
Interval of possession
SSD price primarily based on buy worth/ market worth (whichever is greater)
As much as 1 12 months
Over 1 12 months, as much as 2 years
Over 2 years, as much as 3 years
Over 3 years
No SSD payable
There are a number of methods of paying the Vendor’s Stamp Obligation. This contains:
- Web Banking
- Cheque/Cashier’s Order
6. Property tax
The annual property tax is often paid in January for the entire 12 months. So if you happen to promote your flat in June, this implies you’ve paid the client’s portion of the property tax prematurely as effectively.
However this isn’t precisely a price, as you may get the client to reimburse you.
Earlier than the home is transferred to the client, the lawyer or HDB officer (for HDB flats) will assist apportion the present 12 months tax between you and the client.
So for HDB flat, you’ll have to submit the tax cost receipt through the flat sale completion appointment.
The property tax is calculated by multiplying your flat’s Annual Worth (AV) with the relevant tax price. The AV is your flat’s estimated gross hire for one 12 months if it has been leased out. IRAS determines it primarily based on prevailing market charges.
|Property class||Property kind||Median Annual Worth (S$) for 2021|
|HDB||1- or 2-room||5,340|
|Govt and Others||11,340|
|Non-public||Non-landed (together with Govt Condominiums)||23,400|
For owner-occupied properties
Proprietor-occupied properties take pleasure in a decrease tax price.
As of 1 January 2023, owner-occupied properties with an AV between S$8,000 and S$30,000 are topic to a tax price of 4%.
For these with an AV of greater than S$30,000, the tax price on the surplus is 5% to 23%. From 1 January 2024 onwards, the tax price on the surplus might be elevated to six% to 32%.
For non-owner-occupied properties
In the meantime, the tax charges for non-owner-occupier residential properties are greater.
As of 1 January 2023, the tax price ranges from 11% to 27%, earlier than growing to 12% to 36% from 1 January 2024.
You need to use the IRAS Interactive Property Tax Calculators to search out out the property tax it is advisable pay.
The popular technique of cost for property tax is GIRO. Different acceptable cost modes embody:
- Web banking
Condos on the market
7. Upkeep price
For HDB flats, that is the Service and Conservancy Fees (S&CC), which you’ll need to pay as much as the day of the resale completion. Remember to settle this earlier than the resale completion appointment.
As for condos, the month-to-month upkeep price is often paid each quarter. So chances are you’ll have to get reimbursement from the client for it.
Promoting your HDB flat? Listed here are the charges chances are you’ll have to pay
On prime of the above-mentioned charges, you will have to incur issues just like the resale levy while you promote your HDB flat.
1. Resale software administrative price
Each the vendor and purchaser are required to fork out the executive price once they submit their respective portion of the resale software by way of the HDB Resale Portal.
|Flat kind||Resale software price (inclusive of GST)|
|1-room or 2-room flat||S$40|
|3-room or bigger flat||S$80|
There are three accepted cost strategies for the executive price. By way of the HDB Resale Portal, you possibly can pay with both
- Bank card (Mastercard or Visa)
When you have engaged a licensed property agent, they may help you submit the appliance utilizing their Property Agent Toolkit.
2. Resale levy
You’ll have to pay the resale levy if you happen to’re shopping for a second subsidised flat. Listed here are a number of eventualities during which it’s a must to pay it:
|First HDB flat||Second HDB flat||Must pay resale levy?|
|BTO/ SBF/ open reserving (i.e. shopping for immediately from HDB)||BTO/ SBF/ open reserving||Sure|
|BTO/ SBF/ open reserving||New launch EC||Sure|
|Resale flat with grants||BTO/ SBF/ open reserving||Sure|
|New launch EC||BTO/ SBF/ open reserving||Sure|
If you’ll have to pay for it is determined by while you dump your first subsidised flat. For example, if you happen to promote your first subsidised flat earlier than getting the keys to your second subsidised flat, you’ll need to pay your resale levy in money upon getting the keys to your second flat.
Then again, if you happen to full the acquisition of your second subsidised flat (i.e. key assortment) earlier than promoting your first subsidised flat, your resale levy might be deducted from the sale proceeds, with any shortfall to be paid in money.
Be taught extra in regards to the resale levy right here.
3. HDB upgrading prices
In case your flat has undergone any of those upgrading programmes, you’ll have to pay the upgrading prices:
Earlier than the resale transaction will be accomplished, you’ll need to pay the excellent upgrading value in full.
This may be deducted from the money proceeds of promoting the flat, after deducting the excellent mortgage, HDB fees and CPF refund. In any other case, you’ll need to pay it in money.
In any other case, if the bill is issued after the resale completion is accomplished, the client must pay for it.
Head over to HDB’s web site for extra data on this.
Should you discovered this text useful, 99.co recommends What an HDB second-timer should know earlier than deciding to promote and 6 indicators and steps to search out out if your home has unrealised positive aspects.