The Importance of HDB Flat Selling Timeline Planning
When selling your existing HDB flat and purchasing a new HDB BTO flat or Condo, effective timeline planning is crucial for a smooth transition from selling your current home to collecting the keys for your new BTO flat or Condo.
When Should I Sell My Existing HDB Flat When Receive BTO Keys Collection Notice or While Waiting for HDB BTO Keys Collection?
The key collection for your new BTO flat is based on the Estimated Completion Date (ECD) or Probable Completion Date (PCD).
If you sell your current flat too early, you risk receiving the key collection notice after you’ve already moved out, which would require you to find temporary accommodation. On the other hand, if you sell your flat after receiving the invitation from HDB to collect your BTO flat keys, you might face pressure to sell within a strict deadline set by HDB.
Several factors should be considered when planning your timeline:
1. Financial Capability
Assess your financial readiness to manage two properties, especially if there is a gap between selling your existing flat and collecting the keys for your BTO flat. Consider ongoing costs such as mortgage payments, property taxes, town council fees, and other expenses.
2. Use of Funds from Your Existing Flat
If you need to use the CPF and cash proceeds from selling your current flat to finance your BTO flat, selling your existing flat first is essential. You’ll receive your cash proceeds upon resale completion, while the CPF refund will be credited to your CPF account within 15 working days.
3. BTO Completion Timeline
Check the estimated completion timeline for your BTO flat. HDB typically provides an Estimated Completion Date (ECD) or Probable Completion Date (PCD), giving you a general idea of when you might be able to collect your BTO keys. You will then receive a “NOTICE TO COLLECT KEYS TO BOOKED FLAT” from HDB, which specifies the exact date and time for key collection.
4. Contra Payment Facility
The Contra Payment Facility allows you to collect your new BTO flat keys and begin renovations while completing the sale of your existing flat. This helps you avoid the burden of paying for two properties simultaneously and allows for a smoother transition to your new flat.
5. Temporary Accommodation
If there is a significant gap between selling your current flat and moving into your BTO flat, plan for temporary accommodation. Consider costs related to renting or staying with family. If temporary accommodation isn’t possible, you may want to request a temporary extension of stay from your buyer.
6. Temporary Extension of Stay
A temporary extension of stay allows you to remain in your existing flat for up to three months after resale completion. To avoid potential disputes, make sure to sign an extension of stay agreement with your buyer.
7. HDB Regulations
Familiarize yourself with HDB regulations regarding the sale of your existing flat and the purchase of your BTO flat. For example, you must sell your existing flat within six months after collecting the keys to your BTO flat.
8. Optimal Timing
Ideally, you should aim to sell your existing flat closer to the completion date of your BTO flat. This minimizes the overlap of owning two properties and reduces both financial strain and logistical challenges.
In this article, we will explore the timeline for selling your current HDB flat using the Contra Payment Facility, which enables you to collect the keys to your new BTO flat and start renovations while finalizing the sale of your existing flat.
What is the Contra Payment Facility?
What is Contra Payment Facility?
This facility provides you with an additional loan amount on top of your housing loan, to ease your cash flow in your flat purchase while you are selling your existing flat.
When you buy a flat from HDB and sell your existing flat, the Contra Payment Facility can help you to:
- Reduce the cash outlay needed for your booked flat
- Reduce the housing loan amount needed and the subsequent monthly repayments
- Collect the keys to your booked flat and renovate it while selling your existing flat
You will have to redeem this additional loan with the net proceeds from the sale of your existing flat. Interest will be charged for this additional loan based on the interest rate charged for your HDB housing loan.
The proceeds from the sale of the existing flat can cover the purchase of the new BTO flat.
The proceeds from the sale of the existing flat cannot cover the purchase of the new BTO flat.
Advantages of Using the Contra Payment Facility
- Time-saving: Enables you to collect the keys to your new BTO flat and begin renovations while still completing the sale of your current flat.
- Better sale terms for your existing flat: You may not need to request a temporary extension of stay from the buyer.
- Larger buyer pool for your existing flat: Facilitates a quicker sale at the best possible price.
Conclusion: The Importance of HDB Flat Selling Timeline Planning
Effective timeline planning is crucial when selling your existing HDB flat and purchasing a new BTO flat or condo. Ensuring a smooth transition between selling your current property and collecting the keys for your new home requires careful consideration of various factors, such as financial capability, BTO completion timelines, and HDB regulations.
By strategically planning when to sell your existing flat—whether before or after receiving the key collection notice—you can avoid common pitfalls like temporary accommodation or tight deadlines. Additionally, utilizing options such as the Contra Payment Facility can ease the financial burden, allowing you to collect your new flat’s keys and start renovations while finalizing the sale of your existing property.
Ultimately, the key to successful timeline management lies in balancing your financial readiness, understanding HDB’s processes, and selecting the optimal timing for selling your existing flat. With the right plan in place, you can minimize financial strain, reduce logistical challenges, and enjoy a seamless transition into your new home.
Contact me Janice Ong at 98422759 today if you are planning to sell your HDB flat or purchase new HDB resale flat. Let me help you with the whole process.
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