Deciding when to sell your existing HDB flat while waiting for your Built-to-Order (BTO) flat key collection involves several considerations to ensure a smooth transition and optimal financial planning:
Evaluate your financial readiness to handle owning two properties simultaneously if there is a gap between selling your existing flat and getting the keys to your BTO flat. Consider mortgage payments, property taxes, town council fees and other costs.
If you need to use the CPF and cash proceeds from the existing flat to finance your BTO flat, you must sell your existing flat first.
You will receive your cash proceeds on resale completion but CPF refund to your CPF account within 15 working days after the resale completion.
Check the estimated completion timeline for your BTO flat. Typically, HDB provides an estimated completion date (ECD) or Probable Completion Date (PCD). (e.g. Q1 2025). This gives you a rough idea of when you might collect your BTO flat key. You must receive the "NOTICE TO COLLECT KEYS TO BOOKED FLAT" from HDB it states the date and time to collect your BTO keys.
Contra Payment Facility, which allows you to collect the new BTO flat key and renovate it while processing the sale of your existing flat. This allows you to move into your BTO flat quickly and avoid paying for two properties simultaneously.
Plan for temporary accommodation if there is a significant gap between selling your current flat and moving into your BTO flat. Factor in the costs of renting or staying with family. If temporary accommodation is not an option, requesting an extension of stay from your buyer can be a good solution.
A temporary extension of stay allows you to continue to occupy your existing flat for up to 3 months after the resale completion. You should sign an extension of stay agreement with your buyer to avoid a potential dispute.
Familiarize yourself with HDB regulations regarding the sale of your existing flat and the purchase of your BTO flat. For instance, you are required to sell your existing HDB flat within 6 months after collecting your BTO flat keys.
Ideally, you would want to sell your existing HDB flat closer to the completion date of your BTO flat. This minimizes the period you need to manage two properties and reduces financial strain.
Consider seeking advice from property agents who specialize in HDB transactions. They can provide insights into market trends, sell at the breakthrough price, and timeline planning to help you plan your finances effectively.
Ultimately, balancing these factors will help you determine the best time to sell your existing HDB flat while waiting for your BTO key collection.
Schedule a non-obligation discussion with me to ensure a smooth transition and optimal financial management.
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