Purchase of flat after divorce

[serene_yam]

Need some help about the following:

1. For divorced cases, upon the sale of matrimonial HDB flat, do we need to put back half of the cash profits to the purchase of the next HDB flat? (Assuming there's a profit made on the matrimonial flat, and there's a purchase for the resale)

2. If yes, what do we mean by the cash profits used for the purchase of the next flat? Is it with reference to the Valuation Price of the flat, or the COV in relation to the Sales Price?

Please help if you've been through this or heard about this. Thanks!

 

[mint_leaf]

Didn't get yr qn on putting half the cash profits to purchase of next flat. If u r purchasing a flat directly from HDB, there will be a levy imposed. If not no need- for resale flat cases.

I've sold my matrimonial flat last June and 2 months later, I bought my resale.Just like any resale flat buyer, I need to pay COV on the flat I wanted.

 

[serene_yam]

I mean right now, matrimonial flat is not direct from HDB, it's a resale. Didn't take any type of grant at all. Upon sale of this current flat, I'm purchasing a resale from open market HDB. With the cash proceeds from my matrimonial, do I need to put half of it onto the resale flat I'm purchasing after divorce? In the past, there's no need for that. But there's a new ruling from HDB about this in Mar2010. And I don't know whether it applies to divorce cases.

 

[green_tranquility]

Serene,
Yes the cash proceeds rule applies to divorce cases as well. I read about another similar case. He even tried to appeal with HDB about it but failed.

If you are taking 2nd HDB loan, 50% of your 1st HDB sale's cash proceeds must go into your 2nd HDB. You don't need to pay any resale levy since you didn't take 1st timer grant for your 1st HDB.

If 50% of your cash proceeds is less than 5% of your 2nd HDB's valuation price, maybe you can consider taking bank loan instead? Somemore, bank loan's interest rate is lower than HDB loan's one now.

 

[green_tranquility]

Typo in my last paragraph of previous post...

If 50% of your cash proceeds is significantly MORE than 5% of your 2nd HDB's valuation price, maybe you can consider taking bank loan instead? Somemore, bank loan's interest rate is lower than HDB loan's one now.

 

[sgbabydoll]

Hi Serene, for a bank loan you need to put in 5% cash. So, if the HDB flat costs $400K, the cash portion is $20K.