Mind map
REF: Residential
Map content
REF: Residential
Cost of ownership
- stamp duty (provided)
- Buyer's stamp duty
- For properties above $360,000
- Take (AMT X 3%)-$5400
- For properties above $360,000
- Additional Buyer's stamp duty
- For everyone except 1st time Singaporeans
- Seller's Stamp duty
- Industrial
- Residential
- sold w/in 1 year
- means yr 0 to yr 1
- sold w/in 1 year
- *Always use the higher of purchase price or valuation
- Buyer's stamp duty
- NOT IN CT
- Purchase Price
- GST
- Property Tax
- Legal and Conveyance Fees
- Agency Fee/Commission
- Valuation
- Legal Requisitions
- Operating costs
- AKA Conservacy fee in HDB
- stamp duty (provided)
Calculations :)
- HDB Concessionary Loans
- LTV
- 90%
- of mkt value or vln
- whichever lower
- of mkt value or vln
- 90%
- Loan interest
- 2.6%/annum
- 0.0021667/mth
- 2.6%/annum
- MSR
- installment cannot exceed 30% of buyer's income
- Maximum repayment period
- shorter of
- a) 25 yrs
- b) 65yrs - average age of buyers
- if pty <60 yrs
- c) balance lease - 20yrs
- shorter of
- Maximum Loan Quantum
- Lowest of
- A) Loan ceiling = LTV X VL
- 90% x VL
- B) VL - CPF in OA - CPF Grants - Half of proceeds*
- If half of proceeds <$25,000
- use
- Total proceeds -$25,000
- use
- If half of proceeds <$25,000
- c) Loan required
- is PVOA
- i
- 0.0021667/mth
- N
- Maximum repayment period (in mths)
- p
- MSR
- i
- is PVOA
- A) Loan ceiling = LTV X VL
- aka principal sum
- Lowest of
- LTV
- Residential Housing/Bank Loans
- LTV
- see table provided
- BTW
- AVG age is income weighted
- That means that eg. Alex (27 yrs $2000) and Bec (24 yrs $4000) The age will be calculated as [(2000/6000)x27yrs] + [(4000/6000)x24yrs] = 25 years
- AVG age is income weighted
- BTW
- see table provided
- Loan interest
- provided in Q
- BUT
- when calculating MAX loan quantum, use 3.5% or provided %, whichever is higher
- BUT
- provided in Q
- TDSR
- total debt servicing ratio
- BY MAS
- 60% of buyer's income
- IMPORTANT features
- income weighted avg age
- medium term interest rate (calc max loan)
- For residential
- 3.5% or higher
- For non-resi
- 4.5 % or higher
- For residential
- FI to discount 30% of buyer variable income
- Bank loan for HDB
- MSR of 30% to be CAPPED
- don't enjoy TDSR for HDB bank loan
- MSR of 30% to be CAPPED
- total debt servicing ratio
- Maximum repayment period
- Absolute at 35 years
- loan period will be provided in Q :)
- may be asked
- Amount that must be paid in cash?
- COV + MCP
- Loan quantum
- Principal Amt aka PVAO
- Monthly installment
- FVAO / N
- Max loan quantum
- similar to HDB loan A) and C)
- Borrowing costs
- FVOA - PVOA
- Outstanding loan
- PVOA of remaining years
- PVOA but n = remaining yrs
- PVOA of remaining years
- Debt service ratio (%)
- borrowing cost/loan amt
- Amount that must be paid in cash?
- LTV
- HDB Concessionary Loans
Terminology
- Valuation Limit (VL)
- The lower of the valuation and the purchase price
- Please note that the purchase price MAY be lower at times
- The lower of the valuation and the purchase price
- Cash over Valuation (COV)
- Purchase price - valuation limit
- Amount to be paid in cash when purchasing
- Minimum Cash Payment (MCP)
- Fixed % to pay in cash
- not covered by bank loan
- TABLE NOT IN EXAM
- Fixed % to pay in cash
- Loan Ceiling
- LTV x VL
- Maximum amt allowed to borrow
- Table provided in exam
- Valuation Limit (VL)
6 Functions of $1
- For REF
- We need to know 4
- PVOA
- Find PV given annuity
- can work backwards to find annuity given pv
- Find PV given annuity
- FVOA
- Find FV given Annuity
- FV = P x (1 + i)^n
- To find when installments at end of month
- PVAD
- PVOA x (1+i)
- FVAD
- FVOA x (1+i)
- PVAD
- PVOA
- We need to know 4
- For REF
FUN FACT: No theory Q in EXAMS!!