Tips for Legacy Planning (Real Estate)

Tips For Legacy Planning Real Estate By Ryan Lee Kk Buyhomenothouse 8

Tips for Legacy Planning (Real Estate)

Tips for Legacy Planning
(Real Estate)

Tips for Legacy Planning (Real Estate)

Hi everyone. I am Ryan, a Singapore Real Estate Agent.
Today I want to share with you the Top 3 reasons for helping your child to own a property.

Tips For Legacy Planning Real Estate By Ryan Lee Kk Buyhomenothouse 1

Reason No. 1

You get to enjoy a higher Loan to Value Ratio and you don’t have to pay additional buyer stamp duty because your child is considered as a first-time buyer.

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To illustrate how much you can save : how’s an example

Assuming a couple about 50 years old, currently own a property. If they want to buy a 2nd property under their name, they will have to pay 17% additional buyer stamp duty, if they are buying a $1mil property, it will cost them an extra $170,000. If they buy the 2nd property under their child’s name, they can save on the $170,000 and do not have to think of selling their current property.

On top of that, if the couple decided to buy under their own name and take a loan, based on their age of 50 years old, they can only get a loan tenure of 15 years at 45% loan to value ratio. The downpayment will be at 55% !

But if the couple buy under their child’s name, assuming the child is 21 years above, he is able to take a loan at max 30 years loan tenure with 75% loan to value ratio

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Reason No. 2

A good investment for your child’s future

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Be it buying a new launch or a resale condo, the prices are pretty crazy nowadays and I believe that it will only get more expensive with higher inflation, interest rate, and construction cost. Sometimes I am wondering whether in the future, my child can afford even a HDB flat. This is why, I observe there are more parents buying property for their child’s first in order to avoid paying much higher prices in the future.

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Reason No. 3

You can tap on the rental income as savings for your child

You are allowed to rent out the property you bought under your child’s name. The rental income can potentially cover the monthly mortgage repayments in full. Imagine your tenant is helping you to pay for your house interest and principal.

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Lastly, do take note that legal disputes may arise so it is best to consult a lawyer and weight the pros and cons before making a decision

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That’s all for now, I am Ryan! Do contact me for any property related matters. 🙂

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