Navigating Tembusu Grand: An HDB Upgrader’s Guide to Affordability and ABSD

For HDB upgraders eyeing a move to a private condominium like Tembusu Grand, understanding the financial landscape, particularly regarding Additional Buyer’s Stamp Duty (ABSD), loan considerations, and down payment requirements, is crucial. This article delves into these key aspects to help you plan your upgrade effectively.

Is Tembusu Grand an Attainable Upgrade for HDB Owners?

Many HDB owners dream of upgrading to a private condominium, and Tembusu Grand, with its prime District 15 location and reputable developers City Developments Limited (CDL) & MCL Land, presents an attractive option. The project offers 638 residential units with a 99-year leasehold tenure, ranging from 1-bedroom + study to 5-bedroom units, catering to various family sizes and needs. Its proximity to Tanjong Katong MRT (TE25) and amenities like Parkway Parade and East Coast Park further enhances its appeal. However, the journey from an HDB flat to a private condo involves careful financial planning, especially concerning the sale of your existing HDB property and the associated costs.

How Does ABSD Impact HDB Upgraders for Tembusu Grand?

The Additional Buyer’s Stamp Duty (ABSD) is a significant factor for HDB upgraders. If you purchase Tembusu Grand before selling your existing HDB flat, you will be liable for ABSD on the private property. For Singapore Citizens buying their second residential property, the current ABSD rate is 20% of the purchase price or market value, whichever is higher. This can be a substantial sum. Fortunately, there are provisions for ABSD remission if you are a Singapore Citizen and dispose of your first residential property (your HDB flat) within 6 months of purchasing Tembusu Grand. This timeline is critical and requires meticulous planning to avoid incurring the hefty ABSD, or to claim its remission. It’s important to note that the 6-month period is strictly enforced.

What are the Loan and TDSR Considerations for Tembusu Grand?

Securing a home loan for Tembusu Grand involves several key considerations, including the Total Debt Servicing Ratio (TDSR). The TDSR framework limits a borrower’s total monthly debt repayments to 55% of their gross monthly income. This includes not just your new home loan but also any other existing loans like car loans, personal loans, and credit card debts. Banks will assess your income and existing financial commitments to determine the maximum loan quantum you qualify for. For HDB upgraders, the loan amount for Tembusu Grand will also depend on the Loan-to-Value (LTV) limits, which are currently up to 75% for the first housing loan. This means you will need to fund at least 25% of the purchase price through cash and/or CPF savings. It’s advisable to get an In-Principle Approval (IPA) from a bank before committing to a purchase, giving you a clear understanding of your borrowing capacity.

How Much Down Payment is Required for Tembusu Grand?

The down payment for Tembusu Grand will primarily consist of the initial 5% cash payment (booking fee) and the subsequent 15% payment upon signing the Sale and Purchase Agreement. The remaining 5% of the 25% down payment can be paid using a combination of cash and CPF Ordinary Account (OA) funds. For example, if Tembusu Grand’s indicative price is $X,000,000, the 5% booking fee would be $Y,000. The subsequent 15% payment would be $Z,000, and the final 5% can be covered by CPF or cash. It’s crucial to ensure sufficient funds in your CPF OA, as well as readily available cash, to meet these requirements. Remember that prices vary based on unit size, facing, and floor level, so confirm the latest with the developer.

Key Financial Milestones for HDB Upgraders

Here’s a simplified timeline of key financial considerations for HDB upgraders moving to Tembusu Grand:

From my experience as the agent…

Many HDB upgraders often underestimate the tight timeline for selling their existing flat to qualify for ABSD remission. It’s not just about finding a buyer; it’s also about navigating the HDB resale process, which can have its own set of administrative steps and waiting periods. Starting the HDB sale process early, even before you’ve fully decided on your next private property, can provide a significant advantage and reduce stress. Having a clear understanding of your HDB flat’s market value and potential selling price is also vital for accurate financial planning for Tembusu Grand.

Tembusu Grand is selling and offers a compelling opportunity in the East Coast / Marine Parade area, developed by two reputable Singaporean developers.

Related guides: Tembusu Grand Floor Plan Unit Guide · Tembusu Grand Price List Psf · Tembusu Grand Site Plan Facilities

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