Best Time To Start Selling Your HDB To Collect Your BTO Keys

by Nigel T.

when-to-sell-hdb-to-collect-bto-keys

In this guide, we’re going to help you find out when is the best time for you to start selling or market your HDB flat – if you are about to collect your new BTO house keys soon.

In fact:

These are the exact advice that we share with HDB sellers who approach us for advice on their flat sales.

When are you getting your new home keys?

This is the most important factor that can easily help you decide when is the most appropriate time for you to start selling your HDB flat.

If your next home is a newly built HDB BTO, you will likely receive notice of your exact key collection date about 2 to 3 months beforehand.

Once you know the key collection date to your new house, congratulations!

Now is the best time to look at the next step, and decide how to start selling your current HDB flat.

You will likely receive 2 notices on your key collection date.

First is about 6 months beforehand, to inform you which Quarter your flat is expected to be ready.

Second will be about 3 months beforehand, to let you know which month you are expected to collect your keys.

Do you need to use funds from your current HDB to collect your BTO keys?

In order not to delay the key collection for your new BTO keys, you will need to determine whether if you need the funds from your existing HDB flat to collect your new house keys.

If you already know your answer to this, great..

But if you are still uncertain, let us show you how to find out.

To make it easy for you, simply find out these 4 figures:

  • Balance amount you need to pay to collect keys
  • Your approved mortgage loan amount
  • Your existing available CPF which you can / and intend to use for the property payment
  • Any existing cash amounts you have on hand now that you intend to use towards the property payment

 

Here’s a simple example for you:

$400,000

Balance amount payable to collect new house keys

$200,000

Approved mortgage loan amount

$50,000

Existing available CPF for property usage

$0

Not planning to use cash

$150,000

Shortfall

If your calculation shows a shortfall, then you will probably need to sell your existing HDB flat first before you can collect keys to your new home.

That’s unless you are able to come up with the cash amount for the shortfall in order to collect your new house keys.

Next, let’s look at another important deciding factor that you need to know, before we summarize and give you our professional opinion on when you should start selling.

If you decide to use cash to collect your new BTO keys first, take note that you will not be able to withdraw the CPF refund from your existing HDB sale in cash, unless you are above 55 years old and have met your CPF Full Retirement Sum criteria.

Do you have a place to stay after selling?

This is crucial too, because you definitely need a place to stay while transiting from your current house to your new house right?

So, the question is simple – Do you have a place to stay after you sell your current place while your new house is not ready yet?

Most of us do not..

And we will need our new house to be ready for us to move in before we can handover our existing house.

Therefore, you will need to factor in time needed for your new house renovation too!

Once you answer this question to yourself, it’s now time for us to give you our professional advice!

Conclusion - When to start selling

Your key collection date given by HDB will be the best basis on how you can plan your current HDB selling.

If you need the funds from your current HDB flat in order to collect your new BTO keys, this is what you need to note:

  • You should be notified about the key collection date 2 to 3 months in advance.
  • Typically, a HDB resale transaction process takes about 3 months to complete
  • On average, it can take about 1 month to secure a buyer with the right offer for your existing HDB flat

 

So this adds up to about 4 months for the entire marketing to the HDB Completion Appointment Date.

And this will be when you will receive your Sales Proceeds (CPF Refund and Cash if any).

So:

If you need to sell before you can collect your new house keys, the best time to start marketing your HDB flat is immediately once you receive the date for your new house key collection!

And yes, the 2 months notice for key collection date is shorter than the 4 months needed to complete the sale of your HDB flat..

But there is no need to panic..

Because your new house key collection date can be easily pushed backwards to accommodate your current HDB sales completion date!

Here’s a simple example for you:

01 Jan

Receive notification, BTO key collection on 1 Mar. Start marketing to sell existing HDB flat.

30 Jan

Flat sold with HDB Completion Date to be on 01 May. Inform HDB to change BTO key collection date to 01 May.

01 May

Complete Sale of current HDB flat. Collect New BTO keys.

01 Aug

Maximum 3 Months Extension Of Stay for your renovation. Handover your current flat to buyers on 01 Aug.

But if you are in a better situation and you do not need to first sell your current HDB flat in order to collect your BTO keys..

.. then we will advice you to start selling about 1 month before you collect your BTO keys.

HDB will give you 6 months to sell your HDB after you collect your new house keys, which is certainly a good enough time for you to manage your new house renovation and moving in.

However, we are sure that you also do not want to be holding on to 2 HDBs, paying mortgage and conservancy fees for both properties right?

So, you should time your selling such that you can complete the sale as soon as you move into your new house.

01 Jan

Receive notification, BTO key collection on 1 Mar.

01 Feb

Start marketing to sell existing HDB flat.

01 Mar

Collect New BTO keys. Flat sold with HDB Completion to be on about 01 Jun.

25 May

Complete renovation and move into new house.

01 Jun

Complete flat sale and handover keys to buyers.

Do you have a place to stay after selling?

If you have a temporary place to stay after selling your existing flat while waiting for your new house to complete it’s renovation, you are a lucky person!

That’s because you basically will not have any worries about your timeline.

And you can even try catching a good sellers market, to sell at a higher price even before you collect your BTO keys.

But if you can only move out of your current HDB flat after your new house is ready, then you should only start selling your HDB flat when you have the confirmed key collection date to your new flat.

You will also certainly require Extension of Stay for your HDB sale, so that you have sufficient time for your new house renovation.

So, it should now be simple for you to decide when is it safe to start selling..

Most sellers will require their funds from their existing HDB in order to collect their new BTO keys. So the best timing for this group of sellers will be to start selling once they receive the key collection date from HDB.

And if you are able to collect your new BTO keys without selling first, then 1 month before your key collection date will be a good timing to start selling your flat, so that you can have sufficient time for your renovation works.

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