{"id":66384,"date":"2023-06-27T11:28:02","date_gmt":"2023-06-27T03:28:02","guid":{"rendered":"https:\/\/www.99.co\/singapore\/insider\/?p=66384"},"modified":"2023-06-27T17:57:46","modified_gmt":"2023-06-27T09:57:46","slug":"couple-bought-3-room-bto-flat-bukit-merah-460k-lost-20k-after-broke-up","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/couple-bought-3-room-bto-flat-bukit-merah-460k-lost-20k-after-broke-up\/","title":{"rendered":"Couple bought a 3-room Bukit Merah BTO flat for S$460k+, but lost S$20k+ after they broke up"},"content":{"rendered":"
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After 3 years together, “Javier” (not his real name), who was in his late 20s, and his girlfriend decided that maybe it was time to settle down.<\/p>\n

In Singapore’s context, more often than not, “settling down” among hopeful couples means securing a BTO flat early rather than immediate wedding bells.<\/p>\n

This is because BTO construction times usually take anywhere between 3.5 to 4.5 years. So, anecdotally, that becomes the window for lovebirds to save up and plan ahead, including their wedding, honeymoon and so on.<\/p>\n

Bukit Merah BTO<\/h2>\n

Financially, Javier and his girlfriend were “okay”. He’s been working in the finance industry for 9 years, while his girlfriend for five.<\/p>\n

In 2021, a chance conversation with his girlfriend’s mum brought up the possibility that they may stand a chance of getting a good ballot number in the upcoming BTO exercise.<\/p>\n

The BTO they applied for was for Bukit Merah’s Telok Blangah Beacon<\/a> in the May 2021 exercise.<\/p>\n

\"Artist<\/a>
(Image source: HDB)<\/figcaption><\/figure>\n

As a single-block project, it offered 105 3-room units and 70 4-room units for sale and was due to complete in Q1 2027. The price range (excluding grants) for a 3-room unit was between S$419k and S$504k. For 4-rooms, it was S$602k-S$710k.<\/p>\n

Not only that, the BTO project is within a 10-minute walk of Telok Blangah MRT and Labrador Park MRT. Being at the city fringe, it is near the Greater Southern Waterfront and VivoCity.<\/p>\n

Furthermore, Prime Location Public Housing (PLH)<\/a> had yet to be introduced until November 2021. Notably, the subsequent Bukit Merah BTO launch in May 2022 was PLH-based (eg. minimum 10-year MOP).<\/p>\n

In other words, Javier and his partner could potentially sell or rent out their flat after 5 years of collecting their keys, instead of 10 (if the project had been a PLH one).<\/p>\n

Naturally, it was definitely a good consideration for the young couple.<\/p>\n

Balloting surprise<\/h2>\n

“The BTO location was a 10-minute walk away from my partner’s home, so her mother asked her to try to BTO. After all, as we’ve read in the news, it was not always a guaranteed success,” Javier told us.<\/p>\n

Indeed, by the end of the sales launch on 31 May 2021, the application rates at Telok Blangah Beacon were 5.8 for 3-rooms and a whopping 49.6 times for 4-room flats!<\/p>\n

\"May<\/a>
Telok Blangah Beacon’s application rates were the highest in the HDB May 2021 BTO exercise, with many first- and second-timers vying for the 4-room flats. (image source: HDB)<\/figcaption><\/figure>\n

So imagine the surprise Javier and his partner had when they got a ballot number.<\/p>\n

“Unexpectedly, or surprisingly, we managed to get a good ballot number due to its location being near her parents’ home. So we went ahead with the option fee in 2021 (S$1k) and then the downpayment in 2023,” Javier said.<\/p>\n

“The cost of our 3-room BTO flat was S$460k+. After paying our option fee, we had to pay a downpayment that’s 5% of the price, which came up to about S$20k+. The stamp duty plus other fees came up to S$8k+.”<\/p>\n

Initially, Javier’s girlfriend wanted him to use all of his CPF savings to pay for the downpayment. Fortuitously, Javier and his girlfriend used the CPF housing grant they got (about S$20k+), which was split 50:50 between them, to make the downpayment.<\/p>\n

The stakes and split-up<\/h2>\n

Unfortunately for the couple, several months after signing the lease agreement, Javier’s girlfriend wanted for them to part ways. However, she told him that she wanted to retain the flat. The idea is that they’ll hold on to the flat as long as possible but live separate lives.<\/p>\n

Javier, however, wasn’t too keen on doing that. “I don’t want to wait for her to find another partner and then transfer my name over.”<\/p>\n

\"HDB<\/a>
Javier shared the HDB BTO cancellation letter he received with 99.co.<\/figcaption><\/figure>\n
\"HDB<\/a>
If you cancel your purchase after signing the purchase agreement and paying the downpayment, you\u2019ll lose not just your downpayment, but you\u2019ll have to wait at least a year before you can apply to purchase an HDB flat again.<\/figcaption><\/figure>\n

When Javier made the decision to cancel the purchase, he’d initially thought that he would need to fork out cash to pay back the CPF used to pay for the HDB loan.<\/p>\n