Yes, the process explained by the agent is generally correct for calculating the cash proceeds from selling your HDB flat. Here are the detailed steps:
### Steps to Calculate Cash Proceeds from Selling Your HDB Flat
1. **Determine Selling Price**:
- This is the price at which you successfully sell your HDB flat.
2. **Outstanding HDB Loan**:
- Deduct any remaining balance on your HDB loan.
3. **Refund CPF Principal Amount**:
- Refund the principal amount withdrawn from your CPF Ordinary Account (OA) for the purchase of the flat.
4. **Accrued Interest**:
- Calculate and refund the accrued interest on the CPF principal amount used.
5. **Legal Fees**:
- Deduct legal fees related to the sale of the flat. This includes fees for conveyancing services provided by your solicitor.
6. **Redemption Fees**:
- If applicable, include any redemption fees for paying off your HDB loan early.
7. **Agent Commission**:
- Subtract the property agent's commission (typically 2% of the sale price plus GST).
8. **Miscellaneous Fees**:
- Include any other miscellaneous fees such as resale levy (if applicable), admin fees, or repairs required before the sale.
### Example Calculation
#### **Assumptions**:
- **Selling Price**: $500,000
- **Outstanding HDB Loan**: $100,000
- **CPF Principal Amount**: $120,000
- **Accrued Interest on CPF**: $20,000
- **Legal Fees**: $2,500
- **Agent Commission**: 2% of $500,000 = $10,000 + 8% GST ($800) = $10,800
- **Miscellaneous Fees**: $1,000
#### **Calculation**:
1. **Selling Price**: $500,000
2. **Less Outstanding HDB Loan**: -$100,000
3. **Less CPF Principal Refund**: -$120,000
4. **Less CPF Accrued Interest**: -$20,000
5. **Less Legal Fees**: -$2,500
6. **Less Agent Commission**: -$10,800
7. **Less Miscellaneous Fees**: -$1,000
#### **Net Cash Proceeds**:
= $500,000 - $100,000 - $120,000 - $20,000 - $2,500 - $10,800 - $1,000
= $245,700
### Important Notes:
- **CPF Refund**: Ensure that the total amount refunded to your CPF OA includes both the principal amount used and the accrued interest.
- **Legal Fees**: Legal fees may vary depending on the solicitor, but a typical range is between $2,000 and $3,000.
- **Agent Commission**: This is usually around 2% of the selling price plus GST.
- **Redemption Fees**: These are typically not applicable for HDB loans but might apply for bank loans.
By following these steps, you can accurately estimate the cash proceeds from the sale of your HDB flat. Make sure to account for all the necessary deductions to get a clear picture of your net proceeds.
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