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Thread: Keep HDB for rental or Sell HDB and buy condo

  1. #1
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    Default Keep HDB for rental or Sell HDB and buy condo

    Seeking opinion and insight from experts here.
    The scenario is you have a fully paid up 4 bedroom HDB and a 3 bedroom private condo.
    Should you rent out your HDB and use rental to cover condo installment or sell HDB and use proceeds to buy another condo for rental?
    What are the pros/cons and implications in the short and long term?
    Please don't flame me, I am asking a genuine opinion. Thanks.

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    Quote Originally Posted by Ginola View Post
    Seeking opinion and insight from experts here.
    The scenario is you have a fully paid up 4 bedroom HDB and a 3 bedroom private condo.
    Should you rent out your HDB and use rental to cover condo installment or sell HDB and use proceeds to buy another condo for rental?
    What are the pros/cons and implications in the short and long term?
    Please don't flame me, I am asking a genuine opinion. Thanks.
    Whichever one you choose, you are in excellent shape.

    Much depends on your long term goals.

    I think Archachon is in a better position to advise.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  3. #3
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    Marvellous situation. With latest rulings, it is currently almost impossible to own HDB and Private under same name.

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    attended a property talk recently. trainer's view is should not keep HDB IF long term goal is to grow your wealth. reason is you cannot leverage on HDB to multiply yr properties. so should sell HDB and buy private becos can leverage on private.

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    Quote Originally Posted by Ginola View Post
    Seeking opinion and insight from experts here.
    The scenario is you have a fully paid up 4 bedroom HDB and a 3 bedroom private condo.
    Should you rent out your HDB and use rental to cover condo installment or sell HDB and use proceeds to buy another condo for rental?
    What are the pros/cons and implications in the short and long term?
    Please don't flame me, I am asking a genuine opinion. Thanks.
    1. HDB sell cannot buy again.
    2. What is the LTV, mortgage payment, age for 3 room PC?
    3. You need to pay ABSD, need to know how long can you wait, your age, children need, etc.
    4. HDB age, location, cash out after CPF repayment.
    5. Age and monthly income of person paying the PC mortgage.

    More Dollar and cents about what you have will give you a better picture what to do next.

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    Quote Originally Posted by ay123 View Post
    attended a property talk recently. trainer's view is should not keep HDB IF long term goal is to grow your wealth. reason is you cannot leverage on HDB to multiply yr properties. so should sell HDB and buy private becos can leverage on private.
    humm, why is this do? HDB keep as retirement house? You still need a roof over your head right?

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    Will you keep a 2 room HDB or a 5 room HDB for retirement.

    Should the gov help you buy a 2 room or a 5 room.

    For those with more, more will be given.

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    Quote Originally Posted by Arcachon View Post
    1. HDB sell cannot buy again.
    2. What is the LTV, mortgage payment, age for 3 room PC?
    3. You need to pay ABSD, need to know how long can you wait, your age, children need, etc.
    4. HDB age, location, cash out after CPF repayment.
    5. Age and monthly income of person paying the PC mortgage.

    More Dollar and cents about what you have will give you a better picture what to do next.
    Thank you all for your honest opinions.

    1. Aware that if sell HDB, have to dispose of condo before buying HDB again.
    2. For condo, managed to get 80% loan ($713k), full mortgage payment not in yet as condo will TOP end of the year.
    3. Aware that 7% ABSD for 2nd property, not quite sure which waiting time referring too but for investment wise maybe 5 to 10 years, Age: 39 years, married with 4 kids. Wife is homemaker.
    4. HDB age: 45 years, Queenstown, cash out after CPF repayment: $290k
    5. Age: 39, monthly income: $7k

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    Hi

    i think that you should sell the HBD property and pay off your condo installments

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    Retirement at 62, you have 23 more to go.

    Employment depend on your market value and how much the boss can suck you dry.

    4 kids got a lot of mouth to feed.

    Better stay in HDB and rent out PC and enjoy the facilities instead.

    Once you move to PC and enjoy the environment not easy to go back HDB.

    Cash out your PC to buy another investment property when the PC appreciate.

    Queenstown HDB should wait for it to SER.

  11. #11
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    Quote Originally Posted by Ginola View Post
    Thank you all for your honest opinions.

    1. Aware that if sell HDB, have to dispose of condo before buying HDB again.
    2. For condo, managed to get 80% loan ($713k), full mortgage payment not in yet as condo will TOP end of the year.
    3. Aware that 7% ABSD for 2nd property, not quite sure which waiting time referring too but for investment wise maybe 5 to 10 years, Age: 39 years, married with 4 kids. Wife is homemaker.
    4. HDB age: 45 years, Queenstown, cash out after CPF repayment: $290k
    5. Age: 39, monthly income: $7k
    1. After sell hdb, have to dispose of condo first, wait a few yrs, before can buy hdb again. While waiting, have to rent property already.

    2. So I assume:- 1) this is for ur first condo; 2) ur hdb is fully paid up already; and 3) u have not started planning for the financing of ur second condo yet, if u wanna buy.

    Option 1 - if u r risk averse, then sell hdb, stay in 1st condo, dun buy 2nd condo, no need pay absd, financing scheduling plan carefully as early repayments may incur fees and penalties

    Option 2 - if u r risk balanced, then dun sell hdb, choose to stay in one of the properties, and rent out the other, pay 7% absd. Wait for property appreciation. See which one is a better deal by then and then stay/sell accordingly. Rental yield during this period is a deciding factor.

    Option 3 - if u r risk taker, then sell hdb, stay in 1st condo, buy 2nd condo, choose to stay in one of the properties, and rent out the other, pay 7% absd. Wait for property appreciation. See which one is a better deal by then and then stay/sell accordingly. Rental yield during this period is a deciding factor.

    Given that u r the sole breadwinner with a household income eligible to buy a new hdb, I would suggest either option 1 or 2. Always have an emergency fund parked somewhere and dun milk urself dry just to be a multiple property owner.

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    Quote Originally Posted by Ginola View Post
    Thank you all for your honest opinions.

    1. Aware that if sell HDB, have to dispose of condo before buying HDB again.
    2. For condo, managed to get 80% loan ($713k), full mortgage payment not in yet as condo will TOP end of the year.
    3. Aware that 7% ABSD for 2nd property, not quite sure which waiting time referring too but for investment wise maybe 5 to 10 years, Age: 39 years, married with 4 kids. Wife is homemaker.
    4. HDB age: 45 years, Queenstown, cash out after CPF repayment: $290k
    5. Age: 39, monthly income: $7k
    I think u should stay in HDB and rent the PC out for monthly replayment.

    For over 700k loan, your monthly mortgage repayment can be as high as over 4K when you are looking at 3-4% interest reates.
    Do you mean your monthly take home pay is 7k after CPF deductions?

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    Quote Originally Posted by Ginola View Post
    Thank you all for your honest opinions.

    1. Aware that if sell HDB, have to dispose of condo before buying HDB again.
    2. For condo, managed to get 80% loan ($713k), full mortgage payment not in yet as condo will TOP end of the year.
    3. Aware that 7% ABSD for 2nd property, not quite sure which waiting time referring too but for investment wise maybe 5 to 10 years, Age: 39 years, married with 4 kids. Wife is homemaker.
    4. HDB age: 45 years, Queenstown, cash out after CPF repayment: $290k
    5. Age: 39, monthly income: $7k

    Based on the info provided, you really do not have the option of selling your HDB to buy a second condo - it is unlikely you will qualify for a second loan (unless of course you have other cash stashed away).

    Your queenstown hdb rental amount may only be slightly below that of your OCR condo rental amount (deduced based on your purchase price)...so the choice of where you stay is is dependent on your own preferences....I can also add that children have a blast during the growing up years enjoying condo facilities.

    If your HDB gets selected for SERS, and if you decide to take up the new flat, you get slapped with a brand new 5 year MOP period...at the moment of SERS, you can decide if you would like to sell your HDB for a premium or move into your new replacement flat.


    Best luck.

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    Quote Originally Posted by Yuki View Post
    I think u should stay in HDB and rent the PC out for monthly replayment.

    For over 700k loan, your monthly mortgage repayment can be as high as over 4K when you are looking at 3-4% interest reates.
    Do you mean your monthly take home pay is 7k after CPF deductions?
    Thank you all for your thoughts.

    Yuki: It is before CPF deductions.

  15. #15
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    My suggestion is keep the HDB and Condo. Rent out HDB because have better yield. The rent money can help you pay the condo mortgage. By doing this you can save more money.

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    Quote Originally Posted by Sandiwara View Post
    My suggestion is keep the HDB and Condo. Rent out HDB because have better yield. The rent money can help you pay the condo mortgage. By doing this you can save more money.
    I tink ginola took quite a big investment to buy the condo, seeing tat he has family commitments with 4 kids, and average family income ....not suitable to buy any more, .....if make money can even sell condo, in case it drop below purchase price ....or if can't find rental

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    Restarting back this discussion thread.

    There were plenty of discussion in the newspaper regarding old HDB flats having zero value after 99 years.

    So is it wiser to sell off 53 years old HDB and get a studio/1 bedroom condo for rental/capital appreciation/property renewal? or just hold the HDB for rental till tenure ends or hope for SERS.

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    Quote Originally Posted by Ginola View Post
    Restarting back this discussion thread.

    There were plenty of discussion in the newspaper regarding old HDB flats having zero value after 99 years.

    So is it wiser to sell off 53 years old HDB and get a studio/1 bedroom condo for rental/capital appreciation/property renewal? or just hold the HDB for rental till tenure ends or hope for SERS.
    Not enough info to share which is better.

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    Quote Originally Posted by Ginola View Post
    Restarting back this discussion thread.

    There were plenty of discussion in the newspaper regarding old HDB flats having zero value after 99 years.

    So is it wiser to sell off 53 years old HDB and get a studio/1 bedroom condo for rental/capital appreciation/property renewal? or just hold the HDB for rental till tenure ends or hope for SERS.
    Unless wife also working, better don't sell HDB to buy new properties.

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    HDB, at Marine Parade, unlikely will be SERS
    HDB at many locations will also not be SERS

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    Agree SERS no longer an option.
    Looking at a household income of 7k with 4 kids and spouse being a homemaker, I'd suggest to keep the HDB and sell the condo (as long as Ginola is not losing money from the sale). Cash out, put the money in some multi asset capital preservation portfolio. The whole family sleeps well, and that in itself is priceless.

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    once u sell the HDB as long u hold condo u cannot buy a HDB. so depends on the plan. plan to retire in condo?
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    Quote Originally Posted by Laguna View Post
    HDB, at Marine Parade, unlikely will be SERS
    HDB at many locations will also not be SERS
    just to add on:
    HDB at most locations (not all) will not see the gains of the past.

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    Singapore government already learnt their mistake and they will not repeat it again: i.e. HDB flats are for own stay (aka consumption) and NOT for investment!

    Since HDB flats are now determined to be for own stay (aka consumption), People should just forget about DREAMING of making money from HDB flat price appreciation!

    And since HDB flats' prices will not appreciate much, means people should forget about making money from OCR mass market condos having LARGE price appreciation (as a result of many HDB upgraders getting rich from selling HDB flats to upgrade to condos)!


    Quote Originally Posted by 2824 View Post
    just to add on:
    HDB at most locations (not all) will not see the gains of the past.

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    Quote Originally Posted by teddybear View Post
    Singapore government already learnt their mistake and they will not repeat it again: i.e. HDB flats are for own stay (aka consumption) and NOT for investment!

    Since HDB flats are now determined to be for own stay (aka consumption), People should just forget about DREAMING of making money from HDB flat price appreciation!

    And since HDB flats' prices will not appreciate much, means people should forget about making money from OCR mass market condos having LARGE price appreciation (as a result of many HDB upgraders getting rich from selling HDB flats to upgrade to condos)!
    SGD 1,500,000 HDB resale coming soon whether it is for consumation or not.

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    Quote Originally Posted by Laguna View Post
    HDB, at Marine Parade, unlikely will be SERS
    HDB at many locations will also not be SERS
    Don't count on it, when they need to house 10 million All HDB will be SER.

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    Quote Originally Posted by minority View Post
    once u sell the HDB as long u hold condo u cannot buy a HDB. so depends on the plan. plan to retire in condo?

    No final plan to retire in HDB or condo. At current state, retire in condo looks like a viable option.

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    Well, if they like they can build another 1M HDB flats (double of all existing properties!) but you think there are enough jobs for 10M people in Singapore? Fat hope lah!


    Quote Originally Posted by Arcachon View Post
    Don't count on it, when they need to house 10 million All HDB will be SER.

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    Quote Originally Posted by teddybear View Post
    Well, if they like they can build another 1M HDB flats (double of all existing properties!) but you think there are enough jobs for 10M people in Singapore? Fat hope lah!
    You never try you never know.

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    Quote Originally Posted by Arcachon View Post
    Don't count on it, when they need to house 10 million All HDB will be SER.
    You really makes me laugh

    This will definitely not in yours or mine life if it happens

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