View Full Version : HDB resale prices up while pte property moderates
HDB prices still flying higher, KBW headache is still there, need to pump more & more supply
http://www.channelnewsasia.com/stories/singaporelocalnews/view/1156905/1/.html
HDB resale prices up while pte property moderates
Posted: 03 October 2011 0922 hrs
Singapore: Flash estimates on property prices show that buyers are willing to pay more for HDB resale flats while those purchasing private property are showing caution.
HDB's flash estimate of the 3rd Quarter 2011 Resale Price Index (RPI) climbed 3.8 per cent in the third quarter compared to the 3.1 per cent rise seen in the second quarter.
In the first three months of the year, the rise was 1.6 per cent.
The rise comes as the Housing & Development Board ramps up the supply of new flats.
Between January and September, the HDB has offered about 23,800 new flats for sale, with the latest being in September with a bumper supply of 8,262 flats being offered under the Built-to-Order (BTO) and Sale of Balance Flat exercises.
Next month,another 4,200 BTO flats will go up for sale in various towns, such as Bedok, Bukit Panjang, Hougang, Punggol and Yishun.
The HDB says it's on track to deliver 25,000 BTO flats for the whole of this year and next year, and flat buyers can look forward to a similar supply of 25,000 BTO flats.
The acceleration in public housing appears to have had some impact on private property with the Urban Redevelopment Authority (URA) reporting a modest 1.3 per cent rise in the third quarter flash estimates of the private residential property index, compared to the 2.0 per cent increase in the second quarter.
The rate of increase in private residential property prices which has moderated for the 8th consecutive quarter saw the biggest increase of 2.1 per cent for private non-landed property outside the central region.
The flash estimates, compiled based on transaction prices in caveats lodged and information on the number of new units sold, saw property in the rest of the central region registering a 1.1 per cent increase while those in the core central region rose 0.8 per cent.
- CNA/sf
The acceleration in public housing appears to have had some impact on private property with the Urban Redevelopment Authority (URA) reporting a modest 1.3 per cent rise in the third quarter flash estimates of the private residential property index, compared to the 2.0 per cent increase in the second quarter.
- CNA/sf
BTO affect private pty but not resale hdb?:scared-4: What's going on?:confused:
They never want to admit. There is gross undersupply of HDB flats in the market due to years of under bulid.
Even with 25000 BTO units a year. It is insufficent to address the immediate shortage.
They never want to admit. There is gross undersupply of HDB flats in the market due to years of under bulid.
Even with 25000 BTO units a year. It is insufficent to address the immediate shortage.
Not to mention that with the stricter HDB rules, many people are renting out instead of selling their flat while staying in private pty.:doh:
BTO affect private pty but not resale hdb?:scared-4: What's going on?:confused:With the world economy facing an uncertain future, potential HDB upgraders would prefer not to upgrade thus HDB resale supply drops. Also, 1st timers who don't qualify for BTO also are unwilling to plunge into the private housing market because of economic uncertainties therefore opting to go for HDB resale as a safer option. :scared-3:
Wild Falcon
03-10-11, 17:15
OCR win again, despite having so many ECs to dilute the PSF to the lower end.
With the world economy facing an uncertain future, potential HDB upgraders would prefer not to upgrade thus HDB resale supply drops. Also, 1st timers who don't qualify for BTO also are unwilling to plunge into the private housing market because of economic uncertainties therefore opting to go for HDB resale as a safer option. :scared-3:
CAn't agree more.. Recently, getting a resale HDB did cross my mind. But after much consideration, we decided to wait for private and FREEHOLD hee hee...
CAn't agree more.. Recently, getting a resale HDB did cross my mind. But after much consideration, we decided to wait for private and FREEHOLD hee hee...So you belong to the upgrader or the first timer? :o
So you belong to the upgrader or the first timer? :o
First timer...
flagship74
03-10-11, 18:27
First timer...
If u are eligible for BTO, as a first timer u should grab this opportunity..:D
If u are eligible for BTO, as a first timer u should grab this opportunity..:D
BTO out, but EC eligible. So it will be either EC or freehold for me :D For long term without the desire to move house frequently, freehold is preferable. At least can cash out at old age and downgrade. If buy EC, by the time old age, already depreciate alot.. May not be as good an option as getting freehold private.
phantom_opera
03-10-11, 18:36
But for BTO buyer, after MOP if you buy private, must sell HDB right?
But for BTO buyer, after MOP if you buy private, must sell HDB right?
ARE U SURE? dun think so wor..
But for BTO buyer, after MOP if you buy private, must sell HDB right?
Nope. You can keep your HDB and buy private pty after MOP. And that seems to be the on going trend. One family two houses. How to solve the HDB supply issue...........:doh:
Nope. You can keep your HDB and buy private pty after MOP. And that seems to be the on going trend. One family two houses. How to solve the HDB supply issue...........:doh:
It seems to be the trend for most people to buy HDB and wait out the MOP then buy pte and rent out HDB to service the pte. The way to upgrade one's wealth. ;)
Regulators
03-10-11, 19:00
It has been happening for ages
It seems to be the trend for most people to buy HDB and wait out the MOP then buy pte and rent out HDB to service the pte. The way to upgrade one's wealth. ;)
It has been happening for ages
Is it still allowed though? Thought there's a change in rulings? Have to stay in the flat even if it's transferred to you and not that you bought it yourself.
Is it still allowed though? Thought there's a change in rulings? Have to stay in the flat even if it's transferred to you and not that you bought it yourself.
Yah... that's what I thought too.
After MOP, you can buy private but must remain staying in HDB if you want to keep both. Can anyone verify?
Is it still allowed though? Thought there's a change in rulings? Have to stay in the flat even if it's transferred to you and not that you bought it yourself.No need to stay in hdb if have private house. Will not be surprise if it eventually becomes reality! :tsk-tsk: If hdb rental is only permitted on special cases, then there'll be a serious shortage of cheap rental options for FW and FTs.
devilplate
03-10-11, 19:38
Yah... that's what I thought too.
After MOP, you can buy private but must remain staying in HDB if you want to keep both. Can anyone verify?
Used to be....but rules has relaxed.....
Yah... that's what I thought too.
After MOP, you can buy private but must remain staying in HDB if you want to keep both. Can anyone verify?
I read over in the HDB website.
http://www.hdb.gov.sg/fi10/fi10326p.nsf/w/ChgOwnerEligibilityCriteria?OpenDocument
You cannot buy private (without selling your HDB) if your HDB is bought after 30 Aug 2010. You can however, be transferred HDB (after the MOP) from your blood relative if you already own private but you're supposed to move to the HDB and rent out your private.
Buy HDB - it is already freehold thanks to SERS
I read over in the HDB website.
http://www.hdb.gov.sg/fi10/fi10326p.nsf/w/ChgOwnerEligibilityCriteria?OpenDocument
Please read this instead:
http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/PrivatePtyProcedures?OpenDocument#OccPeriod
One family two houses.:)
I read over in the HDB website.
http://www.hdb.gov.sg/fi10/fi10326p.nsf/w/ChgOwnerEligibilityCriteria?OpenDocument
You cannot buy private (without selling your HDB) if your HDB is bought after 30 Aug 2010. You can however, be transferred HDB (after the MOP) from your blood relative if you already own private but you're supposed to move to the HDB and rent out your private.
HDB flats bought after Aug 2010 will not have met the MOP so its a safe NO NO to buy private. Bottomline of the rule is if you get a hdb flat, you must always satisfy the MOP, whether its from HDB directly or transferred from relative. :o
Please read this instead:
http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/PrivatePtyProcedures?OpenDocument#OccPeriod
One family two houses.:)
So, if someone buys a BTO now, after 5 years, he's allowed to get private?
I'm of the understanding that because of the rules change, if someone buys a BTO now, after 5 years, he would still not be allowed to get a private unless he gets rid of the HDB.
Those that bought before 30 Aug 2010 and have fulfilled the MOP may buy private without getting rid of the HDB.
So, if someone buys a BTO now, after 5 years, he's allowed to get private?
I'm of the understanding that because of the rules change, if someone buys a BTO now, after 5 years, he would still not be allowed to get a private unless he gets rid of the HDB.
Those that bought before 30 Aug 2010 and have fulfilled the MOP may buy private without getting rid of the HDB.
Perhaps this is clearer.
http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/PrivatePtyEligibility?OpenDocument
Regulators
04-10-11, 00:42
very simple, if you buy a HDB flat now, you have to stay in it for 5 years and wait that period before you are allowed to buy a private property. After purchasing the private property, you are free to live in the private property and rent out the HDB flat to pay off your private mortgage.
On a slightly separate question, what if you inherit your parents' hdb in the future when at that point in time you already own private? Would that be considered a "purchase" by you and hence you would be forced to sell the hdb?
On a slightly separate question, what if you inherit your parents' hdb in the future when at that point in time you already own private? Would that be considered a "purchase" by you and hence you would be forced to sell the hdb?If inherit, then have to stay in HDB to satisfy the MOP. But no need to sell private. :D
It has been happening for ages
:D:D:D ages to me means past 4 years plus....:D:D:D
anyway now i show hand...sell private only left hDb...:cool:
Gov't making "good progess" to ease housing shortage
http://l.yimg.com/bt/api/res/1.2/WvyL.QB8ejdxw05HAe.beg--/YXBwaWQ9eW5ld3M7Y2g9Mzc1O2NyPTE7Y3c9NjMwO2R4PTA7ZHk9MDtmaT11bGNyb3A7aD0zNzU7cT04NTt3PTYzMA--/http://l.yimg.com/os/249/2011/10/03/630afp-khawboonwan_084220.jpg (http://sg.news.yahoo.com/photos/gov-t-making-good-progess-to-ease-housing-shortage-photo-1317631346.html)National Development minister Khaw Boon Wan is putting newlyweds who are first-time home buyers as his priority. (AFP file photo)
After three built-to-order (http://sg.search.yahoo.com/search?ei=UTF-8&p=HDB+built-to-order&fr2=tab-news&fr=ush-globalnews) launches, the government is making good progress to ease the housing shortage (http://sg.search.yahoo.com/search?ei=UTF-8&p=singapore+housing+shortage&sado=1&rd=r1&fr2=tab-news&fr=ush-globalnews), said Minister for National Development Khaw Boon Wan (http://sg.search.yahoo.com/search?p=Khaw+Boon+Wan&fr=ush-globalnews).
In his blog post on Monday, Khaw said Housing Development Board (http://sg.news.search.yahoo.com/search/news?ei=UTF-8&p=housing+development+board&sado=1&rd=r1&fr2=tab-web&fr=ush-globalnews)'s (http://forums.condosingapore.com/) (HDB) efforts in ramping up HDB flat supply will help stabilise the market.
Putting the housing needs of newlyweds who are first-time home HDB buyers as his top priority, Khaw added, "We are beginning to see some light at the end of the BTO tunnel."
He said that the September bumper launch of over 8,200 new flats -- 5,400 of which are BTO flats and 2,800 are from the Sale of Balance flats (http://sg.search.yahoo.com/search?ei=UTF-8&p=HDB+sale+of+balance+flats&rd=r1&fr2=tab-news&fr=ush-globalnews) (SBF) -- has eased part of the shortage in public housing.
The new flats have attracted 27,900 applications -- 9,500 for BTO and 18,400 for SBF. Khaw aims to have half of this demand met in this BTO exercise, while he added, "The other half can look forward to another 4,200 BTO flats in November and many more next year."
Out of the 27,900 applicants, 15,500 are first-timers.
Khaw also cited an average BTO flats’ application rate of 1.7 times -- meaning that almost all the 6,700 applicants who selected these projects will get a chance to select a flat.
He added that with the recent increase of the income ceiling to $10,000, 6% of BTO and 10% of SBF applicants, whose incomes were above $8,000, are allowed to apply for flats as well.
While the SBF flats attracted a high application rate averaging 6.5 times, Khaw pointed out that 37% of the applicants are first-timers applying for the first time within the last one year. He said that another 32% are second-timers applying also for the first time within the last one year.
Khaw explained that the high demand for SBFs are because many of them are in mature estates and are either completed or close to completion.
With application rates for SBFs ranging from 0.3 times -- indicating more flats than applicants -- to 52 times, Khaw advised Singaporeans, "One can therefore improve one’s success rate by thinking carefully about which project to apply for."
:D:D:D ages to me means past 4 years plus....:D:D:D
anyway now i show hand...sell private only left hDb...:cool:
Yr timing is perfect.
U can roll the profit into stocks later
The only explanation for bullishness of KBW on HDB demand next year is govt is expecting more new PRs n citizens. Our pop will continue to grow healthily with more immigrants.
The only explanation for bullishness of KBW on HDB demand next year is govt is expecting more new PRs n citizens. Our pop will continue to grow healthily with more immigrants.
Is that a new policy? I thought the government is in reversed gear as far as PR numbers is concerned?:confused: I think KBW is bullish about solving the supply crunch for first timer 1st and stablising resale prices later.
New policy most likely is build until slight oversupply. Number of citizens r still increasing. Our birth rate is still v low. How to reconcile e data?
iwantgizmos
04-10-11, 16:00
New policy most likely is build until slight oversupply. Number of citizens r still increasing. Our birth rate is still v low. How to reconcile e data?
one solution is for us to sleep around more often.... :ashamed1:
Another channel is to encourage more PRs n new citizens, which I believe is e new direction.
Yr timing is perfect.
U can roll the profit into stocks later
hai yo my luck maybe in property play share long i loose short i loose hai ya :scared-1:
very simple, if you buy a HDB flat now, you have to stay in it for 5 years and wait that period before you are allowed to buy a private property. After purchasing the private property, you are free to live in the private property and rent out the HDB flat to pay off your private mortgage.
HDB's web page (http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/PrivatePtyEligibility?OpenDocument) says this:
"The lessees and occupiers must continue to stay in their HDB flat after the purchase of the private residential property unless prior approval from HDB is obtained to sublet the whole flat."
So, if you buy pte property after satisfying the MOP requirement, you still have to live in the HDB flat. However, I know some people who have rented out their HDB flat and live in their condo. How they did it - I don't know. Too afraid to ask them.
devilplate
04-10-11, 18:49
HDB's web page (http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/PrivatePtyEligibility?OpenDocument) says this:
"The lessees and occupiers must continue to stay in their HDB flat after the purchase of the private residential property unless prior approval from HDB is obtained to sublet the whole flat."
So, if you buy pte property after satisfying the MOP requirement, you still have to live in the HDB flat. However, I know some people who have rented out their HDB flat and live in their condo. How they did it - I don't know. Too afraid to ask them.
It just means u must get approval before subletting out ur hdb....
Just submit application to hdb...i tink can b done online
HDB's web page (http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/PrivatePtyEligibility?OpenDocument) says this:
"The lessees and occupiers must continue to stay in their HDB flat after the purchase of the private residential property unless prior approval from HDB is obtained to sublet the whole flat."
So, if you buy pte property after satisfying the MOP requirement, you still have to live in the HDB flat. However, I know some people who have rented out their HDB flat and live in their condo. How they did it - I don't know. Too afraid to ask them.
Apply online to sublet whole flat (on hdb website). You need to pay a fee (I think it's $50). There is a list of reasons to choose from.
I have a private (own stay) and a HDB (vacant and waiting to rent out). Should I sell my HDB now since it seems the prices is now at its peak, and then wait for correction (if really come in next 2 years) and buy another private?
I will not sell private because it is convenient for whole family. HDB is too far away from work and school.
Likely to gain about $200k which is not much. But if I can put it into another property when the price drop, the capital gain will beat the rental gain...
Regulators
05-10-11, 02:57
Keep your hdb, you never know when you might need to move into it next time. Pay a few tens of dollars a month town council do all the shit work for you at an instance, can't even get that kind of service in condo. The condo I live in sometimes have to hound them to do things and things don't even get things done immediately. Some guy also said hdb is like freehold coz if govt en bloc before lease is up, they have to compensate you a new flat under sers.
I have a private (own stay) and a HDB (vacant and waiting to rent out). Should I sell my HDB now since it seems the prices is now at its peak, and then wait for correction (if really come in next 2 years) and buy another private?
I will not sell private because it is convenient for whole family. HDB is too far away from work and school.
Likely to gain about $200k which is not much. But if I can put it into another property when the price drop, the capital gain will beat the rental gain...
Keep your hdb, you never know when you might need to move into it next time. Pay a few tens of dollars a month town council do all the shit work for you at an instance, can't even get that kind of service in condo. The condo I live in sometimes have to hound them to do things and things don't even get things done immediately. Some guy also said hdb is like freehold coz if govt en bloc before lease is up, they have to compensate you a new flat under sers.
Up at 3am? You trading the US market?
HDB is like a crown jewel to the portfolio, once you sell it's very hard to get it back.
HDB's web page (http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/PrivatePtyEligibility?OpenDocument) says this:
"The lessees and occupiers must continue to stay in their HDB flat after the purchase of the private residential property unless prior approval from HDB is obtained to sublet the whole flat."
So, if you buy pte property after satisfying the MOP requirement, you still have to live in the HDB flat. However, I know some people who have rented out their HDB flat and live in their condo. How they did it - I don't know. Too afraid to ask them.
like they say in the army do what u want but dont get CAUGHT...:scared-1:
I have a private (own stay) and a HDB (vacant and waiting to rent out). Should I sell my HDB now since it seems the prices is now at its peak, and then wait for correction (if really come in next 2 years) and buy another private?
I will not sell private because it is convenient for whole family. HDB is too far away from work and school.
Likely to gain about $200k which is not much. But if I can put it into another property when the price drop, the capital gain will beat the rental gain...
i have a HDB renting out and HAD a private just sold off....nowi renting another private for 1 year and waiting to buy another private...if u ask me HDB dont sell cos once its GONE its GONE know what i mean but thats my personal opinion...:cool:
i have a HDB renting out and HAD a private just sold off....nowi renting another private for 1 year and waiting to buy another private...if u ask me HDB dont sell cos once its GONE its GONE know what i mean but thats my personal opinion...:cool:
What happens if children inherit the HDB flat after the parent passes away but the children also own private property. Would they have to sell the HDB flat that they inherited? Does the MOP apply for inherited HDB flats?
Up at 3am? You trading the US market?
HDB is like a crown jewel to the portfolio, once you sell it's very hard to get it back.
Is it reasonable to think this way:
$2,500 (rental) x 12 / $450,000 (market value) = 6.67% yield
Vs
Sell $450,000. Pay back $250k to CPF at 2.5%. Invest $200k into 20 lots DBS. Dividend yield at 5%. Weighted return is 3.6%.
But capital upside on DBS is probably higher.
I support selling of ur HDB. High HDB resale price is an abnormal phenomenon created by mismanaged policies in the past, and it will not be repeated. Especially if such HDB is not in "prime" location and has a huge profit simply because the market is high and every one is assuming a min 50k COV.
Once upon a time empty HDBs near Boon Lay MRT had to give free renovation to attract buyers. Now they are calling 600k I heard. A 5rm HDB in Jurong East central used to rent $1500, now I heard it's calling 3k. This is not normal for HDB. Just wait for KBW's massive BTO built goes on line, u will see suddenly HDB is not that profitable, and the buyers will disappear. So many HDB upgraders pre-buy the mass market condos at record psfs. They are all hoping to sell their HDB at current record price. The supply of resale flat will come on line.
Pty investment is just like any other asset investment. Take profit when it's time. Dun be greedy. how much more upside u think u can get from now?
phantom_opera
05-10-11, 14:32
I second AMK but the question is when to sell
thomastansb
05-10-11, 14:44
Just wait 3-4 years from now. Mismanaged policies in the past. Now also mismanaged I feel. You don't go from 3000 units in 1 year to 25,000 units in 1 year. It is ridiculous.
Just wait for those who bought BTO (2nd timer) and still staying at their first HDB. When the 2nd HDB comes, they have 6 months to dispose their 1st HDB. By then, there are many who need to dispose within 6 months also.
I think 1/2 price also can bargain somemore. Maybe negative COV is norm then. And it is unlikely the policy of restricting buying of HDB while holding to a private will be reversed due to political advantage so they will have a super hard time finding buyers. From 1999 to 2005, MBT had a hard time clearing 15,000 HDB. Now, we don't know the number of 2nd timers. If it exceed 15,000, then good luck. Once the policy is reversed, maybe can buy 1 to hold long term at 60% discount. I am sure many will need to sell within 6 months :)
I support selling of ur HDB. High HDB resale price is an abnormal phenomenon created by mismanaged policies in the past, and it will not be repeated. Especially if such HDB is not in "prime" location and has a huge profit simply because the market is high and every one is assuming a min 50k COV.
Once upon a time empty HDBs near Boon Lay MRT had to give free renovation to attract buyers. Now they are calling 600k I heard. A 5rm HDB in Jurong East central used to rent $1500, now I heard it's calling 3k. This is not normal for HDB. Just wait for KBW's massive BTO built goes on line, u will see suddenly HDB is not that profitable, and the buyers will disappear. So many HDB upgraders pre-buy the mass market condos at record psfs. They are all hoping to sell their HDB at current record price. The supply of resale flat will come on line.
Pty investment is just like any other asset investment. Take profit when it's time. Dun be greedy. how much more upside u think u can get from now?
phantom_opera
05-10-11, 14:51
Where got so many 2nd timers buying BTO? I thought 95% reserved for 1st timer ....
HDB resale price index will peak around 200, currently still at 187, pure technical analysis guesstimate
thomastansb
05-10-11, 15:00
We don't know the figures.. Although we can guess it.
1000 applicants to 500 flats, maybe only 500 first time applicants, 500 second time. 300 first timers fussy, rejected the flat which mean 300 flats are bought by 2nd timer. Seems to me, it is not only 300. Could be higher. Looking at the previous sales of balance flats, the rejection rate is really super high. Even 2nd timers don't want to choose. So this means there are a lot of 2nd timers buying. I might be wrong but it makes sense to me. If not, why 2500 rejected flats? Anyway, this is what Singaporeans want. Let HDB index drop to 80 and see what happens. Maybe we can buy 1 cheap cheap to keep. I like to call this scene breadtalk after 9pm.
Where got so many 2nd timers buying BTO? I thought 95% reserved for 1st timer ....
HDB resale price index will peak around 200, currently still at 187, pure technical analysis guesstimate
you want to fill the demand for resale hdb flats? easy, just let pte owners buy it without having to forgo their pte property. overnight the problem is solved. :cheers1:
devilplate
06-10-11, 00:34
you want to fill the demand for resale hdb flats? easy, just let pte owners buy it without having to forgo their pte property. overnight the problem is solved. :cheers1:
Not really...nid more den tat
Reduced mop to 1yr for resale without grant on top of it:hell-hath-no-fury: :D
plus a couple more of those can't be lovers but can be friends cases where they live in with each other and rent out the other and you'll pretty much end up at full occupancy.
I have a private (own stay) and a HDB (vacant and waiting to rent out). Should I sell my HDB now since it seems the prices is now at its peak, and then wait for correction (if really come in next 2 years) and buy another private?
I will not sell private because it is convenient for whole family. HDB is too far away from work and school.
Likely to gain about $200k which is not much. But if I can put it into another property when the price drop, the capital gain will beat the rental gain...
I have decided to keep my HDB for rental and has been contacting agent to do it. Agent asked for exclusive... is it better? Thanks for advising this new bird...
This is a real case, can single PR with 2 Citizen kids (3 and 5 years old) buy HDB resale flat?
Thanks,
Richard
Here are the reasons you should keep your HDB flat:
1) HDB is under different law, creditor can never seize your HDB. It is considered the same as your shirt;
2) HDB has limit down size price risk (compared with 99 LH Private). HDB valuers are all approved by HDB, the political cost is too high for PAP if HDB resale index drops to 80. What will drop is COV, it can drop from 60K to -10K. But the resale price index can only drop, say from 200 to 150.
3) If you own private, current rule requires you to wait for 2.5 years AFTER you sell private to downgrade to HDB resale. So you will have a painful renting period, and many house moves:
Private -> Renting -> HDB (MOP) -> Private
That is stay in 4 places in about 10 years' time, not good for kids to build the sense of "home".
4) So far, rental yield for HDB is better;
5) Get a HDB loan if possible, the rates is higher right now, but they are much more relaxed than banks when you have cash flow problems.
Thanks,
Richard
Just wait 3-4 years from now. Mismanaged policies in the past. Now also mismanaged I feel. You don't go from 3000 units in 1 year to 25,000 units in 1 year. It is ridiculous.
Just wait for those who bought BTO (2nd timer) and still staying at their first HDB. When the 2nd HDB comes, they have 6 months to dispose their 1st HDB. By then, there are many who need to dispose within 6 months also.
I think 1/2 price also can bargain somemore. Maybe negative COV is norm then. And it is unlikely the policy of restricting buying of HDB while holding to a private will be reversed due to political advantage so they will have a super hard time finding buyers. From 1999 to 2005, MBT had a hard time clearing 15,000 HDB. Now, we don't know the number of 2nd timers. If it exceed 15,000, then good luck. Once the policy is reversed, maybe can buy 1 to hold long term at 60% discount. I am sure many will need to sell within 6 months :)
The key for this scenario is still number of SPRs coming in to grab resale units. The numbers are valid, KBW blog says if on avg 2 application for a BTO unit a second timer almost have equal chance as first timer. Take up rate is 52% and above on average. As second timer, resale levy needs to be coughed out as second timer which is around 30-50k and risked disposing the four to five room HDB. My guess is such group of people own 3 room or smaller where they have paid off their property and look to upgrade to four room and above. Levy is only 15k.
Here are the reasons you should keep your HDB flat:
3) If you own private, current rule requires you to wait for 2.5 years AFTER you sell private to downgrade to HDB resale. So you will have a painful renting period, and many house moves:
Private -> Renting -> HDB (MOP) -> Private
That is stay in 4 places in about 10 years' time, not good for kids to build the sense of "home".
Thanks,
Richard
Correction:
The above is indeed for NEW Flat
Private -> Renting -> HDB (MOP) -> Private
For Resale, you can buy immediately, this explains another demand for resale HDB: Private downgrades (or those believe private price has peaked.)
Private -> Resale HDB (sell private within 6 months), after MOP -> Private
Ownership/Interest in Property in Singapore or Overseas other than HDB flats
You can own private property (unless you are applying for a CPF Housing Grant and/or an HDB loan).
However, you, your spouse and any occupiers listed in the resale application must dispose of any interest in any private residential property within 6 months from the completion of the purchase of the resale flat.
http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatPublicScheme?OpenDocument
phantom_opera
29-10-11, 18:56
richwang, if you are agent, it is probably helpful if you can share with us the likely volume / average COV of HDB resale in Q4 especially those near MRT, and probably in turn you can get some deals :D
Is HDB resale/volume/cov affected by recent turmoil in stock market?
richwang, if you are agent, it is probably helpful if you can share with us the likely volume / average COV of HDB resale in Q4 especially those near MRT, and probably in turn you can get some deals :D
Is HDB resale/volume/cov affected by recent turmoil in stock market?
Don't think agents are interested in ISDA... :D
Hi,
I am thinking if I should sell my resale HDB EA (very near MRT) or rent it out given that my private property will be ready 1-2 yrs time ? I still have an outstanding loan with the bank for my resale HDB which i bought a decade ago. If I am to sell it today, I may not earn as in I have to top up my CPF will a little bit more since I have to pay back accrued CPF interest, plus the last decade paid quite a fair bit of interest to the bank already (drawn from CPF) and did not have any govt grant (30k for first timer plus another 10k for proximity to parents) when I first bought it . If I rent it out, minus the monthly flat installment, I can have a return of $1.x per month, but then again, much of the monthly still goes to servicing the interest. Not sure if the price will go up within the next 2 years tho ..
devilplate
30-10-11, 22:24
Hi,
I am thinking if I should sell my resale HDB EA (very near MRT) or rent it out given that my private property will be ready 1-2 yrs time ? I still have an outstanding loan with the bank for my resale HDB which i bought a decade ago. If I am to sell it today, I may not earn as in I have to top up my CPF will a little bit more since I have to pay back accrued CPF interest, plus the last decade paid quite a fair bit of interest to the bank already (drawn from CPF) and did not have any govt grant (30k for first timer plus another 10k for proximity to parents) when I first bought it . If I rent it out, minus the monthly flat installment, I can have a return of $1.x per month, but then again, much of the monthly still goes to servicing the interest. Not sure if the price will go up within the next 2 years tho ..
How much ur EA worth?
Big units can call 50-60k cov now wor:cheers4:
Hi,
I am thinking if I should sell my resale HDB EA (very near MRT) or rent it out given that my private property will be ready 1-2 yrs time ? I still have an outstanding loan with the bank for my resale HDB which i bought a decade ago. If I am to sell it today, I may not earn as in I have to top up my CPF will a little bit more since I have to pay back accrued CPF interest, plus the last decade paid quite a fair bit of interest to the bank already (drawn from CPF) and did not have any govt grant (30k for first timer plus another 10k for proximity to parents) when I first bought it . If I rent it out, minus the monthly flat installment, I can have a return of $1.x per month, but then again, much of the monthly still goes to servicing the interest. Not sure if the price will go up within the next 2 years tho ..The big question is whether you need the cash now or not? If no pressing need for cash, as you have already paid the downpayment for your private property, then just rent out your HDB until such time you need it, then sell.
You may be crippled by the thought that most of the rental yield goes into interest payment to the bank. Well, don't forget that you are earning from rental too. Its a matter of just putting your money to work hard for you and the bank is helping you achieve that at a low cost. Selling your EA and keeping the money in the bank with a miserable interest rate is worse, isn't it? :doh: Unless you can invest those money then it goes back to the initial question of do you have need for it now!
However, should you sell, you don't have to worry about having more money pumped into your cpf coz can use it for your private property in another 2 years. Just do a one time deduction also good! :o
Bought it for 460k a decade ago and highest selling price is 630k so far
If I sell at 630k I barely break even cos 80k paid to bank for interest since day one and need to redeem existing 200k outstanding loan fr bank
Plus need to put back accrued cpf interest of around 60k. Was looking at Thr Cpf housing loan statement it stated total I need to return 400k back to cpf .
If I return 400k assuming it's sold for 630, I still Have 23０k to redeem whatever outstanding with the bank and plus agent fee , prob break even
The big question is whether you need the cash now or not? If no pressing need for cash, as you have already paid the downpayment for your private property, then just rent out your HDB until such time you need it, then sell.
You may be crippled by the thought that most of the rental yield goes into interest payment to the bank. Well, don't forget that you are earning from rental too. Its a matter of just putting your money to work hard for you and the bank is helping you achieve that at a low cost. Selling your EA and keeping the money in the bank with a miserable interest rate is worse, isn't it? :doh: Unless you can invest those money then it goes back to the initial question of do you have need for it now!
However, should you sell, you don't have to worry about having more money pumped into your cpf coz can use it for your private property in another 2 years. Just do a one time deduction also good! :o
phantom_opera
31-10-11, 17:11
Without CPF grant / HDB loan @ 2.6%, will not have much capital gain, reality sucks. That's why I say never give up your HDB loan @ 2.6 and never sell if near MRT.
HDB rental near MRT should be at least 2.5k ...mortgage rate should be around 1.5%, the net rental yield is about 4.7% - 1.5% ... after minus agent/tax etc i think should get 2.5-3% yield
If you fully repaid your PC then just rent out lah ... if you still owe 1 million for your PC then sell.
Without CPF grant / HDB loan @ 2.6%, will not have much capital gain, reality sucks. That's why I say never give up your HDB loan @ 2.6 and never sell if near MRT.
HDB rental near MRT should be at least 2.5k ...mortgage rate should be around 1.5%, the net rental yield is about 4.7% - 1.5% ... after minus agent/tax etc i think should get 2.5-3% yield
If you fully repaid your PC then just rent out lah ... if you still owe 1 million for your PC then sell.
I didnt qualify for Hdb loan when I bought so have to look at bank loan instead and the rates are competitive . Thinking if I should then clear up my flat loan quickly. Not sure if Hdb resale price will go up any further in next few years . My flat installment is 900 a month so with rental of say 2k it will still be positive I guess tho a portion of the 900 goes into servicing interest
phantom_opera
31-10-11, 17:40
I didnt qualify for Hdb loan when I bought so have to look at bank loan instead and the rates are competitive . Thinking if I should then clear up my flat loan quickly. Not sure if Hdb resale price will go up any further in next few years . My flat installment is 900 a month so with rental of say 2k it will still be positive I guess tho a portion of the 900 goes into servicing interest
No one can decide for you lah, don't just look at the potential for resale price to go up as go down also not much downside in next 2y. Important thing is what is your gearing ratio and your annual income to debt ratio :2cents:
Bought it for 460k a decade ago and highest selling price is 630k so far
If I sell at 630k I barely break even cos 80k paid to bank for interest since day one and need to redeem existing 200k outstanding loan fr bank
Plus need to put back accrued cpf interest of around 60k. Was looking at Thr Cpf housing loan statement it stated total I need to return 400k back to cpf .
If I return 400k assuming it's sold for 630, I still Have 23０k to redeem whatever outstanding with the bank and plus agent fee , prob break even
My maths very poor. You bought at 460k, got 200k loan outstanding. But you must put back 400k in CPF?
My maths very poor. You bought at 460k, got 200k loan outstanding. But you must put back 400k in CPF?
Because of the accrued CPF interest plus whatever that's been paid to bank from the CPF which partially goes into servicing the interest ..
devilplate
01-11-11, 01:25
Because of the accrued CPF interest plus whatever that's been paid to bank from the CPF which partially goes into servicing the interest ..
Actually u still make a profit mah just tat can see no touch lor....hehehe
Tell u wat....just put ur hdb for sale now...ask 80k cov....if any offer come close den u decide lor
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