View Full Version : Advice needed
Hi gurus and seniors,
I'm quite new to property investment and would like to seek some advice from the old birds here.
I have a family of 2 kids and currently staying in an HDB flat. We have saved up a bit and we're looking at buying a condo to bring up the kids (pool, security etc). Here's our situation:
HDB MOP: 9 months to go to hit 5 years. We took up HDB grant during point of purchase.
Current HDB financing: HDB loan at 2.6%
Financial situation: Sufficient to pay up the balance of HDB loan and 20% of $1.2m+- condo (thereabouts)
Preference: To keep the HDB and buy the condo
I understand that we can only buy after the MOP is up. So can you all advice what's the best option for me now? Should I just clear up the HDB loan? And assuming I want to buy a 2nd residential property in future, can I use CPF funds to partially fund it?
Or what would you do if you were in my shoes?
All inputs appreciated. Thanks.
If I will you this is what I will do.
Go for the next cherry, look for the biggest one you can buy (EC).
After 6 CM there are little meat left on the table, keep your cash and wait for the next cycle.
5 October 2012
The Singapore government on 5 October introduced a new round of cooling measures restricting home loans. Starting from 6 October, mortgages for HDB and private properties can only span 35 years, and those wanting loans longer than 30 years or beyond their retirement age of 64 will only be able to borrow up to 60 percent of the property price, the Monetary Authority of Singapore (MAS) announced. Previously there was no time limit on house loans.
7 December 2011
Additional Buyer's Stamp Duty for
a stable and sustainable property market
http://www.ura.gov.sg/pr/text/2011/pr11-162.html
14 January 2011.
The Government announced today the following measures to maintain a stable and sustainable property market:
Increase the holding period for imposition of Seller’s Stamp Duty (SSD) from the current three years to four years;
Raise the SSD rates to 16%, 12%, 8% and 4% of consideration for residential properties which are bought on or after 14 January 2011, and are sold in the first, second, third and fourth year of purchase respectively;
Lower the Loan-To-Value (LTV) limit to 50% on housing loans granted by financial institutions regulated by MAS for property purchasers who are not individuals1; and
Lower the LTV limit on housing loans granted by financial institutions regulated by MAS from 70% to 60% for property purchasers who are individuals with one or more outstanding housing loans2 at the time of the new housing purchase;
30 August 2010.
1 The Government announced today the following measures to maintain a stable and sustainable property market:
Increase the holding period for imposition of Seller’s Stamp Duty (SSD) from the current one year to three years.
For property buyers who already have one or more outstanding housing loans1 at the time of the new housing purchase:
Increase the minimum cash payment from 5% to 10% of the valuation limit2; and
Decrease the Loan-to-Value (LTV) limit for housing loans granted by financial institutions regulated by MAS to these buyers from the current 80% to 70%.
19 Feb 2010
Introducing a Seller’s Stamp Duty (SSD)
Lowering the Loan-to-Value (LTV) limit to 80%
1 Mr Mah Bow Tan, the Minister for National Development, announced today that the Government would take the following measures to ensure a stable and sustainable property market:
Reinstatement of the Confirmed List for the 1st Half 2010 Government Land Sales (GLS) Programme.
14 Sep 2009.
Removal of the Interest Absorption Scheme (IAS) and Interest-Only Housing Loans (IOL), with effect from today, i.e. 14 Sep 2009.
Non-extension of the Jan 2009 Budget assistance measures for the property market when the measures expire
http://www.iras.gov.sg/irasHome/page04.aspx?id=10098
You can use cpf as Lon as 50% of min sum is left in cpf. It's abt 69.5k incl oa plus sa
Hi gurus and seniors,
I'm quite new to property investment and would like to seek some advice from the old birds here.
I have a family of 2 kids and currently staying in an HDB flat. We have saved up a bit and we're looking at buying a condo to bring up the kids (pool, security etc). Here's our situation:
HDB MOP: 9 months to go to hit 5 years. We took up HDB grant during point of purchase.
Current HDB financing: HDB loan at 2.6%
Financial situation: Sufficient to pay up the balance of HDB loan and 20% of $1.2m+- condo (thereabouts)
Preference: To keep the HDB and buy the condo
I understand that we can only buy after the MOP is up. So can you all advice what's the best option for me now? Should I just clear up the HDB loan? And assuming I want to buy a 2nd residential property in future, can I use CPF funds to partially fund it?
Or what would you do if you were in my shoes?
All inputs appreciated. Thanks.
$1.2 mil budget can only go for 99LH OCR now for 3 bedroom. Location is important. Keep e HDB.
The MOST SOLID advice....
:cheers5:
If I will you this is what I will do.
Go for the next cherry, look for the biggest one you can buy (EC).
After 6 CM there are little meat left on the table, keep your cash and wait for the next cycle.
The MOST SOLID advice....
:cheers5:
Kids cannot wait. This is one of the upgraders' dream and the big push of OCRs' prices: to bring up kids in a secured environment with condo facilities for them to use. Best if of course, stay near to their parents and workplace also.
Kids cannot wait. This is one of the upgraders' dream and the big push of OCRs' prices: to bring up kids in a secured environment with condo facilities for them to use. Best if of course, stay near to their parents and workplace also.
Understand... For investment or security?? He mentioned both.... Which takes higher priority??? Then decide accordingly...
Honestly, to me Singapore already secure leh.... So it should be for kids to enjoy facilities... Just have to decide....
So in this case, have to buy resale lor... If buy new launch or buc, still have to wait.
:spliff:
As some already pointed out... you need at least $70k in your OA and SA cpf account in order to use it for 2nd property, regardless if you have paid up your HDB loan or not.
Please bear in mind that you need to pay 40% LTV for 2nd property if your loan tenure exceeds 30 years with no outstanding loan (aka hdb loan for you) or beyond 65 years old, so if you only have 20%, can or not? Otherwise choose EC better... don't overcommit. :cheers5:
ikan bilis
23-12-12, 08:28
loan: 960K, 30yr (assuming <35yr old), sibor+1%
sibor = 0.5%, IR=1.5% : $3313.15/month
sibor = 2.0%, IR=3% : $4047.40/month
sibor = 4.0%, IR=5% : $5153.49/month
got to make sure hdb can always be rented out, else dual-key ec might be better choice... $1.2m can get a very very good ec.... :rolleyes:
loan: 960K, 30yr (assuming <35yr old), sibor+1%
sibor = 0.5%, IR=1.5% : $3313.15/month
sibor = 2.0%, IR=3% : $4047.40/month
sibor = 4.0%, IR=5% : $5153.49/month
got to make sure hdb can always be rented out, else dual-key ec might be better choice... $1.2m can get a very very good ec.... :rolleyes:
Quite solid foundation, particularly if both are working. HDB will enjoy good rental ahead.
wait the 9mths out, coz due to mop u cant pay up the loan n immediately buy pc rite.
meanwhile juz pray no more cm next 9 mths. but i wouldnt bet on it. theres been talk next one will target ec and or concurrent hdb pc ownership.
phantom_opera
23-12-12, 09:25
another 用心良苦
if u dun pay up HDB loan, 60% LTV for 2nd loan, if pay up HDB ... u give up your 2.6% privilege for 30y
Allthepies
23-12-12, 09:29
If ur current HDB is in a good environment (new, near mrt, near schools, near parents, near public pool, near CC etc), you may consider staying in HDB, spend some money refurbishing/renovating you current HDB.
Your condo purchase should be an investment, rent tat out. At 1.2mil, you prob can only get a new smallish 3bedders for staying (it is prob smaller than ur HDB). :2cents: :2cents:
Hi gurus and seniors,
I'm quite new to property investment and would like to seek some advice from the old birds here.
I have a family of 2 kids and currently staying in an HDB flat. We have saved up a bit and we're looking at buying a condo to bring up the kids (pool, security etc). Here's our situation:
HDB MOP: 9 months to go to hit 5 years. We took up HDB grant during point of purchase.
Current HDB financing: HDB loan at 2.6%
Financial situation: Sufficient to pay up the balance of HDB loan and 20% of $1.2m+- condo (thereabouts)
Preference: To keep the HDB and buy the condo
I understand that we can only buy after the MOP is up. So can you all advice what's the best option for me now? Should I just clear up the HDB loan? And assuming I want to buy a 2nd residential property in future, can I use CPF funds to partially fund it?
Or what would you do if you were in my shoes?
All inputs appreciated. Thanks.
If I were u, I will not own a $1.2 mil condo by myself....I will find a partner, eg siblings, so tat I don't over commit..... tis strategy has proved successful for me! once u tasted success, u will be confident for ur third one
phantom_opera
23-12-12, 09:46
b4 u rush out to buy your 1.2m condo (which most likely will end up as 1.4m) ... sing this song first see whether u get the hint
春已走花又落,用心良苦卻成...
Hi.. I would strongly recommend you to buy.
Do not procasinate and if you are comfortable paying off HDB and down 20% for the other unit, please go ahead.
No risk, no return la.
I just want to add another point (the rest like Chestnut, Phantom, etc all all experts in this area) ... My other point is ... pls dont assume u will always be employed (if you are using your employment income to fund the purchase) ...
Flower dont have 100 days of rosiness.
DKSG
:hell-hath-no-fury:
Hi gurus and seniors,
I'm quite new to property investment and would like to seek some advice from the old birds here.
I have a family of 2 kids and currently staying in an HDB flat. We have saved up a bit and we're looking at buying a condo to bring up the kids (pool, security etc). Here's our situation:
HDB MOP: 9 months to go to hit 5 years. We took up HDB grant during point of purchase.
Current HDB financing: HDB loan at 2.6%
Financial situation: Sufficient to pay up the balance of HDB loan and 20% of $1.2m+- condo (thereabouts)
Preference: To keep the HDB and buy the condo
I understand that we can only buy after the MOP is up. So can you all advice what's the best option for me now? Should I just clear up the HDB loan? And assuming I want to buy a 2nd residential property in future, can I use CPF funds to partially fund it?
Or what would you do if you were in my shoes?
All inputs appreciated. Thanks.
NOw is the time to sell residential(consider the CMs and other goverment policies AT THIS MOMENT, of course, the wondreful part is policy can be lifted in the future too), if want to buy for investment, consider other options(where there are not many present or future unforseen restrictions) such as commercial...:2cents:
Hi.. I would strongly recommend you to buy.
Do not procasinate and if you are comfortable paying off HDB and down 20% for the other unit, please go ahead.
What if :
1) Next CM curb renting out HDB, then have to stay HDB rent out PC ? Lose you objective of buying PC.
2) Cant rent out PC (OCR PCs have this very big risk most people dont know).
3) Lose job, if using employment income to fund PC.
4) To play safe to mitigate above, leave $60K Over and Above Minimum Sum to fund instalments.
In summary, if the figures quoted are cheongster numbers, then better not. Peace at home and with family more important. If the figures quoted have another $100-200K buffer, then I think can still cheong.
DKSG
:hell-hath-no-fury:
NOw is the time to sell residential(consider the CMs and other goverment policies AT THIS MOMENT, of course, the wondreful part is policy can be lifted in the future too), if want to buy for investment, consider other options such as commercial...:2cents:
This one I totally agree - the commercial part!
But for residential, DONT SELL now ... refer to the Serpent thread for more info ... We are at the beginning of something now, dont sell resi ...
At least rent to company, as long as company is doing well, it will be there for years and years. Tenants in residential are super fluid.
Go Commercial!
DKSG
Allthepies
23-12-12, 10:07
Yup stay in HDB and prepare to grab a condo for investment.
Property is only one form of investment.... There are many other forms... The issue is the homework involved. Hahahahahaha
From 06 - 12, how many % did property go up? Look at ppi....
Do u expect it to double in the next 6 yrs??? Hahahahahaha if it happens, not many people gonna afford OCR condos...
:cheers5: :cheers5:
All the big mney has been made.... To me, now is just hedging against inflation... So minimal growth. Hahahahaha
No big money to be made in the property market. However do not foresee more than 20% price correction in future too due to CMs.
This time round, government acted really fast.
No big money to be made in the property market. However do not foresee more than 20% price correction in future too due to CMs.
This time round, government acted really fast.
yeah, IF price goes up, another CM comes in..so the price will be clamped..with more and more GLS and economy putting a braking action in further increase in expatriates..nothing to be cheerful about unless properties bought are at good location and not at RECENT price (referring to OCR)where a slight correction will burn you hard...:2cents:
yeah, IF price goes up, another CM comes in..so the price will be clamped..with more and more GLS and economy putting a braking action in further increase in expatriates..nothing to be cheerful about unless properties bought are at good location and not at TODAY price where a slight correction will burn you hard...:2cents:
Like Office Boy said many many times since Oct 11, prices will continue to inch up 1% every month/quarter. So property is still a good investment.
That is how property market supposed to be. Those days where prices up 25% a year, those are unsustainable and will result in crashes.
And I think this 1% increase every month/quarter is what government is looking at ... if it goes below this, they always have a choice to roll back the CMs.
DKSG
This one I totally agree - the commercial part!
But for residential, DONT SELL now ... refer to the Serpent thread for more info ... We are at the beginning of something now, dont sell resi ...
At least rent to company, as long as company is doing well, it will be there for years and years. Tenants in residential are super fluid.
Go Commercial!
DKSG
really piss off when they drop lease to 30 yr..
:banghead::banghead:
Understand... For investment or security?? He mentioned both.... Which takes higher priority??? Then decide accordingly...
Honestly, to me Singapore already secure leh.... So it should be for kids to enjoy facilities... Just have to decide....
So in this case, have to buy resale lor... If buy new launch or buc, still have to wait.
:spliff:
Security is one issue, another push to move into pte gated housing is no need see people kick soccer at void deck, play guitar at void deck, strangers loiting at void deck or along corridor.
b4 u rush out to buy your 1.2m condo (which most likely will end up as 1.4m) ... sing this song first see whether u get the hint
春已走花又落,用心良苦卻成...
Dont be so negative......... better to vested in something other than hdb sooner than later right?
ikan bilis
23-12-12, 12:12
http://www.youtube.com/watch?v=oWPn7uN6JOs
keep it simple, just wait out the MOP 1st, is only 9 mths more.
All the big mney has been made.... To me, now is just hedging against inflation... So minimal growth. Hahahahaha
I think this thought by chestnut bro probably summed it up pretty well for me.
Thanks for all the inputs. It's well appreciated.
My only regret is that I chose to buy HDB 4 years ago instead of a cheaper condo. My HDB only appreciated by about 30% max in the 4 years while the condo I was also considering at that time had appreciated by 50%. And it was a larger quantum.
Anyway, I think I'll monitor and see how the prices go. Once interest rates start to inch up, I can foresee more selling of PCs in the resale market.
All the big mney has been made.... To me, now is just hedging against inflation... So minimal growth. Hahahahaha
+1 :cheers5:
ikan bilis
23-12-12, 14:22
I think this thought by chestnut bro probably summed it up pretty well for me.
Thanks for all the inputs. It's well appreciated.
My only regret is that I chose to buy HDB 4 years ago instead of a cheaper condo. My HDB only appreciated by about 30% max in the 4 years while the condo I was also considering at that time had appreciated by 50%. And it was a larger quantum.
Anyway, I think I'll monitor and see how the prices go. Once interest rates start to inch up, I can foresee more selling of PCs in the resale market.
from your this description hor,... it sounds like you bought a resale hdb before 30 Aug 2010, and mop should be 2.5yr-3yr and not 5yrs... ;)
http://www.hdb.gov.sg/fi10/fi10322p.nsf/w/SellFlatMinimumOccupationPerid
Like Office Boy said many many times since Oct 11, prices will continue to inch up 1% every month/quarter. So property is still a good investment.
That is how property market supposed to be. Those days where prices up 25% a year, those are unsustainable and will result in crashes.
And I think this 1% increase every month/quarter is what government is looking at ... if it goes below this, they always have a choice to roll back the CMs.
DKSG
Based on your projection, residential prices would continue to increase bet 5-10% per year, every year, probably beating inflation.
So in 3 years time, those OCR/.RCR condos which are already currently hitting close to 2000pfs should reach 2300-2500pfs in 3 years time if no other new factors come into play?
If that is the case, everyone who can afford loans/with cash should rush in right now
I believe 2-3% annual price growth is what the government would like to see. Negative after inflation adjustment.
However, it will be compensated with low mortgage rates and fairly strong occupancy rates.
Wah, u damn sharp hor.. Machiam like the teeth in your avator. If bot direct hdb, should have more than 40% leh....
from your this description hor,... it sounds like you bought a resale hdb before 30 Aug 2010, and mop should be 2.5yr-3yr and not 5yrs... ;)
http://www.hdb.gov.sg/fi10/fi10322p.nsf/w/SellFlatMinimumOccupationPerid
ikan bilis
23-12-12, 17:34
Wah, u damn sharp hor.. Machiam like the teeth in your avator. If bot direct hdb, should have more than 40% leh....
no-lah, => bto needs 2-3yr construction, walk-in/sales-of-balance-flat chances super low to get....
No risk, no return la.
I just want to add another point (the rest like Chestnut, Phantom, etc all all experts in this area) ... My other point is ... pls dont assume u will always be employed (if you are using your employment income to fund the purchase) ...
Flower dont have 100 days of rosiness.
DKSG
Can stay with parents and then rent out both units.
Security is one issue, another push to move into pte gated housing is no need see people kick soccer at void deck, play guitar at void deck, strangers loiting at void deck or along corridor.
It depends on the design actually. Those built before 2000 seem to have more of this problem. But the newer designs do manage to limit this.
I think this thought by chestnut bro probably summed it up pretty well for me.
Thanks for all the inputs. It's well appreciated.
My only regret is that I chose to buy HDB 4 years ago instead of a cheaper condo. My HDB only appreciated by about 30% max in the 4 years while the condo I was also considering at that time had appreciated by 50%. And it was a larger quantum.
Anyway, I think I'll monitor and see how the prices go. Once interest rates start to inch up, I can foresee more selling of PCs in the resale market.
Depends on where you bought also. The condo i aimed for went up by 100% but my HDB went up by 200%. a little longer than your time frame though.
Think you got the misconception: Interest rate going up will not see more selling in resale market. In fact, interest rate starting to go up from rock bottom will push up the private property prices much more! :ashamed1:
Contrary to most bearish views, me think property prices will go up steadily but slowly (no fast up movements), at least until 2018... Price up slow but at least better than putting money in the bank, and better than most other investments available... Another consolidation: Interest rate will stay rock bottom until at least end-2015... :D
I think this thought by chestnut bro probably summed it up pretty well for me.
Thanks for all the inputs. It's well appreciated.
My only regret is that I chose to buy HDB 4 years ago instead of a cheaper condo. My HDB only appreciated by about 30% max in the 4 years while the condo I was also considering at that time had appreciated by 50%. And it was a larger quantum.
Anyway, I think I'll monitor and see how the prices go. Once interest rates start to inch up, I can foresee more selling of PCs in the resale market.
This one hor, I would advise you all to be very very careful especially now! :doh:
:hell-hath-no-fury:
NOw is the time to sell residential(consider the CMs and other goverment policies AT THIS MOMENT, of course, the wondreful part is policy can be lifted in the future too), if want to buy for investment, consider other options(where there are not many present or future unforseen restrictions) such as commercial...:2cents:
Think you got the misconception: Interest rate going up will not see more selling in resale market. In fact, interest rate starting to go up from rock bottom will push up the private property prices much more! :ashamed1:
Contrary to most bearish views, me think property prices will go up steadily but slowly (no fast up movements), at least until 2018... Price up slow but at least better than putting money in the bank, and better than most other investments available... Another consolidation: Interest rate will stay rock bottom until at least end-2015... :D
Hi teddybear, can you explain this reasoning? I would have thought higher interest rates wld mean greater holding costs and compressed yields, hence more selling. Also it becomes more costly to purchase, so less buying as well. thanks
I am also in a similar position to TS. mid 30s, HDB paid up, looking to invest in a PC. But the OCR prices and location are a big turn off.
from your this description hor,... it sounds like you bought a resale hdb before 30 Aug 2010, and mop should be 2.5yr-3yr and not 5yrs... ;)
http://www.hdb.gov.sg/fi10/fi10322p.nsf/w/SellFlatMinimumOccupationPerid
Erm... mine was a resale flat bought under cpf housing grant... so MOP is 5 years.
Reason very simple: When interest rate starts to move up from rock bottom, the only reason to make interest rate increase is because economy has finally started to show real recovery. When this happen, income of most people will increase, many more people will have more confident to commit on that private properties they are eyeing, and those kiasi ones will also start to cheong in (they have money in pocket but unwilling to buy because of kiasi), so obviously will go up more! For property prices to crash down, you need at least an interest rate above 6%, which we are unlikely to see before 2019... :p
Hi teddybear, can you explain this reasoning? I would have thought higher interest rates wld mean greater holding costs and compressed yields, hence more selling. Also it becomes more costly to purchase, so less buying as well. thanks
I am also in a similar position to TS. mid 30s, HDB paid up, looking to invest in a PC. But the OCR prices and location are a big turn off.
Bro, u are absolutely correct.... But you will bump into this question again and again and again..
Reason very simple: When interest rate starts to move up from rock bottom, the only reason to make interest rate increase is because economy has finally started to show real recovery. When this happen, income of most people will increase, many more people will have more confident to commit on that private properties they are eyeing, and those kiasi ones will also start to cheong in (they have money in pocket but unwilling to buy because of kiasi), so obviously will go up more! For property prices to crash down, you need at least an interest rate above 6%, which we are unlikely to see before 2019... :p
Based on your projection, residential prices would continue to increase bet 5-10% per year, every year, probably beating inflation.
So in 3 years time, those OCR/.RCR condos which are already currently hitting close to 2000pfs should reach 2300-2500pfs in 3 years time if no other new factors come into play?
If that is the case, everyone who can afford loans/with cash should rush in right now
What you just mentioned is EXACTLY what an agent will tell you ... ie con you ... how can you draw a straight line ? What I say is applicable for 2013 only ... Whatever is going to happen in 2014, you have to wait till 2013 ending then can tell ...
So, to make it easier for you ... 2013 property price index will move up between 4-12%. Happy ?
DKSG
From the many posts here, we can conclude that demand for PCs remain vey strong with many young people at the sidelines ready to make purchases in the short term.
In 2013, more and more people will realize that the thought of prices moderating will diminish day by day and the other fact that will come to mind is what Mr Quek said : "If you dont buy today, tomorrow's prices will be higher!"
DKSG
PS : I am vested, but also looking to buy the next and next next one.
What you just mentioned is EXACTLY what an agent will tell you ... ie con you ... how can you draw a straight line ? What I say is applicable for 2013 only ... Whatever is going to happen in 2014, you have to wait till 2013 ending then can tell ...
So, to make it easier for you ... 2013 property price index will move up between 4-12%. Happy ?
DKSG
I place my bet on DKSG. But only if homework is done. If u buy overvalued property - good LUCK.
Wah, bro u damn rich... I going to apply office boy job liao... Any recommendation? I think I in wrong industry and job. Hahahaha.
Merry Christmas
From the many posts here, we can conclude that demand for PCs remain vey strong with many young people at the sidelines ready to make purchases in the short term.
In 2013, more and more people will realize that the thought of prices moderating will diminish day by day and the other fact that will come to mind is what Mr Quek said : "If you dont buy today, tomorrow's prices will be higher!"
DKSG
PS : I am vested, but also looking to buy the next and next next one.
+1 :o
The anal-lis would says, barring any unforeseen circumstances, the price would move up modestly..... Don't expect it to drops for nothing...:p
Maybe those CMs can be very good hints. Once there is indication that CM going to be removed one by one, be careful, watch out. That is when you should not catch the dropping knife. :scared-4: :2cents:
What you just mentioned is EXACTLY what an agent will tell you ... ie con you ... how can you draw a straight line ? What I say is applicable for 2013 only ... Whatever is going to happen in 2014, you have to wait till 2013 ending then can tell ...
So, to make it easier for you ... 2013 property price index will move up between 4-12%. Happy ?
DKSG
From the many posts here, we can conclude that demand for PCs remain vey strong with many young people at the sidelines ready to make purchases in the short term.
In 2013, more and more people will realize that the thought of prices moderating will diminish day by day and the other fact that will come to mind is what Mr Quek said : "If you dont buy today, tomorrow's prices will be higher!"
DKSG
PS : I am vested, but also looking to buy the next and next next one.
I place my bet on DKSG. But only if homework is done. If u buy overvalued property - good LUCK.
+1 :cheers5:
If I will you this is what I will do.
Go for the next cherry, look for the biggest one you can buy (EC).
After 6 CM there are little meat left on the table, keep your cash and wait for the next cycle.
biggest EC will cost 1.2m+/-. that means they will not have much cash left in the next downturn, assuming 60% LTV. furthermore, in the next downturn, the prices of ppty if drop.. the EC also will drop. when your house value has dropped, whatever spare cash you have, you will not dare to throw into a 2nd ppty. you will keep for rainy day.
furthermore, no passive income from HDB.
If ur current HDB is in a good environment (new, near mrt, near schools, near parents, near public pool, near CC etc), you may consider staying in HDB, spend some money refurbishing/renovating you current HDB.
Your condo purchase should be an investment, rent tat out. At 1.2mil, you prob can only get a new smallish 3bedders for staying (it is prob smaller than ur HDB). :2cents: :2cents:
this is good advice. i would have done the same.
No risk, no return la.
I just want to add another point (the rest like Chestnut, Phantom, etc all all experts in this area) ... My other point is ... pls dont assume u will always be employed (if you are using your employment income to fund the purchase) ...
Flower dont have 100 days of rosiness.
DKSG
bro, although i strongly and fully agree with this point... but this is exactly the point that made me too conservative all these years. if i had assumed that i would have full employment, i would have bought my first condo 5 years back. instead i had conscientiously saved up to make sure i have enuff buffer. as it is, over the last 5 yrs, my income more than doubled and no single day of unemployment. as bro chestnut had said, must plan forward.
and we know what happened in the last 5 years for ppty prices. :banghead: :banghead: :banghead: :banghead:
so.. . .no risk no return is correct lah.
phantom_opera
24-12-12, 08:40
Nobody can give any sound advice unless more personal info is divulged e.g. family income, how secure is your job, whether you have Godfathers in case of emergency, insurance adequacy, CPF, asset vs liabilities, gearing ratio after buying etc
That is what a financial consultant is all about, go get one :2cents:
Nobody can give any sound advice unless more personal info is divulged e.g. family income, how secure is your job, whether you have Godfathers in case of emergency, insurance adequacy, CPF, asset vs liabilities, gearing ratio after buying etc
That is what a financial consultant is all about, go get one :2cents:
Financial consultant will offer him to buy unit trusts or insurance instead.
phantom_opera
24-12-12, 09:25
Financial consultant will offer him to buy unit trusts or insurance instead.
http://calvy.files.wordpress.com/2011/02/12543-strip.gif
Financial consultant will offer him to buy unit trusts or insurance instead.
Agree...:cheers1: their interest and yours are not aligned...
Fully capable of losing money on my own....:D
What you just mentioned is EXACTLY what an agent will tell you ... ie con you ... how can you draw a straight line ? What I say is applicable for 2013 only ... Whatever is going to happen in 2014, you have to wait till 2013 ending then can tell ...
So, to make it easier for you ... 2013 property price index will move up between 4-12%. Happy ?
DKSG
Thank you.
You might wish to consider doing some national service by getting your success story featured in ST and that can certainly can inspire the thousands of office boys, maybe their dreams can also come thru one day like yours:)
Merry Christmas!
bro, although i strongly and fully agree with this point... but this is exactly the point that made me too conservative all these years. if i had assumed that i would have full employment, i would have bought my first condo 5 years back. instead i had conscientiously saved up to make sure i have enuff buffer. as it is, over the last 5 yrs, my income more than doubled and no single day of unemployment. as bro chestnut had said, must plan forward.
and we know what happened in the last 5 years for ppty prices. :banghead: :banghead: :banghead: :banghead:
so.. . .no risk no return is correct lah.
You are not alone.
One very old man once told me "Young man, you just worry too much of one thousand and one things. If I were to be your age and have a stable income, I will sell off your tiny place and I will stretch myself to the limit and ka, ka hoot as big a landed as I possibly could.'' If only I have listened to the wise old man.....
After 6 CM there are little meat left on the table, keep your cash and wait for the next cycle.
paisei, just curious, with due respect,
not too long ago, aren't you grumbling about bank do not want to extend more loan to u, causing u unable to buy another unit?
have you change your mind ?
phantom_opera
24-12-12, 10:50
buy or not buy?? :D
http://www.acting-man.com/blog/media/2012/12/The-Compromise.jpg
Back to original question - should I pay off the HDB loan first since I have excess cash sitting in my bank account? After all, it's 2.64% interest rate...
paisei, just curious, with due respect,
not too long ago, aren't you grumbling about bank do not want to extend more loan to u, causing u unable to buy another unit?
have you change your mind ?
I was trying to exchange my 5 room HDB 99 years leasehold to a 1 Bedroom Freehold condo at Skygreen for my retirement.
Back to original question - should I pay off the HDB loan first since I have excess cash sitting in my bank account? After all, it's 2.64% interest rate...
http://investmentmentor.com.au/news/from-the-desk/why-you-must-never-pay-off-your-home-loan/#sthash.XWGTKqgI.dpbs
Why You Must Never Pay Off Your Home Loan
Let’s say you have a $400,000 loan on your home… And let’s say inflation is running at 3% per year. This means the real value of your loan would be diminished by 3% per year… or $12,000 each year.
By maintaining those borrowings and NOT paying them down, time and inflation is paying down the debt for you… at a rate of $12,000 per year. In time, what starts out to be a sizeable loan shrinks to almost nothing!
Most people can’t easily boost their income to pay an extra $12,000 down each year. However, if you let it, inflation will do the work for you.
Even though this news is startling for many real estate investors, it’s only part of the story. That’s because you also free up the money you were previously putting towards principal! And now you can use this money to secure another property.
- See more at: http://investmentmentor.com.au/news/from-the-desk/why-you-must-never-pay-off-your-home-loan/#sthash.XWGTKqgI.dpuf
http://investmentmentor.com.au/news/from-the-desk/why-you-must-never-pay-off-your-home-loan/#sthash.XWGTKqgI.dpbs
Why You Must Never Pay Off Your Home Loan
Let’s say you have a $400,000 loan on your home… And let’s say inflation is running at 3% per year. This means the real value of your loan would be diminished by 3% per year… or $12,000 each year.
By maintaining those borrowings and NOT paying them down, time and inflation is paying down the debt for you… at a rate of $12,000 per year. In time, what starts out to be a sizeable loan shrinks to almost nothing!
Most people can’t easily boost their income to pay an extra $12,000 down each year. However, if you let it, inflation will do the work for you.
Even though this news is startling for many real estate investors, it’s only part of the story. That’s because you also free up the money you were previously putting towards principal! And now you can use this money to secure another property.
- See more at: http://investmentmentor.com.au/news/from-the-desk/why-you-must-never-pay-off-your-home-loan/#sthash.XWGTKqgI.dpuf
Thanks mate. Good perspective.
But in the context of Singapore, where we have to pay of the 1st mortgage to secure a higher LTV for the 2nd property, I reckon it's only a matter of time b4 I pay off the HDB loan otherwise I'll be capped at only 60% LTV. Do you agree on this?
The_Way_I_See_It
24-12-12, 15:52
No risk, no return la.
I just want to add another point (the rest like Chestnut, Phantom, etc all all experts in this area) ... My other point is ... pls dont assume u will always be employed (if you are using your employment income to fund the purchase) ...
Flower dont have 100 days of rosiness.
DKSG
I like this one - pls dont assume u will always be employed (if you are using your employment income to fund the purchase) ...
Flower don't have 100 days of rosiness.
Hence a very sure strategy will be - Plse make sure that you can self-employed yourself somehow or know of a mean to do it. Then yes go ahead you are guranteed to be OK.:D :D :D
I like this one - pls dont assume u will always be employed (if you are using your employment income to fund the purchase) ...
Flower don't have 100 days of rosiness.
Hence a very sure strategy will be - Plse make sure that you can self-employed yourself somehow or know of a mean to do it. Then yes go ahead you are guranteed to be OK.:D :D :D
self employed also got problem one...not 100% good business everytime...
:o
Uniformed civil servants should have least worries.
if everyone do this or only buy when they are like what you say, then thru out 2012 or even way back, you can cut away at least 70% of the transactions...I just give my own estimation pluck from the air...out of 10, maybe only 3 can be self employed anytime and is not dependent of their employment income??:o
saying is always easy and how is reality different from ideal? always debatable...:2cents:
as the saying goes, do your own calculated risk. what if unemployed? u still can depend on XXX, and what if XXX dont work out, you still have XXXX to depend on and so on...life goes on. :)
my opinion i see so far, buy property not only depends on the market situation but also depends on your own readiness.
Even if the mkt is down, and the opportunity is so great to go in...so what? do you have enough cash for down payment and is your job stable and do you have enough reserve and so on...
And when the mkt is up so what?? now you have enough cash and enough reserve and seems like time to go in?? And if you dont go in now, your age is catching up, risk will increase and blablabla...
many many factors. Enough to give you sleepless nights even when you have enough bullets because it is a big big investment.
calculated risk...:2cents:
I like this one - pls dont assume u will always be employed (if you are using your employment income to fund the purchase) ...
Flower don't have 100 days of rosiness.
Hence a very sure strategy will be - Plse make sure that you can self-employed yourself somehow or know of a mean to do it. Then yes go ahead you are guranteed to be OK.:D :D :D
http://www.stproperty.sg/articles-property/property-analysis-reports/property-buyer-research-supply-demand-stock-and-price-trends-june-2012/a/98061
We would like to clarify the limitation of this “demand” data. This refers only to actual sales, it does not however measure latent, pent up demand or demand that cannot afford current prices. At a population of 4.5m in 2006, the sales (demand) is in the range of 9000 units, at 5.2m in 2012, a 16% increase of population could put equilibrium “demand” at around 10,440 units. With current regulation and policies where many non PR foreigners are not buying much, these demand are more or less considered true local demand (i.e. demand from Singaporeans and Singapore Permanent Residents PR).
Therefore true long term average demand may be in the range of 10,440 housing units per year, based on the above assumption. So, is 15,904 housing unit sales in 2011 an anomaly or a newer long term trend supported by the squeeze in HDB flat supply and hence mass market upgrading?
Think you got the misconception: Interest rate going up will not see more selling in resale market. In fact, interest rate starting to go up from rock bottom will push up the private property prices much more! :ashamed1:
Contrary to most bearish views, me think property prices will go up steadily but slowly (no fast up movements), at least until 2018... Price up slow but at least better than putting money in the bank, and better than most other investments available... Another consolidation: Interest rate will stay rock bottom until at least end-2015... :D
It is an open infor that the residential price will inch up slowly(due to CMs and recent policies) and the interest stays low till 2015 unless job and inflation changes in US..AND ..imagine a fellow put in a 40% to 60% for a residential unit and see the price inch up 1 %(a general figure for a district ) and has to wait for sometime before can sell to avoid tax and in the mean time cross finger....hmm...this strategy may be suited for some...:rolleyes:
This one hor, I would advise you all to be very very careful especially now! :doh:
Just happen to cross path with the below caveat info of just ONE of super old commercial projects..
Possible reason:
CM? None at the moment
CM future? highly not possible, why? I think gurus here know bettter and can list out all reasons ..
news on minister response to MP recently who question on CM of commercial is very interesting...
if comparing pricing of residential HK to SG, jumping out of the chair is not exaggerating if compare commercial respectively...
care to guess looking forward which has an easy, faster and bigger ROOM for your pillow money TO move up in pricing Presently? residential or commercial? Risk? both of them also have...
Sold
onAddressTypeUnit area
(sq ft)Sale price
($psf)Bought
onPurchase price
($psf)Profit
($)2012-11-16#XX-XXShop54912,7512010-02-179,0722,019,7712012-09-24#XX-XXShop5496,5582011-07-064,6451,050,2372012-09-04#XX-XXShop3446,9102005-11-212,5551,498,1202012-08-13#XX-XXShop3445,5162009-08-143,194798,7682012-07-27#XX-XXShop3238,1072000-12-112,3231,868,232
Sold on
Address Type
Unit area(sq ft)
Sale price($psf)
Bought on
Purchase price($psf)
Profit($)
2012-11-16
#XX-XXShop
549
12,751
2010-02-17
9,072
2,019,777
12012-09-24
#XX-XXShop
549
6,558
2011-07-06
4,645
1,050,237
2012-09-04
#XX-XXShop
344
6,910
2005-11-21
2,555
1,498,120
2012-08-13
#XX-XXShop
344
5,516
2009-08-14
3,194
798,768
2012-07-27
#XX-XXShop
323
8,107
2000-12-11
2,323
1,868,232
If I were u, I will not own a $1.2 mil condo by myself....I will find a partner, eg siblings, so tat I don't over commit..... tis strategy has proved successful for me! once u tasted success, u will be confident for ur third one
for sibling if 60 years already and widowed ahe other sibling has a second property but can afford the loan, will it breech any EC condo rules of application?
Sold on
Address Type
Unit area(sq ft)
Sale price($psf)
Bought on
Purchase price($psf)
Profit($)
2012-11-16
#XX-XXShop
549
12,751
2010-02-17
9,072
2,019,777
12012-09-24
#XX-XXShop
549
6,558
2011-07-06
4,645
1,050,237
2012-09-04
#XX-XXShop
344
6,910
2005-11-21
2,555
1,498,120
2012-08-13
#XX-XXShop
344
5,516
2009-08-14
3,194
798,768
2012-07-27
#XX-XXShop
323
8,107
2000-12-11
2,323
1,868,232
Thanks for info! Any reasons why cannot post the property details ?
DKSG
Brudder, money will take the least resistance path....
Machiam like electricity.... You have 2 paths, if you put a resistor on one path, the current will flow more to the other path....
It was already like this when CM came out.... You need to be a few steps ahead to make the big buck.... But when u go commercial, u really must do due diligence hor..... There are many types of commercial.... I not vested, but I studied this market as well.... Hahahahahaha
Just happen to cross path with the below caveat info of just ONE of super old commercial projects..
Possible reason:
CM? None at the moment
CM future? highly not possible, why? I think gurus here know bettter and can list out all reasons ..
news on minister response to MP recently who question on CM of commercial is very interesting...
if comparing pricing of residential HK to SG, jumping out of the chair is not exaggerating if compare commercial respectively...
care to guess looking forward which has an easy, faster and bigger ROOM for your pillow money TO move up in pricing Presently? residential or commercial? Risk? both of them also have...
Sold
onAddressTypeUnit area
(sq ft)Sale price
($psf)Bought
onPurchase price
($psf)Profit
($)2012-11-16#XX-XXShop54912,7512010-02-179,0722,019,7712012-09-24#XX-XXShop5496,5582011-07-064,6451,050,2372012-09-04#XX-XXShop3446,9102005-11-212,5551,498,1202012-08-13#XX-XXShop3445,5162009-08-143,194798,7682012-07-27#XX-XXShop3238,1072000-12-112,3231,868,232
Copper cable are popular with most people but gold cable is for special group of people.
Brudder, money will take the least resistance path....
Machiam like electricity.... You have 2 paths, if you put a resistor on one path, the current will flow more to the other path....
It was already like this when CM came out.... You need to be a few steps ahead to make the big buck.... But when u go commercial, u really must do due diligence hor..... There are many types of commercial.... I not vested, but I studied this market as well.... Hahahahahaha
NOw is the time to sell residential(consider the CMs and other goverment policies AT THIS MOMENT, of course, the wondreful part is policy can be lifted in the future too), if want to buy for investment, consider other options(where there are not many present or future unforseen restrictions) such as commercial...:2cents:
yeah, IF price goes up, another CM comes in..so the price will be clamped..with more and more GLS and economy putting a braking action in further increase in expatriates..nothing to be cheerful about unless properties bought are at good location and not at RECENT price (referring to OCR)where a slight correction will burn you hard...:2cents:
sometime back, still discussing, today (last nite 12am)residential got CM, industrial got CM, commercial will be :cool1: :cool1: :cool1: ..your guess:2cents:
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