Sold my EC, go for resale?

[nutzz]

Hi gurus,

I have recently sold my EC as I need a bigger unit for my expanding family, given the current market it seems more viable to get a resale flat and stay for 5 years before looking into condos again. However resale prices are still relatively high, should I wait for another quarter to see whether the cooling measures will dampen the COV further?

Hope to learn from you guys

[devilplate]

Hi gurus,

I have recently sold my EC as I need a bigger unit for my expanding family, given the current market it seems more viable to get a resale flat and stay for 5 years before looking into condos again. However resale prices are still relatively high, should I wait for another quarter to see whether the cooling measures will dampen the COV further?

Hope to learn from you guys

which area u r looking at? right now COV around 2xk? ideally shd be around 15k? not much diff actually if the diff is less den 10k lor....dun wait for prices to correct lah....just look around and buy it if like it lor

mabe buy HDB better lor ....since sell high buy high mah but at least u 'deleverage' to HDB

[phantom_opera]

if near MRT expect COV > 20k hoh especially it is at Bishan near to the plot bought by CAPL

[AK47]

Price not really coming down, quite flat now. May still trend up or down but minimal.

I rather buy now.

[amk]

not a guru...

u r buying for own stay, and sell high buy high, no diff if u buy HDB or condo. In percentage wise, HDB price jumped higher than (resale) condos. Just the quantum of HDB looks smaller.

so if u can afford, I would say buy condo now. for own stay no real diff. HDB price looks very suspiciously peakish already; whereas private pricing, especially resale ones, should still have room to go, at least to match current new sale pricing.

[moomooteo]

If buying for own stay for HDB, I will say u have to buy now. Why?

1. Where is your alternative house or place to stay. If u need to rent, this is expenses and a much bigger amount than what u can save from the fall in COV.

2. How much more can the COV fall in 1Q. Another 5K or at most 10K. But how much have u spent on rent for these 2Q (assuming you found short term rental)? Worth it for all the hassle?

[phantom_opera]

The most financially risky thing can ever happen to you is without a roof in Singapore unless you plan to move overseas

[ocoloco79]

My take is buy condo, MOP of 5 years is hell!

[fooblackie]

My take is buy condo, MOP of 5 years is hell!

haha.. but now have cooling measures - stamp duty levy for 4 yrs. but in theory one can still bite the bullet and sell a pte.

think hdb pricing has more or less peaked. condo pricing has more upside i feel, even in today's mkt.

I sold my EC last year (apr) and bought a older pte (may). My pte has appreciated at least another $100k based on latest caveats lodged.

[amk]

Buy for own stay, SSD and stuff never mind one what

[nutzz]

which area u r looking at? right now COV around 2xk? ideally shd be around 15k? not much diff actually if the diff is less den 10k lor....dun wait for prices to correct lah....just look around and buy it if like it lor

mabe buy HDB better lor ....since sell high buy high mah but at least u 'deleverage' to HDB

I stay in the East, yeah that was my plan, cos I am looking at min size 1400sqft and above. Given the current market if I look into resale condos pricing are at least 1mil! A 5A or an EA in the same area is ard 500k. Either save the diff for rainy days and wait for opportunities or invest some to grow the pot.

[nutzz]

Thanks guys (and gals?) for your inputs, am definitely not renting as I have the option to temporarily stay at my parents place, thus I can have more time to find a unit, hoping to minimize the need to pay high COV

[nutzz]

My take is buy condo, MOP of 5 years is hell!

I did take into consideration of the MOP, as I may miss opportunities along the way...

But due to family commitments I do not wish to overstretch and live in agony too...sigh

[Komo]

Are you still allowed buy new EC? If can I will hoot one if I were you! many of them are very nice and comparable to private but lower price. get one with big big space!

[moomooteo]

I stay in the East, yeah that was my plan, cos I am looking at min size 1400sqft and above. Given the current market if I look into resale condos pricing are at least 1mil! A 5A or an EA in the same area is ard 500k. Either save the diff for rainy days and wait for opportunities or invest some to grow the pot.

A 5A in many areas are now min 500k and EA are around 600K+. Do not think HDB price can drop to a significantly lower levels. Why? HDB new BTO are priced around 400+ so for resale, cannot be below BTO level.

Secondly, a 1400sqf resale condo will be 1mil and above and I believe that will be the case for many years to come. For that is just 700+psf pricing. Unless u want to go for very old 99LH projects.

[wind30]

Hi gurus,

I have recently sold my EC as I need a bigger unit for my expanding family, given the current market it seems more viable to get a resale flat and stay for 5 years before looking into condos again. However resale prices are still relatively high, should I wait for another quarter to see whether the cooling measures will dampen the COV further?

Hope to learn from you guys

both me and my neighbour sold our EC in Sep 2009. I bought immediately as I am risk adverse. If you sell and buy at the same time, your potential returns is much less (similarly the risk is also less).

He sold and waited, living with his in-laws in the meantime......

[nutzz]

Are you still allowed buy new EC? If can I will hoot one if I were you! many of them are very nice and comparable to private but lower price. get one with big big space!

Yes I am allowed a second bite, however there is a waiting period of 30 months before I can apply (HDB rules) so no way I can wait that long...

[Fleur]

What about considerations for schools? Buy a resale near the upcoming downtown line, best if near to the fourth uni. Prices are still reasonable and may even be cheaper compared to say punggol in terms of pad.

[Fleur]

Sorry i meant Psf not pad

[TKT]

Actually the more I looked around, the more convinced I am that prices are heading down.

Reason is because there is simply so much supply being built and coming TOP in the next 1-2 years - dont take what I say, go read the analysts reports and take a drive around the island.

Not only are the private developers ramping up productions but more ominiously, large amounts of HDB BTO are coming to the market in record time and numbers.

Are there really that many new buyers and upgraders in this tiny island?
Are there enough buyers out there willing to pay $1m for a private property and be bogged with loans after loans for years to come - assuming kids come along the way too?
Are general incomes keeping pace with the general increases of property prices in the past 3-4 years?

Anyway, I'm holding on and still looking too!

[moomooteo]

Reason is because there is simply so much supply being built and coming TOP in the next 1-2 years - dont take what I say, go read the analysts reports and take a drive around the island.

Not only are the private developers ramping up productions but more ominiously, large amounts of HDB BTO are coming to the market in record time and numbers.

Anyway, I'm holding on and still looking too!

In 09, analysts said that recession will last for 2more years at least. What happened?
In 09, analysts said that prices will continue to fall all the way till Dec as there will be no demand and oversupply. What happened ? If analysts are all so great and accurate, you will not be still holding on and looking.

These new supply in private house will be scary if there is no takers when launched. But looking at our current situation, new launches are hot. Many are buying even with the 60%LTV. A lot of these projects are soldout. Let's assume there is a recession now. What will be the impact. If people can afford to pay the 40%, will they sell at loss?

As to the BTO flats, that is even a long chain. 3 years at least to wait for the flat to be built, 5years MOP>> meaning these will only be released into the market 8years down the road. If gov increases the amount of FT in SIN in these 8 years, these so called excesses will be easily mopped up. I do agree that some demand for the resale will be transferred to the BTO, but, those who need to buy resale usually cannot wait 3 years for the flat to be completed. There will still be demand.

[fooblackie]

I did take into consideration of the MOP, as I may miss opportunities along the way...

But due to family commitments I do not wish to overstretch and live in agony too...sigh

if you really have to get a big unit (>1400sqft), think you probably can choose one of the EAs in Seng Kang or Punggol. Those are really big and modern-looking with corridors to bedrooms, huge hall and dinning area, a study which is bigger than most pte bedrooms haha.

A resale EC at this size is hitting the roof. A 1,500 sqft unit in Park Green (EC) transacted at $1.1M!

So the pte dev at this size will cost much more.. therefore, you are wise not to over-stretch your budget at this pt. The only other choice is to rationalise the size of a pte apartment which is probably not your inclinations now.

[devilplate]

Not only are the private developers ramping up productions but more ominiously, large amounts of HDB BTO are coming to the market in record time and numbers.

HDB BTO supply its ok one la.....u oredi said its BTO.....furthermore, BTO takes about 3yrs to build and another 5yrs of MOP b4 its avail for resale.....so it will not affect the existing supply of resale HDBs until 6-8yrs later

as for oversupply of condos....i wud say next 2-3yrs....lots of projects TOP and mostly bot for investment....really depends on liquidity and rental support liao

[ocoloco79]

Actually the more I looked around, the more convinced I am that prices are heading down.

Reason is because there is simply so much supply being built and coming TOP in the next 1-2 years - dont take what I say, go read the analysts reports and take a drive around the island.

Not only are the private developers ramping up productions but more ominiously, large amounts of HDB BTO are coming to the market in record time and numbers.

Are there really that many new buyers and upgraders in this tiny island?
Are there enough buyers out there willing to pay $1m for a private property and be bogged with loans after loans for years to come - assuming kids come along the way too?
Are general incomes keeping pace with the general increases of property prices in the past 3-4 years?

Anyway, I'm holding on and still looking too!

Like what the experts here have said, for own stay can buy now, for investment then wait. No time is bad time to buy for own stay. I am so glad that I heeded the advises here and hold on to the pty hubby and I bought during Mar last year when everyone in our family, relatives, colleagues all urged us to back out the deal as prices are too high and sure come down, my pty of less than 1000sf cost close to 1k psf. I had since made a paper profit of around 100-200psf! Even if prices fall, it is ok, its for own stay and in future it will still appreciate. Most important is we like the place we bought.

[devilplate]

Like what the experts here have said, for own stay can buy now, for investment then wait. No time is bad time to buy for own stay. I am so glad that I heeded the advises here and hold on to the pty hubby and I bought during Mar last year when everyone in our family, relatives, colleagues all urged us to back out the deal as prices are too high and sure come down, my pty of less than 1000sf cost close to 1k psf. I had since made a paper profit of around 100-200psf! Even if prices fall, it is ok, its for own stay and in future it will still appreciate. Most important is we like the place we bought.

u r considering to sell for a profit wor rite?

[nutzz]

if you really have to get a big unit (>1400sqft), think you probably can choose one of the EAs in Seng Kang or Punggol. Those are really big and modern-looking with corridors to bedrooms, huge hall and dinning area, a study which is bigger than most pte bedrooms haha.

A resale EC at this size is hitting the roof. A 1,500 sqft unit in Park Green (EC) transacted at $1.1M!

So the pte dev at this size will cost much more.. therefore, you are wise not to over-stretch your budget at this pt. The only other choice is to rationalise the size of a pte apartment which is probably not your inclinations now.

Yup needed the space cos my kid is banging into furnitures whenever she walks lol. And with another coming they can start playing bumper babies soon

Definitely a roof is priority now, maybe after MOP of 5 years will look into investing in a second property, who knows what will happen by then

[Lovelle]

which EC did u sold ?

[ocoloco79]

u r considering to sell for a profit wor rite?

TEmpted wor, but hubby really like the place.. The more I visit, the more I grow to like it

[ysyap]

Yup needed the space cos my kid is banging into furnitures whenever she walks lol. And with another coming they can start playing bumper babies soon

Definitely a roof is priority now, maybe after MOP of 5 years will look into investing in a second property, who knows what will happen by then

Since a roof is priority, don't consider just the fear of buying a property that might depreciate in the short run. In general, property prices MUST rise, may not be immed but surely in the long run and buying for own stay will assure the long run appreciation of prices. More impt considerations include
1. Can you finance the monthly instalments
2. Accessibility to the house since your kids will be going into sch over the next 5 yrs as well as amenities conveniences.

Resale HDB is always good option but comes with loads of regulations like MOP. As you rightly pointed out, you may miss out on the next downturn in economy. Heard that such cycles comes every 7 yrs and the last one ended in 2008. Next one should come in 2015 and your MOP will last through 2016. Ouch!

The attraction if you buy HDB is you have extra cash to invest in other things other than properties. I also agree that if ur kids are playing bumper games, its really time to move. Children today are so different from kumpung times when 5 kids can squeeze into one room. Anyway, it still comes down to your financial ability.

Another point I thought is worth considering is the fact that you want to wait till COV comes down. But reports after reports suggest that though COV is softening, the valuation of HDB is still going up. So the overall prices are still high... bottomline... no point waiting. You might loose out even more.

Also, are you confident in wanting to invest in properties after your MOP is up in 5 yrs? Otherwise, you could have done so now... i.e. not sell your HDB and buy another private property and rent out HDB? Hmm... Sorry for being so blunt... just my immed thoughts w/o fully understanding your situation...

All the best in your search. I agree with another person that the ECs are coming out more in Seng Kang Punggol area so its worth considering there. Prices will surely go up in the future...

[nutzz]

Since a roof is priority, don't consider just the fear of buying a property that might depreciate in the short run. In general, property prices MUST rise, may not be immed but surely in the long run and buying for own stay will assure the long run appreciation of prices. More impt considerations include
1. Can you finance the monthly instalments
2. Accessibility to the house since your kids will be going into sch over the next 5 yrs as well as amenities conveniences.

Resale HDB is always good option but comes with loads of regulations like MOP. As you rightly pointed out, you may miss out on the next downturn in economy. Heard that such cycles comes every 7 yrs and the last one ended in 2008. Next one should come in 2015 and your MOP will last through 2016. Ouch!

The attraction if you buy HDB is you have extra cash to invest in other things other than properties. I also agree that if ur kids are playing bumper games, its really time to move. Children today are so different from kumpung times when 5 kids can squeeze into one room. Anyway, it still comes down to your financial ability.

Another point I thought is worth considering is the fact that you want to wait till COV comes down. But reports after reports suggest that though COV is softening, the valuation of HDB is still going up. So the overall prices are still high... bottomline... no point waiting. You might loose out even more.

Also, are you confident in wanting to invest in properties after your MOP is up in 5 yrs? Otherwise, you could have done so now... i.e. not sell your HDB and buy another private property and rent out HDB? Hmm... Sorry for being so blunt... just my immed thoughts w/o fully understanding your situation...

All the best in your search. I agree with another person that the ECs are coming out more in Seng Kang Punggol area so its worth considering there. Prices will surely go up in the future...

You are right on the COV going down while valuations are still high, I am hoping that with Livia TOPing soon, I may look at upgraders to sell their HDB to me (guess you guys know where I stay now)

Technically I missed the boat big time when the govt implemented the cooling measure to restrict pte property owners from buying resale HDB when my EC just MOPed. If not I would have gotten a resale then and stayed there, while renting out my EC.

With the cooling measures thus far I had to reset my plans to own an HDB as well as my first investment property.

Given my current financial capability ($1mil property max) and market prices, resale condos are out, thus my scenarios that I can think of are:

1) Buy a resale flat(5A or EA), pocket the diff, fulfill the MOP and wait for the next opportunity.
2) Stay with my parents for 30 months, then apply for a new EC as a second timer, but need to wait for the new EC to complete, which means extending my stay to almost 6 years! On top of that still need to satisfy the new EC MOP of 5 years which means I lose 11 years of my life waiting!
3) Buy an ulu or old or ulu AND old FH condo/apartment.

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