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Thread: Sell HDB and buy condo

  1. #1
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    Default Sell HDB and buy condo

    I have a fully paid HDB in prime location currently rented out. Is it a good idea to sell the HDB and use the money as 40% downpayment for a condo. I am thinking of long term capital gains and leveraging on the low home loan interest rate. What are your views.

  2. #2
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    where are you staying now then?

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    Quote Originally Posted by Santro
    I have a fully paid HDB in prime location currently rented out. Is it a good idea to sell the HDB and use the money as 40% downpayment for a condo. I am thinking of long term capital gains and leveraging on the low home loan interest rate. What are your views.
    Where are you staying now?

    If you sell ur only home, u are allowed to take 80% loan right?

    I will always keep a HDB if i could and continue to buy more condos while renting out my first HDB

  4. #4
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    I am living in a condo.
    Was wondering if its a good idea to leverage on the low home loan interest rate.I dont see major HDB capital appreciation in future.


    Quote Originally Posted by price
    Where are you staying now?

    If you sell ur only home, u are allowed to take 80% loan right?

    I will always keep a HDB if i could and continue to buy more condos while renting out my first HDB

  5. #5
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    Quote Originally Posted by Santro
    I am living in a condo.
    Was wondering if its a good idea to leverage on the low home loan interest rate.I dont see major HDB capital appreciation in future.
    But what's the point? so u upgrade ur HDB rental to a PC rental income? and if u get a BUC PC ur stuck with no rental for a few years.

    Ur first post already said u are looking into the long term cap gain. Then i believe in the long term probably this HDB will bring u good CG as well?

  6. #6
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    Quote Originally Posted by Santro
    I am living in a condo.
    Was wondering if its a good idea to leverage on the low home loan interest rate.I dont see major HDB capital appreciation in future.
    Cant help but to agree no major cap appreciation for hdb, if u looking at cap appre, sell now, but if u looking for rental gains, should keep. Hdb gives highest rental yields, condo can't fight.

  7. #7
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    Quote Originally Posted by price
    But what's the point? so u upgrade ur HDB rental to a PC rental income? and if u get a BUC PC ur stuck with no rental for a few years.

    Ur first post already said u are looking into the long term cap gain. Then i believe in the long term probably this HDB will bring u good CG as well?
    Under kbw hard to see upside. Downside more likely.

  8. #8
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    Quote Originally Posted by Montaigne
    Under kbw hard to see upside. Downside more likely.
    yep but for his case, hes gonna be keeping an extra ppty anyway. So whats the point of changing a HDB to a PC rental? i dunno Unless the HDB are those Queesntown/Bishan or the new TPY near 1mil pricing unit? then perhaps its a good choice. Sell HDB buy 2 MMs. each rent 2.5k

  9. #9
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    yeah lor. Thats what I am thinking as well. Highly unlikely that I will move back to HDB. Rental yield is really good but limited upside.

    Quote Originally Posted by Montaigne
    Under kbw hard to see upside. Downside more likely.

  10. #10
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    Bro, your guess on the location is right..its Queenstown/Redhill area.

    Quote Originally Posted by price
    yep but for his case, hes gonna be keeping an extra ppty anyway. So whats the point of changing a HDB to a PC rental? i dunno Unless the HDB are those Queesntown/Bishan or the new TPY near 1mil pricing unit? then perhaps its a good choice. Sell HDB buy 2 MMs. each rent 2.5k

  11. #11
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    Quote Originally Posted by price
    yep but for his case, hes gonna be keeping an extra ppty anyway. So whats the point of changing a HDB to a PC rental? i dunno Unless the HDB are those Queesntown/Bishan or the new TPY near 1mil pricing unit? then perhaps its a good choice. Sell HDB buy 2 MMs. each rent 2.5k
    For cap appre, even better to buy fh mm in good location. As long got rental yield can hoot.

  12. #12
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    Thats what I am thinking as well. Also, risk is split to 2 units instead of 1.

    Quote Originally Posted by Montaigne
    For cap appre, even better to buy fh mm in good location. As long got rental yield can hoot.

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    Quote Originally Posted by Santro
    Bro, your guess on the location is right..its Queenstown/Redhill area.
    hehe i guessed as much. So u can choose to cash out and buy 2 studio units at suites @ PL for e.g. TOP end of the year get rental income again! Or if u dun mind having no rental for awhile, get those in geylang! 4xxk

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    Quote Originally Posted by Santro
    Bro, your guess on the location is right..its Queenstown/Redhill area.
    If I m u I will sell. Then hoot 2 fh mm...

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    Quote Originally Posted by Montaigne
    For cap appre, even better to buy fh mm in good location. As long got rental yield can hoot.
    Casa Cambio, Suites @ Paya Lebar, The Vue, Where else got FH near MRT (Non Geylang)

  16. #16
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    but now price too high to buy anything leh

  17. #17
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    No lah. Wont get 1 mio, maybe 600-700k. Plan to get one unit right away after selling the HDB and then keep the remaining $$ and continue to save to get another one.

    Quote Originally Posted by Montaigne
    If I m u I will sell. Then hoot 2 fh mm...

  18. #18
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    Not really a Geylang fan.
    I dont mind new 99yr if the location is good.

    Quote Originally Posted by price
    Casa Cambio, Suites @ Paya Lebar, The Vue, Where else got FH near MRT (Non Geylang)

  19. #19
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    agree HDB capital upside is limited. if it is good location, probably good to cash out the profit. few years down the road, HDB probably stagnant or reach the ceiling. should cash out and enjoy profit first, reinvest into PC. the capital gain for PC is definitely better than HDB (but risk of price falling is also higher). as long can hold on when price drop, it will rebounce again

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    Quote Originally Posted by price
    Casa Cambio, Suites @ Paya Lebar, The Vue, Where else got FH near MRT (Non Geylang)
    The vue near mrt meh?? Fh near mrt got new one coming, promenade@pelikat. If 2 bedders priced below 1.1kpsf after discount will consider. Mixed dev. Waiting for more details from my agent. They started collecting cheques. Suites@pl and casa almost sold out, good units all taken, not much choices left. Anyway he/she may not choose d19. Can afford maybe can go for ccr, now relatively cheaper.

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    Quote Originally Posted by Santro
    Not really a Geylang fan.
    I dont mind new 99yr if the location is good.
    Trust me, 99LH location good, u will be trading ur HDB to 1 bedder MM nia. WT suites 5xx-6xxk, Bedok resi 7xxk. How to get good location LH99 with 600k?

    if u wanna get LH99 x 2 MM maybe only poor location like PRW. 398k

  22. #22
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    Quote Originally Posted by price
    Trust me, 99LH location good, u will be trading ur HDB to 1 bedder MM nia. WT suites 5xx-6xxk, Bedok resi 7xxk. How to get good location LH99 with 600k?

    if u wanna get LH99 x 2 MM maybe only poor location like PRW. 398k
    Now no more $398k lo.. Those who got it at that price lucky for them.

  23. #23
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    Was thinking of getting back to the borrowing mode lah.
    so eg Bedok Resi, 7xxK - Pay 40% (abt 300+k)and rest loan.
    Remaining $ keep and save to make another 40% to buy next one.

    Quote Originally Posted by price
    Trust me, 99LH location good, u will be trading ur HDB to 1 bedder MM nia. WT suites 5xx-6xxk, Bedok resi 7xxk. How to get good location LH99 with 600k?

    if u wanna get LH99 x 2 MM maybe only poor location like PRW. 398k

  24. #24
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    Quote Originally Posted by Montaigne
    The vue near mrt meh?? Fh near mrt got new one coming, promenade@pelikat. If 2 bedders priced below 1.1kpsf after discount will consider. Mixed dev. Waiting for more details from my agent. They started collecting cheques. Suites@pl and casa almost sold out, good units all taken, not much choices left. Anyway he/she may not choose d19. Can afford maybe can go for ccr, now relatively cheaper.
    Oh ya, the vue i think needs 15mins walk.

    But he wants 2 x MM..

    4xx-5xxk theres only D19, maybe certain parts of D15/16 and D14?

    can try Sycamore tree if u dun mind 355sqft MM also mixed development. Starts from 4xxk after their relaunch. not sure if there are anymore 4xx-5xxk MMs in D15 liao. mostly sold out!

    D16 upcoming mixed development east village should be around high 5xxk. Suites @ Eastcoast should be fully sold?

    D19 perhaps nearer to MRT would be around kovan area. Serangoon are mostly around 8-15mins walk.

  25. #25
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    Quote Originally Posted by Santro
    Was thinking of getting back to the borrowing mode lah.
    so eg Bedok Resi, 7xxK - Pay 40% (abt 300+k)and rest loan.
    Remaining $ keep and save to make another 40% to buy next one.
    Integrated projects like bedok and WT got no more 7xxk units. Maybe u can offer Xan 7xxk for his WT 1bedder

  26. #26
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    Quote Originally Posted by price
    Integrated projects like bedok and WT got no more 7xxk units. Maybe u can offer Xan 7xxk for his WT 1bedder
    Congrats that you are in a good situation.

    Keep your good class HDB and enjoy healthy cash flow due to the ease of rent and good yield.

    Where to find maint fee at $75 and low property tax of less $1k for PC?
    Govt is subsidizing your yield as nothing much can be done without affecting general HDB dwellers.

    Enjoy your cash moo....

  27. #27
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    Quote Originally Posted by Santro
    Was thinking of getting back to the borrowing mode lah.
    so eg Bedok Resi, 7xxK - Pay 40% (abt 300+k)and rest loan.
    Remaining $ keep and save to make another 40% to buy next one.
    How much you rented out now? 3k/mth?

    My suggestion is to keep HDB and continue to rent it out. Save all the rental yield for purchase of your MM in few years time.

    One of the major mistake you make is to clear up all the HDB loan. You should keep the cash or refinance with private bank.

    With the additional cash and yield gain, you should be able to save up faster for your MM.

  28. #28
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    Quote Originally Posted by espeyap
    How much you rented out now? 3k/mth?

    My suggestion is to keep HDB and continue to rent it out. Save all the rental yield for purchase of your MM in few years time.

    One of the major mistake you make is to clear up all the HDB loan. You should keep the cash or refinance with private bank.

    With the additional cash and yield gain, you should be able to save up faster for your MM.
    Agreed. Once u sell HDB can never buy back again !!

  29. #29
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    Yes. Abt 3k/mth. Thats the main reason why I am a bit hesitant. Whether to just hold on as long as I can or cash out.


    Quote Originally Posted by espeyap
    How much you rented out now? 3k/mth?

    My suggestion is to keep HDB and continue to rent it out. Save all the rental yield for purchase of your MM in few years time.

    One of the major mistake you make is to clear up all the HDB loan. You should keep the cash or refinance with private bank.

    With the additional cash and yield gain, you should be able to save up faster for your MM.

  30. #30
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    I will sell the HDB. And invest in a *resale* private.
    Imagine tomorrow KBW says no renting for HDB. Guaranteed HDB resale px will drop.

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