DK condo to rent out studio unit or buy 2 br private for investment?

[chan600]

Dear Seniors,

I have fully paid my current 5 room HDB and fulfilled MOP. I think my HDB already almost reached the highest selling price cos many BTO flating building on the way.

I would like to seek your advice for the following options:

1. Sell my current 5 room HDB and buy a Dual Key EC (rent out the studio unit)? In this case, I do not need to loan a lot of money after I sell my HDB. Less stressful for me. I can rent out the studio unit to get some income. I am staying with parent and kids so can buy under the new ruling.


2. Buy a 2br private condo for rental. In this case I can retain my current HDB but need to loan quite a lot of money to buy the 2br condo. This was my initial idea. However, looking at the property price going higher and higher, my saving seems to be "lesser and lesser".

Please give me your advice and suggestion.

Thanks in advance!

[nochoice]

Dear Seniors,

I have fully paid my current 5 room HDB and fulfilled MOP. I think my HDB already almost reached the highest selling price cos many BTO flating building on the way.

I would like to seek your advice for the following options:

1. Sell my current 5 room HDB and buy a Dual Key EC (rent out the studio unit)? In this case, I do not need to loan a lot of money after I sell my HDB. Less stressful for me. I can rent out the studio unit to get some income. I am staying with parent and kids so can buy under the new ruling.


2. Buy a 2br private condo for rental. In this case I can retain my current HDB but need to loan quite a lot of money to buy the 2br condo. This was my initial idea. However, looking at the property price going higher and higher, my saving seems to be "lesser and lesser".

Please give me your advice and suggestion.

Thanks in advance!

For me, in your case I'll go for option 1, cause for option 2, beside the loan amt, are you willing to pay the extra 7% ABSD?

[freesoul]

what about sell the HDB and buy 2 condos, 1 under your name and the other under your wife's name? so you don't have to pay the 7% ABSD

[Regulators]

Ask ten people here, 9 will tell you to keep hdb. Why would you want to buy two PC, live in one and get lousy yeild for one? might as well buy one PC and use hdb rental to finance the PC and hold on to cash until 2014/5 and buy another PC. Take my advice and you wont go wrong.

Dear Seniors,

I have fully paid my current 5 room HDB and fulfilled MOP. I think my HDB already almost reached the highest selling price cos many BTO flating building on the way.

I would like to seek your advice for the following options:

1. Sell my current 5 room HDB and buy a Dual Key EC (rent out the studio unit)? In this case, I do not need to loan a lot of money after I sell my HDB. Less stressful for me. I can rent out the studio unit to get some income. I am staying with parent and kids so can buy under the new ruling.


2. Buy a 2br private condo for rental. In this case I can retain my current HDB but need to loan quite a lot of money to buy the 2br condo. This was my initial idea. However, looking at the property price going higher and higher, my saving seems to be "lesser and lesser".

Please give me your advice and suggestion.

Thanks in advance!

[leesg123]

If he were to rent out hdb, buy a condo, tat would mean a big size one, at least 1.2m in current market. If he is willing to fork out close to $100k in absd, then he should proceed.

Thank goodness for cm7! Hdb should be release to the market when no longer needed.

[FREDDIE]

Ask ten people here, 9 will tell you to keep hdb. Why would you want to buy two PC, live in one and get lousy yeild for one? might as well buy one PC and use hdb rental to finance the PC and hold on to cash until 2014/5 and buy another PC. Take my advice and you wont go wrong.

Can rent out HBD and stay at PC meh.
illegal one.

[mosaic]

If he were to rent out hdb, buy a condo, tat would mean a big size one, at least 1.2m in current market. If he is willing to fork out close to $100k in absd, then he should proceed.

Thank goodness for cm7! Hdb should be release to the market when no longer needed.

Totally agree with you. HDB s main purpose should really be for people in specific income brackets who needs a roof over their heads, not a cash cow. It doesn t do the public any good when there s less and less HDB on the market because people are deciding to keep them for rental. Less supply and more frustration from people who really need a HDB to start a family. And yes, thank goodness for CM7.

[Regulators]

of course you can after the minimum occupation period

Can rent out HBD and stay at PC meh.
illegal one.

[Regulators]

even if a person has hdb n pc, they can only live in one. renting out hdb is not a bad thing especially when it provides housing for foreigners who do not want to spend so much on renting condos. the hdb can also be a place for the old to move back to for retirement after they decide to move out of the condo to reduce expenses. people are not exploiting hdb, it is just giving the well heeled greater options on what they decide to do with their assets. LKY already told everyone not to sell their hdb, so we are just following what he said.

Totally agree with you. HDB s main purpose should really be for people in specific income brackets who needs a roof over their heads, not a cash cow. It doesn t do the public any good when there s less and less HDB on the market because people are deciding to keep them for rental. Less supply and more frustration from people who really need a HDB to start a family. And yes, thank goodness for CM7.

[heehee]

As 10 people & you will get 10 different options, all say their option is the best, trust them will never go wrong?

Ask ten people here, 9 will tell you to keep hdb. Why would you want to buy two PC, live in one and get lousy yeild for one? might as well buy one PC and use hdb rental to finance the PC and hold on to cash until 2014/5 and buy another PC. Take my advice and you wont go wrong.

[chan600]

If he were to rent out hdb, buy a condo, tat would mean a big size one, at least 1.2m in current market. If he is willing to fork out close to $100k in absd, then he should proceed.

Thank goodness for cm7! Hdb should be release to the market when no longer needed.

You are right bro, I am staying with parent and children. If I buy a big size PC then will stretch too thin for me. At least 1.2Mil.

[chan600]

For me, in your case I'll go for option 1, cause for option 2, beside the loan amt, are you willing to pay the extra 7% ABSD?

For option 1, renting out the studio unit to stay with tenant is it a good idea? Will they keep knocking my door say this spoil or tat spoil? haha..

Hard to seperate the electrical bill rite? If they swith on the aircon 24 hours I will

[chan600]

Ask ten people here, 9 will tell you to keep hdb. Why would you want to buy two PC, live in one and get lousy yeild for one? might as well buy one PC and use hdb rental to finance the PC and hold on to cash until 2014/5 and buy another PC. Take my advice and you wont go wrong.

Actually I dun mind staying in current HDB. Initial plan was to carry on staying in HDB and buy a 2 br PC for investment. Now the 2 br is reaching 1Mil liao. Also there are many condo coming up, scare the rental yield will be affected.

[chan600]

even if a person has hdb n pc, they can only live in one. renting out hdb is not a bad thing especially when it provides housing for foreigners who do not want to spend so much on renting condos. the hdb can also be a place for the old to move back to for retirement after they decide to move out of the condo to reduce expenses. people are not exploiting hdb, it is just giving the well heeled greater options on what they decide to do with their assets. LKY already told everyone not to sell their hdb, so we are just following what he said.

Cos my kids are staying near my current HDB house. If I buy PC then will likely buy near my HDB also (within the same estate). I am thinking am I putting 2 eggs into one basket?

[mosaic]

even if a person has hdb n pc, they can only live in one. renting out hdb is not a bad thing especially when it provides housing for foreigners who do not want to spend so much on renting condos. the hdb can also be a place for the old to move back to for retirement after they decide to move out of the condo to reduce expenses. people are not exploiting hdb, it is just giving the well heeled greater options on what they decide to do with their assets. LKY already told everyone not to sell their hdb, so we are just following what he said.

I might agree with you if HDB supply isn t an issue and land wasn t a constraint. However taking into consideration the limitations we have, I think people should be allowed to own HDB or private, but not both at the same time. My suggestion is if we need low cost rental housing for the foreigners, we can set up an agency that manages a few block of flats around the island. Rental collected can go in part to recoup cost and partly to go to the low income group. However when there s a supply crunch, these flats should be realeased to first time singapore applicants looking to set up a family. Right now, the rental income from these flats are going to people who re owning multiple properties, and really just adds another zero to their bank account. Like you said it is going to the well heeled, and HDB isnt meant for the well heeled. It does the public or the nation no particular good. The system is also open to abuse and there re alot of people who rent out their flats illegally. Its just not possible to police them all.There re right now about 40,000+ HDB thats being sublet for various reasons. Imagine the good it will do when it goes to young families that genuinely want and need to start a family and pro create right now. Of course as an investor I agree with your point, but I m looking at things from the well being of our nation point of view.

[Regulators]

do you think even 100000 flats would be enough to house all the foreigners on the island? 1/4 n very soon slightly less than half of our population would be foreigners. your solution is too simplistic. there are so many foreigners who don't see the benefit of buying and would rather rent.

I might agree with you if HDB supply isn t an issue and land wasn t a constraint. However taking into consideration the limitations we have, I think people should be allowed to own HDB or private, but not both at the same time. My suggestion is if we need low cost rental housing for the foreigners, we can set up an agency that manages a few block of flats around the island. Rental collected can go in part to recoup cost and partly to go to the low income group. However when there s a supply crunch, these flats should be realeased to first time singapore applicants looking to set up a family. Right now, the rental income from these flats are going to people who re owning multiple properties, and really just adds another zero to their bank account. Like you said it is going to the well heeled, and HDB isnt meant for the well heeled. It does the public or the nation no particular good. The system is also open to abuse and there re alot of people who rent out their flats illegally. Its just not possible to police them all.There re right now about 40,000+ HDB thats being sublet for various reasons. Imagine the good it will do when it goes to young families that genuinely want and need to start a family and pro create right now. Of course as an investor I agree with your point, but I m looking at things from the well being of our nation point of view.

[leesg123]

Cos my kids are staying near my current HDB house. If I buy PC then will likely buy near my HDB also (within the same estate). I am thinking am I putting 2 eggs into one basket?

Mind telling us your estate? Sengkang? Tiong bahru? Punggol? Then qe have better advice for u.

[danguard]

but if fully paid might as well unlock the cash by reselling and then buy a decent PC stay in first take max loan while interest rate is low ... then keep the cash surplus until u see a value MM to buy for further investment in 2 separate names more worth no ?

[chan600]

Mind telling us your estate? Sengkang? Tiong bahru? Punggol? Then qe have better advice for u.

I am staying in Punggol.

If buying a PC in Punggol for investment then I think not too wise. Too many BTO and new EC may bring down the PC resale price next time. I may be wrong.

[leesg123]

I am staying in Punggol.

If buying a PC in Punggol for investment then I think not too wise. Too many BTO and new EC may bring down the PC resale price next time. I may be wrong.

You are right.

you can consider investing in a one bedroom mm (not studio) at ccr (D10). Freehold. Some are still asking for $8xxk. Rental about $3k. If you look hard enough, you can get some at $7xxk that are available for subsale 12mins walk to Orchard Ion.

[mcmlxxvi]

DK is an untested concept.

High risk.

Maybe you want to do a survey on potential tenants and see if given a choice whether they would go for a DK studio.

[price]

"Sales of new dual-key EC units will be restricted to multi-generational families only"

Risk of buying EC - Govt may disallow sublet of the studio unit within MOP?

DK is to encourage multi-generation living. Not multi-income generating asset

[chan600]

Thanks everyone for your comments!

I will consider again.