Drawback of selling flats to buy bigger private units

[Kelonguni]

Drawback of selling flats to buy bigger private units
PUBLISHED ON MAY 9, 2014 12:28 AM  0 5 0 0
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IT HAS been decades since the HDB was set up with the mission of providing affordable homes for Singaporeans ("Why condo units are shrinking" by Ms Chan Suan Yen; Wednesday).

Since then, we have gone from Third World to First in terms of lifestyle and wealth.

Many HDB residents have become rich enough to upgrade to private property. Others choose to invest in small private properties to rent out for passive income.

It is unwise to suggest that they be made to sell their flats so they can purchase bigger private apartments. If their circumstances change, they would be in big trouble. Buying an HDB flat then would be difficult and they may even be left without a roof over their heads.

It seems the only avenue of investment most of us know of is purchasing property for renting out. There is either a lack of alternative forms of investment here, or a lack of knowledge of these options.

Foreigners working in Singapore and their families create demand for smaller and cheaper apartments. Singaporeans are wise to capitalise on this demand.

Frederick Ho

[leesg123]

No, not lack of alternatives.
But these alternatives are too high cost (need to feed many middlemen's commissions). End of the day, the one who benefits from such alternative investments are the provider themselves. Property is you OWN it.

Drawback of selling flats to buy bigger private units
PUBLISHED ON MAY 9, 2014 12:28 AM  0 5 0 0
PRINT
EMAIL
 

IT HAS been decades since the HDB was set up with the mission of providing affordable homes for Singaporeans ("Why condo units are shrinking" by Ms Chan Suan Yen; Wednesday).

Since then, we have gone from Third World to First in terms of lifestyle and wealth.

Many HDB residents have become rich enough to upgrade to private property. Others choose to invest in small private properties to rent out for passive income.

It is unwise to suggest that they be made to sell their flats so they can purchase bigger private apartments. If their circumstances change, they would be in big trouble. Buying an HDB flat then would be difficult and they may even be left without a roof over their heads.

It seems the only avenue of investment most of us know of is purchasing property for renting out. There is either a lack of alternative forms of investment here, or a lack of knowledge of these options.

Foreigners working in Singapore and their families create demand for smaller and cheaper apartments. Singaporeans are wise to capitalise on this demand.

Frederick Ho

[Kelonguni]

No, not lack of alternatives.
But these alternatives are too high cost (need to feed many middlemen's commissions). End of the day, the one who benefits from such alternative investments are the provider themselves. Property is you OWN it.

Well, yes and no. When you purchase property, whether for own stay or for investment, you will be paying the "middleman" this:

• Agent Fees (for both new and old properties)
• BSD
• ABSD
• Other conveyance and lawyer fees
• Property Tax
• Income Tax (rental property)
• Maintenance and Repair Fees
• SSD (when you sell within 4 years)
• Renovation
• Loan interest (which might be used to offset income partially)

Some other things which will be a taboo to mention here. So you have got to do your own cost-benefit analysis.