Why You Should Consider Upgrading Your Property

[Cheong Loo Lim]

In 2013, Singaporean saw HDB resale flat prices were flat and achieved a negative growth. Analysts forecasts HDB resale prices growth may further decline to -10%. This negative growth is contributed by the dropping prices of all HDB flats when the near 100,000 new flats are going to complete in the next 3 years or so. A 10% drop means losing an amount between $40,000 to $60,000 in asset value.

There are reasons why other HDB owners upgrading their properties:
1. Interest has been at the low side of between 1 and 2%.
2. Today is "Buyer" market in the Executive Condominium(EC) and Private Residential Property Market.
3. Developers have launched with attractive prices in Executive Condominium(EC) and mass market condominium.
4. Take the opportunity of your young age to upgrade to a higher standard of living while you have less commitment.
5. Consider it as a long term investment. To ensure greater capital appreciation of your property in the long term to unlock it during your golden years.

Majority of Singaporean's dream is to use HDB flat as an 'entry' level into residential property, stay in HDB for 5 or more years. Sell it for a profit to upgrade to an Executive Condominium(EC) or a Private Condominium to live with your loved ones.

[teddybear]

Buy private property while young and have a job is correct strategy because the older you are to buy, the worst off you will be under TDSR and the more likely you are to be out of job (or have bad employment history) and can't get passed TDSR anymore even if you have money in the bank (because these money are discounted (is it 60% or 30% of value?) compared to income in the calculation of TDSR)!

In 2013, Singaporean saw HDB resale flat prices were flat and achieved a negative growth. Analysts forecasts HDB resale prices growth may further decline to -10%. This negative growth is contributed by the dropping prices of all HDB flats when the near 100,000 new flats are going to complete in the next 3 years or so. A 10% drop means losing an amount between $40,000 to $60,000 in asset value.

There are reasons why other HDB owners upgrading their properties:
1. Interest has been at the low side of between 1 and 2%.
2. Today is "Buyer" market in the Executive Condominium(EC) and Private Residential Property Market.
3. Developers have launched with attractive prices in Executive Condominium(EC) and mass market condominium.
4. Take the opportunity of your young age to upgrade to a higher standard of living while you have less commitment.
5. Consider it as a long term investment. To ensure greater capital appreciation of your property in the long term to unlock it during your golden years.

Majority of Singaporean's dream is to use HDB flat as an 'entry' level into residential property, stay in HDB for 5 or more years. Sell it for a profit to upgrade to an Executive Condominium(EC) or a Private Condominium to live with your loved ones.

[walkthetiger]

Buy private property while young and have a job is correct strategy because the older you are to buy, the worst off you will be under TDSR and the more likely you are to be out of job (or have bad employment history) and can't get passed TDSR anymore even if you have money in the bank (because these money are discounted (is it 60% or 30% of value?) compared to income in the calculation of TDSR)!

If the up-grader is worry about out-of-job matter, they should stay at their subsidized HDB bought cheap where they had started, big and spacious, and at least a mature estate by now.

[teddybear]

They have cash and large liquid assets in banks and brokerages BUT are even more concern that their cash in bank is depreciating fast in value, no wonder S$ cash is considered at 70% value only and F$ cash is considered at only 30% of market value when calculating TDSR net worth! Also, shares, bonds etc also only valued at 30% of the market value when calculating TDSR!! Oh my gosh! No wonder people need to transfer money into hard physical assets like properties!

If the up-grader is worry about out-of-job matter, they should stay at their subsidized HDB bought cheap where they had started, big and spacious, and at least a mature estate by now.

[wt_know]

nonetheless, beware of falling knife and over-value unit
open eyes and ears big big before signing the dotted line
buying for own stay also does not change the fact "over-value"
and it's worst for buying own stay because the owner going to pay for whole life 25-30 years loan if the unit is for investment with yields