View Full Version : By EC Now
posting on behalf of a friend who wasn't able to register an account here. Please provide your valuable 2 cents to him. Thank you.
Hi,
My wife and I have been pondering over this for quite some time, and we have not reached a conclusion. So I will like to seek some advice here.
My wife and I are both in our forties and we have a teenage kid. We live in a 5rm flat in Sengkang that has some 100k+ outstanding loan remaining. We opted not to pay off the loan as we always have a plan to purchase a private property as an investment.
Eventually, our intention is to have 2 properties, one for collecting rent.
Option 1 - Buy EC now
There are a lot of ECs in Sengkang and Punggol. With the current prices, the ECs are very attractive option as the psf gap with private condos is widening. It is still possible to buy ECs at 600+~700+ psf around my area. My wife works part time and our combined pay is still within 12k threshold. So buying an EC has a very high chance of making a good profit in the future. We should be able to fully pay off the EC w/o taking any loan.
EC concern 1: We will be tied for the next 8 years as assuming 3 years needed to built the new EC and 5 years MOP. Within this period, I can only have one property. By then my kid would have completed her uni studies and working already and I will be in my fifties. I plan to semi-retire around this age.
EC concern 2: We are 2nd timers so our chances of getting an EC are very slim. Are we allowed to walk-in purchase the leftover units or returned units?
EC concern 3: there are many ECs in Sengkang/Punggol so we must be prepared to live in it ourselves if we purchase one as we will have to compete with fellow ECs and HDB'ers for rentals.
EC concern 4: 8 years is a very long time so we are not sure if we are able to afford a 2nd private property then. Especially when we are actually planning to semi-retire by then.
EC concern 5: If we sell the EC 8 years later and purchase a resale flat, we will be tied for another 5 years of MOP.
Option 2 - stick to HDB for now
Our HDB is one LRT station away from the MRT and some 600~700m from the future hospital in Sengkang. So we're thinking that it may increase our chances of renting out our flat.
Some of my foreign colleagues who used to stay in condos have downgraded to HDB. So with property prices still soaring, HDB rentals should still be attractive.
Currently, we can only afford a private property in the range of 800k due to the new 40% loan policy from govt. If we save up these 2~3 years we should be able to easily afford one that is ~1m. We just need a 2 bedder as our family is small. We can either continue to live in our flat and rent out the private property or vice versa.
Eventually, we prefer to live in a smaller unit as we are getting older and we do not have a maid to do the housework.
Condo concern 1: prices may runaway beyond our reach within next few years.
So if you were in our shoes will you try to get an EC now? It is a low risk investment because of its low psf now and we have a high chance of taking some decent profit in 8 years. However, it will be hard for us for own a 2nd property to collect passive income which is part of our retirement plan.
If you have better ideas we will really appreciate if you could share.
Thank you very much!
assuming mkt doesn't crash or correct significantly:
most ideal scenario is downgrade to hdb 3rm resale flat, and use the extra proceeds to invest condo. but not sure any extra profit left, and not sure any regulations in place to prevent this.
What's the point of moving from one hdb to another ?
You recognise your budget constraints so the MOP is one of the pre conditions of that option that you have to live with.
Well.. If I am in the forties and want to do this.. Enjoy lifestyle and plan for retirement. Probably do what a lot of them are doing right now.
Rent out the HDB and buy a 2 bedder pte condo to live in. Since the TS only wants a 2 bedder and have $800k budget and dont mind sengkang.
best rule : invest within your mean.
don't let greed overun you :)
ikan bilis
28-11-12, 09:06
wow !!.... me small fish got small brain only,.... it sounds so complicated and confused the small fish.... so small fish asks simple questions...
1. first, why wanna come in now, when price is already high ??...
2. why so complex analysis ??.... like could be already into too much details and missed the big picture ??... too long planning into the future also ??... watch out could get stuck in that loop/trap forever...
3. why die die want everything so perfect one ??... want big cheap EC, and then want hdb rental... and then... like that might be self making own life very difficult leh...
:confused:
:cheers4: ;)
Dun over depend the HDB rental to cover your condo loan payment as loan interest will bounce to 3~4% eventually. If your household income after deducted from expenses, left about 3~5K spare monthly then You are safe to go ahead else it's too risky :scared-1: :scared-1: :scared-1: .
All in all, buy within your mean....:cheers1: !
If qualify buy ec if price is below 1000, but not sengkang area. U are better off buying a smaller unit at good location, than big unit at lousy location. Maybe JLD. Even if we have price correction, not all properties will crash. Affordability will still be the king. U are at the age that if you don't buy now, u will never buy. But if u don't have the stomach, just enjoy your money and your life. U are not missing anything if you don't own 5 properties.
Even if we have price correction, not all properties will crash. .
correction: Not all properties will crash as much.
Amber Woods
28-11-12, 10:07
I believe the current law does not allow one to buy new EC and still keep your HDB flat. Your friend will need to dispose off his HDB flat within six month of getting his key to his new EC unless he buys resale EC at market price.
posting on behalf of a friend who wasn't able to register an account here. Please provide your valuable 2 cents to him. Thank you.
I believe the current law does not allow one to buy new EC and still keep your HDB flat. Your friend will need to dispose off his HDB flat within six month of getting his key to his new EC unless he buys resale EC at market price.
That's correct - this rule already says it all (no need to consider so many factors).
....
So if you were in our shoes will you try to get an EC now? It is a low risk investment because of its low psf now and we have a high chance of taking some decent profit in 8 years. However, it will be hard for us for own a 2nd property to collect passive income which is part of our retirement plan.
If you have better ideas we will really appreciate if you could share.
Thank you very much!
Not sure what this means .. whether your fren is planning to get EC but still keep HDB? not possible
assuming mkt doesn't crash or correct significantly:
most ideal scenario is downgrade to hdb 3rm resale flat, and use the extra proceeds to invest condo. but not sure any extra profit left, and not sure any regulations in place to prevent this.
if downgrade to 3rm flat u cannot buy condo for 5 years..otherwise i would do it..BEST option;)
Similar situation as me i chose the dark side...:D..keep hdb and buy NEW pc....hopefully nO kok up...then in many years time i will be owner of hdb-pc:cheers1:
Similar situation as me i chose the dark side...:D..keep hdb and buy NEW pc....hopefully nO kok up...then in many years time i will be owner of hdb-pc:cheers1:
I thought it's just the beginning for u....ultimately....HDB - 2/3x PC owner....:D !
Allthepies
28-11-12, 11:47
A certain type of EC will fulfill ur requirements of "owning" 2 units... buy that...
Buying EC as 2nd timer really much depend on luck, n onhand HDB have to be dispose.
Those already launch had 90% sold till date, those going to launch is looking at 800psf on ave and that is very close to a PC in Punggol.
Considering negative points of having 99LH, MOP, lower build quality to PC, location, defer payment of additional 2% on top of listed price, no grant, no rental in 5yrs MOP..I think PC does gives better options.
Still EC dual key unit is the best bet I would consider.
The law on hdb rental may change.....nver know.....But u can buy EC for ur kids future.....if u can take some risks.......I already bought PCs for my 3 kids future....I am also 40+.....since my wife don't want to buy.... I buy with my sisters lor.......
Singapore is small and land is limited. In long run, it will go up.
For sure, all those countries with a lot of lands will not understand.
Look at Hong Kong... even Penang state.:D
If got bullet, just go ahead.
Singapore is small and land is limited. In long run, it will go up.
For sure, all those countries with a lot of lands will not understand.
Look at Hong Kong... even Penang state.:D
If got bullet, just go ahead.
Yes, got bullet and able to pull the trigger. Now my finger is itching but run out of bullet.
What I will do.
Eat another cherry, go for another HDB, mature estate.
Before getting the loan, shift all the CPF to blue chip.
After selling HDB, hold the cash and shift back the share to CPF.
Wait for the crash or help your kid to get a HDB or EC.
I thought it's just the beginning for u....ultimately....HDB - 2/3x PC owner....:D !
yes bro now i need seed money 40% DP leh and 3% absd for next one....waiting to strike toto/4d:D:D:D
The_Way_I_See_It
28-11-12, 15:48
posting on behalf of a friend who wasn't able to register an account here. Please provide your valuable 2 cents to him. Thank you.
Hi,
My wife and I have been pondering over this for quite some time, and we have not reached a conclusion. So I will like to seek some advice here.
My wife and I are both in our forties and we have a teenage kid. We live in a 5rm flat in Sengkang that has some 100k+ outstanding loan remaining. We opted not to pay off the loan as we always have a plan to purchase a private property as an investment.
Eventually, our intention is to have 2 properties, one for collecting rent.
Option 1 - Buy EC now
There are a lot of ECs in Sengkang and Punggol. With the current prices, the ECs are very attractive option as the psf gap with private condos is widening. It is still possible to buy ECs at 600+~700+ psf around my area. My wife works part time and our combined pay is still within 12k threshold. So buying an EC has a very high chance of making a good profit in the future. We should be able to fully pay off the EC w/o taking any loan.
EC concern 1: We will be tied for the next 8 years as assuming 3 years needed to built the new EC and 5 years MOP. Within this period, I can only have one property. By then my kid would have completed her uni studies and working already and I will be in my fifties. I plan to semi-retire around this age.
EC concern 2: We are 2nd timers so our chances of getting an EC are very slim. Are we allowed to walk-in purchase the leftover units or returned units?
EC concern 3: there are many ECs in Sengkang/Punggol so we must be prepared to live in it ourselves if we purchase one as we will have to compete with fellow ECs and HDB'ers for rentals.
EC concern 4: 8 years is a very long time so we are not sure if we are able to afford a 2nd private property then. Especially when we are actually planning to semi-retire by then.
EC concern 5: If we sell the EC 8 years later and purchase a resale flat, we will be tied for another 5 years of MOP.
Option 2 - stick to HDB for now
Our HDB is one LRT station away from the MRT and some 600~700m from the future hospital in Sengkang. So we're thinking that it may increase our chances of renting out our flat.
Some of my foreign colleagues who used to stay in condos have downgraded to HDB. So with property prices still soaring, HDB rentals should still be attractive.
Currently, we can only afford a private property in the range of 800k due to the new 40% loan policy from govt. If we save up these 2~3 years we should be able to easily afford one that is ~1m. We just need a 2 bedder as our family is small. We can either continue to live in our flat and rent out the private property or vice versa.
Eventually, we prefer to live in a smaller unit as we are getting older and we do not have a maid to do the housework.
Condo concern 1: prices may runaway beyond our reach within next few years.
So if you were in our shoes will you try to get an EC now? It is a low risk investment because of its low psf now and we have a high chance of taking some decent profit in 8 years. However, it will be hard for us for own a 2nd property to collect passive income which is part of our retirement plan.
If you have better ideas we will really appreciate if you could share.
Thank you very much!
If you are thinking of retiring in your fifties without tied-down by home loan, then forget about the whole idea of owning EC as investment NOW. IT IS NOT THE ONLY WAY to SECURE your FUTURE RETIREMENT. Save your cash assets and put it into ALTERNATIVE SAFER INSTRUMENTS.
Just be happy with what you have now. Don't think too much about what other people are doing now. You don't lose out ..no fear .. no worry .. compared to Jokers who have tonnes of weight on their shoulders.
I can assure you that in time to come at the right opportunity and time , you can convert your hard-earned cash into property assets.
:D
Regulators
28-11-12, 17:13
Simple solution. Keep your HDB flat and save up for a PC. If you dont mind resale, with ur current budget, can get a PC with 80+ years remaining in the lease
posting on behalf of a friend who wasn't able to register an account here. Please provide your valuable 2 cents to him. Thank you.
Hi,
My wife and I have been pondering over this for quite some time, and we have not reached a conclusion. So I will like to seek some advice here.
My wife and I are both in our forties and we have a teenage kid. We live in a 5rm flat in Sengkang that has some 100k+ outstanding loan remaining. We opted not to pay off the loan as we always have a plan to purchase a private property as an investment.
Eventually, our intention is to have 2 properties, one for collecting rent.
Option 1 - Buy EC now
There are a lot of ECs in Sengkang and Punggol. With the current prices, the ECs are very attractive option as the psf gap with private condos is widening. It is still possible to buy ECs at 600+~700+ psf around my area. My wife works part time and our combined pay is still within 12k threshold. So buying an EC has a very high chance of making a good profit in the future. We should be able to fully pay off the EC w/o taking any loan.
EC concern 1: We will be tied for the next 8 years as assuming 3 years needed to built the new EC and 5 years MOP. Within this period, I can only have one property. By then my kid would have completed her uni studies and working already and I will be in my fifties. I plan to semi-retire around this age.
EC concern 2: We are 2nd timers so our chances of getting an EC are very slim. Are we allowed to walk-in purchase the leftover units or returned units?
EC concern 3: there are many ECs in Sengkang/Punggol so we must be prepared to live in it ourselves if we purchase one as we will have to compete with fellow ECs and HDB'ers for rentals.
EC concern 4: 8 years is a very long time so we are not sure if we are able to afford a 2nd private property then. Especially when we are actually planning to semi-retire by then.
EC concern 5: If we sell the EC 8 years later and purchase a resale flat, we will be tied for another 5 years of MOP.
Option 2 - stick to HDB for now
Our HDB is one LRT station away from the MRT and some 600~700m from the future hospital in Sengkang. So we're thinking that it may increase our chances of renting out our flat.
Some of my foreign colleagues who used to stay in condos have downgraded to HDB. So with property prices still soaring, HDB rentals should still be attractive.
Currently, we can only afford a private property in the range of 800k due to the new 40% loan policy from govt. If we save up these 2~3 years we should be able to easily afford one that is ~1m. We just need a 2 bedder as our family is small. We can either continue to live in our flat and rent out the private property or vice versa.
Eventually, we prefer to live in a smaller unit as we are getting older and we do not have a maid to do the housework.
Condo concern 1: prices may runaway beyond our reach within next few years.
So if you were in our shoes will you try to get an EC now? It is a low risk investment because of its low psf now and we have a high chance of taking some decent profit in 8 years. However, it will be hard for us for own a 2nd property to collect passive income which is part of our retirement plan.
If you have better ideas we will really appreciate if you could share.
Thank you very much!
My wife and I are both in our forties and we have a teenage kid. We live in a 5rm flat in Sengkang that has some 100k+ outstanding loan remaining. We opted not to pay off the loan as we always have a plan to purchase a private property as an investment.
Currently, we can only afford a private property in the range of 800k due to the new 40% loan policy from govt. If we save up these 2~3 years we should be able to easily afford one that is ~1m. We just need a 2 bedder as our family is small. We can either continue to live in our flat and rent out the private property or vice versa.
If you pay off your hdb first, you can qualify for 80% loan. Maybe overall that can increase your budget for a PC instead of EC.
Don't buy when you are ready. You should only buy when the market is ready.
A certain type of EC will fulfill ur requirements of "owning" 2 units... buy that...
U referring to those resale EC?
U referring to those resale EC?
Dual key lah
My friend will like to thank everyone for your comments. More or less he has decided to hold on to his HDB and wait for the opportune time to purchase a private condo.
He does not want to pay off his outstanding HDB loan and qualify for the bigger 80% loan as some bros suggested. As he is in his forties and does not want to have too much liabilities. So a 40% loan actually works in his favour. Based on his calculations he is planning to fully pay off the condo in 5~6 years.
Bro, sorry, I catch no ball??
60% of 800k = 480k.
He pay off in 6 years means he saves 80k a year....
Ok... Now I see...:D
My friend will like to thank everyone for your comments. More or less he has decided to hold on to his HDB and wait for the opportune time to purchase a private condo.
He does not want to pay off his outstanding HDB loan and qualify for the bigger 80% loan as some bros suggested. As he is in his forties and does not want to have too much liabilities. So a 40% loan actually works in his favour. Based on his calculations he is planning to fully pay off the condo in 5~6 years.
Bro, sorry, I catch no ball??
60% of 800k = 480k.
He pay off in 6 years means he saves 80k a year....
Ok... Now I see...:D
40% loan, not 60%
40% loan, not 60%
Bro, he intend to pay off entire condo in6 years rite? He has the mOney for the 40% down to day rite?
So he intends to pay off the 60% loan in 6 years rite? Unless I read your statement wrongly, then paiseh.
:cheers5:
Bro, he intend to pay off entire condo in6 years rite? He has the mOney for the 40% down to day rite?
So he intends to pay off the 60% loan in 6 years rite? Unless I read your statement wrongly, then paiseh.
:cheers5:
he still has outstanding HDB loan so max he could only borrow 40% for the condo. Paying off the condo in 5-6 years is based on his current monthly savings. Factoring in the potential rental income for the condo he is expecting to fully pay off the condo even faster. Well, that's what I gathered from my chats with him :)
he still has outstanding HDB loan so max he could only borrow 40% for the condo. Paying off the condo in 5-6 years is based on his current monthly savings. Factoring in the potential rental income for the condo he is expecting to fully pay off the condo even faster. Well, that's what I gathered from my chats with him :)
60% loan is possible for 2nd ppty. overleverage is dangerous, but so is underleverage. you are saying he want to down 40% or 60%?
anyway, for someone with net cashflow inflow of 60-80k per year, i dun see what he is worried about. perhaps timing may not be perfect now (given that prices are high), but it is anyone's guess which direction markets will head. if horizon is 10-20 years with rental as a passive income, he should be well positioned to enter the mkt.
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