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mcmlxxvi
16-12-12, 16:35
Bros, your views pls. Below the example scenario for discussion.

35yo single owns 3 pc.

All are in locations with either mrt, hub or business parks etc coming up within 10-15yrs time.

All are mortgaged. One for own stay. Rest are leased.

Assuming he sells all at today market prices, the proceeds can fully pay for a resale hdb to stay plus an ocr or geylang MM to lease out. The cash flow from rental will be better by about 20-30%.

Is this advisable?

why yes and why no.

look forward to your arguments all. thanks.
Allthepies
16-12-12, 16:41
The fun thing about property investment is that leverage is built in. I would think never fully paid up ur properties. Use the money to buy more units.

If property has no leverage, it will become stocks but with much less liquidity and ROI.
Arcachon
16-12-12, 16:42
Leverage.

85 Billion a month till jobless rate reduce below 6.5 may take 10 years to happen.

Better to leverage to make the money work harder.

Anyone got money can lend me.
buttercarp
16-12-12, 16:44
One question : after he buys the resale, he has to sell away his PCs within 6 months. Then, is there a MOP before he can buy a PC again? Or can he buy anytime he likes?
Laguna
16-12-12, 16:49
was told, once u have a PC cannot even buy resale?
true?
mcmlxxvi
16-12-12, 16:51
my 2c

sell all buy hdb + mm:
- better cash flow
- still got cap gain upside with the MM
- no mortgage interest rate risk

keep all pc:
- enormous cap gain potential
- less vacancy risk as its spread out
- mortgage repayment will reduce (cash flow improves) as years go by
- can use and enjoy facilities
- no opportunity cost of hdb MOP 5yr wait
hyenergix
16-12-12, 16:53
Bros, your views pls. Below the example scenario for discussion.

35yo single owns 3 pc.

All are in locations with either mrt, hub or business parks etc coming up within 10-15yrs time.

All are mortgaged. One for own stay. Rest are leased.

Assuming he sells all at today market prices, the proceeds can fully pay for a resale hdb to stay plus an ocr or geylang MM to lease out. The cash flow from rental will be better by about 20-30%.

Is this advisable?

why yes and why no.

look forward to your arguments all. thanks.


U r referring to someone similar to ur situation?

I prefer not to sell bcoz e potential of e prop r not fully realised. Prob juz find a decent job at lower pay n slowly hunt ard for n better job later. Then reap e cap appreciation in a few years' time.
mcmlxxvi
16-12-12, 16:53
One question : after he buys the resale, he has to sell away his PCs within 6 months. Then, is there a MOP before he can buy a PC again? Or can he buy anytime he likes?

I think 5yr MOP is still there.
mcmlxxvi
16-12-12, 16:54
was told, once u have a PC cannot even buy resale?
true?

yes not even resale.

totally can't touch hdb unless intend to sell off all pc in 6 months.
mcmlxxvi
16-12-12, 16:56
U r referring to someone similar to ur situation?

I prefer not to sell bcoz e potential of e prop r not fully realised. Prob juz find a decent job at lower pay n slowly hunt ard for n better job later. Then reap e cap appreciation in a few years' time.

yes. he don't buy my "property is meant to be bought not sold" advice lol
Laguna
16-12-12, 16:57
yes not even resale.

totally can't touch hdb unless intend to sell off all pc in 6 months.

so, there is a 6 months grace period
my shit agent told me totally cannot
buttercarp
16-12-12, 17:01
I think 5yr MOP is still there.

Then it is wiser if he keeps the 3 PCs.

Otherwise if he buys resale HDB, then he has to sell all his PCs away and wait for 5 years.
As you have mentioned that if he sells his PCs he can fully pay for the resale flat, then still has some money for purchase of PC.
So if he has to wait 5 years, that's a long time.
Dunno how much PCs are going to cost by then, and in the meantime, he has to find some other ways to invest his money.
mcmlxxvi
16-12-12, 17:02
so, there is a 6 months grace period
my shit agent told me totally cannot

www.propertyguru.com.sg/question/67465/hi-can-buy-hdb-resale-after-we-sell-off-private-pr

I suggest you change your agent fast
buttercarp
16-12-12, 17:02
so, there is a 6 months grace period
my shit agent told me totally cannot

Yup your agent is poo!

http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatSingleScheme?OpenDocument


"If you own any private residential property (locally or overseas), you may still buy a resale flat without any CPF housing grant or HDB loan but you must dispose of the private property within six months of the purchase of the resale flat."
mcmlxxvi
16-12-12, 17:03
Then it is wiser if he keeps the 3 PCs.

Otherwise if he buys resale HDB, then he has to sell all his PCs away and wait for 5 years.
As you have mentioned that if he sells his PCs he can fully pay for the resale flat, then still has some money for purchase of PC.
So if he has to wait 5 years, that's a long time.
Dunno how much PCs are going to cost by then, and in the meantime, he has to find some other ways to invest his money.

Opportunity and time cost of money! you are so right sis!
buttercarp
16-12-12, 17:07
Opportunity and time cost of money! you are so right sis!

However if there is no MOP, or if there is a short MOP eg 1 year, then he can consider doing so.
Suggest that he emails HDB about the MOP.
mcmlxxvi
16-12-12, 17:07
Yup your agent is poo!

http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatSingleScheme?OpenDocument


"If you own any private residential property (locally or overseas), you may still buy a resale flat without any CPF housing grant or HDB loan but you must dispose of the private property within six months of the purchase of the resale flat."

ah. does that mean if take grant then must wait the 30 months?
phantom_opera
16-12-12, 17:09
It depends, not enough info to comment
buttercarp
16-12-12, 17:10
ah. does that mean if take grant then must wait the 30 months?

Yup.

http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyResaleFlatCPFGrantSingles?OpenDocument


Some of the conditions........

CPF Housing Grant for Singles

You(applicant), co-applicants and all persons listed in the application for purchase of the flat must not

Own any of the following (local or overseas properties) or have disposed of one within 30 months prior to the application:
- Private residential property (including HUDC flat, Executive Condominium)
- House
- Building
- Land
Be buying a 1-room flat or a resale flat (of any flat type) that has been announced for redevelopment under the Selective Enbloc Redevelopment Scheme (SERS) (http://www.hdb.gov.sg/fi10/fi10329p.nsf/w/eSERSInProgress?OpenDocument).
mcmlxxvi
16-12-12, 17:14
Wow. Sis is still Google X or turn into HDB X liao? lol
buttercarp
16-12-12, 17:23
Wow. Sis is still Google X or turn into HDB X liao? lol

LOL.... since you asked, I google search and got the answers. In that way, I learn also :) :cheers6: .
azeoprop
16-12-12, 19:59
Unless singles can also buy BTO. :D
cavaliver
16-12-12, 20:10
Why don t he just cash in one of his rented MM ? :D
roly8
16-12-12, 20:16
Why don t he just cash in one of his rented MM ? :D

yea..
still got one MM for rent..:o