View Full Version : Advice needed for a MTB
Hi all. I am a longtime reader of the forum and only just decided to register for an account to post.
I guess you could call me one of those MTB people.. only started work in 2009. Since then I've been saving diligently but watching helplessly as housing prices climb and climb.
I know most Singaporeans use HDBs to build up their cash reserves. Unfortunately, I am single and have no way of buying HDB for another 6-7 years and even then it's going to be resale.
At the moment I am considering purchasing a 1mil to 1.3mil property for investment with my savings + some small help from parents. Hopefully then I can sell if after a few years for a profit and use the money to comfortably afford something for own stay.
Any advice from experts here on the plan? Or should I just forget it and research on investing stocks and shares instead?
I've been looking around at both resale and new launches and can't find anything within budget and a good investment. I am not sure if it's because of my expectations - I've read the posts on the forum and see a lot of advice that says that a "good" investment means that rental yield or capital appreciation shouldn't be below xx%, but with prices the way they are, is it really possible nowadays? E.g. I went to look with a friend (just to kaypoh, not for myself) at a resale 2BR condo that was asking for 1.7mil, tenanted at $5k. With prices at that range, would it really still be possible to profit?
I am not looking for easy answers or spoonfeeding - I've been doing a fair amount of research but coming up short. A little help to point me in the right direction would be greatly appreciated!
phayvictor
10-06-13, 14:00
Maybe you can tell us how much do you save per month estimate and how much do you have in cash.
Wait for a single HDB or buy an EC
I was asking myself similar question like you back in 90s. However, it was easier then as property prices in OCR was only $550,000 with monthly rental return of $3500. But interest was 4% then. Suggest that you go for 1-2 bedder and must be prepared to hold for more than 5 years and service loan with higher interest. You have to be prepared to forgo HDB flat and that was my greatest loss.
Hi all. I am a longtime reader of the forum and only just decided to register for an account to post.
I guess you could call me one of those MTB people.. only started work in 2009. Since then I've been saving diligently but watching helplessly as housing prices climb and climb.
I know most Singaporeans use HDBs to build up their cash reserves. Unfortunately, I am single and have no way of buying HDB for another 6-7 years and even then it's going to be resale.
At the moment I am considering purchasing a 1mil to 1.3mil property for investment with my savings + some small help from parents. Hopefully then I can sell if after a few years for a profit and use the money to comfortably afford something for own stay.
Any advice from experts here on the plan? Or should I just forget it and research on investing stocks and shares instead?
I've been looking around at both resale and new launches and can't find anything within budget and a good investment. I am not sure if it's because of my expectations - I've read the posts on the forum and see a lot of advice that says that a "good" investment means that rental yield or capital appreciation shouldn't be below xx%, but with prices the way they are, is it really possible nowadays? E.g. I went to look with a friend (just to kaypoh, not for myself) at a resale 2BR condo that was asking for 1.7mil, tenanted at $5k. With prices at that range, would it really still be possible to profit?
I am not looking for easy answers or spoonfeeding - I've been doing a fair amount of research but coming up short. A little help to point me in the right direction would be greatly appreciated!
Hi all. I am a longtime reader of the forum and only just decided to register for an account to post.
I guess you could call me one of those MTB people.. only started work in 2009. Since then I've been saving diligently but watching helplessly as housing prices climb and climb.
I know most Singaporeans use HDBs to build up their cash reserves. Unfortunately, I am single and have no way of buying HDB for another 6-7 years and even then it's going to be resale.
At the moment I am considering purchasing a 1mil to 1.3mil property for investment with my savings + some small help from parents. Hopefully then I can sell if after a few years for a profit and use the money to comfortably afford something for own stay.
Any advice from experts here on the plan? Or should I just forget it and research on investing stocks and shares instead?
I've been looking around at both resale and new launches and can't find anything within budget and a good investment. I am not sure if it's because of my expectations - I've read the posts on the forum and see a lot of advice that says that a "good" investment means that rental yield or capital appreciation shouldn't be below xx%, but with prices the way they are, is it really possible nowadays? E.g. I went to look with a friend (just to kaypoh, not for myself) at a resale 2BR condo that was asking for 1.7mil, tenanted at $5k. With prices at that range, would it really still be possible to profit?
I am not looking for easy answers or spoonfeeding - I've been doing a fair amount of research but coming up short. A little help to point me in the right direction would be greatly appreciated!
Please refer to this link: http://app.sdn.sg/
I was asking myself similar question like you back in 90s. However, it was easier then as property prices in OCR was only $550,000 with monthly rental return of $3500. But interest was 4% then. Suggest that you go for 1-2 bedder and must be prepared to hold for more than 5 years and service loan with higher interest. You have to be prepared to forgo HDB flat and that was my greatest loss.
Why do you consider forgoing HDB flat as your greatest loss?
If you bought PC in the 1990s, you would have made at least as much (if not more) in capital gain? And would not have to wait for the MOP to rent it out.
darkseed73
10-06-13, 14:52
Sorry TS, What is a MTB?
Anyways, we can't help u much since we don't know your budget or your finances capable of buying a 1mil - 1.3mil or not.
Lets assume u want a million dollar house and 80% loan would be 800k (est)
http://www.dbs.com.sg/personal/homeloans/calculators/mortgage-affordability/default.page
Lets say you are 28, can loan 30 years - no other finance commitments, earning 7k - that would a possible to cover most 2br condos.
With your limited information, don't think anybody here can tell u much but I think 2br for 1.7 million lol it's like trying to jump from nothing to the sky immediately. That could be hard to swallow , becareful not to get choke.
Yowetan is MTB. MISS THE BOAT.
darkseed73
10-06-13, 15:12
Yowetan is MTB. MISS THE BOAT.
I see....thanks :doh:
Yes, PC has gone up by twice now. I would have purchased a hdb at a discounted rate then and rented it for even better rental yield with garment helping me to upgrade the flat at discounted rate. Miss out on garment handouts, rebates on conservancy charge, etc. It is a privilige for a singaporean to own a HDB flat.
Why do you consider forgoing HDB flat as your greatest loss?
If you bought PC in the 1990s, you would have made at least as much (if not more) in capital gain? And would not have to wait for the MOP to rent it out.
Yes, PC has gone up by twice now. I would have purchased a hdb at a discounted rate then and rented it for even better rental yield with garment helping me to upgrade the flat at discounted rate. Miss out on garment handouts, rebates on conservancy charge, etc. It is a privilige for a singaporean to own a HDB flat.
If I recall correctly if you had bought an HDB in the 90s, the MOP was (?) 10 years. And those built in the 90s may not have such great upgrading benefits as the older flats (the upgrading goodies seem to be shrinking, not no more MUP / Main Upgrading Programme - changed name to something else meaning less features....) Main advantage is older flats were bigger :D
Secretariat
10-06-13, 16:29
.....................
I am not looking for easy answers or spoonfeeding - I've been doing a fair amount of research but coming up short. A little help to point me in the right direction would be greatly appreciated!
Don't ever think of buying now....
Cheers!
Hi ,
Can check with you guys. If I rented out my HDB
and shifted to my PC. Must I change my I/C address? As I don't know whether I will shift back to my HDB once the rental period expires, can I not change my address? Is there anywhere to check on this? Thanks
please see http://www.ica.gov.sg/page.aspx?pageid=141&secid=72
please see http://www.ica.gov.sg/page.aspx?pageid=141&secid=72
Thanks for the info
Thank you all for your replies. Sorry it slipped my mind to provide the info in my original post.
At the moment I save about $3,300 per month in total.
Cash + CPF I have about $200k. If need be, I can borrow about $100k from parents (not my preferred option).
Just to clarify, the 1.7mil unit that I went to see was not for me, I was accompanying a friend just to check it out :o
I guess I'm quite concerned about the cost of letting my money get eaten by inflation while waiting to turn 35 to buy a HDB/EC.
Just not sure if it's wise to purchase a private condo now (versus investing in other financial products). Also I'm having trouble finding a place that's within budget and a sound investment - though I guess this might be a result of my inexperience...
TheOnlyGayInTheVillage
10-06-13, 18:45
If 6-7 yrs is already too long a wait for you, i humbly suggest you dont touch property investment.
http://www.straitstimes.com/the-big-story/inside-iskandar/story/inside-iskandar-family-bought-four-homes-and-14000-sq-ft-land-20
http://horizonhills.wordpress.com/page/4/
Thank you all for your replies. Sorry it slipped my mind to provide the info in my original post.
At the moment I save about $3,300 per month in total.
Cash + CPF I have about $200k. If need be, I can borrow about $100k from parents (not my preferred option).
Just to clarify, the 1.7mil unit that I went to see was not for me, I was accompanying a friend just to check it out :o
I guess I'm quite concerned about the cost of letting my money get eaten by inflation while waiting to turn 35 to buy a HDB/EC.
Just not sure if it's wise to purchase a private condo now (versus investing in other financial products). Also I'm having trouble finding a place that's within budget and a sound investment - though I guess this might be a result of my inexperience...
Are you definitely want to remain single for the rest of your life?
Why not invest some time on finding a right partner and you can apply bto or ec.
Northeast91
11-06-13, 16:10
Yes, PC has gone up by twice now. I would have purchased a hdb at a discounted rate then and rented it for even better rental yield with garment helping me to upgrade the flat at discounted rate. Miss out on garment handouts, rebates on conservancy charge, etc. It is a privilige for a singaporean to own a HDB flat.
Ever thought of selling my HDB as currently staying in PC now.. Because I have to divest one in order to invest in another one (Being Kiasi and risk averse) So, you think I shall divest PC and not HDB hor..
Thank you all for your replies. Sorry it slipped my mind to provide the info in my original post.
At the moment I save about $3,300 per month in total.
Cash + CPF I have about $200k. If need be, I can borrow about $100k from parents (not my preferred option).
Just to clarify, the 1.7mil unit that I went to see was not for me, I was accompanying a friend just to check it out :o
I guess I'm quite concerned about the cost of letting my money get eaten by inflation while waiting to turn 35 to buy a HDB/EC.
Just not sure if it's wise to purchase a private condo now (versus investing in other financial products). Also I'm having trouble finding a place that's within budget and a sound investment - though I guess this might be a result of my inexperience...With S$300k ready, you can go for a studio or 2 bedder in an OCR and then service the mortgage loan comfortably with your CPF alone. However, you ought to consider the following before deciding to buy or not to buy.
1. R u planning to find your significant half or have decided against it for the rest of your life? If you want to find that special someone, HDB is the best option (my personal opinion). You can still buy a PC now but hold for 4 years to clear the SSD and then wait for 6mths or 1 yr before buying your first HDB, i.e. about 4.5 yrs to 5 yrs lock in period before you can buy HDB. Is this time horizon ok?
2. The financial cycle in recent times have been atypical (I read about it in the papers and forums). We may be at a high point in housing prices now but one can never be sure about it. So do ensure that you are not overcommitting and be prepared that prices will fall if you buy so do not regret.
3. New or resale? New projects are generally cheaper compared with resale in the same region therefore has more potential for price appreciation in the near future (say by TOP). However, resale allows rental returns. What is your preference?
4. Do you foresee needing to use your cash in the near future for whatever reasons, such as buying a new car or paying for some business venture start up? Only you will know.
Having said that, I can conclude that leaving your cash in the bank or CPF is definitely fighting a losing battle against inflation. However, housing is not the only investment tool available in the market. Consider your own risk appetite and speak to a financial planner or friends who can then tailor the best financial portfolio for you. You can also consider diversifying your funds. Cheers! :cheers5:
Hi all. I am a longtime reader of the forum and only just decided to register for an account to post.
I guess you could call me one of those MTB people.. only started work in 2009. Since then I've been saving diligently but watching helplessly as housing prices climb and climb.
I know most Singaporeans use HDBs to build up their cash reserves. Unfortunately, I am single and have no way of buying HDB for another 6-7 years and even then it's going to be resale.
At the moment I am considering purchasing a 1mil to 1.3mil property for investment with my savings + some small help from parents. Hopefully then I can sell if after a few years for a profit and use the money to comfortably afford something for own stay.
Any advice from experts here on the plan? Or should I just forget it and research on investing stocks and shares instead?
I've been looking around at both resale and new launches and can't find anything within budget and a good investment. I am not sure if it's because of my expectations - I've read the posts on the forum and see a lot of advice that says that a "good" investment means that rental yield or capital appreciation shouldn't be below xx%, but with prices the way they are, is it really possible nowadays? E.g. I went to look with a friend (just to kaypoh, not for myself) at a resale 2BR condo that was asking for 1.7mil, tenanted at $5k. With prices at that range, would it really still be possible to profit?
I am not looking for easy answers or spoonfeeding - I've been doing a fair amount of research but coming up short. A little help to point me in the right direction would be greatly appreciated!
wait for next BOAT. dont worry at ur age still have many waves to come. just get ur gun loaded. wait for the right time. dont have to kan jong. time will come.
new projects are generally cheaper compare to reesale
Huh ... I thought it is the opposite ?
To TS, yes I also agree you should wait it out. or at best, look for desperate sellers. Dun enter run of the mill new launches . All of them are riding on the current high tide.
1. R u planning to find your significant half or have decided against it for the rest of your life? If you want to find that special someone, HDB is the best option (my personal opinion). You can still buy a PC now but hold for 4 years to clear the SSD and then wait for 6mths or 1 yr before buying your first HDB, i.e. about 4.5 yrs to 5 yrs lock in period before you can buy HDB. Is this time horizon ok?
Good Advice:cheers4:
TheOnlyGayInTheVillage
12-06-13, 08:49
Bro ysyap. I tot to buy bto after selling pc need to clear 60mths first?
Bro ysyap. I tot to buy bto after selling pc need to clear 60mths first?60 mths = 5 years :scared-1: = MOP for subsidized HDB purchase.
To buy BTO, one need to sell off either EC or PC and wait for 30 months (aka 2.5 years before being eligible to register for a BTO) then wait another 3.5 years for the building to be ready.
However, if one buy HDB resale, can buy straight away but must dispose of either EC or PC within 6 months of purchasing the HDB resale flat. :spliff:
However, whether selling EC or PC and then buying HDB resale or BTO, the owner will not be eligible for any HDB subsidy or grant anymore! ;)
Thank you all for your responses, esp ysyap for the wise advice :D Sorry for the delay but I have been overseas since my last post.
I have more or less given up on buying BTO/EC since my income (with imaginary partner) will most likely bust the income cap. It's not that I don't want to get married! Just don't think it's something I can rely on to plan my finances :o
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