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Thread: Sell HDB or Keep?

  1. #1
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    Default Sell HDB or Keep?

    Hi,

    First post here. I usually don't pay too much attention to property so but recently I thought of purchasing a new private property. I current stay in a HDB and am wondering if I should keep my HDB and buy another private property or if I should sell the HDB for a higher budget?

    I am looking at a 1.5m property at the moment. I will be able to buy the place if I sell my HDB now, or I can wait approximately 1 year to accumulate enough for the the 1.5m unit without selling my HDB flat. However, I fear the price of private property skyrocketing if I were to wait for one year

    Anyone can throw some advise here?

  2. #2
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    Quote Originally Posted by Nestor
    Hi,

    First post here. I usually don't pay too much attention to property so but recently I thought of purchasing a new private property. I current stay in a HDB and am wondering if I should keep my HDB and buy another private property or if I should sell the HDB for a higher budget?

    I am looking at a 1.5m property at the moment. I will be able to buy the place if I sell my HDB now, or I can wait approximately 1 year to accumulate enough for the the 1.5m unit without selling my HDB flat. However, I fear the price of private property skyrocketing if I were to wait for one year

    Anyone can throw some advise here?
    reduce ur ppty budget

  3. #3
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    Same old question: own stay or investment? If investment, why buy a huge chunk of 1.5mil. I feel you should break it up and dont put all eggs in same basket. Unless its golden eggs in diamond basket sure win.

  4. #4
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    Quote Originally Posted by mcmlxxvi
    Same old question: own stay or investment? If investment, why buy a huge chunk of 1.5mil. I feel you should break it up and dont put all eggs in same basket. Unless its golden eggs in diamond basket sure win.
    tats y u have MMs all over SG

  5. #5
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    Thanks for responding... Its actually mean for investment initially and then own stay for a couple of years but the story goes like this...

    The main motivation of buying the place is to be within 1km of the school we wanted, and unfortunately, the properties around that area are around 1.2 - 1.5 with 1.2 being 99 years so I try not to go that route, and the 1.5 being freehold and near to future MRT

    The thing is I can afford the 1.5 place now if I sell my HDB.. but that will mean it's for own stay in that case... I will however prefer to keep my HDB and buy one for investment for first a couple of years.. then move in later to register for school

    So I can either sell hdb and buy now, hold hdb and buy a 99year condo, or wait 1 year and I will be able to afford to hold the hdb and buy the 1.5 unit I wanted...

    Unfortunately... if the property goes above 1.5 (1.6-1.7) it might be too much for me to take. At the same time, it is very important to me to own a place there given that I wanted to be within 1km of that school...

    any advise? I'm stupid when it comes to property and investment sorry in advance if the answer is obvious

  6. #6
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    Dude, nowadays with our increase in population density, people even need to ballot despite slaving for the school as parent volunteer. So w/i 1 km is no guarantee of a place especially in popular schools. You can check the recent and historical balloting history at kiasuparents.com. Maybe that may sway your decision a little.

  7. #7
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    Quote Originally Posted by med80009
    Dude, nowadays with our increase in population density, people even need to ballot despite slaving for the school as parent volunteer. So w/i 1 km is no guarantee of a place especially in popular schools. You can check the recent and historical balloting history at kiasuparents.com. Maybe that may sway your decision a little.
    Yup I'm aware of that already... which is why I'm quite cautious about selecting a property which has investment value at the same time. So if the school thing doesn't work out, at least I can get some returns from the property through invesment... even though I know it's not the best thing to do as far as investment is concern, it will meet my needs for this purpose...

    so the question is... is it wise to keep HDB in the first place? or there's no point in keeping HDB despite the new policy?

  8. #8
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    Personally, I am all for retaining the HDB flat. I will never give up my own HDB apartment. Very hard to buy back if I let it go, especially with so many (new) restrictions on buying and owning HDB apts.

    More than 80% of Singapore's population live in HDB flats, with 95% of them owning their HDB flat and the government has to take care of them. Even though it is only 99LH,there is intrinsic value in HDB.

    Think carefully of all possible future scenarios - future economic conditions, job stability, alternate schools, interest rates, etc. before you make a concrete decision.

  9. #9
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    Quote Originally Posted by Nestor
    Yup I'm aware of that already... which is why I'm quite cautious about selecting a property which has investment value at the same time. So if the school thing doesn't work out, at least I can get some returns from the property through invesment... even though I know it's not the best thing to do as far as investment is concern, it will meet my needs for this purpose...

    so the question is... is it wise to keep HDB in the first place? or there's no point in keeping HDB despite the new policy?
    is ur HDB near any MRT(within 500m)? if yes, pls dun sell

    there r many gd schools....not necessary die die must get ppty near tat particular sch rite? stretching ur budget till max max and slaving to pay ur housing loan in future is a no-no ....get cheaper mass market condo ard 1mil or less and keep ur HDB for rental(HDB rental is very gd provided ur flat near MRT)....at the same time u will hf spare cash to get the best tutor for ur kids

  10. #10
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    Garment has already relax the rental rule of HDB to enable them to make some money. People residing in HDB always get more ang pao money from Ah Kong. Recently, my children get even less edusave top up as it is pegged to NAV of home of residence. Hence, it is good to keep the HDB flat.

  11. #11
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    As I can see, nobody can advise you as the main motivation for buying the property is not investment-related or trying to improve your quality of life but trying to get your child into an elite school. As to what "price" and "sacrifice" you wanna make to get your child into an elite school, only you yourself have the answer. Frankly, I don't think prices will "shoot through the roof".

  12. #12
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    I'm getting really good insight here thanks guys... maybe I should name the properties I'm looking at, if that helps in the analysis...

    My HDB is not near the MRT at all and it takes about 5 mins bus ride. I do however see quite a few tenants staying at rented flats in my block...

    I'm inclined toward keeping the HDB for sure but I'm just so worried about the property prices skyrocketing beyond my reach for the area I want... sigh.. it sucks to be at the lower end of middle class

    I'm looking at either Duchess Crest (99 years) for ~1.2 (no need to sell HDB) or (The Levelz) for ~1.5 (sell HDB)... or holding for 1 year then trying The Levelz again hopefully at the same price but I fear the price to be in the 1.6-1.7 range by then...

    It's sounding like I should keep the HDB!

  13. #13
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    So! You are targetting at Nanyang Pri. Not easy unless you are affiliated. My niece and nephews are there.

  14. #14
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    i would recommend keep HDB and rent it out.

    then stay at condo!

    WIN-WIN for you.




    nanyang pri is tough to get in lor~
    but good luck. it is a good primary sch.

  15. #15
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    Yes I'm targeting NYPS and will do whatever I can for a shot at it... I truly envy those who are affiliated but that's a topic for another forum...

    In that case maybe I should seriously consider getting Duchess Crest and renting out the HDB...

  16. #16
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    Rent a condo within 1km at NYPS and stay there for 2 years before the enrollment. My colleague just did that some 6 years ago. Rent out your HDB. Buy property in other areas where there are more potential and which you can afford.
    Understand somewhere in this forum for many years Duchess Crest price never go up until recently – maybe the price will stay there forever and ever?


    Quote Originally Posted by Nestor
    Yes I'm targeting NYPS and will do whatever I can for a shot at it... I truly envy those who are affiliated but that's a topic for another forum...

    In that case maybe I should seriously consider getting Duchess Crest and renting out the HDB...

  17. #17
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    Quote Originally Posted by rattydrama
    Rent a condo within 1km at NYPS and stay there for 2 years before the enrollment. My colleague just did that some 6 years ago. Rent out your HDB. Buy property in other areas where there are more potential and which you can afford.
    Understand somewhere in this forum for many years Duchess Crest price never go up until recently – maybe the price will stay there forever and ever?
    I thought of that option too but I'll keep that as a last resort.. I even considered getting 5 room HDB flat there! I noticed that Duchess's price doesn't really go up as well.. which is why I have been spending more time considering Levelz until recently... I'll have a look at Duchess Crest tomorrow first and hopefully I can be more clear headed after that...

  18. #18
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    Let me know your field report after yr viewing. Thanks!!

    Those D9,10, 11 for own stay. Rental yield not attractive. Its more for capital appreciation. However, the psf all time high now ........erm.

    You need to pay for it if you stay there could be easi easi 4k/month.


    Quote Originally Posted by Nestor
    I thought of that option too but I'll keep that as a last resort.. I even considered getting 5 room HDB flat there! I noticed that Duchess's price doesn't really go up as well.. which is why I have been spending more time considering Levelz until recently... I'll have a look at Duchess Crest tomorrow first and hopefully I can be more clear headed after that...

  19. #19
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    you seem to have liquidity right now of about $360k. thus i would either sell the flat and get condo, or keept the flat and forego condo. not safe to get both

  20. #20
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    Quote Originally Posted by gfoo
    you seem to have liquidity right now of about $360k. thus i would either sell the flat and get condo, or keept the flat and forego condo. not safe to get both
    hi don't rili understd tis liquidity part.. Possible to explain pls? Thks in advance

  21. #21
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    means he seems to have only $360k max in cash+cpf.

  22. #22
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    Quote Originally Posted by gfoo
    you seem to have liquidity right now of about $360k. thus i would either sell the flat and get condo, or keept the flat and forego condo. not safe to get both
    Hi, can you explain a little more on why it's not safe to have both? Is it because the liquidity is too low? If I keep the HDB and got a condo I am making the assumption that I can rent out either one for some pocket money

  23. #23
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    Quote Originally Posted by Nestor
    Hi, can you explain a little more on why it's not safe to have both? Is it because the liquidity is too low? If I keep the HDB and got a condo I am making the assumption that I can rent out either one for some pocket money
    because you are buying at a peak. if QE2 doesn't come up to expectations next week and i don't think it will meet the street, then it might trigger a downhill trend.

    honestly i don't know your background, cashflow etc so i cannot comment

    but do your own sums. rental income, you must deduct 2 months per year to account for dormant periods. then taxes, then conservancy, etc. can the rental still cover repayments? (don't take propertyguru rental rates. whatever they have there, discount 20%)

    would help others to advise further if you can state your age, income, cashflow, etc etc.

  24. #24
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    Quote Originally Posted by gfoo
    you seem to have liquidity right now of about $360k. thus i would either sell the flat and get condo, or keept the flat and forego condo. not safe to get both
    I agree with gfoo.

    if I were u I will get duchess crest. U will like it. Big rooms, nice landscaping, very big compound, ideal for families. Regular shuttle bus to newton and orchard. It's launched at 1k psf. After one whole decade it finally breaks even. Downside now is limited. Levelz on the other hand had appreciated like 200%.

  25. #25
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    also make sure that you have emergency cash (at least 6 months of expenses, mortgages etc), just in case you lose your job and can't find tenant etc

  26. #26
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    Quote Originally Posted by gfoo
    because you are buying at a peak. if QE2 doesn't come up to expectations next week and i don't think it will meet the street, then it might trigger a downhill trend.

    honestly i don't know your background, cashflow etc so i cannot comment

    but do your own sums. rental income, you must deduct 2 months per year to account for dormant periods. then taxes, then conservancy, etc. can the rental still cover repayments? (don't take propertyguru rental rates. whatever they have there, discount 20%)

    would help others to advise further if you can state your age, income, cashflow, etc etc.
    Wow that's good info!

    I'm not too comfortable to state those but purpose of illustration can we have a example? Maybe with a hypothetical cash-flow of $300k, annual income of 100k and age 35?

  27. #27
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    Quote Originally Posted by amk
    I agree with gfoo.

    if I were u I will get duchess crest. U will like it. Big rooms, nice landscaping, very big compound, ideal for families. Regular shuttle bus to newton and orchard. It's launched at 1k psf. After one whole decade it finally breaks even. Downside now is limited. Levelz on the other hand had appreciated like 200%.

    As duchess is 99 years and that the property was completed in 1999 (11 years old?) it's not advisable to buy right? I heard that 99 years condos are really hard to sell off at a reasonable price once they approach 20 years of age... Is that true?

  28. #28
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    It's all relative. If I have to buy now, I will have to see who has less downside, not who has the most upside, since it does look like peaking now. ( imagine just a few yrs back 1600 psf is for cainhill not holland rd). DC's turnover is very high, as a lot of ppl are buying / renting for the exact same purpose as you. There are a lot of expats families renting DC. This is a very peaceful place, very diff from the other one.

    And as u mentioned, one cost 300k more than the other. is this 300k "premium" worthwhile ? After all DC is a far nicer place to live.

  29. #29
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    The fact that you need to "save" and accumulate one more year to be able to afford both comfortably means you're probably "stretched" financially now. If annual income is $100k, how much more can you accumulate in a year? Doesn't look like there is any buffer. If you have to get your child into that school, I would suggest sell your HDB, and use some of the proceeds to buy the $1.5 million property, and reduce the debt burden. Imagine selling your HDB and releasing say $450k of cash? That would reduce your debt burden significantly. I think's it's not about making more money with your HDB flat. It's about whether you can still live comfortably without having to scrimp and save every single cent to support both houses. And once you've saved enough, I'm sure there are other form of investments that may be more lurative than a HDB flat. With the new measures, HDB flat will just be an "average" investment, not exactly spectacular in terms of capital gains. I wouldn't worry too much about not being able to buy HDB ever again. After all, how many private property owners actually downgrade or subsequently invest in HDB? Very few.

    Quote Originally Posted by Nestor
    Hi,

    First post here. I usually don't pay too much attention to property so but recently I thought of purchasing a new private property. I current stay in a HDB and am wondering if I should keep my HDB and buy another private property or if I should sell the HDB for a higher budget?

    I am looking at a 1.5m property at the moment. I will be able to buy the place if I sell my HDB now, or I can wait approximately 1 year to accumulate enough for the the 1.5m unit without selling my HDB flat. However, I fear the price of private property skyrocketing if I were to wait for one year

    Anyone can throw some advise here?
    Last edited by Wild Falcon; 27-10-10 at 22:55.

  30. #30
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    Quote Originally Posted by Nestor
    As duchess is 99 years and that the property was completed in 1999 (11 years old?) it's not advisable to buy right? I heard that 99 years condos are really hard to sell off at a reasonable price once they approach 20 years of age... Is that true?
    The 99 years start running when the land is sold by URA to the developers. So, even if the property is completed in 1999, more than 11 years would have already ran out. The planning and construction of the property could easily take 2 years, so that's 13yrs out of the 99.

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