HDB is NOT an Asset

[richwang]

If you are in the illusion that owning a HDB is having an asset, please wake up:

1) Banks don't accept it as collateral, so your title deed is worthless;
2) Creditors cannot grab your HDB even if you go bankrupt (good!);

Need experts to share the following:
3) Once divorced within MOP, do you need to sell your flat to HDB Board if you are not eligible for singles scheme (<35 years old, or 2 PRs);
4) How about if the owner passes away, will the children need to sell (cannot own 2 HDB by inheritance).

In summary, HDB is more like your clothing - for consumption, not a real asset.

Thanks,
Richard
PS. I've long realized cars are not assets, now I need to add one more.

[Kelonguni]

Whether it's an asset depends on how you use it.

3. Technically need to sell. Not too sure whether you can buy your share from the spouse.

4. For compassionate reasons, I have a friend whose parents have passed and his brother still has the flat, unmarried and in his twenties.

[richwang]

Can I re-finance my fully paid up HDB to get some money (of CPF)?

If not, never pay up your HDB.

Thanks,
Richard

[richwang]

My wife's friend is getting divorced. She was told they can only sell to HDB because it is still with MOP. Do I get it wrong?

Thanks,
Richard

[thomastansb]

Technically, it is an asset. Just because you can't use it for collateral doesn't mean it is not an asset. It can produce value (rent out) and therefore, it fully qualified as an asset.

Your point 1 is directly related to point 2. The Government don't want creditors to claim your HDB so you have a place to stay even if your ass get sued. I think we have to give credit to the Government for this.

So if no creditor can claim your HDB, you can't use it for collateral. But it is 100% an asset. There is no argument about it.

If you are in the illusion that owning a HDB is having an asset, please wake up:

1) Banks don't accept it as collateral, so your title deed is worthless;
2) Creditors cannot grab your HDB even if you go bankrupt (good!);

Need experts to share the following:
3) Once divorced within MOP, do you need to sell your flat to HDB Board if you are not eligible for singles scheme (<35 years old, or 2 PRs);
4) How about if the owner passes away, will the children need to sell (cannot own 2 HDB by inheritance).

In summary, HDB is more like your clothing - for consumption, not a real asset.

Thanks,
Richard
PS. I've long realized cars are not assets, now I need to add one more.

[eng81157]

Can I re-finance my fully paid up HDB to get some money (of CPF)?

If not, never pay up your HDB.

Thanks,
Richard

if you take a loan from HDB, i'm pretty sure there isn't any re-financing option (there's only a flat rate linked to CPF OA interest)

for private bank loans, i think it's possible.

[jwong71]

If you are in the illusion that owning a HDB is having an asset, please wake up:

1) Banks don't accept it as collateral, so your title deed is worthless;
2) Creditors cannot grab your HDB even if you go bankrupt (good!);

Need experts to share the following:
3) Once divorced within MOP, do you need to sell your flat to HDB Board if you are not eligible for singles scheme (<35 years old, or 2 PRs);
4) How about if the owner passes away, will the children need to sell (cannot own 2 HDB by inheritance).

In summary, HDB is more like your clothing - for consumption, not a real asset.

Thanks,
Richard
PS. I've long realized cars are not assets, now I need to add one more.

yes, cant sell in the open market if divorce and still within mop,or <35.

if parents passed away, and inherit a hdb. either one got to sell own or parents hdb. cannot hold onto 2 hdb.

*etc a previous case, tanjong pagar hdb sold at valuation becos of inherit and own its hdb. and court order to sell within a timeframe

[august]

Whether it's an asset depends on how you use it.

3. Technically need to sell. Not too sure whether you can buy your share from the spouse.

4. For compassionate reasons, I have a friend whose parents have passed and his brother still has the flat, unmarried and in his twenties.

4. allowed under Orphan Scheme.

[gn108]

How abt inheriting a HDB but staying in Pte and then renting out the HDB?

yes, cant sell in the open market if divorce and still within mop,or <35.

if parents passed away, and inherit a hdb. either one got to sell own or parents hdb. cannot hold onto 2 hdb.

*etc a previous case, tanjong pagar hdb sold at valuation becos of inherit and own its hdb. and court order to sell within a timeframe

[eng81157]

How abt inheriting a HDB but staying in Pte and then renting out the HDB?

sell the former.

[House]

It s just a roof, never a asset.

[ysyap]

Accordingly to robert kiyosaki, your HDB is an asset if it doesn't take money out of your pocket. So when you rent it out, and your rental income > monthly serving of HDB mortgage loan, then its an asset. When you finally sell it at an appreciated value, it gives back more than you bought it so its also considered an asset (provided you must sell it). Just that it has loads of restrictions but an asset nonetheless under the right conditions!

[bigapplefan]

yes, cant sell in the open market if divorce and still within mop,or <35.

if parents passed away, and inherit a hdb. either one got to sell own or parents hdb. cannot hold onto 2 hdb.

*etc a previous case, tanjong pagar hdb sold at valuation becos of inherit and own its hdb. and court order to sell within a timeframe

if in case of inherit, lets say younger brother has no hdb/condo, older brother has private condo, will court split share of HDB to both younger and older brother (i.e. force them to sell and split the proceeds), or younger brother will inherit the whole HDB?

[thomastansb]

I don't know who is Robert. I only know what I studied my Uni.


Assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Simply stated, assets represent ownership of value that can be converted into cash (although cash itself is also considered an asset).

Accordingly to robert kiyosaki, your HDB is an asset if it doesn't take money out of your pocket. So when you rent it out, and your rental income > monthly serving of HDB mortgage loan, then its an asset. When you finally sell it at an appreciated value, it gives back more than you bought it so its also considered an asset (provided you must sell it). Just that it has loads of restrictions but an asset nonetheless under the right conditions!

[iwantgizmos]

in my opinion, anything not fully paid is not an asset...
it is still considered a liability if there is still outstanding mortgages....

[DKSG]

in my opinion, anything not fully paid is not an asset...
it is still considered a liability if there is still outstanding mortgages....

This thinking is technically wrong.

The property is an asset. And loan is a liability.
Value of asset can go up without a corresponding increase in liability.

Liability can go down (eg inflation).

Net of the asset and liability is the equity of the property.

Dont pray pray hor!

Office Boy got study accounting one...

DKSG

[JohnTan]

in my opinion, anything not fully paid is not an asset...
it is still considered a liability if there is still outstanding mortgages....

Not really true in my opinion, anything generating positive cashflow is an asset as long as the income minus costs outweigh the liabilities.

[gn108]

Even say a sub-leased lease?
Like I lease a space (cld be commercial) and then rent that for a positive cash-flow. So that counts too?

Not really true in my opinion, anything generating positive cashflow is an asset as long as the income minus costs outweigh the liabilities.

[maisonjai]

Even with a fully paid HDB/PC, no doubt it appreciates in value but if u are residing in it & there are monthly expenses to it right, so liability or asset?
Till u cash out or when u kaput then next generation benefits from this asset.

So Yellow cab is an asset coz can generate income...heh heh

[Jonathan0503]

Even with a fully paid HDB/PC, no doubt it appreciates in value but if u are residing in it & there are monthly expenses to it right, so liability or asset?
Till u cash out or when u kaput then next generation benefits from this asset.

So Yellow cab is an asset coz can generate income...heh heh

It is still an asset because your are residing in it and deriving value from it (in this case it is intangible in nature).

You need to pay rent to have a roof if you don't have this fully paid hdb right?

[Jonathan0503]

Even say a sub-leased lease?
Like I lease a space (cld be commercial) and then rent that for a positive cash-flow. So that counts too?

A lease (short-term) is normally not considered an asset because you don't own the property (ie, risk and reward still lies with the landlord).

A long term lease can sometimes be classified as an asset. But this is more complicated and need a series of tests to determine.

Those who know accounting will know what I mean....

[ysyap]

I don't know who is Robert. I only know what I studied my Uni.


Assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. Simply stated, assets represent ownership of value that can be converted into cash (although cash itself is also considered an asset).

Get to know Robert. He's one of the reason why I'm into property investment (just an ikan bilis though). He's having a conference in Singapore next month... . If I don't remember wrongly, he has some 4500 properties around the world.

[carbuncle]

Who dunno Robert? Robert aka 萝卜commonly known as 菜头 or carrothead

[Arcachon]

Robert Toru Kiyosaki (born April 8, 1947)

http://www.youtube.com/watch?v=fEJA4-8WiWU

[Laguna]

Need experts to share the following:
3) Once divorced within MOP, do you need to sell your flat to HDB Board if you are not eligible for singles scheme (<35 years old, or 2 PRs);
4) How about if the owner passes away, will the children need to sell (cannot own 2 HDB by inheritance).

Not expert, but try to answer
3) Yes, u must sell, unless u still can form the family neuclus, ie single parent with children
4) yes, u must sell, no way u can own two HDB flats

Can I re-finance my fully paid up HDB to get some money (of CPF)?

Just checked with banks, no way.

My wife's friend is getting divorced. She was told they can only sell to HDB because it is still with MOP. Do I get it wrong?

Thanks,
Richard

I think so. Sell back to HDB at cost.

[richwang]

The mistake I've made was fully paid up my HDB - I thought I own the "asset".
1) Now I cannot re-finance to get cash/CPF;
2) Bank don't accept it as collateral.
3) Government agency does NOT accept it as proof of "asset" (regardless that I have the title deed). To your surprise? To my surprise as well!

So tell me what kind "asset" this is.

Market is smarter, no wonder it is selling at something like 50% discount (comparing with a PC with the same LH99, no swimming pool, no security guard, etc).

Thanks,
Richard
PS. If you are in indeed "renting" an HDB, why in a hurry to pay all the rentals. How silly I am. I just hope others can learn from my lesson.

[ysyap]

The mistake I've made was fully paid up my HDB - I thought I own the "asset".
1) Now I cannot re-finance to get cash/CPF;
2) Bank don't accept it as collateral.
3) Government agency does NOT accept it as proof of "asset" (regardless that I have the title deed). To your surprise? To my surprise as well!

So tell me what kind "asset" this is.

Market is smarter, no wonder it is selling at something like 50% discount (comparing with a PC with the same LH99, no swimming pool, no security guard, etc).

Thanks,
Richard
PS. If you are in indeed "renting" an HDB, why in a hurry to pay all the rentals. How silly I am. I just hope others can learn from my lesson.

Well our Singapore system is a weird system. If paying off your HDB allows you to get 80% LTV for 2nd property and the outstanding amount for your HDB payoff is less than the additional 20% for your 2nd property, then by all means pay off to qualify you for a larger loan amount! In that sense, its still a plus point. At half price from a typical PC, a HDB is already greatly subsidized public LH living so don't expect to get out of it what a PC can offer. According to your definition, HDB is half an asset then because of rental opportunity!

[thomastansb]

Yeah. That is how it works.

This thinking is technically wrong.

The property is an asset. And loan is a liability.
Value of asset can go up without a corresponding increase in liability.

Liability can go down (eg inflation).

Net of the asset and liability is the equity of the property.

Dont pray pray hor!

Office Boy got study accounting one...

DKSG

[thomastansb]

I don't see any issue. You own the asset, you can sell it. What is the issue here? In fact, it is a good measure so people still have a roof even though they are bankrupt. Benefit 99% of the population. Anyway, they sell to you at 50% off, what more you want?

I am not surprised at what HDB tell you because it has been said many many times HDB cannot be used as collateral because no one can repossess your HDB. I thought this has been all over the news over and over again?

The mistake I've made was fully paid up my HDB - I thought I own the "asset".
1) Now I cannot re-finance to get cash/CPF;
2) Bank don't accept it as collateral.
3) Government agency does NOT accept it as proof of "asset" (regardless that I have the title deed). To your surprise? To my surprise as well!

So tell me what kind "asset" this is.

Market is smarter, no wonder it is selling at something like 50% discount (comparing with a PC with the same LH99, no swimming pool, no security guard, etc).

Thanks,
Richard
PS. If you are in indeed "renting" an HDB, why in a hurry to pay all the rentals. How silly I am. I just hope others can learn from my lesson.

[phantom_opera]

Ha ha ha ... rich wang hopes he can borrow money from the bank using his HDB as collateral to gamble in stock or MBS

This is exactly what the garmen is trying to prevent ... this garmen is trying very hard not to take care of the poor and old, if homeless lagi jialat