Today my tenant called me...

[radha08]

He said...he regrets to inform me he has bought a resale condo and is giving me 2 mths notice that he is moving out of my 4rm hdb flat as per our tenancy agreement...supposed to end in december...dunno whether to be happy or sad ...or neutral...

Ok my take is that tenants are getting wiser and if they can buy they will buy instead of renting...so BUYERS beware if you are OVER leveraging and buying for investment to rent out..there might be a day when your tenant decides to walk out...for whatever reason..

For me it kind of HELPS me to make up my mind about my NEXT move....

any bro know whats a good RENOVATION forum...

[thomastansb]

If I were you, I won't have the 2 months notice clause. This is the first time I see that landlord is putting this clause.

Anyway, rental is at an all time high. Who give a shit if he is going to move out or not? The rental is definitely much higher than your old rental.

[buttercarp]

any bro know whats a good RENOVATION forum...

You thinking of renovating your flat and move back?

Try renotalk.com

[buttercarp]

If I were you, I won't have the 2 months notice clause. This is the first time I see that landlord is putting this clause.

Anyway, rental is at an all time high. Who give a shit if he is going to move out or not? The rental is definitely much higher than your old rental.

If no clause for notice, then how to rent?
If want to withdraw before due date then lose deposit?

[radha08]

i put in the 2mth clause to SAFEGUARD myself in case i need to break the tenancy...cos i am also a TENANT myself..renting another property...

yup my flat is 20 years old...last major reno cannot remember when...

be nice to move back into a spanking newly renovated flat...

and then continue walking thru the jungles......

waiting for the DURIANS to drop...

[radha08]

You thinking of renovating your flat and move back?

Try renotalk.com

'

tks for d link....

[yowetan]

I am raring to go; getting a 1.3-1.5mil FH/999 leasehold condo.

I am all open to offer(s) now.

[Laguna]

'....

Congrat...now u will have a place to call it
"HOME SWEET HOME"
"IT IS MY HOME"

[radha08]

Congrat...now u will have a place to call it
"HOME SWEET HOME"
"IT IS MY HOME"

ha ha i always had a home...its like getting back with your ex-girlfriend... and giving her a major work-over....

[radha08]

I am raring to go; getting a 1.3-1.5mil FH/999 leasehold condo.

I am all open to offer(s) now.

keep the dream alive bro...we all need to work towards something...anyway just to share my 2 cent thoughts with you..i also thought to sell my 4rm flat...after that i would have enough to put down deposit for a 2.2 MILLION LANDED PROPERTY plus have a BUFFER sum in case of emergency....but then i would be STUCK with having to pay off a loan of about 1.5 to 1.6 MILLION at about 4.5 to 5k a MONTH in mortgage for NEXT 30 years of my life just to LIVE that LANDED dream...TRUST me after almost a year staying in my rented landed property its NOT worth it if you have to SLOG for your house...

[newbie11]

TRUST me after almost a year staying in my rented landed property its NOT worth it if you have to SLOG for your house...

+1 LIKED......

[lajia]

TRUST me after almost a year staying in my rented landed property its NOT worth it if you have to SLOG for your house...

if you one person suffer and then the other family members (say 6 of them living with you in your landed) happy; with you helping them realise their dream, why not...hahaa....kidding....

[Blue]

keep the dream alive bro...we all need to work towards something...anyway just to share my 2 cent thoughts with you..i also thought to sell my 4rm flat...after that i would have enough to put down deposit for a 2.2 MILLION LANDED PROPERTY plus have a BUFFER sum in case of emergency....but then i would be STUCK with having to pay off a loan of about 1.5 to 1.6 MILLION at about 4.5 to 5k a MONTH in mortgage for NEXT 30 years of my life just to LIVE that LANDED dream...TRUST me after almost a year staying in my rented landed property its NOT worth it if you have to SLOG for your house...

This I disagree, buy a hse with mortgage loan does not mean u need to slog for the rest of your life to service the loan. You are actually enjoying ur life living in it while the price appreciation over time will pay for your loan itself by the time u retire. Of cos, when u retire, u need to downgrade to cash out or migrate somewhere else.

I think it will be foolish otherwise for not leveraging yourself i.e. to fully pay for a house when the money can be used to generate higher returns by investing in more properties.

[hyenergix]

HDB rental shd b quite safe. Only prob is u lugi e agent's commission n prob need to spend another few weeks to screen tenants if u r still renting. If not u lugi paying rental to ur landlord n paying for reno. I always advocate buying for own stay now. Buying PC to rent out is risky at this point.

[fclim]

This I disagree, buy a hse with mortgage loan does not mean u need to slog for the rest of your life to service the loan. You are actually enjoying ur life living in it while the price appreciation over time will pay for your loan itself by the time u retire. Of cos, when u retire, u need to downgrade to cash out or migrate somewhere else.

I think it will be foolish otherwise for not leveraging yourself i.e. to fully pay for a house when the money can be used to generate higher returns by investing in more properties.

Nothing wrong with leveraging. It is OVER LEVERAGING that is foolish, just to get that landed.

[equalizer]

...TRUST me after almost a year staying in my rented landed property its NOT worth it if you have to SLOG for your house...

I don't think you can look at it in that way. Look at all our parents/grandparents who 'slogged' to get a roof over their heads. How many of them are still slogging now? Most of the HDB/PC/Landed that they bought are all fully paid now or have very low loans on them PLUS they are sitting on very nice capital gains. In fact, a lot of them have sold off to downgrade to a fully paid property and used the balance for retirement. They are definitely not slogging now. Compare them to their contemporaries who have never bought a property. In a land scarce country like SG, even the doomsayers would tend to agree that over the long run, the property cycle will continue its upward trend barring any catastrophe. Yes, there will be ups and downs along the way but in 30 yrs (in fact I think you don't even have to wait so long), you may be smiling your way to the bank. The main thing is to be financially prudent and have enough buffer to weather the down times.

[lajia]

HDB rental shd b quite safe. Only prob is u lugi e agent's commission n prob need to spend another few weeks to screen tenants if u r still renting. If not u lugi paying rental to ur landlord n paying for reno. I always advocate buying for own stay now. Buying PC to rent out is risky at this point.

[Laguna]

Nothing wrong with leveraging. It is OVER LEVERAGING that is foolish, just to get that landed.

Over leverage is the smartest u can do in today low interest environment.
Ur making use of others' monies to make monies.

But, u must not leverage into those illiquid asset class and at the same time, u must have fat to weather the storm.

[radha08]

I don't think you can look at it in that way. Look at all our parents/grandparents who 'slogged' to get a roof over their heads. How many of them are still slogging now? Most of the HDB/PC/Landed that they bought are all fully paid now or have very low loans on them PLUS they are sitting on very nice capital gains. In fact, a lot of them have sold off to downgrade to a fully paid property and used the balance for retirement. They are definitely not slogging now. In a land scarce country like SG, even the doomsayers would tend to agree that over the long run, the property cycle will continue its upward trend barring any catastrophe. Yes, there will be ups and downs along the way but in 30 yrs (in fact I think you don't even have to wait so long), you may be smiling your way to the bank. The main thing is to be financially prudent and have enough buffer to weather the down times.

totally agree but everybodys appetite for risk is NOT the same...thats why when you walk into a casino...there are SO many different types of games to play........same with property market...so many different types of housing types to play with..get the point....lifes a Gamble...win some loose some...they say...

[Blue]

Nothing wrong with leveraging. It is OVER LEVERAGING that is foolish, just to get that landed.

How do you measure over leveraging? When property price goes up (equity value goes up), your gearing (debt/equity) becomes lower.

The bank will only loan you $$$ when u can down at least 20%, plus u have stable income to support it. So are you over leveraged when bank approves your loan?

If one loses his stable income, dun mention landed, even HDB oso got prob servicing the loan. The only consolation is the bank cannot force u to sell ur HDB even if you become bankrupt.

[radha08]

Over leverage is the smartest u can do in today low interest environment.
Ur making use of others' monies to make monies.

But, u must not leverage into those illiquid asset class and at the same time, u must have fat to weather the storm.

yup in todays market u can over leverage until the "COWS" come home(pun intended)

[radha08]

if you one person suffer and then the other family members (say 6 of them living with you in your landed) happy; with you helping them realise their dream, why not...hahaa....kidding....

especially when the HAPPIEST members are the DOG and the MAID cos they enjoy the MOST....

[jwong71]

This I disagree, buy a hse with mortgage loan does not mean u need to slog for the rest of your life to service the loan. You are actually enjoying ur life living in it while the price appreciation over time will pay for your loan itself by the time u retire. Of cos, when u retire, u need to downgrade to cash out or migrate somewhere else.

I think it will be foolish otherwise for not leveraging yourself i.e. to fully pay for a house when the money can be used to generate higher returns by investing in more properties.

a old colleague bgt her 4NG hdb in tampines for 330k in 90s. around 10yrs plus. appreciation about 100k+

today valuation stands at 420k-440k

but her cpf with incurred interests back to cpf at 180k, husband cpf at 140k. outstanding loan balance 110k

if COV 30k + 440k = 470k selling price
470k - (110k+180k+140k) = 40k cash balance from sale proceeds

appreciation somehow rollback into their cpf..

[hyenergix]

Over leverage is the smartest u can do in today low interest environment.
Ur making use of others' monies to make monies.

But, u must not leverage into those illiquid asset class and at the same time, u must have fat to weather the storm.

Must always protect ur cash flow or have stable jobs if u want to have high leverage. Singapore may not retain her competitiveness forever. Jobs may b lost forever leading to structural unemployment. If fact our growth is slowing down compare to JB. Our physical limits r raising e cost of living ndoing business badly. Ur model of high wealth growth using leveraging n properties cld b v risky for Radha now.

[equalizer]

totally agree but everybodys appetite for risk is NOT the same...thats why when you walk into a casino...there are SO many different types of games to play........same with property market...so many different types of housing types to play with..get the point....lifes a Gamble...win some loose some...they say...

Well, I think you are in a great position becos' you already hve a fully paid HDB. You don't have to rent so you can bide your time and shop around. Nobody can accurately guess the market highs or lows otherwise they will be billionaires. Just take your time and buy something within your means which you think will make you happy without overworrying about servicing loans. Even if the market corrects, as long as you have the buffer, don't worry. The cycles seem to be much shorter now given the high level of govt intervention. Loans do not last forever and will run down over time. One day, you will be surprised at how money you can get back if you decide to sell.

[radha08]

This I disagree, buy a hse with mortgage loan does not mean u need to slog for the rest of your life to service the loan. You are actually enjoying ur life living in it while the price appreciation over time will pay for your loan itself by the time u retire. Of cos, when u retire, u need to downgrade to cash out or migrate somewhere else.

I think it will be foolish otherwise for not leveraging yourself i.e. to fully pay for a house when the money can be used to generate higher returns by investing in more properties.

because of SSD you need to HOLD at least for 4 years....i kinda feel we all all SAILING on the titanic in todays enviroment....we DONT know whats ahead so rather than BE a HERO(cos heros die young)...i rather take a back seat...and cruise along until coast is clear and time is right...of course there is a chance that might NOT happen...

agree to fully pay up 1 house and not use the money to buy a FEW apts may NOT be the wisest thing to do...perhaps for somene in late 20s to early 30s...BUT when u are ALMOST HALF way thru life cycle(assuming we all live till 100)...you tend to look at risk from a more conservative point of view....unless of course you have a few million dollars lying around...but if thats the case then you wont be excercising your fingers typing this message you would probably be looking to buy/sell/rent your next property...

[radha08]

Must always protect ur cash flow or have stable jobs if u want to have high leverage. Singapore may not retain her competitiveness forever. Jobs may b lost forever leading to structural unemployment. If fact our growth is slowing down compare to JB. Our physical limits r raising e cost of living ndoing business badly. Ur model of high wealth growth using leveraging n properties cld b v risky for Radha now.

ha ha Mr Radha just spent a few days last week staying at RWS did Mr radha step into the casino...NO...WHY?...cos Mrs Radha...say if U GO in there........so you see Mr Radha when he do things need to align with Mrs Radha.....because if Mrs Radha NOT happy then NO use for Mr Radha...to BUY a BILLION dollar house...everyday fighting with Mrs Radha...Moral of story....house small nebermind as long as your BETTER half is happy can Liao....

DISCLAIMER:This is point of view of the radha household...the Tan/Lee/LIM/MOhd household may hold its OWN views...as long as HAPPY can LIAO...

[latour]

especially when the HAPPIEST members are the DOG and the MAID cos they enjoy the MOST....

hmmm... that sounds familiar !

[radha08]

Well, I think you are in a great position becos' you already hve a fully paid HDB. You don't have to rent so you can bide your time and shop around. Nobody can accurately guess the market highs or lows otherwise they will be billionaires. Just take your time and buy something within your means which you think will make you happy without overworrying about servicing loans. Even if the market corrects, as long as you have the buffer, don't worry. The cycles seem to be much shorter now given the high level of govt intervention. Loans do not last forever and will run down over time. One day, you will be surprised at how money you can get back if you decide to sell.

i sold my PC some time last year stayed there almost 4 years my HDB flat help me to pay my PC...before that my HDB flat sheltered me and my family so many years..its like an OLD friend...i believe and treasure friendship....so if i were to cut off my hdb flat by selling off its like breaking friendship with an OLD and TRUSTED friend...somehow i treasure GOOD friends...

[fclim]

How do you measure over leveraging? When property price goes up (equity value goes up), your gearing (debt/equity) becomes lower.

The bank will only loan you $$$ when u can down at least 20%, plus u have stable income to support it. So are you over leveraged when bank approves your loan?

If one loses his stable income, dun mention landed, even HDB oso got prob servicing the loan. The only consolation is the bank cannot force u to sell ur HDB even if you become bankrupt.

There are guidelines out there on what percentage of your income should go towards paying that loan. Each individual will have to decide, wisely or foolishly.

And it is not true that banks cannot force sell a HDB flat. They have a first charge on your HDB flat if you take a commercial bank loan, followed by CPF Board.