Latest govt policies/measures.. Should I sell HDB now?

[wisteria]

(I just figured out how to start a new thread, so i'm re-posting this here..)

I am new to this whole property talk and am feeling quite lost. Would appreciate honest and direct advice/opinion from everyone in here.

I currently have a fully paid 5-rm HDB in Woodlands. Exploring the option of buying a pte condo. Should I sell my HDB? Or should I hold and rent it out?

Just 1 week ago, I was certain that holding on to this HDB unit would make more $en$e. Especially after the announcement came out that Woodlands will be developed into the next regional centre (our unit is less than 10min walk to MRT).

But yesterday's news re govt measures to bring down prices of HDB is causing me some worry.

KBW says it's "Time to relook housing policies for the future" (ST, 9 March 2013) and 1 of the 4 key questions he raised (Should Housing Board flats continue to be an appreciating asset or return to being treated simply as a social need?) made me wonder again if holding on to this Woodlands HDB unit is a good idea...

Any thoughts??

My worry: more cooling measures will cause prices of condo to drop in the next few years AND price of my HDB goes back down and I make a loss (bought high and this is the first time in many years that it's seeing real profit)
Don't want to be slapped twice by making a wrong move now.

Advice, pls?

[Arcachon]

First, never fully pay your HDB.

Second, always get as much loan as you can when you are able.

Third there will always have CM after CM when the property is hot, when the property market crash, there will be lot of way to encourage you to buy e.g. DPS, remove stamp duty, PC can buy HDB......

Conclusion - The more money you have the more will be inflate away by the money printing machine. Debt = Money, therefore more debt (Good debt) you have more money flowing into your account.

[DuaNehNehChioBu]

First, never fully pay your HDB.

Second, always get as much loan as you can when you are able.

Third there will always have CM after CM when the property is hot, when the property market crash, there will be lot of way to encourage you to buy e.g. DPS, remove stamp duty, PC can buy HDB......

Conclusion - The more money you have the more will be inflate away by the money printing machine. Debt = Money, therefore more debt (Good debt) you have more money flowing into your account.

You are really CRAZY .

The more loan = more financial burden + interests

HDB infact is better coz NO maintenance fee except that $60+ conservancy fee monthly which is very low. Property tax no need i say for HDB.

The HIGHER you Climb, the HEAVY the pain when you fall....

[Arcachon]

You are right, I am crazy when you know what is money.

Have you watch "Money As Debt"

http://www.youtube.com/watch?v=jqvKjsIxT_8

[Allthepies]

2nd property you have to pay a total of 10% stamp duty, you have to judge is this amount worth it......

[Arcachon]

https://www.youtube.com/watch?v=E3fFg8XIS0k

[Leeds]

If you have another place to stay other than this fully paid HDB flat, selling off this flat only means that you start from zero base which may not be a bad idea since there is profit to be realised. Starting from zero also means that you are like any other first timer buying your first private property and hence no ABSD involved.



The announcement by Mr Khaw on the reduced prices of future BTO flat is a tricky one. You need to make your own call and take it from here.


You are more fortunate than many others who need to buy first and than sell later.

(I just figured out how to start a new thread, so i'm re-posting this here..)

I am new to this whole property talk and am feeling quite lost. Would appreciate honest and direct advice/opinion from everyone in here.

I currently have a fully paid 5-rm HDB in Woodlands. Exploring the option of buying a pte condo. Should I sell my HDB? Or should I hold and rent it out?

Just 1 week ago, I was certain that holding on to this HDB unit would make more $en$e. Especially after the announcement came out that Woodlands will be developed into the next regional centre (our unit is less than 10min walk to MRT).

But yesterday's news re govt measures to bring down prices of HDB is causing me some worry.

KBW says it's "Time to relook housing policies for the future" (ST, 9 March 2013) and 1 of the 4 key questions he raised (Should Housing Board flats continue to be an appreciating asset or return to being treated simply as a social need?) made me wonder again if holding on to this Woodlands HDB unit is a good idea...

Any thoughts??

My worry: more cooling measures will cause prices of condo to drop in the next few years AND price of my HDB goes back down and I make a loss (bought high and this is the first time in many years that it's seeing real profit)
Don't want to be slapped twice by making a wrong move now.

Advice, pls?

[Arcachon]

https://www.youtube.com/watch?v=on513ZiQA8M

[buttercarp]

2nd property you have to pay a total of 10% stamp duty, you have to judge is this amount worth it......

You are assuming wisteria is a PR?

[leesg123]

(I just figured out how to start a new thread, so i'm re-posting this here..)

I am new to this whole property talk and am feeling quite lost. Would appreciate honest and direct advice/opinion from everyone in here.

I currently have a fully paid 5-rm HDB in Woodlands. Exploring the option of buying a pte condo. Should I sell my HDB? Or should I hold and rent it out?

Just 1 week ago, I was certain that holding on to this HDB unit would make more $en$e. Especially after the announcement came out that Woodlands will be developed into the next regional centre (our unit is less than 10min walk to MRT).

But yesterday's news re govt measures to bring down prices of HDB is causing me some worry.

KBW says it's "Time to relook housing policies for the future" (ST, 9 March 2013) and 1 of the 4 key questions he raised (Should Housing Board flats continue to be an appreciating asset or return to being treated simply as a social need?) made me wonder again if holding on to this Woodlands HDB unit is a good idea...

Any thoughts??

My worry: more cooling measures will cause prices of condo to drop in the next few years AND price of my HDB goes back down and I make a loss (bought high and this is the first time in many years that it's seeing real profit)
Don't want to be slapped twice by making a wrong move now.

Advice, pls?

Assuming you can sell it for 550k.

use half the proceed to downpay a condo for own stay, register it under your name.

the other half, use your spouse name to get a MM, rent it out.

You save on your ABSD and end up with two pte properties. Congrats!

[Kelonguni]

Most important is whether you need a place to stay and whether you are comfortable living and working where you are now.

If you are, it will be taking a large gamble. At least now, you can rest well. Why take the risk for your roof over head just because of paper values?

Political speech often have embedded meanings, cannot take at face value.

[bakasa2002]

You are assuming wisteria is a PR?

sis, i think he mean to say 3% SD + 7% ABSD for 2nd ppty ... Not PR ...

[wisteria]

If you have another place to stay other than this fully paid HDB flat, selling off this flat only means that you start from zero base which may not be a bad idea since there is profit to be realised. Starting from zero also means that you are like any other first timer buying your first private property and hence no ABSD involved.



The announcement by Mr Khaw on the reduced prices of future BTO flat is a tricky one. You need to make your own call and take it from here.


You are more fortunate than many others who need to buy first and than sell later.

2nd property you have to pay a total of 10% stamp duty, you have to judge is this amount worth it......

That's the thing.. We've factored all the costs including the BSD and ABSD. Went through our numbers many times over just to make sure that we can afford this. We can - just barely. We were even willing absorb that ABSD ('absurd' to us) because of the possibility of huge capital appreciation in our Woodlands HDB flat (due to e development of regional centre n our proximity to the MRT/mall(s)).

BUT, if KBW says govt relook the situation and they suddenly implement a policy that freezes capital appreciation (is this likely?) and lowers rental, we would then have paid the ABSD and left with a HDB that is not really 'working' for us..

Am I making sense?

I don't know enough to predict market movements so was hoping for some insight from those more experienced in this.

[wisteria]

sis, i think he mean to say 3% SD + 7% ABSD for 2nd ppty ... Not PR ...

I'm Singaporean.

[wisteria]

Most important is whether you need a place to stay and whether you are comfortable living and working where you are now.

If you are, it will be taking a large gamble. At least now, you can rest well. Why take the risk for your roof over head just because of paper values?

Political speech often have embedded meanings, cannot take at face value.

Def comfortable now. I ask that question too sometimes.. Just thinking of how we can leverage so that can provide better for children, perhaps?

Embedded meanings? Care to share your thoughts?

[wisteria]

Assuming you can sell it for 550k.

use half the proceed to downpay a condo for own stay, register it under your name.

the other half, use your spouse name to get a MM, rent it out.

You save on your ABSD and end up with two pte properties. Congrats!

That sounds like an option.. But may I know what is MM?

[leesg123]

...because of the possibility of huge capital appreciation in our Woodlands HDB flat (due to e development of regional centre n our proximity to the MRT/mall(s)).

Woodland is always woodland, downtown is always downtown. What huge capital gain?Woodland is just a heartland, far far north.

[leesg123]

That sounds like an option.. But may I know what is MM?

mm = shoebox

[RCT]

Woodland is always woodland, downtown is always downtown. What huge capital gain?Woodland is just a heartland, far far north.

Agreed.. They cannot be building Shenton Way or Orchard Road in the north right?

[BigBoy]

I would say you just missed the boat. The current CMs no longer favours Singaporean owning more than one property. Your options are either to upgrade (1 to 1 exchange) or pay the ABSD to own two. Either way, you are still subjected to the new financing requirement and restrictions.

[wisteria]

Agreed.. They cannot be building Shenton Way or Orchard Road in the north right?

Wasn't thinking of Shenton Way/Orchard Rd definitely.

More like Tampines ie the 1st regional centre..? Also very quiet when I lived there through the 90s. But quite bustling and certainly more expensive there now, no?

[teddybear]

You are right. They are punishing people who did their sums at that time considering all the rule and regulations at that time, and then at their whams and whims, rules and regulations changed to favor those who CPCB! Suddenly fair HDB BTO flats in non-mature estates should be 4 years of income! It is time they clarify also 4 years of whose income? If based on applicants' income, then their HDB BTO flats are all along significantly over-priced for so many many years! Did they just realize this fact recently or they know all along and said so only recently? Why then did they say but not do to immediately reduce the price of HDB BTO flats to 4 years of income to their advocated fair price?

Furthermore, it is time that HDB practise transparent pricing and price HDB flats on $PSF and not how many rooms! We all know very well that in 198x, 5rm HDB flats are typically 13xx sqft! Now, 5rm HDB flats can be as small as 10xx sqft! Over the past 10 years, the size has shrunk by another 100+ sqft! They should thus take this into considerations!

That's the thing.. We've factored all the costs including the BSD and ABSD. Went through our numbers many times over just to make sure that we can afford this. We can - just barely. We were even willing absorb that ABSD ('absurd' to us) because of the possibility of huge capital appreciation in our Woodlands HDB flat (due to e development of regional centre n our proximity to the MRT/mall(s)).

BUT, if KBW says govt relook the situation and they suddenly implement a policy that freezes capital appreciation (is this likely?) and lowers rental, we would then have paid the ABSD and left with a HDB that is not really 'working' for us..

Am I making sense?

I don't know enough to predict market movements so was hoping for some insight from those more experienced in this.

[wisteria]

mm = shoebox

I see.. But what does the MM stand for? Clearly a noob..

[leesg123]

I see.. But what does the MM stand for? Clearly a noob..

mickey mouse

[buttercarp]

sis, i think he mean to say 3% SD + 7% ABSD for 2nd ppty ... Not PR ...

Oic.... lol... ya he said stamp duties....
Omg... I am obsessed with ABSD!

[wisteria]

SIGH...........

You are right. They are punishing people who did their sums at that time considering all the rule and regulations at that time, and then at their whams and whims, rules and regulations changed to favor those who CPCB! Suddenly fair HDB BTO flats in non-mature estates should be 4 years of income! It is time they clarify also 4 years of whose income? If based on applicants' income, then their HDB BTO flats are all along significantly over-priced for so many many years! Did they just realize this fact recently or they know all along and said so only recently? Why then did they say but not do to immediately reduce the price of HDB BTO flats to 4 years of income to their advocated fair price?

Furthermore, it is time that HDB practise transparent pricing and price HDB flats on $PSF and not how many rooms! We all know very well that in 198x, 5rm HDB flats are typically 13xx sqft! Now, 5rm HDB flats can be as small as 10xx sqft! Over the past 10 years, the size has shrunk by another 100+ sqft! They should thus take this into considerations!

[phantom_opera]

http://www.youtube.com/watch?v=OT1HCQcSHW0

CMs keep fallin' on my head
And just like the guy whose feet are too big for his bed
Nothin' seems to fit
Those CMs are fallin' on my head, they keep fallin'

So I just did me some talkin' to the sun
And I said I didn't like the way he got things done
Sleepin' on the job
Those CMs are fallin' on my head, they keep fallin'

But there's one thing I know
The blues they send to meet me won't defeat me
It won't be long till happiness steps up to greet me

CMs keep fallin' on my head
But that doesn't mean my eyes will soon be turnin' red
Cryin's not for me
'Cause I'm never gonna stop the CM by complainin'
Because I'm free
Nothin's worryin' me

[trumpet]

It won't be long till happiness steps up to greet me

CMs keep fallin' on my head
But that doesn't mean my eyes will soon be turnin' red
Cryin's not for me
'Cause I'm never gonna stop the CM by complainin'
Because I'm free
Nothin's worryin' me

[minority]

You are right. They are punishing people who did their sums at that time considering all the rule and regulations at that time, and then at their whams and whims, rules and regulations changed to favor those who CPCB! Suddenly fair HDB BTO flats in non-mature estates should be 4 years of income! It is time they clarify also 4 years of whose income? If based on applicants' income, then their HDB BTO flats are all along significantly over-priced for so many many years! Did they just realize this fact recently or they know all along and said so only recently? Why then did they say but not do to immediately reduce the price of HDB BTO flats to 4 years of income to their advocated fair price?

Furthermore, it is time that HDB practise transparent pricing and price HDB flats on $PSF and not how many rooms! We all know very well that in 198x, 5rm HDB flats are typically 13xx sqft! Now, 5rm HDB flats can be as small as 10xx sqft! Over the past 10 years, the size has shrunk by another 100+ sqft! They should thus take this into considerations!

should be base on median household income for 5 room flats. which currently is 7K. 7Kpm X 12mth X 4yr = 336K is fairly avg for the current 5room apt in out skirt.

u also left out a part of KBW message. which is also the a combination of raising today's Singaporean salary. so down the road if the median salary is higher. for the lower income going for a i.e. 3 bed room or a middle income person going for a 5 bed room.

[Arcachon]

That sounds like an option.. But may I know what is MM?

http://www.moneysmart.sg/housing-pro...ents-worth-it/

Shoebox apartments are also called Mickey Mouse apartments.

[Arcachon]

http://www.youtube.com/watch?v=4Xx_5PuLIzc

Money, money, money.