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Thread: Need Advices from all experts here!!

  1. #1
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    Default Need Advices from all experts here!!

    Hi, I am first timer to have my own condo and it will be ready next year first Quarter, now my dilemma is should i sell away my HDB and move in to the condo. The condo i already pay up the 30% and the rest i paying by installment.
    My wife and I have a stable job which allow me to use CPF to pay up the HDB (left 4yrs to pay which i took 10yrs HDB loan).And i do take the experts advice to keep 1yrs household saving in case for emergency. The condo I can pay by cash even hit up to 4% interest rate in future after i calculate also wont hit 35% of my household income. So now i not sure should i rent out my HDB or sell my HDB because all my friends tell me different view so i hope to come this forum and seek for some professional advices. Thanks a million!!!

  2. #2
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    Similar situation as yours in 2 years time so will be good to hear some advices too.
    BE CENTRED BY ALL AT THE FRINGE OF THE CITY @

  3. #3
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    keep the HDB and rent it out ... passive income!

  4. #4
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    You sounds like you made some workings on your finances already.
    Maybe just a bit more considerations that can help swing the vote either way:
    - Consider inflation rate
    - Consider if your future earnings can keep up (they can go up or down)
    - Consider if your household expenditures may go up or down

    btw, 35% in my view is a big stretch, if u want to play it safe, keep it below 25%. Otherwise, sell the HDB.

  5. #5
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    Quote Originally Posted by kawaiing
    Hi, I am first timer to have my own condo and it will be ready next year first Quarter, now my dilemma is should i sell away my HDB and move in to the condo. The condo i already pay up the 30% and the rest i paying by installment.
    My wife and I have a stable job which allow me to use CPF to pay up the HDB (left 4yrs to pay which i took 10yrs HDB loan).And i do take the experts advice to keep 1yrs household saving in case for emergency. The condo I can pay by cash even hit up to 4% interest rate in future after i calculate also wont hit 35% of my household income. So now i not sure should i rent out my HDB or sell my HDB because all my friends tell me different view so i hope to come this forum and seek for some professional advices. Thanks a million!!!
    HDB price is good now, sell it, keep the bullets for future investment.

  6. #6
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    Quote Originally Posted by kawaiing
    Hi, I am first timer to have my own condo and it will be ready next year first Quarter, now my dilemma is should i sell away my HDB and move in to the condo. The condo i already pay up the 30% and the rest i paying by installment.
    My wife and I have a stable job which allow me to use CPF to pay up the HDB (left 4yrs to pay which i took 10yrs HDB loan).And i do take the experts advice to keep 1yrs household saving in case for emergency. The condo I can pay by cash even hit up to 4% interest rate in future after i calculate also wont hit 35% of my household income. So now i not sure should i rent out my HDB or sell my HDB because all my friends tell me different view so i hope to come this forum and seek for some professional advices. Thanks a million!!!
    KEEP the HDB ... rent it out ...

    but if you like the HDB location ...and if the condo rental yield is better .. rent out the condo ...

  7. #7
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    Quote Originally Posted by proud owner
    KEEP the HDB ... rent it out ...

    but if you like the HDB location ...and if the condo rental yield is better .. rent out the condo ...
    My HDB in Punggol, No kindergarten for my kids (Q for 2yrs still waiting list), so moving to the condo and enroll the kindergaten there already. So dun think will rent out the condo due to the kids' education.

    THANKS for all advices so far btw!!

  8. #8
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    Quote Originally Posted by kawaiing
    My HDB in Punggol, No kindergarten for my kids (Q for 2yrs still waiting list), so moving to the condo and enroll the kindergaten there already. So dun think will rent out the condo due to the kids' education.

    THANKS for all advices so far btw!!

    i strongly advise to keep the HDB ...

  9. #9
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    Quote Originally Posted by kawaiing
    Hi, I am first timer to have my own condo and it will be ready next year first Quarter, now my dilemma is should i sell away my HDB and move in to the condo. The condo i already pay up the 30% and the rest i paying by installment.
    My wife and I have a stable job which allow me to use CPF to pay up the HDB (left 4yrs to pay which i took 10yrs HDB loan).And i do take the experts advice to keep 1yrs household saving in case for emergency. The condo I can pay by cash even hit up to 4% interest rate in future after i calculate also wont hit 35% of my household income. So now i not sure should i rent out my HDB or sell my HDB because all my friends tell me different view so i hope to come this forum and seek for some professional advices. Thanks a million!!!
    You and your spouse apparently are in a very good, envious and comfortable position, financially. It's clear that you die die (sorri for lingo) must stay in your condo and thinking hard how to deal with your HDB (sell /rent). Your HDB has only 4 years left and can be paid thru CPF.

    Do you have special attachment for that HDB flat ? (eg personally ID-touch, very convenient, good neighbourhood, food, neighbour etc)
    Must you die die sell your HDB (eg. too good capital appreciation to miss, $$$ can pay for % of condo mortgage, $$ for other investment opportunities etc)
    if in good location ,perhaps the HDB rent can pay for itself next 4 years

    Can always hold your HDB to collect your alternative income while deciding later on. Sometime, no decision is the best decision.

  10. #10
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    For me, it depends on the HDB rental yield. I will keep HDB for rental if rental yield @ selling price (not your original purchase price) is above 4.5%. Use your HDB rental to pay for your condo's installment. This is especially so if your HDB is within 500m of an MRT and there is a big development project nearby (e.g. university, casinos) that potentially will boost HDB resale price / rental in the near future.

  11. #11
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    It depends on when you bought your condo. If you just bought it and your LTV is still 70%, then i would sell your HDB, accumulate the monies for heavy rain.

  12. #12
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    I will agree to keep HDB if it is of a good location or good yield.

    But for Punggol, the supply looks like going to be big, espeically with Punggol 21 plan. People would like to stay near the waterway. I suppose yours is far off from the Punggol 21.

    As such, it will be good to liquidate for a better investment

  13. #13
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    Sell your hdb in punggol and buy another one in a matured estate near mrt. look for estates with limited supply of flats near mrt to ensure it is easy for u to offload next time. punggol is in an oversupply situation so a risk for you to rent out at a low price. if you currently have 4rm sell it and buy a 3 rm and if you have a 5 rm, sell it to buy a 4rm using the excess to reduce ur condo mortgage.

    Quote Originally Posted by kawaiing
    My HDB in Punggol, No kindergarten for my kids (Q for 2yrs still waiting list), so moving to the condo and enroll the kindergaten there already. So dun think will rent out the condo due to the kids' education.

    THANKS for all advices so far btw!!

  14. #14
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    Quote Originally Posted by Regulators
    Sell your hdb in punggol and buy another one in a matured estate near mrt. look for estates with limited supply of flats near mrt to ensure it is easy for u to offload next time. punggol is in an oversupply situation so a risk for you to rent out at a low price. if you currently have 4rm sell it and buy a 3 rm and if you have a 5 rm, sell it to buy a 4rm using the excess to reduce ur condo mortgage.
    What if tha matured estate will have a new DBSS & Condo expected to TOP within a couple of years time?
    BE CENTRED BY ALL AT THE FRINGE OF THE CITY @

  15. #15
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    for hdbs, flats within 400m frm mrt will always be in hi demand. It doesnt matter how many dbss units hdb builds coz locatn is still e most impt. The bees will always flock to the area rich in nectar n that is near the town centres n mrt be it rental or sale. People buy into lifestyle these days n they will pay gd money to get a gd locatn that fits into their lifestyle
    Quote Originally Posted by sleek
    What if tha matured estate will have a new DBSS & Condo expected to TOP within a couple of years time?

  16. #16
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    Quote Originally Posted by kawaiing
    My HDB in Punggol, No kindergarten for my kids (Q for 2yrs still waiting list), so moving to the condo and enroll the kindergaten there already. So dun think will rent out the condo due to the kids' education.

    THANKS for all advices so far btw!!
    Punggol? Sell. Return not significant. Unit trust or CPFIS may beat it.

    Regulators mentioned buy another matured HDB which sound great but you need to dispose your private and wait 30mths UNLESS resale and non-hdb loan which again eat into your margin. (Let not factor in the current low sibor)

    Buy another private? Correction maybe coming.

    Keep cash? Inflation is highly possible and could be contagious and you could hurt yourself without hedging.

    Perhaps you could donate to charity and secure a place in heaven.. But huh.. cannot cannot, you sell HDB proceed back to OA + accured interest and CPF can't donate.

    How.. hmmm.. maybe, just maybe you could just free up cash by paying some legal and have CPF proceed from HDB to cover your condo which is eligible.

    Then incorporate a company, register as a GST trader and buy commercial property with the cash. After you are ready for 3rd venture, park all assets under company to level the taxation and buy a re-sale 3rms and enjoy your retirement.

    wahahhahahah...

  17. #17
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    Quote Originally Posted by Regulators
    Sell your hdb in punggol and buy another one in a matured estate near mrt. look for estates with limited supply of flats near mrt to ensure it is easy for u to offload next time. punggol is in an oversupply situation so a risk for you to rent out at a low price. if you currently have 4rm sell it and buy a 3 rm and if you have a 5 rm, sell it to buy a 4rm using the excess to reduce ur condo mortgage.
    I did the above.

    1) Sold my 5 room in Punggol. (1 LRT stop away from MRT but what the heck! There are so many new ones coming up next to MRT.)

    2) Bot a resale 3 room in AMK that is facing Bishan Park with convenient amenities nearby. (3 bus stops away from AMK hub/ MRT.)

    3) Now patiently waiting for the TOP of my OCR condo.

    4) Will keep my HDB when condo TOP

    5) Rent out the one with higher rental yields or sell the condo if the capital gains prove too good to resist.

  18. #18
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    Keep the HDB confirm (if can afford 2 houses), no need 2nd thoughts...and dun change IC address...even if you dun really live in the hdb flat...all government rebates or other aids usually look at your residential address...hdb occupiers often enjoy max govt money...

  19. #19
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    If you have only 1 house (the HDB) and intend to buy a condo for own stay, then you should keep the HDB.

    My rationale is that it gives greater flexibility to your allocation of capital and locking in of capital gains.

    Going back in time to 2007, you have only 1 Condo, and your condo appreciated by 100%, you have only 1 option, to sell the condo to lock in the gains and then have to immediately scurry for another accomodation. That accomodation if you are buying will cost you more and takes away your gain.

    But if you had your HDB and Condo, you could lock in the condo gain and moved out the HDB renters at a cost but you can take your own sweet time to search for a house.

  20. #20
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    Pls be aware of a very important rule in CPF that is often overlooked.

    "You must first set aside half of the prevailing Minimum Sum before you can use the excess CPF savings in your Ordinary Account for the second and subsequent properties. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet this required amount. "
    http://ask-us.cpf.gov.sg/hybrid/Them...Id=&SourceId=0

    > You need to have at least half the minimum sum (~S59K now) before you can use your CPF to pay for your second property (condo).

  21. #21
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    Quote Originally Posted by mezo
    Pls be aware of a very important rule in CPF that is often overlooked.

    "You must first set aside half of the prevailing Minimum Sum before you can use the excess CPF savings in your Ordinary Account for the second and subsequent properties. Savings in the Special Account (including the amount used for investments) and Ordinary Account can be used to meet this required amount. "
    http://ask-us.cpf.gov.sg/hybrid/Them...Id=&SourceId=0

    > You need to have at least half the minimum sum (~S59K now) before you can use your CPF to pay for your second property (condo).
    Haha....there is actually a way to avoid this.

    Think in this direction:

    Co-ownership does not equate to compulsory co-financing by both husband and wife.

  22. #22
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    i will keep the hdb first and sell later. Punggol still haven't reached it's full potential yet, selling it now, will not realised that value. but that will also depends on the rental yield too.

  23. #23
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    Quote Originally Posted by kawaiing
    Hi, I am first timer to have my own condo and it will be ready next year first Quarter, now my dilemma is should i sell away my HDB and move in to the condo. The condo i already pay up the 30% and the rest i paying by installment.
    My wife and I have a stable job which allow me to use CPF to pay up the HDB (left 4yrs to pay which i took 10yrs HDB loan).And i do take the experts advice to keep 1yrs household saving in case for emergency. The condo I can pay by cash even hit up to 4% interest rate in future after i calculate also wont hit 35% of my household income. So now i not sure should i rent out my HDB or sell my HDB because all my friends tell me different view so i hope to come this forum and seek for some professional advices. Thanks a million!!!
    Mistake No 1, you took a 10 years HDB loan. Dun forget the compound interest u br having when u sell your hbd in years to come. Ihmo, HDB loan should be max out to be the best.

  24. #24
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    Quote Originally Posted by kawaiing
    Hi, I am first timer to have my own condo and it will be ready next year first Quarter, now my dilemma is should i sell away my HDB and move in to the condo. The condo i already pay up the 30% and the rest i paying by installment.
    My wife and I have a stable job which allow me to use CPF to pay up the HDB (left 4yrs to pay which i took 10yrs HDB loan).And i do take the experts advice to keep 1yrs household saving in case for emergency. The condo I can pay by cash even hit up to 4% interest rate in future after i calculate also wont hit 35% of my household income. So now i not sure should i rent out my HDB or sell my HDB because all my friends tell me different view so i hope to come this forum and seek for some professional advices. Thanks a million!!!
    I think you have to sell your HDB, Correct me if I'm wrong, by HDB regulation, you cannot stay in condo and rent HDB. You must stay in HDB and rent out the condo.

  25. #25
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    Quote Originally Posted by kawaiing
    Hi, I am first timer to have my own condo and it will be ready next year first Quarter, now my dilemma is should i sell away my HDB and move in to the condo. The condo i already pay up the 30% and the rest i paying by installment.
    My wife and I have a stable job which allow me to use CPF to pay up the HDB (left 4yrs to pay which i took 10yrs HDB loan).And i do take the experts advice to keep 1yrs household saving in case for emergency. The condo I can pay by cash even hit up to 4% interest rate in future after i calculate also wont hit 35% of my household income. So now i not sure should i rent out my HDB or sell my HDB because all my friends tell me different view so i hope to come this forum and seek for some professional advices. Thanks a million!!!
    Never sell anything. Unless you are planning to exchange it for another flat elsewhere.

    Our Minister Adm Lui Tuck Yew already said that HDB prices are going to keep rising non-stop until they reach the Moon (well, he didn't actually say that, but how else do you intepret the following report).

    Straits Times

    Nov 23, 2009

    Timing of HDB tax hike 'avoids bigger increases later'

    By Sue-Ann Chia, Senior Political Correspondent

    THE property tax of HDB flats is being raised next year partly to avoid having to introduce a bigger increase later should home prices continue to rise, said Acting Minister for Information, Communications and the Arts Lui Tuck Yew.

  26. #26
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    Quote Originally Posted by nochoice
    I think you have to sell your HDB, Correct me if I'm wrong, by HDB regulation, you cannot stay in condo and rent HDB. You must stay in HDB and rent out the condo.
    jus heard from an agent now can stay condo and rent hdb. rule changed!!

  27. #27
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    Quote Originally Posted by shespawn
    i will keep the hdb first and sell later. Punggol still haven't reached it's full potential yet, selling it now, will not realised that value. but that will also depends on the rental yield too.
    Can anyone teach me how to calculate rental yield?
    i bought my house at near 250k, now valuation is 400k, can rent out between 1800 to 2200. (lowest to highest rate this few mths)
    Thanks for ALL Advices again, very useful and let me use my brain again.

  28. #28
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    Quote Originally Posted by kawaiing
    Can anyone teach me how to calculate rental yield?
    i bought my house at near 250k, now valuation is 400k, can rent out between 1800 to 2200. (lowest to highest rate this few mths)
    Thanks for ALL Advices again, very useful and let me use my brain again.
    let say you rent $2000, $2k x 12mths=$24k
    you can sell your flat at $400k
    the rental yield would be $24k/$400k x 100 = 6%

  29. #29
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    Quote Originally Posted by nochoice
    let say you rent $2000, $2k x 12mths=$24k
    you can sell your flat at $400k
    the rental yield would be $24k/$400k x 100 = 6%
    That's why not worth to sell at 400k. Where else can u get stable 6% yield nowadays, FD is below 1%, interest rate will stay low due to fear of deflation at G7. Even government thinks rental will stay high by jacking up property tax.
    The only factor calling for "sell" is probably location far from MRT, and the oversupply situation at Punggol & the risk of deflationary spiral at G7 (which looks increasingly unlikely).

    If my flat near MRT at mature town and I am servicing based on 2.6% rate from HDB ... will not sell until rental yield drop to 4.5%.

  30. #30
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    Quote Originally Posted by ay123
    jus heard from an agent now can stay condo and rent hdb. rule changed!!
    confirmed it is true, jus checked hdb website. thks.

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