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Thread: Help needed, need advice from experts!

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    Default Help needed, need advice from experts!

    Dear experts,

    I just bought a FH property that will TOP in around 2013, after much consideration with the help and advices of some very experienced forumers in this forum(condorich etc), I have decided to sell my HDB flat so that I can better manage my finance. I am torn between selling the hdb flat now since the market is considered quite peak, at the mean time rent a room to stay for 3 years, OR to continue staying in my hdb till my condo TOP then sell, with the risk of a property crashes, drop in hdb resale value as my hdb approaches 30 years old... My current HDB is constructed in the year 1984. It is a 5 room Improved unit at 121 sqm in D19, high floor and tastefully renovated by professional designer, and I am expecting to sell at around $450K and above. Will appreciate any advices or comments, thank you!

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    I believe this is a decision that you have to made on your own. At such unprecedented situation, you ask 100 people and they will give you may be 3 different answers each for both private and HDB property markets!
    1) Private Property market will crash soon...
    2) Private Property market will still go up significantly...
    3) Private Property market will be stagnant.

    1) HDB property market will crash soon...
    2) HDB Property market will still go up significantly...
    3) HDB Property market will be stagnant.

    If we really have a property bubble now, I believe the real bubble is actually in HDB flats! (Ops!). When do we see HDB flat selling at >$500 psf? Unimaginable. The gap between HDB flat and private property in nearby vicinity is becoming so small that either HDB flat is over-priced or private property is under-priced! There are still people lamenting that private property's bubble is forming? If this is really so, the HDB property bubble is even bigger!

    Quote Originally Posted by ocoloco79
    Dear experts,

    I just bought a FH property that will TOP in around 2013, after much consideration with the help and advices of some very experienced forumers in this forum(condorich etc), I have decided to sell my HDB flat so that I can better manage my finance. I am torn between selling the hdb flat now since the market is considered quite peak, at the mean time rent a room to stay for 3 years, OR to continue staying in my hdb till my condo TOP then sell, with the risk of a property crashes, drop in hdb resale value as my hdb approaches 30 years old... My current HDB is constructed in the year 1984. It is a 5 room Improved unit at 121 sqm in D19, high floor and tastefully renovated by professional designer, and I am expecting to sell at around $450K and above. Will appreciate any advices or comments, thank you!

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    Quote Originally Posted by ocoloco79
    I am torn between selling the hdb flat now since the market is considered quite peak, at the mean time rent a room to stay for 3 years, OR to continue staying in my hdb till my condo TOP then sell, with the risk of a property crashes, drop in hdb resale value as my hdb approaches 30 years old... My current HDB is constructed in the year 1984. It is a 5 room Improved unit at 121 sqm in D19, high floor and tastefully renovated by professional designer, and I am expecting to sell at around $450K and above. Will appreciate any advices or comments, thank you!
    not expert, just my 1 cent:

    - ur new FH pty loan burden will kick in only close to TOP
    - HDB mkt unlikely to crash, more like will stabilise

    so for me wont sell the hdb, instead treat the new FH purchase as investment

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    Quote Originally Posted by ocoloco79
    Dear experts,

    I just bought a FH property that will TOP in around 2013, after much consideration with the help and advices of some very experienced forumers in this forum(condorich etc), I have decided to sell my HDB flat so that I can better manage my finance. I am torn between selling the hdb flat now since the market is considered quite peak, at the mean time rent a room to stay for 3 years, OR to continue staying in my hdb till my condo TOP then sell, with the risk of a property crashes, drop in hdb resale value as my hdb approaches 30 years old... My current HDB is constructed in the year 1984. It is a 5 room Improved unit at 121 sqm in D19, high floor and tastefully renovated by professional designer, and I am expecting to sell at around $450K and above. Will appreciate any advices or comments, thank you!
    You may want to find out how many FT are coming to Singapore in the next 3 years. By finding out you will know if we have enough houses for them to stay.

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    Quote Originally Posted by ocoloco79
    . It is a 5 room Improved unit at 121 sqm in D19, high floor and tastefully renovated by professional designer, and I am expecting to sell at around $450K and above. Will appreciate any advices or comments, thank you!
    For $450K and 121sqm better to keep. $900K another story.

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    i would advise, never give up the chance to own a HDB flat if u can hold on...

    to stay in a rental unit from now for another 2-3 years, it would mean ur profits from the sale of your HDB would have been eroded month by month. It can be quite substantial.

    Why not consider a downgrade to 3br HDB? ur finance would improve also with some spare cash, and probably be able to fully pay up ur 3br hbd?

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    drop in hdb resale value as my hdb approaches 30 years old...
    HDB values never drop with age..in fact it increases...

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    Quote Originally Posted by teddybear
    If we really have a property bubble now, I believe the real bubble is actually in HDB flats! (Ops!). When do we see HDB flat selling at >$500 psf? Unimaginable. The gap between HDB flat and private property in nearby vicinity is becoming so small that either HDB flat is over-priced or private property is under-priced! There are still people lamenting that private property's bubble is forming? If this is really so, the HDB property bubble is even bigger!
    what is the typical gap between HDB and private?

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    Dear ocoloco79

    Thanks for the compliments, I am no expert at all. Just being prudent and trying to be helpful, for FREE.

    Basically no one will be able to make that decision for the both of you. Maybe the following can help you to decide but really, the decision is made again by the both of you.

    Earlier on, you were thinking of buying a pte and keeping your HDB. It is sorted out between you and your husband and it is decided to hang on to pte (no matter what). Now you are thinking to keep the HDB or not but cash flow might be a problem. Since the desire to hold both and the ability to hold both don't go hand in hand. So the question is when to sell the HDB if at all.

    Do some scenario planning.
    1. Sell Now - when prices are at record high
    2. Sell in Future - when prices can go up or down
    3. Dont Sell Now and in Future - holding power, must have enough cash.
    4. Do a double, i.e. Sell HDB and Buy another HDB - tricky decision and maybe the best decision.

    1. Sell now. You have control over everything in life. You know the sums. It is very safe, provided you can sell, never sell never know. I would suggest that at least you put it up in the market and see for the very first time whether your unit will sell at a good price or even sell at all. Some HDBs offered for sale real cheap also cannot sell due to west sun, low floor or other negative aspects. Can decide when real actual offers come. The key guard is the granting of option then. Heard that you have bad neighbours (hint).

    2. Sell in future. HDB prices can indeed go down. Especially the resale ones. One thing for certain, Cash over value may be gone. Next is that the valuation may have dropped. Prices can also go up too but the question is really can you take the risk of your HDB valuation drop to $400k and below and you cannot sell when you are in times of need. You will then be caught and may have to liquidate your private at a lost. Worst than your earlier position of just holding a HDB as 20% downpayment may be lost. Both of you have to save up again before you can commit again. Which means fallen and have to stand up on your feet again.

    3. Dont sell now and in future. Propertism will advice you to do so and same from me. However, it is the cash flow issue again. If I (the both of you too) had enough cash to take the risk, or a lifeline is available, don't sell and keep it till future. No brainer decision. I would be really confident to advice you not to sell if your HDB is fully paid up now. But you have another 10 yrs to go. You may be in a situaton of being in net negative equity when you commit to the pte purchase.

    Normally, a HDB upgrader would have fully paid their HDB or at least have the cash reserved for that purpose before buying private. They will buy pte when the cash reserved is more than the outstanding HDB debt. But really, they will only use the remaining cash reserve money (Cash reserve - HDB outstanding = remaining cash reserve) to buy private. It seems to me that the both of you are actually in the net negative equity position when you commit to buy pte. Which means this (Cash reserve - HDB outstanding = remaining cash reserve = 0 or less) But you can still commit to the pte purchase now as (Cash reserved = downpayment for pte) and you have 2 mortgages (HDB and PTE to keep). This can be a real problem for the both of you later on.

    4. Do a double. What this means is that either you sell your Bigger HDB flat and Buy another HDB flat immediately or Buy another HDB flat later. If you sell your HDB now, your roof will be gone and you need to rent for 2 to 3 years before your pte top. Assuming $2k per month for renting another HDB (cheapest version), $72k used in rental. But if you have sold your HDB, you would be in very good financial situation to ride out any top up calls. This is provided that you can sell HDB if at all.

    If managed to sell successfully, then you can do something called a switch, downgrade from your bigger HDB to a cheaper and smaller HDB (just a basic need for a roof over the head). Which means sell now and buy another 3 bed room HDB flat at a ulu location, best if move in condition. Best location maybe at woodlands or sembawang (just an idea). But if you have the money, switching to a 3 bedder in town (chinatown area), is a better bet. But their prices are expansive. If you can sell your HDB and have $300k as NET PROCEEDS, you might want to consider getting a 3 bedder in town at max $300k. This is the critical point as you don't have any more debts to service for HDB and stay at HDB for free and at the same time, both of you can save to pay for your PTE. This is for buy another SMALLER HDB flat immediately.

    Next is to sell successfully, rent another HDB to stay and buy back HDB when you are in a better financial position, maybe after 5, 10, 15 yrs later. Just giving you an idea. Concept of take profit and expect prices to crash later on, a bet. When it crashes, re enter again and you have made a very good investment move.

    You want the best option? Get a good investment advisor to advice you BASED on your financial position under various scenarios. When you are clearer about your risks, it is VERY EASY to decide.

    Good Luck!

    The above are my own views only, not intended to be as professional investment advice (legal disclaimer).

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    My 2 cents - keep the HDB if you can. Our 'entitlement'!

    Think the other experts have already given very insightful analysis above.

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    Quote Originally Posted by Condorich


    4. Do a double, i.e. Sell HDB and Buy another HDB - tricky decision and maybe the best decision.
    but sell high buy also buy high leh..

    if orocolo & husband own a car, i suggest selling the car.. it will free up cashflow, short term inconvenience better than long term pain

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    Yes, sell the car first. 2nd hand car good resale value now.
    If HDB near MRT (<400m), keep it. It does not matter it is 30y old, if good renovation, ppl still rent. 5r near MRT can easily rent out 1.8k (say 4 persons) or 2.2k (8 persons). Even next crisis strikes, unlikely HDB rental will drop a lot.

    Doing a double is dangerous in high COV time (bull market). Imagine you sell at 30k COV now but you are forced to buy at 60k COV 6m later not to mention high transaction cost spent on buying/selling.

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    If it is to sell HDB to buy another (smaller) HDB, then don't sell & better to hang on to the current coz adding up the associated costs of selling/buying eg agents' fees, stamp/legal fees, moving costs, time lost, etc simply not worth it. Plus likely u will be buying at a high.

    If u want to sell your 5I, suggest selling at TOP of your new home. Your costs of rental over next 3 years will be a good price buffer for you should you fear lower value in 3yrs. Plus there is opportunity for u to save on rental expenses and gaining more in terms of high selling price for your flat in 3 yrs' time.

    Selling your only roof over your heads (your home sweet home) to rent is not adviseable unless you are absolutely convinced the property market will crash soon and hope to sell high and buy low later on.

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    Please be reminded that she would not be in this situation if her financial standing is as good as desired. Most of the other advises is asking them to keep. I don't disagree but I am highlighting to her the other possible solutions to mitigate against risks. I would always advice anyone, to buy within their means. If it is within their means, no need to crack head now.

    But! It would at least appear as if it is out of their means and that is why they are having a tough time deciding.

    Diverse views are good in helping her to decide. Others please continue to share and HELP HER.

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    Quote Originally Posted by august
    but sell high buy also buy high leh..

    if orocolo & husband own a car, i suggest selling the car.. it will free up cashflow, short term inconvenience better than long term pain
    August, since you quoted me on this, feel obliged to reply to you.

    Car is a need. May not be worthwhile as savings may not be enough for the debt and risk exposure.

    Agree with you totally on sell high also buy high.

    Perhaps I have mislead others earlier. Please note that I mean
    "Buy a 3 room flat and not another 3 bedder" when I mention 3 Room and 3 bedder interchangibly

    It is still a possible solution when they

    1. Sell 5 Room flat at D19 at 450k and
    2. Buy 3 Room flat at Woodlands or other areas at 250K. That's the ideal. Sell and even you buy high, you buy high for a smaller unit. Dont waste time doing any reno, buy one which is move in condition. There still room to gain if you know how to sell high and buy high by choosing a better location/younger unit at boom times. Said too much on this. Each will have to learn on their own. Some say pay for lessons through mistakes while others learn from others mistakes without making them. Good Luck!

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    aiyo ocoloco79 why so worried ? no kid and 10k gov job should be safe lah!

    I agree with jlrx, if ur HDB near MRT or facilities, keep it. $450k for 121sqm, there is not much downside. listen to Pty_Owner: HDB age does not matter.

    dun do sell/buy another HDB thing. just the transaction cost (agent fee / stamp duty / lawyer fee / etc) already not worth it. not to mention sell high buy high now, what for ?

    btw dun be so sure u will really move in to the condo 3ys later. what if at that time you get a gd offer u cannot resist ? and supposedly ur annoying neighbor upstairs move out long before you do ?

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    u should buy double bay residence at d18



    Quote Originally Posted by amk
    aiyo ocoloco79 why so worried ? no kid and 10k gov job should be safe lah!

    I agree with jlrx, if ur HDB near MRT or facilities, keep it. $450k for 121sqm, there is not much downside. listen to Pty_Owner: HDB age does not matter.

    dun do sell/buy another HDB thing. just the transaction cost (agent fee / stamp duty / lawyer fee / etc) already not worth it. not to mention sell high buy high now, what for ?

    btw dun be so sure u will really move in to the condo 3ys later. what if at that time you get a gd offer u cannot resist ? and supposedly ur annoying neighbor upstairs move out long before you do ?

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    Quote Originally Posted by tanumy, 12 April 2010 12.53 pm
    u should buy double bay residence at d18
    Alarm for lunch break has been sounded. What are you all waiting for?

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    sub sale going strong for double bay residence at d18


    Quote Originally Posted by Reporter
    Alarm for lunch break has been sounded. What are you all waiting for?

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    Not an inducement for you to sell your HDB because bubble can still grow bigger and sometimes bubble can last for quite long time! The worst thing to do now is to short the property market (i.e. to sell your 1 and only roof over your head (since your the other roof will not be ready until 3 years later))!

    Anyway, you need a roof over your head for now until your private property is ready. If you are not in financial difficulty and you can still hold on to your HDB flat, why not just stay status quo until your private property is ready?

    Quote Originally Posted by teddybear
    I believe this is a decision that you have to made on your own. At such unprecedented situation, you ask 100 people and they will give you may be 3 different answers each for both private and HDB property markets!
    1) Private Property market will crash soon...
    2) Private Property market will still go up significantly...
    3) Private Property market will be stagnant.

    1) HDB property market will crash soon...
    2) HDB Property market will still go up significantly...
    3) HDB Property market will be stagnant.

    If we really have a property bubble now, I believe the real bubble is actually in HDB flats! (Ops!). When do we see HDB flat selling at >$500 psf? Unimaginable. The gap between HDB flat and private property in nearby vicinity is becoming so small that either HDB flat is over-priced or private property is under-priced! There are still people lamenting that private property's bubble is forming? If this is really so, the HDB property bubble is even bigger!

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    just to clarify. I am not prescribing anything, those are just some options available discussed. Let us know if decided.

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    Thank you to all experts for the advice, except Tanumy of course. AMK, I am very very risk adverse, if not for the misinformation gathered before I came to this forum to do more homework, I will NOT have committed to the 1 mil pte property especially after hearing what condorich had adviced. I am just preparing for the worst. I can still manage as long as interest rate stay below 7%. After calculating interest rate at 7%, monthly instalment is a whopping 5K, and our take home is only 8K+! If cpf minimum sum requirement exceeds $65K by 2013, we can only service our pte property in cash.. Assuming that we can rent out our whole unit hdb at 1.5K, we will be left with no savings, or even negative savings. It will be a totally different story if we sell our hdb flat because we can then use all cpf to service our condo loan.. Am I correct to say that if we are only left with a pte property, we do not need to set aside any min sum in cpf and can fully ultilise it?

    Hence now the question is whether to sell now, or sell 3 years later. Upn gathering the feedbacks from you guys, seems like the best option will be to delay selling, and have confidence in the future market Just pray that the interest rate will stay below 6% or even lower within the next 5 yrs...

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    Quote Originally Posted by tanumy
    sub sale going strong for double bay residence at d18
    stupid idiot is here again!!!

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    Interest rate is just a boogeyman used to scare the innocent.

    I have posted here in another thread the historical interest rates over the last 5 decades, and there is no correlation whatsoever with property prices, or the ability of people to service their loans.

    http://forums.condosingapore.com/sho...26&postcount=4

    For the simple reason that interest rates do not go up for no rhyme or reason. Interest rate is the effect, rather than the cause of economic events.

    When interest rates hit above 10% in the 1970s, the annual rental return of this $235,000 Beverly Mai apartment at $2,500 pm was 12.8% p.a.

    This is not including the capital gains when Beverly Mai was en blocked in 2007 for $4.4 million per apartment.



    On the other hand, the interest rate today is so low because the rental yield is so low that people do not have much idea what to do with their money.

    Let me predict a possible sequence of newspaper headlines that will lead to interest rates going up above 10% again.

    1. "U.S. out of recession. Economy overheating. Fed raises funds rate to 3%. Singapore growth hit 10%. MAS raises domestic rate to 3%."

    2. "General Motors run out of stock. Car buyers have to wait 2 years for latest model. GM running out of capital, issue corporate bonds at 6%."

    3. "Mickey Mouse 400 sq ft Studio at Guillemard rented out for $18,000 per month!"

    4. "MAS raises domestic rate to 8%. Finance Minister expresses concern at runaway inflation".

    5. "Chinese school teacher rented out 969 sq ft penthouse for $35,000 per month and resigned. Refused to return to teaching even after MOE tripled her pay."

    6. "Queenstown HDB flat sold for $2.1 million."

    7. "MAS says worldwide inflation a cause for concern. Raises domestic rates to 12%, a level not seen since the 1970's."

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    duplicated below

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    Quote Originally Posted by ocoloco79
    Thank you to all experts for the advice, except Tanumy of course. AMK, I am very very risk adverse, if not for the misinformation gathered before I came to this forum to do more homework, I will NOT have committed to the 1 mil pte property especially after hearing what condorich had adviced. I am just preparing for the worst. I can still manage as long as interest rate stay below 7%. After calculating interest rate at 7%, monthly instalment is a whopping 5K, and our take home is only 8K+! If cpf minimum sum requirement exceeds $65K by 2013, we can only service our pte property in cash.. Assuming that we can rent out our whole unit hdb at 1.5K, we will be left with no savings, or even negative savings. It will be a totally different story if we sell our hdb flat because we can then use all cpf to service our condo loan.. Am I correct to say that if we are only left with a pte property, we do not need to set aside any min sum in cpf and can fully ultilise it?

    Hence now the question is whether to sell now, or sell 3 years later. Upn gathering the feedbacks from you guys, seems like the best option will be to delay selling, and have confidence in the future market Just pray that the interest rate will stay below 6% or even lower within the next 5 yrs...
    That's great. Just another helpful advice. I presume your current HDB is financed by through HDB loan as private is only through Banks. If so, If you are ever caught in a situation that you can only pay one of the loans, pay the bank one. HDB can delay abit, seek MP help and buy some time. Some even had delayed/defaulted for years. Get it?

    If you can stand strangers, rent out a room or two for the time being to increase the cash flowing in and cut cash flowing out and even consider converting your car to OPC and use public transport.

    We cannot assume that the future is always clear. Must be able to survive the attacks! You can consider to put up your unit for sale and see whether it is easy to sell. Test market but don't tell the agents so. Good Luck.

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    Quote Originally Posted by ocoloco79
    Thank you to all experts for the advice, except Tanumy of course. AMK, I am very very risk adverse, if not for the misinformation gathered before I came to this forum to do more homework, I will NOT have committed to the 1 mil pte property especially after hearing what condorich had adviced. I am just preparing for the worst. I can still manage as long as interest rate stay below 7%. After calculating interest rate at 7%, monthly instalment is a whopping 5K, and our take home is only 8K+! If cpf minimum sum requirement exceeds $65K by 2013, we can only service our pte property in cash.. Assuming that we can rent out our whole unit hdb at 1.5K, we will be left with no savings, or even negative savings. It will be a totally different story if we sell our hdb flat because we can then use all cpf to service our condo loan.. Am I correct to say that if we are only left with a pte property, we do not need to set aside any min sum in cpf and can fully ultilise it?

    Hence now the question is whether to sell now, or sell 3 years later. Upn gathering the feedbacks from you guys, seems like the best option will be to delay selling, and have confidence in the future market Just pray that the interest rate will stay below 6% or even lower within the next 5 yrs...
    ocloco79,

    If I were in your shoes, I would:

    1) Keep the HDB for the next 3 years till TOP of private property (retention of the HDB would allow me to continue staying in the HDB while I monitor the market for the private); and

    2) Get an agent (or agents) to put the private on the market, and seriously consider any offer that allows me to exit the private without any loss (after factoring agent fees, stamp duty etc).

    That's due to the following factors:

    1) The private property you bought has limited upside (hence not an ideal investment in my opinion). I shared my rationale on why this is so in another thread which you posted before, hence I will not repeat it here. You should get rid of it while the market is still good, and while the property is brand new and still commands a certain premium; not to mention that it is easier to sell based on floor plan than actual product.

    2) Your combined income and savings will mean owning 2 properties (while meeting the CPF minimum sum requirement) may be difficult. The HDB allows you guys to sleep in peace for many years to come. If the neighbours are tough, sell the HDB and buy a resale flat somewhere else.

    But I also understand that your hubby is keen to own the private. If you guys are determined to keep the private, here are my 2 cents:

    a) Keep the HDB till private TOP. In the meantime, plse scale back your expenses asap. Talk to the bankers and arrange for financing for the private asap. Prior to TOP, the financing has to be financed purely by cash (not CPF) since your CPF is already used to finance the HDB. The developer (Novelty) will bill you in stages - completion of piling will be around 10%; completion of structure another 10%, completion of internal brick walls another 5% and so on. Since this is in cash, it is time to start an aggressive savings plan.

    b) To be realistic about the resale price of the HDB (despite contrary opinion from many other forummers). To guage how much your flat is really worth, might be worthwhile to request for independent valuation from HDB (cost u about $160). Allows you guys to do the sums and see how much your designer decor can fetch. My sense is, by the time the private property TOP, the HDB will be approx 22 years. A 22 years flat in D19 (is it AMK/Serangoon?) will not fetch much, as the next owner has limited upside. Brand new units at nearby SengKang will be far more attractive.

    My 2 cents.

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    Quote Originally Posted by Condorich
    That's great. Just another helpful advice. I presume your current HDB is financed by through HDB loan as private is only through Banks. If so, If you are ever caught in a situation that you can only pay one of the loans, pay the bank one. HDB can delay abit, seek MP help and buy some time. Some even had delayed/defaulted for years. Get it?

    If you can stand strangers, rent out a room or two for the time being to increase the cash flowing in and cut cash flowing out and even consider converting your car to OPC and use public transport.

    We cannot assume that the future is always clear. Must be able to survive the attacks! You can consider to put up your unit for sale and see whether it is easy to sell. Test market but don't tell the agents so. Good Luck.
    Yes, am paying by hdb loan, but it is thru cpf, how to delay paying thru cpf? Think unlikely right since it is automatic. Will consider the option of renting out the other room downstairs if need be. Thank you!

    new2mondrian,

    my hdb is not 22yrs, it is 26yrs now, and 29yrs by 2013

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    Quote Originally Posted by ocoloco79
    Yes, am paying by hdb loan, but it is thru cpf, how to delay paying thru cpf? Think unlikely right since it is automatic. Will consider the option of renting out the other room downstairs if need be. Thank you!

    new2mondrian,

    my hdb is not 22yrs, it is 26yrs now, and 29yrs by 2013
    I think you did not read Property_Owner's comments in the "Help needed, need help from experts!" thread.

    I'll reproduce it here.

    Quote Originally Posted by Property_Owner
    Quote Originally Posted by ocoloco79
    drop in hdb resale value as my hdb approaches 30 years old...
    HDB values never drop with age..in fact it increases...
    In case you do not know who is "Property_Owner", he owns 40+ properties including many Orchard Road and Marina Bay properties, shophouses which he use to squeeze his tenants, Queen Astrid Park bungalow which his son is staying in, Reflections at Keppel Bay, Double Bay Residences with tanumy as his neighbour, and HDB coffee shops (did I leave out anything this time?). So he should know best.

    If HDB falls in value, then this 35 year old Marine Terrace would be worth very little, instead of $700,000.

    14 Marine Ter 16 to 20 120.00 Standard 1975 $700,000.00 Mar 2010

    The good thing about HDB is that if we continue to support the Government and the country is prosperous, once your block is too old, they will probably give you a new one under this SERS thing. Then you have a brand new flat again with a fresh 99 year lease!

  30. #30
    Join Date
    Oct 2008
    Posts
    648

    Default

    It is not that you cannot afford the private property, you just cannot afford 2 properties.

    You are greedy about the hdb rental yield and the myth of die die must keep a hdb, that's why landed you in this state.
    Minimise your risk (not thru praying), then think about yield.

    Hdb price is high, definitely with lesser upside in area like sengkang, compared to your freehold condo location. Of course risk is there, but with all the news on inflation, which investment do you expect to grow? Hdb in sengkang or your condo? In long run, it is still the freehold condo that give you better capital gain than your hdb. But the catch is, you must
    maintain healthy cash flow.. Just keep one property.

    My 2 cts worth..


    Quote Originally Posted by ocoloco79
    Thank you to all experts for the advice, except Tanumy of course. AMK, I am very very risk adverse, if not for the misinformation gathered before I came to this forum to do more homework, I will NOT have committed to the 1 mil pte property especially after hearing what condorich had adviced. I am just preparing for the worst. I can still manage as long as interest rate stay below 7%. After calculating interest rate at 7%, monthly instalment is a whopping 5K, and our take home is only 8K+! If cpf minimum sum requirement exceeds $65K by 2013, we can only service our pte property in cash.. Assuming that we can rent out our whole unit hdb at 1.5K, we will be left with no savings, or even negative savings. It will be a totally different story if we sell our hdb flat because we can then use all cpf to service our condo loan.. Am I correct to say that if we are only left with a pte property, we do not need to set aside any min sum in cpf and can fully ultilise it?

    Hence now the question is whether to sell now, or sell 3 years later. Upn gathering the feedbacks from you guys, seems like the best option will be to delay selling, and have confidence in the future market Just pray that the interest rate will stay below 6% or even lower within the next 5 yrs...

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