Bto vs private condo

[Myxilplix]

Oh I've never looked at things that way before.

[Mercs]

Better release more BTO, still oversubscribed.

More Bidadari flats to be launched after successful November sales exercise

http://sbr.com.sg/residential-property/news/strong-demand-greets-bumper-launch-hdb-flats

 

Strong demand greets bumper launch of HDB flats

http://sbr.com.sg/residential-property/news/strong-demand-greets-bumper-launch-hdb-flats

[Blackyv]

For property timing is very important (although in most cases the longer you hold you should make more money).

 

 

Example if a guy bought punggol BTO at 240K about 12 years ago. He can sell about 460K in the current market. If he applied a new BTO flat in punggol is about 400K.

 

- If dun consider the reno and interest, he gain 220K by selling the first BTO.

- The 2nd BTO is 400K, he can paid off or taking very low loan amount. New 99 lease some more!

 

Of cos there are other considerations like if he is still eligible to buy BTO (income ceiling), renovation for the new house, agent fee for selling the first HDB,..etc.

That was what a friend told me and I asked before, very simple maths for my case..

 

Bought a 4rm at 190k, can sell away at minimum 420k today.. it's fully paid up already.. so, if I apply for a new 5rm in the same town which cost around 450k for high floor unit, then I can use my cpf again to purchase which mean I could cash out more then 100k and the new 5rm is still fully paid up if I don't want to loan...... Hehe...

[Wt_know]

hdb is a money making tool ... period ... huat ah!

isn't there is an article that every household when they reach 55

they are millionaire couples ... hdb value + 2 cpf = $1,000,000 sup sup water

 

That was what a friend told me and I asked before, very simple maths for my case..

 

Bought a 4rm at 190k, can sell away at minimum 420k today.. it's fully paid up already.. so, if I apply for a new 5rm in the same town which cost around 450k for high floor unit, then I can use my cpf again to purchase which mean I could cash out more then 100k and the new 5rm is still fully paid up if I don't want to loan...... Hehe...

Edited November 28, 2015 by Wt_know

[Showster]

That's provided they dedicate a whole life of productivity to SG and stay healthy till retirement.

 

聚少成多，水滴石破。If you work hard and limit spending and harvest the power of ccompounding, the final amounts are an inevitability as an employee. For an employer who manages costs and earnings well and is market sensitive, the amounts are also achievable in cash. It just looks daunting at the beginning of a career.

 

Some babyboomers have had pension scheme but that is phased out for most. But something has to help current workers last their retirement. The golden question is, what?

 

hdb is a money making tool ... period ... huat ah!

isn't there is an article that every household when they reach 55

they are millionaire couples ... hdb value + 2 cpf = $1,000,000 sup sup water

 

 

[Spring]

hdb is a money making tool ... period ... huat ah!

isn't there is an article that every household when they reach 55

they are millionaire couples ... hdb value + 2 cpf = $1,000,000 sup sup water

 

 

Whilst u could be right that an avg couple with hdb flat + 2 cpf could easily hit a million $, unless u monetise the flat; the cpf portion won't be enough to sustain their retirement needs.

 

The trouble with the reverse mortgaging of hdb flat is that it does not maximise it's true value though the recent changes to this scheme has somewhat improved it. Hence, Asian couples who feel duty bound to leave something for their children are at a dilemma n I know some who would rather scrimp on their meagre savings than mortgage their homes. A pity as ideally the couple could have a decent retirement income n yet bequeath something for their children.

Edited November 28, 2015 by Spring

[Pinobii]

That was what a friend told me and I asked before, very simple maths for my case..

 

Bought a 4rm at 190k, can sell away at minimum 420k today.. it's fully paid up already.. so, if I apply for a new 5rm in the same town which cost around 450k for high floor unit, then I can use my cpf again to purchase which mean I could cash out more then 100k and the new 5rm is still fully paid up if I don't want to loan...... Hehe...

That's y many pple go for bto as 2nd timer, can profit

[Yaloryalor]

That was what a friend told me and I asked before, very simple maths for my case..

 

Bought a 4rm at 190k, can sell away at minimum 420k today.. it's fully paid up already.. so, if I apply for a new 5rm in the same town which cost around 450k for high floor unit, then I can use my cpf again to purchase which mean I could cash out more then 100k and the new 5rm is still fully paid up if I don't want to loan...... Hehe...

 

You should buy an EC instead. 3 bedroom could be about 800K, although you still need to take loan but just less than 400K then stretch it till your 65 years old.

 

Next time when you sell (more than 5 years later), your EC could fetch at least 1 Million liao.

 

Your new 5rm HDB appreciation will not be so much cos too many BTO around liao.

Edited November 30, 2015 by Yaloryalor

[Mercs]

http://www.straitstimes.com/singapore/9-in-10-residential-property-owners-to-pay-less-property-tax-in-2016-iras

9 in 10 residential property owners to pay less property tax in 2016: IRAS

 

 

SINGAPORE - 93 per cent of residential property owners will pay less tax in 2016 after the taxman marked down the annual values of their homes.

 

All Housing Board flat owners will pay lower or no property tax next year while eight in 10 private residential property owners will pay lower property tax in 2016, the Inland Revenue Authority of Singapore said on Monday.

 

This is in contrast to the 2014 review for the 2015 levy when only 25.7 per cent of private homes had their annual values reduced.

 

Among the private homeowners getting their annual values cut this round, more than 80 per cent will see tax savings of between 3 per cent and 20 per cent.

 

Meanwhile, HDB flat owners will enjoy tax savings of 9 per cent to 24 per cent, compared to what they paid in 2015.

 

In addition, all one- and two-room HDB flat owner-occupiers and 28,200 three-room HDB flat owner-occupiers will not have to pay any property tax when the revised annual values take effect from 1 Jan 2016.

 

Letters have been sent to home owners to outline their levies for the coming year.

[Showster]

If purely looking at a basic place to stay and do not want to consider future sales values, HDB is ideal. 

 

If ultimately the family needs or is seriously considering condo lifestyle, then EC is ideal. 

 

Sell also have to consider what to buy unless you have other options available like a parent's house. 

 

To me, in terms of living, all forms of housing are imperfect substitutes for each other. 

 

 

You should buy an EC instead. 3 bedroom could be about 800K, although you still need to take loan but just less than 400K then stretch it till your 65 years old.

 

Next time when you sell (more than 5 years later), your EC could fetch at least 1 Million liao.

 

Your new 5rm HDB appreciation will not be so much cos too many BTO around liao.

 

[Yaloryalor]

If purely looking at a basic place to stay and do not want to consider future sales values, HDB is ideal. 

 

If ultimately the family needs or is seriously considering condo lifestyle, then EC is ideal. 

 

Sell also have to consider what to buy unless you have other options available like a parent's house. 

 

To me, in terms of living, all forms of housing are imperfect substitutes for each other. 

 

If stay EC till 60 years old then sell away; buy a small HDB 3 room for retirement. Pay cash and still got money on hand. Good?

[Showster]

It is a moderately safe and stable strategy in my opinion. 

 

But there are some who only want a place for the family to stay and pay up in full and put resources for retirement.

 

In this context, to downgrade after 60 years needs waiting period of 30 months, or to opt for resales, which can also be costly depending on the part of the cycle. 

 

Some other differences are interest amounts, maintenance fees etc. 

 

A qualitative aspect is it is easy to upgrade family but hard to downgrade.

 

 

If stay EC till 60 years old then sell away; buy a small HDB 3 room for retirement. Pay cash and still got money on hand. Good?

 

[Blackyv]

You should buy an EC instead. 3 bedroom could be about 800K, although you still need to take loan but just less than 400K then stretch it till your 65 years old.

 

Next time when you sell (more than 5 years later), your EC could fetch at least 1 Million liao.

 

Your new 5rm HDB appreciation will not be so much cos too many BTO aroun400d liao.

Well, I'm from old school and don't like loan whenever possible... Current loan free feeling is great and I know bankers hate people like me..... Hehe...

Over my dead body to commit a 400k loan...

[Civic6228]

Between BTO and Private Condo ... my logic is simple.

 

Buy HDB first .... can buy condo later .... subject to some HDB terms and conditions

 

Buy Condo first .... cannot buy brand new hbd ..... can buy resale HDB subject to HDB terms and conditions ... one being must sell your condo within 6 months

 

If you ask me ... I would say buy BTO first ... why waste the privilege of being a Singaporean .... Got money later in life can buy whatever private property you want.

 

My regret ... not buying a HDB when I was allowed to ....

[Blackyv]

Between BTO and Private Condo ... my logic is simple.

 

Buy HDB first .... can buy condo later .... subject to some HDB terms and conditions

 

Buy Condo first .... cannot buy brand new hbd ..... can buy resale HDB subject to HDB terms and conditions ... one being must sell your condo within 6 months

 

If you ask me ... I would say buy BTO first ... why waste the privilege of being a Singaporean .... Got money later in life can buy whatever private property you want.

 

My regret ... not buying a HDB when I was allowed to ....

Yup . . Agree... Buy the basics first, if got money later , buy private and get to keep the bto as many did..

[Enye]

Well, I'm from old school and don't like loan whenever possible... Current loan free feeling is great and I know bankers hate people like me..... Hehe...

Over my dead body to commit a 400k loan...

 

full cash property, full cash car

 

wah you aiming to take over table wiper is it?

 

[Yaloryalor]

Well, I'm from old school and don't like loan whenever possible... Current loan free feeling is great and I know bankers hate people like me..... Hehe...

Over my dead body to commit a 400k loan...

 

Not to stretch too thin but should leverage on the loan.

 

I used to think loan free is best but if manageable loan and with passive income why not?

 

Unless you got other investment arrangements. With the interest rate, leave money in the bank is depreciating your money.

[Lala81]

That's provided they dedicate a whole life of productivity to SG and stay healthy till retirement.

 

聚少成多，水滴石破。If you work hard and limit spending and harvest the power of compounding, the final amounts are an inevitability as an employee. For an employer who manages costs and earnings well and is market sensitive, the amounts are also achievable in cash. It just looks daunting at the beginning of a career.

 

Some babyboomers have had pension scheme but that is phased out for most. But something has to help current workers last their retirement. The golden question is, what?

 

 

I feel that most people (barring major unexpected events) can retire with an acceptable lifestyle here in SG as long as you follow this principle.

 

Ha easier said then done.