Driving slowly 1 hr everyday is no joke, considering the jams.
Save your 50-100k on your car, pump into flat maybe more worth it actually. Since a Car is a liability, while a property is an asset
Car is definitely a liability. But, whether in today's context, a flat in a good location is a "asset" really depends on future price movements. As it is, some flats are already costing $500-$800k in good locations in GOOD times. On the other hand, our income has not increased by the same rate. Not sure if an average Singaporean will be able to afford such "luxuries" in the future if it really hit 1 mil. My gut feel is that prices will stabilize, unless our salaries increase further to afford the increased standard of living.
Also, you will have to take into account how much loan one is willing to take. For someone who take a 30 year loan on a $500k flat, will probably end up paying $700k and up if fully paid up. So, how's that for an asset? It's more of a liability, I say. Unless one is disciplined enough to invest wisely while serving out the 30 year loan.
Hi, my hubby and I are considering buying a 35-yr-old 5-rm at Farrer for own stay, but we are concerned about the potential pitfalls in getting such an old flat, e.g. SERS, difficult to sell in 5-10 yrs' time, capital loss. Although it's for own stay, we thought we should also consider things like capital gain/loss in case we need to sell the place (for whatever reasons) one day. Plus sellers at Farrer are asking for $600k. We like the area as it suits our needs but it seems too pricey for a 35-yr-old flat. Any advice or thoughts on this?
i believe it boils down to your priorities/need.
only you can answer that.
If the primary motive is capital gain / loss , then getting a new flat might be a good idea
e.g. Champions court in woodlands 5rm - S$296,000 prices are up to 40 per cent lower than resale flats in the area.
after 5 years Minimum occupation period , you can realize your profit almost definitely , given the scenario where the prices either remains or go up
In the first place, ask yourself if that is the only area/place your family want to move to. With the amount, 600k, will it make you consider other loactions near by. When buying a house, two major things we take into consideration : Do you like the unit and the price.
If you will like to see your other options, please feel free to contact me for a non obligated discussion.
Thank you and good luck.
Last edited by Lancelot : 19-03-2009 at 02:21 AM.
Reason: Edited for Spamming/Advertising
The only problem I faced when I bought an old flat was how some banks calculated the loan tenure. One of the bankers share with me the drafting process of my loan application and after calculations, I could only take a 20-year loan tenure unlike other banks that allow 35-year loan tenures.
And obvious for this old flat, I paid basically for the location as well.
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The only problem I faced when I bought an old flat was how some banks calculated the loan tenure. One of the bankers share with me the drafting process of my loan application and after calculations, I could only take a 20-year loan tenure unlike other banks that allow 35-year loan tenures.
And obvious for this old flat, I paid basically for the location as well.
u mean for HDB?
I thought they should use the average out the owner age then - away 65 or 62
I thought they should use the average out the owner age then - away 65 or 62
For HDB, depedning on banks, loan tenor depend on age of youngest working owner usually not exceeding 70yrs and remaining lease of the property upon loan maturity must not be less than 45yrs.
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if it's an asset say the in 20 years time and the flat is 60 years old. Will the valuation be higher than now? Or are we all speculating? Bec in the past the flats cost less then 10k now it will be profit for the old folks. Not for the current generation though
What happens at the end of 99 yrs will there value in the flat? or will it be total loss? If it's an asset our next generation should benefit from our investments.
Driving slowly 1 hr everyday is no joke, considering the jams.
Save your 50-100k on your car, pump into flat maybe more worth it actually. Since a Car is a liability, while a property is an asset
Loan SGD400K++ for 30yrs a bigger liability too.
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In 20 years time and the flat is then 60 years old. Will the valuation be higher than now?
What happens at the end of 99 yrs will there value in the flat? or will it be total loss?
My opinion is after the 99 years lease expiry, the flat automatically taking over by HDB, the owner if want to continue stay there have to rent or re-purchase the flat from HDB again.
Last edited by Clement08 : 07-04-2009 at 07:23 AM.
600k and work your asses to pay until wat age? 60? 70?
Unless you have the money.. thats different...
Out of curiosity, if the 35 years HDB is 600k now, after 20 yrs, the gov decided to demolish it, what price will they pay you? Based on that current market price i assume?
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