How to purchase clementi hdb flat with single income or even create cash flow from it.

OngHuatHuat · Feb 11, 2018

4 room Hdb flat in clementi, asking 445000, assuming buying with 80 % loan, Hdb loan at 2.6 %,

monthly repayment: 1615.06 sgd.

Assuming 3000 sgd monthly salary, monthly repayment by OA: 828(including OA from employer contribution)

Monthly cash outlay : 787.06

4 rooms Hdb has 3 rooms, during the first few years of marriage, most likely no kids yet and you are willing to rent out 2 rooms fully furnished(with air con, bed, table and cupboard), clementi common room rate near mrt, around 800 for full furnish, monthly cash flaw: 1600 sgd.

Monthly cash flow after rental: 813 sgd.

OngHuatHuat · Feb 11, 2018

I am using HDB loan rate since it has been higher than bank loan rate for around 10 years.

Chose Hdb flats within 500 m perimeter from mrt station due to higher rental demand and price for common rooms.

Chose 4 room due to lower capital outlay and more rooms to rent out.

Chose to pay HDB using CPF OA to reduce monthly cash outlay without affecting standard of living.

Singles can buy any type resale flat.

OngHuatHuat · Feb 11, 2018

@perisher

This thread is for you.

Oldnerd79 · Feb 11, 2018

If wife working, no need cash outlay at all. 1600 rental cash in pocket, one year can save 19k more. 3 yrs 60k, just nice to cover enough for wife to stop working for 2 yrs to look after baby.

OngHuatHuat · Feb 11, 2018

This idea is good, but it becomes double income.

Oldnerd79 said:
If wife working, no need cash outlay at all. 1600 rental cash in pocket, one year can save 19k more. 3 yrs 60k, just nice to cover enough for wife to stop working for 2 yrs to look after baby.

starlight318 · Feb 11, 2018

Does this mean that singles who make more than 3k should go for 4-room resale instead of bto?? Only those who make less like 2k should apply.. if rent for long term, one yr 19k 10yrs close to 200k!!

20yrs ur flat is almost free. 2-rm Bto give u 0 cashflow..

OngHuatHuat · Feb 11, 2018

If want cash flow, of course resale flat is much easier, mature estate, a lot of amenities, higher rental demand.
Rent out whole flat only possible after MOP, but rent out rooms can be done immediately.

There is a reason why bto is priced cheaper despite of newer right?

starlight318 said:
Does this mean that singles who make more than 3k should go for 4-room resale instead of bto?? Only those who make less like 2k should apply.. if rent for long term, one yr 19k 10yrs close to 200k!!
20yrs ur flat is almost free. 2-rm Bto give u 0 cashflow..

Oldnerd79 · Feb 11, 2018

starlight318 said:
Does this mean that singles who make more than 3k should go for 4-room resale instead of bto?? Only those who make less like 2k should apply.. if rent for long term, one yr 19k 10yrs close to 200k!!
20yrs ur flat is almost free. 2-rm Bto give u 0 cashflow..

This is why im not applying for 2-rm bto even though im eligible. Having rental income is far better, provided u are okay with sharing the flat w others. Good money and cashflows from rental can help cover expenses if one loses his job.

OngHuatHuat · Feb 11, 2018

【Shin Min Daily News 新明日报今日新闻】蔡厝港转售组屋无人问津？蔡厝港有屋主花了近一年才成功卖屋，房地产业者指随着新组屋项目推出，相信那里组屋的转售价会进一步下滑。

Hdb flats, Getting cheaper and more affordable, good news got existing flat owners? I seriously doubt so.

Shion · Feb 11, 2018

HDB flats getting cheaper and more affordable and also more smaller too

OngHuatHuat · Feb 11, 2018

Bigger resale Hdb flats are getting cheaper due to
Lesser number of years on the lease and lack of demand.

Old flats won't shrink in size suddenly.

mrclubbie said:
HDB flats getting cheaper and more affordable and also more smaller too

OngHuatHuat · Feb 12, 2018

Actually flats in mature estates the rental demands are always very high.

Perisher · Feb 12, 2018

yyhwin said:
@perisher

This thread is for you.

Too bad, don't intend to rent out while living in it.

Thanks. Reading.

In your opinion resale better than BTOs?
Previously was bidding for SOBF but failed on first try.
Agree that location matters hence SOBF but resale maybe will only consider if it's still quite new at good location.

OngHuatHuat · Feb 12, 2018

Condo is the best in my opinion.
I advised my friend to get freehold condo, especially those more affordable ones, but he refused to
Listen. After that he was unhappy coz his flat price dropped. He bought in jurong east. There was once a hype that government would develop jurong east into a second Cbd, he bought the story and purchased a Hdb resale in year 2013. The resale flat price dropped a lot since then.

I believe government who are also the biggest developers are smart people. They know how to make money. Blocks and blocks of bto flats in less accessible locations are ready within next few years. You will be spoilt for choices.

Perisher said:
Too bad, don't intend to rent out while living in it.
Thanks. Reading.

In your opinion resale better than BTOs?
Previously was bidding for SOBF but failed on first try.
Agree that location matters hence SOBF but resale maybe will only consider if it's still quite new at good location.

Perisher · Feb 12, 2018

yyhwin said:
Condo is the best in my opinion.
I advised my friend to get freehold condo, especially those more affordable ones, but he refused to
Listen. After that he was unhappy coz his flat price dropped. He bought in jurong east. There was once a hype that government would develop jurong east into a second Cbd, he bought the story and purchased a Hdb resale in year 2013. The resale flat price dropped a lot since then.

I believe government who are also the biggest developers are smart people. They know how to make money. Blocks and blocks of bto flats in less accessible locations are ready within next few years. You will be spoilt for choices.

Buy condo liao, cannot buy HDB anymore. :zotto:

Hard decision to make.

OngHuatHuat · Feb 12, 2018

I think you need to put more effort to understand how whole property market works especially on how government policy affects rental demand and pricing power. Somehow, most people are blinded by affordability and government policies.

I think the government main aim is to create segregated markets, mass build Hdb and another market for private developers.

Perisher said:
Buy condo liao, cannot buy HDB anymore.
Hard decision to make.

Perisher · Feb 12, 2018

Thanks. So you started from condo?

OngHuatHuat · Feb 12, 2018

I cannot purchase Hdb flats at that point of time.
So the choice is relatively easy for me. By the way, I have received quite a lot of rental from my condo before I moved in, so the margin of safety is quite big.

Perisher said:
Thanks. So you started from condo?

amiyain · Feb 12, 2018

Really interesting

Really interesting thread, if only can get a PR now. Paying rent seems such a waste of money.

OngHuatHuat · Feb 12, 2018

I treat my tenants very well because they are helping me.

amiyain said:
Really interesting thread, if only can get a PR now. Paying rent seems such a waste of money.

How to purchase clementi hdb flat with single income or even create cash flow from it.

High Supremacy Member

High Supremacy Member

High Supremacy Member

Senior Member

High Supremacy Member

Senior Member

High Supremacy Member

Senior Member

High Supremacy Member

Senior Mentor

High Supremacy Member

High Supremacy Member

Greater Supremacy Member

High Supremacy Member

Greater Supremacy Member

High Supremacy Member

Greater Supremacy Member

High Supremacy Member

Junior Member

High Supremacy Member