Is buying hdb first the best financial decision always?

taquito

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Is buying hdb (bto/resale) first the best financial decision always even you got enough money and want to stay in condo? Thanks!
 

BBCWatcher

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I think the BTO deal is still a very good deal, especially with a housing grant but not only. If you’re eligible for that offer then you might as well take a number as soon as you’re allowed. It’s as close to a “sure bet” as there is in housing.

Aside from that, “it depends.” There are many people who simply won’t save (or save enough) except via a mortgage. There are some people who have gobs of OA dollars piling up who don’t have any better outlets (they feel; I’m not sure that’s true).
 

iceblendedchoc

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To me , two things

Hdb is a decaying leasehold. If I have no money for freehold, I will buy hdb and treat it as a form of cheaper rental payment than actual rental.

The monthly s&c charges (Especially if you stay in those EM, EA) plus two car park slots (Or even three cars for some family) will come close to the maintenance fees of a condo.. throw in a bit , you get more privacy and access to Swimming Pool etc
 

Nia Singh

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Even in todays market, buying first hand direct from HDB has low chance of losing money. Gains of 33% and above is expected for most locations.

Buying resale at market prices carries much higher risk due to resale units having lower number of lease years balance.

One has to own >2 units to profit from 1 of the units.


To me , two things

Hdb is a decaying leasehold. If I have no money for freehold, I will buy hdb and treat it as a form of cheaper rental payment than actual rental.

The monthly s&c charges (Especially if you stay in those EM, EA) plus two car park slots (Or even three cars for some family) will come close to the maintenance fees of a condo.. throw in a bit , you get more privacy and access to Swimming Pool etc
 

reddevil0728

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Even in todays market, buying first hand direct from HDB has low chance of losing money. Gains of 33% and above is expected for most locations.

Buying resale at market prices carries much higher risk due to resale units having lower number of lease years balance.

One has to own >2 units to profit from 1 of the units.
why need to own 2 units to profit from 1?
 

greentiger

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Is buying hdb (bto/resale) first the best financial decision always even you got enough money and want to stay in condo? Thanks!

Only problem is for 5 years, you can't buy private property.

If there is market plunge, you can't buy.
 

HMAN

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Only problem is for 5 years, you can't buy private property.

If there is market plunge, you can't buy.
Just pay the additional seller stamp duty, why can't sell ?

Sent from Samsung SM-T830 using GAGT
 

BBCWatcher

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Low risk low returns = Bto
5 years mop
Why is this path "low returns"? These deals can be extremely excellent when there are housing grants involved.

Higher risk higher returns = condo
Anytime can sell
Why are these higher returns? Returns have been quite subdued for quite some time. The government is quite clear that your upside will be strictly limited. The government simply will not tolerate any real estate market it considers too bubbly.
 

zola25

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I beg to differ. Sold my bto for 230k profit last year. But i do agree some bto may not get that much profits depending on location and unit.
Low risk low returns = Bto
5 years mop

Higher risk higher returns = condo
Anytime can sell
 

Food_Lover

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If your finance permits, go invest in a private property like Condo. Better returns.
 

pcmdan

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I beg to differ. Sold my bto for 230k profit last year. But i do agree some bto may not get that much profits depending on location and unit.

Agree....bto is a good way to earn money if u go for the right location

My hdb a gain of 400k.

If you are young, has a wife, should go for hdb...flip it and buy condo haha
 

kumokumo

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I think as Singaporean, first house must always buy BTO. We have birth rights to buy a govt subsidized housing, don't waste the rights.
 

Kaypohji

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Ur bto at where ? How many years ago did u buy?


Agree....bto is a good way to earn money if u go for the right location

My hdb a gain of 400k.

If you are young, has a wife, should go for hdb...flip it and buy condo haha
 

MikeDirnt78

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To me , two things

Hdb is a decaying leasehold. If I have no money for freehold, I will buy hdb and treat it as a form of cheaper rental payment than actual rental.

The monthly s&c charges (Especially if you stay in those EM, EA) plus two car park slots (Or even three cars for some family) will come close to the maintenance fees of a condo.. throw in a bit , you get more privacy and access to Swimming Pool etc

1) Typical residents don't have 2 cars
2) Are you sure just top up a little bit? :s22:

Bottom line is, you buy based on your affordability.

Median starting salary of a dual income earner is probably less than $6k. Can afford a private?
 
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