wongdawson
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My resale 5 room HDB going to reach 5 year MOP. Currently renting 2 rooms rent out at $800 for each room. Now thinking whether to sell and buy 1 bedder resale condo.
My resale 5 room HDB going to reach 5 year MOP. Currently renting 2 rooms rent out at $800 for each room. Now thinking whether to sell and buy 1 bedder resale condo.
Why do you need a condo?
You are getting $1600 for each room.
You might as well rent out the 3rd room for another $1000 (I am guessing a masterbed room)
and then rent a 2 bedder condo for $2.2k+.
And still pocket $200 to $300 in cash and full privacy.
I suppose you would want to stay in the resale condo after that? Capital appreciation can be limited, and you would not generate any passive income from it if it is for ownstay.
If you can afford a 2nd property, go for this option instead. I would assume capital appreciation and passive income is not your priority given that you are in a dilemma on this. If so, I would rather pay 12% ABSD for a 2nd property, stay in the resale condo as what you would prefer, while still collecting rental income from renting out the whole HDB unit.
In the long run, the rental income would offset the ABSD paid, and anything after would be your gain.
Of course, perhaps selling the flat now if it is not too old and get immediate profit would sound good, but it would not be worth turning back from investment point of view if you were to sell the HDB flat and buy a 1 bedder, and want to go back to HDB in the future.
I can only afford to sell current HDB to have funds and top up a bit more for a 1 bedder condo and yup privacy is a major concern as i always different charbo back home piak piak
I can only afford to sell current HDB to have funds and top up a bit more for a 1 bedder condo and yup privacy is a major concern as i always different charbo back home piak piak