sgpropertyblog
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- Jun 6, 2019
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Yes, the MSR and the bridging loan. You can says that bridging loan is to help you on the shortfall and repay later after you sell your flat when EC is ready so that you can continue staying. BUT, at that time when the market keep singing HDB 99yrs zero value, I do not hv much faith that I can get higher amount in 4yrs time of what I can get if sell my flat now. Not forgetting I still need repay the bridging loan and additional 4yrs accrued interest going back into CPF.
E.g. If I sell my flat today and profit about 240k, after deduct accrued interest i got 70k COV, in 4yrs time no guarantee can fetch higher, and even if it maintain at 240k profit, the accrued interest will be much higher and my COV will be lesser or maybe zero. On top of that I will hv to owe the bank on the bridging loan and still need reno funds too.
BTW, just checked on my previous flat the x-value is -8k on the price I sold after almost 2yrs.
My calculation is as explained above, if you consider this as a race, to me I already lose out on the price of about 80-100k if u add in resale levy, DPS and bridging loan interest. Secondly, MOP is 5yrs and waiting time for the EC to be ready is about 3-4yrs. Total 9yrs before u can start selling.
I bought a young resale PC and join the race now and use the 70k to do nice nice, in 3yrs time can start selling to any tom, dick, harry. In total i cut short the race by 6yrs.
Now I already stayed almost 2yrs, another 1yr to go if retrenchment comes and hit me, I can still run away freely without penalty.
All these, just my personal views which may be wrong.
You are absolutely right when it comes to HDB pricing trend going south as the flat ages.. and also the accrued interest for your CPF is still running ( even though your house is fully paid, unless you never touch your cpf at all)..
Of cos buying EC also got its cons.. the 5yrs MOP is one of it.. without this 5yrs MOP thing, the prices sure goes up North as everyone can start to flip after 3 yrs SSD period as per private condo..
As for the construction period of 3 yrs, its the same for BUC condo oso.. unless if you buy small projects below 100 units, then probably within 1.5yrs u can collect your keys ady..