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Neighbour sold BTO unit, value doubled. Shd i? Buy what then?

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Old 04-03-2019, 08:31 AM   #46
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Absd didn’t exist then, but it does now. Paying 12% on your private property just to keep your hdb does not make any sense. Imagine you buy a 2m condo, means you have to pay 240k extra just to keep your hdb.

Just to share my story. I was mid 35 - a decade ago and was deciding between (1) upgrading to private (2) buy another property and stay put in HDB exec. Finally I decided to upgrade to private and sold my HDB. Really regret selling my HDB. Now I have to pay ABSD, buy at ridiculous price just to get an investment private property.

For yourself, my advise is to keep the HDB.

Option 1 - Even if you sell at 900K, you still need to loan an additional 400K to 500K to buy a 1,000 sqft private property at a decent OCR location.

Option 2 - IF you sell it and moved somewhere else within the estate, assuming 4 or 5 BR room flat in Punggol, you probably pay 500K + reno 50k, and profit 400k for investment. Is it worth to let go if this property to live another less ideal location for 350k cash?
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Old 04-03-2019, 10:50 AM   #47
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Just to share my story. I was mid 35 - a decade ago and was deciding between (1) upgrading to private (2) buy another property and stay put in HDB exec. Finally I decided to upgrade to private and sold my HDB. Really regret selling my HDB. Now I have to pay ABSD, buy at ridiculous price just to get an investment private property.

For yourself, my advise is to keep the HDB.

Option 1 - Even if you sell at 900K, you still need to loan an additional 400K to 500K to buy a 1,000 sqft private property at a decent OCR location.

Option 2 - IF you sell it and moved somewhere else within the estate, assuming 4 or 5 BR room flat in Punggol, you probably pay 500K + reno 50k, and profit 400k for investment. Is it worth to let go if this property to live another less ideal location for 350k cash?
A decade ago no ABSD leh..
Anyways you upgrade from HDB to Private ?
Buy private -> pay absd -> sell HDB ?

You can try ABSD remission (not sure if applicable for you, but no harm reading and calling IRAS)
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Old 04-03-2019, 05:34 PM   #48
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Ya.. The time is different now. In the past, if you can afford, then keep the hdb. Now hdb becomes a liability due to the absd for second property. Not the hdb's fault though but the policy WANTS us to dump our hdb. What to do? Also can't decouple liao.

A decade ago no ABSD leh..
Anyways you upgrade from HDB to Private ?
Buy private -> pay absd -> sell HDB ?

You can try ABSD remission (not sure if applicable for you, but no harm reading and calling IRAS)
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Old 05-03-2019, 10:56 PM   #49
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Hey TS, being in the industry I see district 19 (Hougang, Punggol, Sengkang) as a hotbed of real estate activity.

There are many people transacting in that area, be in resale hdbs, condos or new projects.

In my view being able to enter into your BTO early is a great blessing which you should definitely cash out from before your flat ages and more supply comes on board (there are new flats hitting the 5-year mark in D19 all the time).

However what you do after that is entirely dependent on your risk appetite.

While selling and getting 1 or 2 private properties is definitely plausible, and is a move for those who wants to grow their wealth faster, there is another option if you want something easier:

Fully pay a 3-4 room hdb (can be the old ones) with the preparation of staying there for life.

Leave your partner as an occupier, save up again for the next 5 years MOP period, and buy a investment property after that in her name.

From there you're pretty much set.

Really about what you want bro, no right no wrong, but I think cashing out is a must, to make your money work harder for you.
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Old 05-03-2019, 11:06 PM   #50
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A decade ago no ABSD leh..
Anyways you upgrade from HDB to Private ?
Buy private -> pay absd -> sell HDB ?

You can try ABSD remission (not sure if applicable for you, but no harm reading and calling IRAS)
I sold my hdb and upgrade to 1st private a decade ago. Bought a second private a few years back for investment and that's when the 7% absd kicks in. Now the rental for a million dollar private property is probably the same as 500k to 600k HDB. I could have just be mortgage free with my HDB instead of my 2nd private property and still have the same rental return.
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Old 06-03-2019, 01:47 PM   #51
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I sold my hdb and upgrade to 1st private a decade ago. Bought a second private a few years back for investment and that's when the 7% absd kicks in. Now the rental for a million dollar private property is probably the same as 500k to 600k HDB. I could have just be mortgage free with my HDB instead of my 2nd private property and still have the same rental return.
give and take imo.
whats the price of your HDB unit now vs the price you sold it for ?
and whats the price of your private now vs the price you bought it for ?
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Old 11-03-2019, 12:05 AM   #52
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Thank you everyone. Really useful information.
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Old 11-03-2019, 04:41 PM   #53
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so what did you do with your unit ? 5rm loft, are you the 900k+ seller? lol
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Old 15-03-2019, 07:36 AM   #54
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Look for most people it’s an easy decision. Do they want to live in private or are they happy in hdb forever? Wanting to live in condo may be aspirational, for the facilities, etc. Can their household income afford it? The gain from your hdb can go towards down payment and reno but you should be able to service a bigger loan.

And you can start checking out show flats or house hunting based on your Budget and wist list. Then you can get a better sense of whether you’ll be happy living in the kind of condos you can afford.

Last edited by tomasulu; 15-03-2019 at 08:19 AM..
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