Is buying hdb first the best financial decision always?

SBC

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Was the best advice. Does not mean that it will hold very the 5 to 10 years.

Too many supply in BTO over the past 5-8 years.
 

Emo_Rhino

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in order of returns/risk


BTO> EC> Resale HDB> Resale Condo


the cheaper your buy, the less stress you have, and the more money you can put into other investments.
 

fluxos

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HDB as a first property is commonly promoted because it is accessible by almost everyone. If you are in your twenties, just starting out on your own with no parents support nor pot of wealth, there is no choice really. The good news is, as a standardized measure, the vast majority of BTOs give you great returns as they are subsidized.

To your question, would it change if you can afford a condo now as a first property. The answer is probably yes. If you have readily 500k or more to put as a down payment for your first property then many options open up for you. However, these options are not widely discussed nor is there a standardized measure of returns due to the nature of private properties (timing/opportunities/non-standardized).
 

taquito

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HDB as a first property is commonly promoted because it is accessible by almost everyone. If you are in your twenties, just starting out on your own with no parents support nor pot of wealth, there is no choice really. The good news is, as a standardized measure, the vast majority of BTOs give you great returns as they are subsidized.

To your question, would it change if you can afford a condo now as a first property. The answer is probably yes. If you have readily 500k or more to put as a down payment for your first property then many options open up for you. However, these options are not widely discussed nor is there a standardized measure of returns due to the nature of private properties (timing/opportunities/non-standardized).

but isn't it wasted to put down 500k when you can use that money to earn more interest instead?
 

iceblendedchoc

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HDB as a first property is commonly promoted because it is accessible by almost everyone. If you are in your twenties, just starting out on your own with no parents support nor pot of wealth, there is no choice really. The good news is, as a standardized measure, the vast majority of BTOs give you great returns as they are subsidized.

To your question, would it change if you can afford a condo now as a first property. The answer is probably yes. If you have readily 500k or more to put as a down payment for your first property then many options open up for you. However, these options are not widely discussed nor is there a standardized measure of returns due to the nature of private properties (timing/opportunities/non-standardized).

Yup, buying hdb is the only sensible choice when one is tight with money or as others pointed out they do not earn enough or no financial backing etc etc. It beats paying rental. Buying BTO can guarantee some forms of profits as pointed out if the location is good. And every citizen has two chances to buy BTO as Long as they meet the pre-requisites. But we didn’t meet the pre-requisites due to income.

Also, we were unimpressed with the offering and location of the leasehold EC projects ,which we can only buy brand new.

Our own options was to buy EC, or buy a resale hdb or sink in the money to buy freehold.

I won’t consider buying EC leasehold, I consider that as a bad use of money as I would have to move to sell the leasehold after 10 years max to preserve my profit (hopefully)and capital.

In the end, we ended up with freehold.
 

MikeDirnt78

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If you like to pass down your property to children, then freehold is suitable.

If you are looking to maximise returns in the next 10-20 years, freehold is probably not a good decision.
 

LouisSaha

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What about a 5 room BTO?

I know there is no grant or only 5k grant at MAX.

Buy IF stay 5 yrs, can flip? I think properties pricing not very good right at the moment?

Let's say area like Sengkang... How is it like?
Take the location at maybe that fernvale area now, where there are many BTOs coming up.
Still underdeveloped right?

Can it fetches good money if sell after 5 years?

What about top floor, any advantages? Like more money?
 

terence2112

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What about a 5 room BTO?

I know there is no grant or only 5k grant at MAX.

Buy IF stay 5 yrs, can flip? I think properties pricing not very good right at the moment?

Let's say area like Sengkang... How is it like?
Take the location at maybe that fernvale area now, where there are many BTOs coming up.
Still underdeveloped right?

Can it fetches good money if sell after 5 years?

What about top floor, any advantages? Like more money?

If I could turn back time, I would have gotten a 5 room flat in Fernvale, as oppose to my current 4 room flat in Compassvale, though my current flat is of close proximity to Sengkang MRT.

The price I pay for my 4 room is more ex then a 5 room at Fernvale.
 

MikeDirnt78

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What about a 5 room BTO?

I know there is no grant or only 5k grant at MAX.

Buy IF stay 5 yrs, can flip? I think properties pricing not very good right at the moment?

Let's say area like Sengkang... How is it like?

Rule of thumb is, if you are looking for maximum returns, go for those nearer to city center. See dawson, boonkeng, etc.

Next will be bidadari.
 

BBCWatcher

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1) Typical residents don't have 2 cars
Typical (median) residents don't have even one car. There are a little over 1.37 million resident households in Singapore and barely more than 500,000 million automobiles purely in private hands (not rental cars, taxi fleets, etc.) Consequently more than half of households don't have any private automobiles (and a few have more than one), so the median household doesn't have a car.

There is no likely prospect that this situation will change. On the contrary, it looks like individual household owned and operated automobiles will become even less common.
 

Kaypohji

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My friend that time die also wanna get bidadari so went with a 3 rm flat

Worth it ? I don’t know... since hasn’t tried selling yet but should be confirm can earn
Rule of thumb is, if you are looking for maximum returns, go for those nearer to city center. See dawson, boonkeng, etc.

Next will be bidadari.
 

MikeDirnt78

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My friend that time die also wanna get bidadari so went with a 3 rm flat

Worth it ? I don’t know... since hasn’t tried selling yet but should be confirm can earn

It shall be the next estate producing ~1M sale.

Just my 2 cents.
 

silverbomb

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me and partner don't intend to ROM. so recently thinking of resale HDB 3/4/5 room using my name and when i turn eligible in a couple years, while purchase studio or condo under my partner name.

haven't really worked out the sums (e.g. whether rent out the HDB or Condo, TDSR both units, housing loan interest & cost minus rental income) but also at the same time i cannot see how by ROM get BTO later 5 years MOP (not into idea of sublet plus HDB cannot use decoupling) where I could gain some yield from rental (the other unit), versus opp cost of 5 years not gaining any form of rental yield when i can. keeping my options open since it's a recent idea.
 

fluxos

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Just to add on to my post. I went with the bto route because I was a struggling student with minimal savings when I was buying my first place 8 years ago. I made a decent sum from bto.

Knowing what I know now, if I had the money then (say 700k or more in cash and cpf) I would have gone the condo route instead with my spouse and myself getting one each. For sure I would have been a lot richer now. Opportunity cost is real.

The point I’m trying to put across is, there is no best way, it depends on your circumstance.

HDB as a first property is commonly promoted because it is accessible by almost everyone. If you are in your twenties, just starting out on your own with no parents support nor pot of wealth, there is no choice really. The good news is, as a standardized measure, the vast majority of BTOs give you great returns as they are subsidized.

To your question, would it change if you can afford a condo now as a first property. The answer is probably yes. If you have readily 500k or more to put as a down payment for your first property then many options open up for you. However, these options are not widely discussed nor is there a standardized measure of returns due to the nature of private properties (timing/opportunities/non-standardized).
 

LouisSaha

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If I could turn back time, I would have gotten a 5 room flat in Fernvale, as oppose to my current 4 room flat in Compassvale, though my current flat is of close proximity to Sengkang MRT.

The price I pay for my 4 room is more ex then a 5 room at Fernvale.

Maybe I shall consider to go for 5 rooms.
But with that location, hopefully price will go up after 5 years.
Drove past that fernvale area, that plot near Jalan kayu, got 3-4 BTOs in progress.
Then 1 more bto at Yio chu kang stretch of road, the one beside a condo I think.

But problem is, at least 5-8 mins walk to Fernvale LRT.
Then LRT need to switch to MRT. Troublesome though.

Rule of thumb is, if you are looking for maximum returns, go for those nearer to city center. See dawson, boonkeng, etc.

Next will be bidadari.

You are right, I'm looking at the new BTOs at Toa Payoh and the one beside Dakota, but alot of ppl subscribe. So is heng suay one.
 

Kaypohji

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Fernvale good ah?

My cousin also bought a condo at jalan kayu there. Near the lrt
 

LouisSaha

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Fernvale good ah?

My cousin also bought a condo at jalan kayu there. Near the lrt

High Park Residences? :s11:

Stay there is ok, within walking distance to Jalay Kayu.
10 mins walk to Seletar Mall.
Got NTUC 24hrs.

Con would be no direct MRT lines. Need to take LRT then switch to MRT. Walk to LRT will take average 5-10 mins walk depend on locations.

Not very developed yet. But quite peaceful and quiet. Part of it is landed enclave.
 
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