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Is buying hdb first the best financial decision always?

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Old 24-05-2020, 10:05 AM   #1
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Is buying hdb first the best financial decision always?

Is buying hdb (bto/resale) first the best financial decision always even you got enough money and want to stay in condo? Thanks!
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Old 24-05-2020, 11:01 AM   #2
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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).
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Old 24-05-2020, 11:04 AM   #3
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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
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Old 24-05-2020, 11:09 AM   #4
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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
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Old 24-05-2020, 11:13 AM   #5
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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?
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Old 24-05-2020, 03:54 PM   #6
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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.
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Old 24-05-2020, 04:12 PM   #7
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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.
ugh damm, recession and market plunge likely to come after virus so bad time to commit to hdb now..
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Old 24-05-2020, 04:41 PM   #8
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Low risk low returns = Bto
5 years mop

Higher risk higher returns = condo
Anytime can sell
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Old 24-05-2020, 05:06 PM   #9
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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 ?

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Old 24-05-2020, 06:07 PM   #10
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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.
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Old 24-05-2020, 06:36 PM   #11
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Sell one to profit, still need a place to stay...
If u sell one and buy another unit at expensive price, no benefit.

why need to own 2 units to profit from 1?
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Old 24-05-2020, 06:48 PM   #12
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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
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Old 24-05-2020, 07:29 PM   #13
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If your finance permits, go invest in a private property like Condo. Better returns.
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Old 24-05-2020, 09:00 PM   #14
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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
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Old 24-05-2020, 09:55 PM   #15
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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.
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