2 sty terrace vs HDB jumbo

[ocs_woodlands]

i have always looked favourably upon real estate assets and not so much on financial assets.

My situation is this:

I want myself and my wife to retire on SG sometime in 2028-2030.
Me and my wife are currently decoupled and each holding on to 1 property ie HDB and condo.
I want to stay in a property with 3 bedrooms with attached toilets.
HH networth by retirement should be $5m.

I have always thought that the best way to get 3 attached baths is to get landed property. Condos with 3 attached baths are almost non existent.

Option 1
If I get a landed while still holding on to the HDB, the percentage of wealth tied up in real estate would be about 60-65%, leaving 40-35% in financial assets.
And staying in a landed valued at 2.5-3m will mean I only have 2.5 to 2m assets (largely financial with about 550k in HDB asset) generating income flow for retirement ie @ 3.5% that would be 70k - 85k pa.
Not a lot and actually barely enough since I have to consider inflation and etc. an advantage of landed is that it can be a nice bequest since it is FH.

Option 2
Jumbo HDB flats. With some renovation, I can get the desired 3 attached baths and the cost is low ie 750k or so.

Only problem is that I have to "recouple" with my wife and sell off my condo and probably never own another property in SG as long as the ABSD (I think it is unconscionable to throw away money like that).
of course, I would have 4.25m of financial assets to generate returns @ 3.5% and the income flow would be very comfortable at close to 150k.

Any views on these 2 options?

 

[Broadwalk]

Bookmarked and I also like to know the options available.

 

[JuniorLion]

Are you specifically looking at FH? Or anything goes?

 

[OngHuatHuat]

Got freehold HDB jumbo? Can recommend?

 

[JuniorLion]

Got freehold HDB jumbo? Can recommend?

Acting smart aleck or something? See below. Landed can be FH or otherwise. So if you'd like to act smart aleck, perhaps go elsewhere.

Option 1
If I get a landed while still holding on to the HDB, the percentage of wealth tied up in real estate would be about 60-65%, leaving 40-35% in financial assets.
And staying in a landed valued at 2.5-3m will mean I only have 2.5 to 2m assets (largely financial with about 550k in HDB asset) generating income flow for retirement ie @ 3.5% that would be 70k - 85k pa.
Not a lot and actually barely enough since I have to consider inflation and etc. an advantage of landed is that it can be a nice bequest since it is FH.

 

[ocs_woodlands]

Are you specifically looking at FH? Or anything goes?

actually, my 1st and foremost criteria are the 3 atthed toilets.

because of that, I wrote off close to 95% of SG housing stock ie HDB and normal condos.

this leaves me with either landed or jumbo.

for landed, there are 3 varieties ie FH/999, LH or strata.

Plus Jumbo.

FH 2 sty terrace and Jumbi HDB are the 2 extremities. LH and strata landed are the in between choices

 

[starfish.starfish]

What about dual key condos ? Those should hv more bathrooms?

 

[highsulphur]

assuming your flat is already decoupled, whose name will it be under? So I guess the other person will be the one buying the landed if you decide to get one? Will you be able to get a loan base on that one person's income?

Ultimately it is a choice of consumption vs investment. Many forget that you are actually "consuming" the home you are staying in. The more expensive it is, the higher the opportunity cost which could be channeled into investment. Of course, what you get in return is (hopefully) a better quality of life.

For the jumbo flat, you would have to sell both your current properties to get it under HDB regulation right? I think the rules will be too onerous for you to be subject to HDB rules again.

 

[focus1974]

If u buy landed, u r still owning a home plus an investment.
If u buy a HDB jumbo, u r now acquiring an expense and prepared to write off that $750k.

 

[Broadwalk]

actually, my 1st and foremost criteria are the 3 atthed toilets.

because of that, I wrote off close to 95% of SG housing stock ie HDB and normal condos.

this leaves me with either landed or jumbo.

for landed, there are 3 varieties ie FH/999, LH or strata.

Plus Jumbo.

FH 2 sty terrace and Jumbi HDB are the 2 extremities. LH and strata landed are the in between choices

Serious.
Can we go shop around together for landed?

 

[PostCountWarrior[+1]]

u sure u can get 3 attached toilets with jumbo? I never seen before.

if not buy landed but to escape absd, u need to sell everything. Is those toilets so important for u to lose your rental cashflow returns?

 

[Broadwalk]

TS how confident are you that during 9-11 years before your official retirement age you will able to generate wealth to your NW? Are you calculating it based on best case scenario? What would be the least optimal situation then? What is the deviation we are seeing here?

 

[ocs_woodlands]

;120548815]u sure u can get 3 attached toilets with jumbo? I never seen before.

if not buy landed but to escape absd, u need to sell everything. Is those toilets so important for u to lose your rental cashflow returns?

jumbos come with 4 toilets. 2 of them already attached. can convert an existing kitchen into bedroom and that's the 3rd room with attached.

the last toilet leave as common.

 

[ocs_woodlands]

Ultimately it is a choice of consumption vs investment. Many forget that you are actually "consuming" the home you are staying in. The more expensive it is, the higher the opportunity cost which could be channeled into investment. Of course, what you get in return is (hopefully) a better quality of life.

For the jumbo flat, you would have to sell both your current properties to get it under HDB regulation right? I think the rules will be too onerous for you to be subject to HDB rules again.

If u buy landed, u r still owning a home plus an investment.
If u buy a HDB jumbo, u r now acquiring an expense and prepared to write off that $750k.

thanks for the perspectives.

both are indeed valid.

I dont expect to make a final decision soon. I will continue to flip these options in my mind for another few years at least..

 

[OngHuatHuat]

Huh? Am I asking you?

Acting smart aleck or something? See below. Landed can be FH or otherwise. So if you'd like to act smart aleck, perhaps go elsewhere.

 

[yoongf]

Going thru a paper div will allow you to achieve your financial objectives.

A true genuine marriage doesn’t need a cert. Just a thought, given current regulations.

 

[existential_reality]

The 3.5% yield would that be nett? Say accounting for property tax, depreciation, income tax etc.

Also is the rationale for having 3 ensuite bedrooms for family expansion?

i have always looked favourably upon real estate assets and not so much on financial assets.

My situation is this:

I want myself and my wife to retire on SG sometime in 2028-2030.
Me and my wife are currently decoupled and each holding on to 1 property ie HDB and condo.
I want to stay in a property with 3 bedrooms with attached toilets.
HH networth by retirement should be $5m.

I have always thought that the best way to get 3 attached baths is to get landed property. Condos with 3 attached baths are almost non existent.

Option 1
If I get a landed while still holding on to the HDB, the percentage of wealth tied up in real estate would be about 60-65%, leaving 40-35% in financial assets.
And staying in a landed valued at 2.5-3m will mean I only have 2.5 to 2m assets (largely financial with about 550k in HDB asset) generating income flow for retirement ie @ 3.5% that would be 70k - 85k pa.
Not a lot and actually barely enough since I have to consider inflation and etc. an advantage of landed is that it can be a nice bequest since it is FH.

Option 2
Jumbo HDB flats. With some renovation, I can get the desired 3 attached baths and the cost is low ie 750k or so.

Only problem is that I have to "recouple" with my wife and sell off my condo and probably never own another property in SG as long as the ABSD (I think it is unconscionable to throw away money like that).
of course, I would have 4.25m of financial assets to generate returns @ 3.5% and the income flow would be very comfortable at close to 150k.

Any views on these 2 options?

 

[mummy1234]

Isn't it every Sgpn's dream to own a freehold landed? Its value should go up or at least be stable unlike HDB which goes to $O after 99 years.

I would choose option A. And having a landed address makes others look up to u more.

 

[ocs_woodlands]

Isn't it every Sgpn's dream to own a freehold landed? Its value should go up or at least be stable unlike HDB which goes to $O after 99 years.

I would choose option A. And having a landed address makes others look up to u more including prospective employers if u should ever need one.

Given unlimited resources, clearly a FH landed is better.

But with a limited and known financial resources at the end of my working life, I am looking at a trade off between a FH landed with the accompanying cash flow for retirement OR a more modest HDB jumbo and a lot more cash flow for retirement,

As for some who ask why need 3 en-suite bedrooms, well actually, believe it or not, other than HK and SG, middle class people elsewhere live in homes where they have bedrooms with attached bath.

For my case, I think it’s reasonable that me and my Wife share a bath. We are married and since we have shared bodily fluids, sharing a bathroom is kachang puteh. As my children grow past their teens and into adulthood, it’s only right that they have their own toilets to use and not be subjected to other people’s idiosyncrasies eg seat up or seat down and blah blah, And also I recognise that they belong to the strawberry generation so they may not get married or marry late so they might very well stay with me till almost the end of my lifespan, who knows.

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[mummy1234]

Given unlimited resources, clearly a FH landed is better.

But with a limited and known financial resources at the end of my working life, I am looking at a trade off between a FH landed with the accompanying cash flow for retirement OR a more modest HDB jumbo and a lot more cash flow for retirement,

As for some who ask why need 3 en-suite bedrooms, well actually, believe it or not, other than HK and SG, middle class people elsewhere live in homes where they have bedrooms with attached bath.

For my case, I think it’s reasonable that me and my Wife share a bath. We are married and since we have shared bodily fluids, sharing a bathroom is kachang puteh. As my children grow past their teens and into adulthood, it’s only right that they have their own toilets to use and not be subjected to other people’s idiosyncrasies eg seat up or seat down and blah blah, And also I recognise that they belong to the strawberry generation so they may not get married or marry late so they might very well stay with me till almost the end of my lifespan, who knows.

Posted with Common Sense HardwareZone Forums app

Your children will give u allowance when they start working and still stay with u so can consider that as additional income and cpf life also another source of income.