Advice needed for property

[snacks]

Have a HDB and a condo under single name. Fully paid. Quantum only about 1.05m add up. Rental receiving about $4k for both.

Question is:
Is it better to go for a new launch for either capital appreciation or better rental or holding on to $4k rental income monthly is safer?

New launches seems so expensive now. To go for capital appreciation is a risk right?

 

[drkcynic]

Excellent rental yield for your existing properties. Congrats. Your quantum quoted is based on current prices or your buy price?

IMO, it is not worth paying absd for new launches. Resale, maybe if you manage to get one with a good entry price and if you intend to hold 5-10 years at least.

 

[snacks]

Quantum based on current prices transacted these few months. Assuming no further capital appreciation also.

Forget to add on : Thinking if to sell both and get a new launch or change portfolio. Thanks

 

[drkcynic]

Quantum based on current prices transacted these few months. Assuming no further capital appreciation also.

Forget to add on : Thinking if to sell both and get a new launch or change portfolio. Thanks

I will hold onto both since they are yielding good rental income unless you have certain reasons to move on whether due to age or whichever.

Don't forget, if you change the status quo, you are subjected to agent fees - 2% for selling x 2, stamp duty for new unit, lawyer fees x3 , some months of lapse time waiting for completion, or maybe need to take on new debt for loan.

If you buy a new launch there will be at least 2-3 years without rental income. That's at least 100k right there.

Some considerations, but good situation to be in regardless.

 

[snacks]

Appreciate your insights. Intention is to keep for rental till retirement initially

 

[spcs2020]

Quantum based on current prices transacted these few months. Assuming no further capital appreciation also.

Forget to add on : Thinking if to sell both and get a new launch or change portfolio. Thanks

Are you able to buy a 3rd property while holding on to the HDB and condo?

 

[snacks]

Are you able to buy a 3rd property while holding on to the HDB and condo?

We have another private staying in as well.

 

[spcs2020]

We have another private staying in as well.

Then probably can buy a new launch, and use the passive income of the HDB+condo to pay the mortgage. The new one can be rented out as well.

Once you sold the HDB, cannot buy back HDB without selling all the condo

 

[snacks]

Then probably can buy a new launch, and use the passive income of the HDB+condo to pay the mortgage. The new one can be rented out as well.

Once you sold the HDB, cannot buy back HDB without selling all the condo

As in sell hdb and the condo under a single name and buy a new one?

 

[Laneige]

Unless yr condo starts to depreciate else I think it’s ok Ma
Big new project r more n more expensive n ABSD u have to pay

 

[NiShiZhu]

Have a HDB and a condo under single name. Fully paid. Quantum only about 1.05m add up. Rental receiving about $4k for both.

Question is:
Is it better to go for a new launch for either capital appreciation or better rental or holding on to $4k rental income monthly is safer?

New launches seems so expensive now. To go for capital appreciation is a risk right?

Hi,
1) cap gain for recent new launches getting tougher. Unless really met one that sells at a steal price. Are u ready to hold mid to long term? Is ur job stable enough to incur more loan?
2) are your hdb and condo fully paid? If yes, U probably wouldn’t want to rock the boat too much. With 4K as passive income, u r in good position.
3) when u said u got 3 prop, I reckon another one is under your wife’s name?

 

[snacks]

Unless yr condo starts to depreciate else I think it’s ok Ma
Big new project r more n more expensive n ABSD u have to pay

If sell hdb and condo together, then don't have to pay absd. Pay bsd only. But yah, condos now more and more expensive.

 

[snacks]

Hi,
1) cap gain for recent new launches getting tougher. Unless really met one that sells at a steal price. Are u ready to hold mid to long term? Is ur job stable enough to incur more loan?
2) are your hdb and condo fully paid? If yes, U probably wouldn’t want to rock the boat too much. With 4K as passive income, u r in good position.
3) when u said u got 3 prop, I reckon another one is under your wife’s name?

Yes I have the same thoughts as you. Property agents I meet advise to sell 2 and buy 1. But looks like a risk for capital gains.

Hdb and condo fully paid yes. Another under wife name and we can clear in 5 years time.

 

[NiShiZhu]

Yes I have the same thoughts as you. Property agents I meet say can sell 2 and and buy 1. But looks like a risk for capital gains.

Hdb and condo fully paid yes. Another under wife name and we can clear in 5 years time.

Nice, similar situation, 2 rented out and 1 self stay.
The only difference is I was thinking of cashing out one as I noticed recent resales price seems to be picking up. Then hibernate awhile and pounce on a good buy if I happened to see one. (Won’t be using my name for sure to avoid absd)

Go search at some resale data, resale price starting to pick up.
All thanks to curb on otp reissuing and delay in construction of bto and new launches.

 

[snacks]

Nice, similar situation, 2 rented out and 1 self stay.
The only difference is I was thinking of cashing out one as I noticed recent resales price seems to be picking up. Then hibernate awhile and pounce on a good buy if I happened to see one. (Won’t be using my name for sure to avoid absd)

Go search at some resale data, resale price starting to pick up.
All thanks to curb on otp reissuing and delay in construction of bto and new launches.

Resale rental potential is slightly better due to lower quantum compared to new launches. We did consider that but very time consuming to search one by one. Agents are advising new launches only.

 

[kiatme]

Holding on to them would be better ?
1.05m getting 4k rental, where to go to buy such properties ? Almost no where.

Capital appreciation is good, but if you minus agent fee, buyer stamp, interest, lawyer fee, end up also not as much as your rental yield.

Its also a risk to buy a new launch when you already have such a good profile, unless you feel both your properties are already at its peak in price, or else i feel no point in selling.

If you have too much cash overflow, why not buy under trust(if you have kids) or sell your wife's property to buy

 

[spcs2020]

That's true.

Some times if you buy the wrong and overpriced new launches, you could end up >20% drop in prices after TOP.

Holding on to them would be better ?
1.05m getting 4k rental, where to go to buy such properties ? Almost no where.

Capital appreciation is good, but if you minus agent fee, buyer stamp, interest, lawyer fee, end up also not as much as your rental yield.

Its also a risk to buy a new launch when you already have such a good profile, unless you feel both your properties are already at its peak in price, or else i feel no point in selling.

If you have too much cash overflow, why not buy under trust(if you have kids) or sell your wife's property to buy

 

[snacks]

Thanks both. agree with your comments. wife's name property going to TOP very soon. The scenario is actually we will be moving in and rent out the HDB.
Using trust seems to be low percentage yield and we are not familiar with stocks/shares as an investment vehicles. Thus thinking where to park the money.

 

[Nofear40]

Have a HDB and a condo under single name. Fully paid. Quantum only about 1.05m add up. Rental receiving about $4k for both.

Question is:
Is it better to go for a new launch for either capital appreciation or better rental or holding on to $4k rental income monthly is safer?

New launches seems so expensive now. To go for capital appreciation is a risk right?

May I ask how did you get your hdb under single name when you are married?
After your 35 and before your marriage? Thanks

 

[snacks]

May I ask how did you get your hdb under single name when you are married?
After your 35 and before your marriage? Thanks

Hi there, we decouple a few years ago for the hdb before the new ruling came out.