Any sandwich class couples here?

[Sinkie]

dun understand why u need to sell yr resale when u rom ...

Because my the other half owns a private already

 

[Sinkie]

Like to add ...

I meant several ID over these couple of weeks and they are surprised i am buying this as single...

End of the day as i mentioned ...

1) Supply and demand of HDB
2) Population of Singapore forthcoming
3) Locations at keypoints of Singapore
4) Rental possibility ? Yes no tenants for my flat for 1 months (so what?)
5) Purpose ? (hedge against inflation - and risk that i cant afford a property in
future)
6) Individual ego ? Individual needs ? Individual risk
7) jobless tomorrow ? (can i afford to keep for next 4 years ?) Losses ? (yah - maybe how much losses ? 100k 150k ?)

I have a friend who is also sandwich class and also has dilemma. Both he and his wife has to buy resales too.

Their saving together are more than enough to fully paid for the boon Keng city view dbss. But his Wife was actually thinking to take a loan of around $400,000 - $500,000 to instead buy a new city fringe 3 room private.

So my friend doesn't want to take a loan but his Wife wants to take a loan to buy a condo. But if both of them can apply for bto for ec, the choice will be easier and simpler

 

[Lss]

False. Thought experiment... Would you rent a 800k shoebox for 5k/month? Would you rent a 30m GCB for 5k/month? Clearly there exists a spectrum where on one end renting is a no brainer, and on the other end buying is a no brainer, and somewhere in the middle, depending on individual cost of capital and time value of money-making, lies a typing point.

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as a singaporean, there is no reason to rent as buying will be cheaper. when rental rates are 3 to 4 times that of monthly installments, the only people who rent are those who for some reason cannot buy.

 

[Sinkie]

as a singaporean, there is no reason to rent as buying will be cheaper. when rental rates are 3 to 4 times that of monthly installments, the only people who rent are those who for some reason cannot buy.

Or those who sell their ppty at current price and so to rent during this period until the market come down further

 

[lee_tired_sheep]

as a singaporean, there is no reason to rent as buying will be cheaper. when rental rates are 3 to 4 times that of monthly installments, the only people who rent are those who for some reason cannot buy.

Where got rental rates 3-4x of monthly installment?? Really kena ketok on the rent if that's the case. Honestly at current yield levels, if you model it out, net of maintenance and property tax, you'll be lucky to cover your installment.

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[lee_tired_sheep]

Just picked one listing at random - 1044 sq ft at interlace marketed by gelene ong. Listed for both sale and rent. Monthly installment 4086 as calculated by prop guru. Rental is 4200. Net off property tax and maintenance... Good luck trying to get 1x, much less 3-4x.

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[kyteo79]

Wah which region you live in? My area resales for 4 rooms is closed to $600,000

bird dun lay egg place ...

ulu

 

[kyteo79]

Because my the other half owns a private already

MP cannot help huh ?

Sorry ask silly question ...

 

[kyteo79]

I have a friend who is also sandwich class and also has dilemma. Both he and his wife has to buy resales too.

Their saving together are more than enough to fully paid for the boon Keng city view dbss. But his Wife was actually thinking to take a loan of around $400,000 - $500,000 to instead buy a new city fringe 3 room private.

So my friend doesn't want to take a loan but his Wife wants to take a loan to buy a condo. But if both of them can apply for bto for ec, the choice will be easier and simpler

Yess ... i waited 2 elections.... nothing done until the recent one ... but still not enough for BTO EC. Worst Tax more ...

Now ? everything up up up ...

 

[kyteo79]

as a singaporean, there is no reason to rent as buying will be cheaper. when rental rates are 3 to 4 times that of monthly installments, the only people who rent are those who for some reason cannot buy.

Renting is a good short term solution, maybe sell high and wait 2 years and jump into property or waiting property to build up.

 

[kyteo79]

Where got rental rates 3-4x of monthly installment?? Really kena ketok on the rent if that's the case. Honestly at current yield levels, if you model it out, net of maintenance and property tax, you'll be lucky to cover your installment.

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Got ... if you get those old old property years when market is crap and rentals up up up ...

Thats why i feel it is better for my house to be stay cation rather then rent out ..

 

[Sinkie]

MP cannot help huh ?

Sorry ask silly question ...

Mp say give chances to peasant

 

[happydonkey]

Exactly Loh so the qns is shd this person even rent when he buy? He just need to top up a little to purchase the pty. Interlace is good location. Buy and stay also will have capital gain later on. Why rent then?

Just picked one listing at random - 1044 sq ft at interlace marketed by gelene ong. Listed for both sale and rent. Monthly installment 4086 as calculated by prop guru. Rental is 4200. Net off property tax and maintenance... Good luck trying to get 1x, much less 3-4x.

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[Lss]

Just picked one listing at random - 1044 sq ft at interlace marketed by gelene ong. Listed for both sale and rent. Monthly installment 4086 as calculated by prop guru. Rental is 4200. Net off property tax and maintenance... Good luck trying to get 1x, much less 3-4x.

Sent from LGE LG-H818 using GAGT

sorry if i wasnt clear. 3 to 4 times would be hdb.

 

[Lss]

Renting is a good short term solution, maybe sell high and wait 2 years and jump into property or waiting property to build up.

dont think property will crash that much in the next 2 years. end up rent will eat up any profits

 

[lee_tired_sheep]

Got ... if you get those old old property years when market is crap and rentals up up up ...

Thats why i feel it is better for my house to be stay cation rather then rent out ..

So you're saying that making a good buy would be a good buy. No offense but quite a redundant statement.

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[lee_tired_sheep]

Exactly Loh so the qns is shd this person even rent when he buy? He just need to top up a little to purchase the pty. Interlace is good location. Buy and stay also will have capital gain later on. Why rent then?

Because you have opportunity cost on your capital. 10 years locked up, for eg, is 10 years of yields given up from other asset classes.

Capital gains in real estate not guaranteed. If it is then whole world investment firms don't need work so hard liao, just go interlace problem solved.

At the end of the day, I'm just saying there's a spectrum and the buy vs rent argument is not as straightforward as some would have you think.


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[happydonkey]

Because you have opportunity cost on your capital. 10 years locked up, for eg, is 10 years of yields given up from other asset classes.

Capital gains in real estate not guaranteed. If it is then whole world investment firms don't need work so hard liao, just go interlace problem solved.

At the end of the day, I'm just saying there's a spectrum and the buy vs rent argument is not as straightforward as some would have you think.


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okay lets keep it simple. So for own stay? rent now buy later? is that what you are suggesting. he is not asking about investment though.

 

[lee_tired_sheep]

Yes, rent now buy later. As prices fall, implied yields go up, then buy. If prices never fall and yields never go up, then rent forever.

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[Lss]

Yes, rent now buy later. As prices fall, implied yields go up, then buy. If prices never fall and yields never go up, then rent forever.

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if rent goes up and prices dont fall what happens?