Maximizing returns - HDB/Properties

[Prof. Utonium]

Folks,

Just pondered about this for the past 1 year but did not really put into writing or actions. Since the horizon for me to take action will still be >5 years later. Purely out of curiosity sake in terms of optimal returns.

Lets say I have inherited a HDB and fully paid. Ownership had been transferred to solely my name. Parent/Siblings removed, especially my sibling as the sibling does not want it [too much hassle when married and balloting] hence I have to give in and put under my name.

75 years lease remaining.

Scenario 1.

Ballot a new BTO for a new and longer lease. At the same time cash out the older lease. This provides me 2 leverage. Cash in hand for other investments and to utilize CPF OA for mortgage.

Could consider 2nd property [private] as investment but purely speculation now due to ABSD, unless I use another name. Which is still in consideration.

Scenario 2.

Get a private affordable condo, not penthouse but perhaps <$1.5M and rent out either 1 of the property.

Assuming I will rent out either 1 of the property AND until the end of the lease = $0 value.

Frankly, I think 1st option should be the best? I am able to cash out older lease and at the same time utilize my OA?

Am I right to say that?

Do share inputs. I NMNHNLM BBFA, just asking.

 

[aabbccddeeffgg]

What is your age now?

 

[Prof. Utonium]

What is your age now?

late 20s to early 30s.

 

[focus1974]

late 20s to early 30s.

you should split the proceeds of sales with your sibling.

How come ur sibling give you the HDB?

 

[Prof. Utonium]

you should split the proceeds of sales with your sibling.

How come ur sibling give you the HDB?

Don't worry about proceeds, did gave close to high 5f, low 6f before. Intend to do again, perhaps will pay for wedding or reno when she gets married. Even if I don't split, she will have another property to inherit in future that is not under my name.

Sibling will be one of the main benefactor of my estate.

This is not tabloids/drama where siblings fight over money lah.

 

[surferpunk]

Folks,

Just pondered about this for the past 1 year but did not really put into writing or actions. Since the horizon for me to take action will still be >5 years later. Purely out of curiosity sake in terms of optimal returns.

Lets say I have inherited a HDB and fully paid. Ownership had been transferred to solely my name. Parent/Siblings removed, especially my sibling as the sibling does not want it [too much hassle when married and balloting] hence I have to give in and put under my name.

75 years lease remaining.

Scenario 1.

Ballot a new BTO for a new and longer lease. At the same time cash out the older lease. This provides me 2 leverage. Cash in hand for other investments and to utilize CPF OA for mortgage.

Could consider 2nd property [private] as investment but purely speculation now due to ABSD, unless I use another name. Which is still in consideration.

Scenario 2.

Get a private affordable condo, not penthouse but perhaps <$1.5M and rent out either 1 of the property.

Assuming I will rent out either 1 of the property AND until the end of the lease = $0 value.

Frankly, I think 1st option should be the best? I am able to cash out older lease and at the same time utilize my OA?

Am I right to say that?

Do share inputs. I NMNHNLM BBFA, just asking.

Cash out the HDB flat(should be cash right), ballot for a new HDB, pay it full in cash, set aside 5% cash for a condo. After 5 years, you can utilise your CPF to pay for an affordable condo.

 

[henrylbh]

late 20s to early 30s.

First find out from HDB whether you are subject to MOP.

 

[Prof. Utonium]

Cash out the HDB flat(should be cash right), ballot for a new HDB, pay it full in cash, set aside 5% cash for a condo. After 5 years, you can utilise your CPF to pay for an affordable condo.

Didn't occur to me in paying full for BTO but that makes sense if you want to finance a 2nd property via mortgage. Thanks.

From there I think should be CPF+Cash (rental proceed, assuming a utopia where the rental demand is there)

First find out from HDB whether you are subject to MOP.

Nope. However just for discussion sake, if the plan materialize 5 years later, then would still hit MOP.

 

[junlove]

Cash out the HDB flat(should be cash right), ballot for a new HDB, pay it full in cash, set aside 5% cash for a condo. After 5 years, you can utilise your CPF to pay for an affordable condo.

and give up rental income for many yrs?

Face is not impt, comfy retirement is. Not many ppl can rent out one, stay another... quite silly not to make the best use of such a situation.

unlike the past, property appreciation is slowing down tremendously, and might even not catch up to inflation in the future (leasehold problem with aging nation)

 

[hyperfuse]

late 20s to early 30s.

out of topic but find it funny ....

Just say either late 20s or early 30s la why must give range to let ppl guess.



Only to women age is sensitive. But if u already put early 30s then it should be early 30s la.. haha

 

[streetfighter]

Scenario 1 is the choice for me. Never keep old leasehold property that is >20 years old.

Folks,

Just pondered about this for the past 1 year but did not really put into writing or actions. Since the horizon for me to take action will still be >5 years later. Purely out of curiosity sake in terms of optimal returns.

Lets say I have inherited a HDB and fully paid. Ownership had been transferred to solely my name. Parent/Siblings removed, especially my sibling as the sibling does not want it [too much hassle when married and balloting] hence I have to give in and put under my name.

75 years lease remaining.

Scenario 1.

Ballot a new BTO for a new and longer lease. At the same time cash out the older lease. This provides me 2 leverage. Cash in hand for other investments and to utilize CPF OA for mortgage.

Could consider 2nd property [private] as investment but purely speculation now due to ABSD, unless I use another name. Which is still in consideration.

Scenario 2.

Get a private affordable condo, not penthouse but perhaps <$1.5M and rent out either 1 of the property.

Assuming I will rent out either 1 of the property AND until the end of the lease = $0 value.

Frankly, I think 1st option should be the best? I am able to cash out older lease and at the same time utilize my OA?

Am I right to say that?

Do share inputs. I NMNHNLM BBFA, just asking.

 

[fr33d0m]

Cash out the HDB flat(should be cash right), ballot for a new HDB, pay it full in cash, set aside 5% cash for a condo. After 5 years, you can utilise your CPF to pay for an affordable condo.

can still own both HDB and Condo?

I thought no longer possible. have to sell HDB BTO before buying condo.

 

[Dusky01]

can still own both HDB and Condo?

I thought no longer possible. have to sell HDB BTO before buying condo.

why not ?

just need to pay ABSD

buy HDB then private condo - can

if condo to hdb then cannot

 

[fr33d0m]

why not ?

just need to pay ABSD

buy HDB then private condo - can

if condo to hdb then cannot

for at least 12% upfront?

must be very bullish on property price.

 

[little pupsky]

out of topic but find it funny ....

Just say either late 20s or early 30s la why must give range to let ppl guess.



Only to women age is sensitive. But if u already put early 30s then it should be early 30s la.. haha

Or maybe poster is exactly 30, but don’t wanna say, so give others that odd range.

 

[Prof. Utonium]

out of topic but find it funny ....

Just say either late 20s or early 30s la why must give range to let ppl guess.



Only to women age is sensitive. But if u already put early 30s then it should be early 30s la.. haha

Discussion sake

Frankly not 30s, but if people in their 30s may view property differently. So trying to see differing viewpoint.

edit: Recently saw on CNA that single scheme/studios are picking up, so wondering if they would make such a move. Even if I am single at 35, I highly doubt I would get a 2room BTO. Though perhaps do singles who get a 2room BTO find it worthwhile to get a 2nd property. It is insanely cheap.

Scenario 1 is the choice for me. Never keep old leasehold property that is >20 years old.

Same thought. May be harder to sell as lease degrades thought it depends on location. Since I am not in central or hot spot, highly considering to let it go before being stuck with it.

can still own both HDB and Condo?

I thought no longer possible. have to sell HDB BTO before buying condo.

Can.

As long you get HDB first before private. The opposite may not be possible unless you dispose of your HDB. Only issue is ABSD.

With ABSD, I am not sure if it still worth it. 2nd property is 12%. Let's say you bought a $1.5M unit, that would be $180K going to the government coffers.

Are rental yield and property appreciate able to make such investment worthwhile? That I am curious about.

Some are die hard property, some are not. So just discussing.

 

[streetfighter]

BTO is no-brainer, just go for it. 4 or 5Rm HDB is best choice for married couple.
The rest can depend on market conditions after MOP.

Discussion sake

Frankly not 30s, but if people in their 30s may view property differently. So trying to see differing viewpoint.

edit: Recently saw on CNA that single scheme/studios are picking up, so wondering if they would make such a move. Even if I am single at 35, I highly doubt I would get a 2room BTO. Though perhaps do singles who get a 2room BTO find it worthwhile to get a 2nd property. It is insanely cheap.



Same thought. May be harder to sell as lease degrades thought it depends on location. Since I am not in central or hot spot, highly considering to let it go before being stuck with it.



Can.

As long you get HDB first before private. The opposite may not be possible unless you dispose of your HDB. Only issue is ABSD.

With ABSD, I am not sure if it still worth it. 2nd property is 12%. Let's say you bought a $1.5M unit, that would be $180K going to the government coffers.

Are rental yield and property appreciate able to make such investment worthwhile? That I am curious about.

Some are die hard property, some are not. So just discussing.

 

[henrylbh]

out of topic but find it funny ....

Just say either late 20s or early 30s la why must give range to let ppl guess.



Only to women age is sensitive. But if u already put early 30s then it should be early 30s la.. haha

Funny alright. He has a pattern. Another instance when he mentioned 'high 5f, low 6f'

 

[Prof. Utonium]

Funny alright. He has a pattern. Another instance when he mentioned 'high 5f, low 6f'

I don't see the need to say much as it is irrelevant to discussion.

BTO is no-brainer, just go for it. 4 or 5Rm HDB is best choice for married couple.
The rest can depend on market conditions after MOP.

Concur, though 2nd property is up for debate. In this case seems like can only decide when it is closer to action.

Now it just purely speculation as we may never know how the property market going to be like 5 years down the road. Could be better or worst.

 

[Dusky01]

for at least 12% upfront?

must be very bullish on property price.

yes