Moving from 5 room prime hdb to EC

[reds1idingear]

oh ya though RCR is desirable location however OCR appreciation is comparable (historical data).
so one more + point for moving to OCR EC

 

[Nemesis_lane123]

i might be late to your message

but i can tell you condo is nothing. sometimes alot weird people stay at condo. new hdb residential areas with young people are perfectly okay. no weird boomer stuff

Thank you for the message. Yeaps I am getting this msg also from friends who move from say Punggol coast condo to city HDB. Advised me not to make the move , I will regret big time.

I think both has it's pros n cons just that most of my activities are centred around the city.

 

[Nemesis_lane123]

I made a profit of 800k+. I guess the amenities that came up gradually made the house value go up.

I think perhaps moving ahead, may not be so easy to make money through ECs as the launch prices are getting quite high. The earlier batches were launched quite affordably, entry price allowed a lot of ppl to make.

 

[Nemesis_lane123]

Just go for EC..make the capital gains.if you do not like it (eg location)...can downgrade easily to resale HDB in a location that you want 5 years later..

Was thinking from this angle as well just that upon reflecting , most of my activities are around e city fringe, from work, to kids school. Anyways I summarise into 2 options. It seems that putting my extra funds into an index fund may not be a bad idea as well. Then fr my final move downgrade from prime 5 room to 4 room may be ok considering the kids may be moving out. At least can still host dinners for family n friends n enjoy subsidised n grants during retirement.

Option 1
Move to EC
Top up 600k from sale of HDB to EC

Possibly unlock 2.5-3 mil, 20-25 yrs time retirement move to 2 RM bto.

*Honestly not keen on my final move in the 2 room bto. Likely have to pay 1.5 mil to stay in a 3 or 4 room in a desirable area. I would have no more bto chances upon my move to EC.

Option 2
Stay in the 5 room HDB
Put 600k in S&P 500

Retirment unlock s&p- based on average 6% yield, amount based on the initial 600k would be somewhere like 2-3 mil.

Retirement , use last bto chance for 4 room, prime bto. Will likely profit about 500k from the 5 room still on top of fully redeeming the 4 room.

Then if die, Children sell the 4 room, profit possibly 1.5 mil. Taking about 30-40 years later.

Seems option 2 may offer the same profits whilst giving me a higher standard of living esp in retirement.

Downside is of course I will lose out on the amenities I could have got from the EC.

 

[Nemesis_lane123]

Dunno why people so obsessed about housing. The gains are locked forever until you down grade to a much smaller unit in a lousier location. And you old and alone need to settle all the moving stuff very troublesome. Before that, your monthly loans is a huge opportunity cost. Then again, majority of people not very smart. They think buy 500k house, sell 1 mil only.

My friend sell bto, move to condo with kids, now eat grass for the next few decades liao.

I think for most Singaporeans, if U look at their network, most tied to property.

That is because we are possibly the only country in the world that the retirement fund(cpf) allows us to buy property.

Also another reason is that we possibly have decades of property growth so it is considered by many to be a safe asset.

I agree with U that perhaps we should diversify n think of the long term implications of our decisions.

However on your point of not being smart, do note that Singaporean has the smartest population in the world with the highest IQ. I think it's perhaps about the obsession with condos that is the problem (myself included).

 

[NeonX]

So jelly you guys can bto. I queue number also cannot get

 

[Milodrink]

To be honest, I m seeking like validation for the EC. I think about this like almost everyday.

Then talk with wife then agree on 5 room. Then it continues. I think just that nv experience staying in condo B4 so that is the appeal to me. When I was growing up, most ppl talked about condo as success measurement of life, maybe that's y I keep thinking about it , I may feel more successful?

Like if I die, this will be something I have nv done. Was a life goal when I was young just that it became so complicated now.

I am not rich, rich dun even need EC. I can get condo in any area I want. I am in the grp where in cannot afford condo in an area I want so have to settle for EC. That is the best compromise for my situation.

Well done

 

[dry_county]

Yes the one I was considering same size as my current place. 1200 sqft like that 1.7-1.8 mil.

That’s expensive…..my freehold CCR condo around the same price also…..

 

[Nemesis_lane123]

That’s expensive…..my freehold CCR condo around the same price also…..

Yes most brand new EC are between 1.6-1.8 mil for 1200 sqft.

Tdy can get freehold CCR 1200 sqft condo fr 1.6-1.8 mil ?

 

[Nemesis_lane123]

So jelly you guys can bto. I queue number also cannot get

Actually jus keep applying. Somehow at some point can get.

 

[XiaoJing]

Was thinking from this angle as well just that upon reflecting , most of my activities are around e city fringe, from work, to kids school. Anyways I summarise into 2 options. It seems that putting my extra funds into an index fund may not be a bad idea as well. Then fr my final move downgrade from prime 5 room to 4 room may be ok considering the kids may be moving out. At least can still host dinners for family n friends n enjoy subsidised n grants during retirement.

Option 1
Move to EC
Top up 600k from sale of HDB to EC

Possibly unlock 2.5-3 mil, 20-25 yrs time retirement move to 2 RM bto.

*Honestly not keen on my final move in the 2 room bto. Likely have to pay 1.5 mil to stay in a 3 or 4 room in a desirable area. I would have no more bto chances upon my move to EC.

Option 2
Stay in the 5 room HDB
Put 600k in S&P 500

Retirment unlock s&p- based on average 6% yield, amount based on the initial 600k would be somewhere like 2-3 mil.

Retirement , use last bto chance for 4 room, prime bto. Will likely profit about 500k from the 5 room still on top of fully redeeming the 4 room.

Then if die, Children sell the 4 room, profit possibly 1.5 mil. Taking about 30-40 years later.

Seems option 2 may offer the same profits whilst giving me a higher standard of living esp in retirement.

Downside is of course I will lose out on the amenities I could have got from the EC.

trust me dude this downside is psychological...
everything points to option 2 being the better option. MUCH better option

soory to say but your situation is no different to a middle age man buying a lambo/ferrari/useless sports car to fulfil his ego and society's pitiful definition of success

 

[GoodEnergy]

Was thinking from this angle as well just that upon reflecting , most of my activities are around e city fringe, from work, to kids school. Anyways I summarise into 2 options. It seems that putting my extra funds into an index fund may not be a bad idea as well. Then fr my final move downgrade from prime 5 room to 4 room may be ok considering the kids may be moving out. At least can still host dinners for family n friends n enjoy subsidised n grants during retirement.

Option 1
Move to EC
Top up 600k from sale of HDB to EC

Possibly unlock 2.5-3 mil, 20-25 yrs time retirement move to 2 RM bto.

*Honestly not keen on my final move in the 2 room bto. Likely have to pay 1.5 mil to stay in a 3 or 4 room in a desirable area. I would have no more bto chances upon my move to EC.

Option 2
Stay in the 5 room HDB
Put 600k in S&P 500

Retirment unlock s&p- based on average 6% yield, amount based on the initial 600k would be somewhere like 2-3 mil.

Retirement , use last bto chance for 4 room, prime bto. Will likely profit about 500k from the 5 room still on top of fully redeeming the 4 room.

Then if die, Children sell the 4 room, profit possibly 1.5 mil. Taking about 30-40 years later.

Seems option 2 may offer the same profits whilst giving me a higher standard of living esp in retirement.

Downside is of course I will lose out on the amenities I could have got from the EC.

I personally will go for option 1..you mentioned in other posts that you will like to enjoy the amenities or at least have enjoyed staying in a condo/ec before...just go for it..

I was looking for a place recently..i have lots of criteria and limited budget...in the end, a friend's words "wake me up"..he said that do not think so much about if the property can "make money" ...just buy something that you enjoy staying...so in the end i bought a place in the CCR that is leasehold, knowing that it may not be a good decision in terms of capital appreciation..but i think i will love staying there.

 

[Nemesis_lane123]

trust me dude this downside is psychological...
everything points to option 2 being the better option. MUCH better option

soory to say but your situation is no different to a middle age man buying a lambo/ferrari/useless sports car to fulfil his ego and society's pitiful definition of success

No offence taken. Upon analysing , I agree that option 2 might be a better long term option especially for the retirement adjustment gap from 5 room to 4 room vs EC to 2 room bto.

Thanks for the advice. I think perhaps ego does play a big part in this dilemma, I cannot rule that out.

 

[Nemesis_lane123]

I personally will go for option 1..you mentioned in other posts that you will like to enjoy the amenities or at least have enjoyed staying in a condo/ec before...just go for it..

I was looking for a place recently..i have lots of criteria and limited budget...in the end, a friend's words "wake me up"..he said that do not think so much about if the property can "make money" ...just buy something that you enjoy staying...so in the end i bought a place in the CCR that is leasehold, knowing that it may not be a good decision in terms of capital appreciation..but i think i will love staying there.

It is good that you love staying at your place. Noone has the right except you to judge your decision. Agree that somethings are not bout money always.

Making a choice is difficult regardless of option 1 or 2. I respect your advice on option 1. The perfect combination would be 3 BTO chances so I got a fail safe after going to the EC. Haha.

The discussion by the bros/sis have shed a lot of light on this move. V thankful to everyone for their inputs. For me I am now hinging more towards option 2 though I won't rule out option 1 altogether.

For amenities, I currently have access to Safra Toa Payoh and one more club near me for swimming and etc for the kids . Of course having it at my doorstep would be great but analysing option 1&2 , the trade off seems a bit high on option 1 especially at retirement.

Thanks for the inputs n great to know U managed to get a place in CCR!

 

[Velton]

I think perhaps moving ahead, may not be so easy to make money through ECs as the launch prices are getting quite high. The earlier batches were launched quite affordably, entry price allowed a lot of ppl to make.

Yes my entry price was good. Prices now not easy. Maybe the ship has sailed. I mean probably still can earn but not a huge amount.

 

[Nemesis_lane123]

I just thought of a new option that will allow me to maintain my current lifestyle while also profiting.

My next move could be a second 5 room BTO or 5 room sale of balances.

If gotten in 2027, I would sell house at 1.4 mil. Presently my place is worth 1.2.

Then buy 5 room BTO or sale of balance @800k.

Immediate profit 600k. Minus resale levy from my first 3 room bto (30k). Minus Reno (70k). Actually profit is about 1/2 mil.

What do you all think ?

 

[ipaq4444]

as long as you have 2 bite of the cherry, that will definitely earn money.
does not matter ec or bto, just got to make sure the income is still under the bto range.

 

[Nemesis_lane123]

as long as you have 2 bite of the cherry, that will definitely earn money.
does not matter ec or bto, just got to make sure the income is still under the bto range.

Good point there. Agree with 2 bites of the cherry.

Only issue is if EC, then will have to move back to HDB later to unlock the gains.

If second 5 room BTO, unlikely have to move house at retirement.