i dunno why u so happy. u think if those hdb upgraders cannot sell their hdb to buy condo, condo market will not grow. think overall healthy market to profit.
I am not happy or unhappy lah, just making a statement, btw the news yesterday reported HDB prices increase also - so my bad for reporting 'fake' news, haven't read it when i type, later i kanna called up for making fake news
http://www.straitstimes.com/singapore/housing/hdb-resale-prices-sales-volume-rose-in-march-srx, but yes, the market is growing now and it will continue to grow
birmingham123 said:
Y will people do that in this weak rental market but higher price condo now ? Is a gamble to hope to sell the condo at a higher price in future u know ?
I do the maths for u... there are people who think that buying a 1million condo, u pay downpayment of 200k, 5years (take 2years to top and 3years to sell to save seller tax duty) later u sell 1.2 million means u use 200k to make 200k profit in just 5years. But think again.. there is 2nd property tax and buyer tax which add up to 10%. Which make up 100k and thus your profit is actually 100k..not too bad also if u can use 300k and earn 100k after 5years... but there is still interest to cater for... and u are gambling on market to go up by 20% 5years later... and even so, 2nd hand market will still be lower than direct developer cause i think buyers will deem it as used property... so u might not even make any money...
Investing on property now is like a long term thing rather than short term, so long your rental yield is above 2.5% i believe it should be okay, the property value will most likely not depreciate within the first 15 years (if you bought at launch price), so whatever rentals you do would have covered your property tax, maintenance, sinking fund, absd, bsd, renovations - i leave it to the investment experts to do the calculation but yeah, you shouldn't dive deep into investing on property (like go into debt or put 100% of your income on property, should only do it like maybe 60% or something? - i leave it to the money mind experts to comment on this)