Views on 2nd property

[bolster]

Seller’s market if got sellers selling below 10% or more below market price then it’s not called seller’s market already.
It’s called fire sales market.

Ah, Perhap more for those units difficult to sell. I think within the project, there will be 1 or 2 units undesired difficult to sell but some people dont mind because of the low price within the same project.

Like big patio or extreme big roof terrace, facing the bin, or columbarium, or low floor access by public, area.

 

[ytppdnoces81]

do take into account inflation / discounting / opportunity cost. put in cpf is already 2.5% x 10 years.

your breakeven is even further. can u wait that long? think of other things like children education, whether u will be locked to this arragement for next 10 years.

I was trying to say what i think but cant. Ah, opportunity cost was it. Some how I cannot express this feeling in word.

 

[ytppdnoces81]

No one talking about hard truth here.

How stable is your and spouse job? Forever one? If forever then keep upgrading .

Else the answer is clear.

Bo bao one. Worst case is to sell off if one gets out of job. But that would meant never to breakeven. This is the main concern. Dun know the bros out here. But to come out with absd in the first place was like... u know what I mean, we only average joe.

 

[runforyourlife]

Seller’s market if got sellers selling below 10% or more below market price then it’s not called seller’s market already.
It’s called fire sales market.

Yea 10% below ridiculous asking price suffice only.

 

[Oftheseas]

Hello all, is keeping existing hdb still worth? Waiting for Top of our 2nd ppty bout 1 to 2 years later. Still undecided
whether to keep existing hdb(fully paid) for rental. Based on current market of my area, the rental is about 2.2k. Paid about 200k of absd so in simple terms, it takes about 7.5 years to breakeven. And thats excluding property tax, income tax, etc.. Views and opinions greatly appreciated!

I paid about $93k ABSD (7%) to keep my HDB flat back in late 2017. It took about 3.5 years of relatively good rental to recoup the ABSD amount, without calculating rental expenses.

While I have no intentions to sell in the near future, it is good to know that my flat valuation is keeping up well : $650k in 2018 increase to about $780k (SRX) now.

I will not pay $200k ABSD if I am in your shoe. Unless there’s other special reasons to keep your flat, not worth the cost/opportunity cost if just for the rental income.

 

[ThinkCarefully]

Hello all, is keeping existing hdb still worth? Waiting for Top of our 2nd ppty bout 1 to 2 years later. Still undecided
whether to keep existing hdb(fully paid) for rental. Based on current market of my area, the rental is about 2.2k. Paid about 200k of absd so in simple terms, it takes about 7.5 years to breakeven. And thats excluding property tax, income tax, etc.. Views and opinions greatly appreciated!

###

definitely not worth it.
Someone already said umpteen times, gov tell you not to be so stubborn to own more than ONE property, you people keep trying, until they need to put the barrier from 5 to 7 to 12 to 17% and you guys keep asking can I pay more absd...

actually, as long as you are happy, can do so and we thank you for contributing to nation building...

###

 

[ThinkCarefully]

###

I have asked this question before... when is it worth to even consider pay 17% absd ?

if:
can buy undervalue by 25% because you still pay ssd etc

You know a property is so good and will appreciate by at least 25% in 3 -4 years (trust me, these are around, like PGA in 2016 if you have crystal ball vision then)

You like to help and contribute to nation building and we thank you..

###

 

[runforyourlife]

Maybe TS is paying absd but aiming to get remission at end of the day - nett nett.

 

[Pokémon]

..., until they need to put the barrier from 5 to 7 to 12 to 17% and you guys keep asking can I pay more absd...

There was no 5% right?

 

[ytppdnoces81]

###

I have asked this question before... when is it worth to even consider pay 17% absd ?

if:
can buy undervalue by 25% because you still pay ssd etc

You know a property is so good and will appreciate by at least 25% in 3 -4 years (trust me, these are around, like PGA in 2016 if you have crystal ball vision then)

You like to help and contribute to nation building and we thank you..

###

Thanks for ur advise, views!

 

[Oftheseas]

There was no 5% right?

There’s no 5% for Singaporean buyers.

ABSD started in 2011 with 3% for buying third property. At that time, Government still agreed that owning 2 properties with one as investment is good.

But greedy Sinkies self pawn and continue to speculate on properties. So in 2013 Government imposed 7% for second properties & 10% for third.

 

[䏣炆玧示老太]

Hello all, is keeping existing hdb still worth? Waiting for Top of our 2nd ppty bout 1 to 2 years later. Still undecided
whether to keep existing hdb(fully paid) for rental. Based on current market of my area, the rental is about 2.2k. Paid about 200k of absd so in simple terms, it takes about 7.5 years to breakeven. And thats excluding property tax, income tax, etc.. Views and opinions greatly appreciated!

Not worth it lar
Sell it off let others in need own a Hdb flat to start a family
Then refund your ABSD
Spare money invest anywhere also can get better returns

 

[ThinkCarefully]

There’s no 5% for Singaporean buyers.

ABSD started in 2011 with 3% for buying third property. At that time, Government still agreed that owning 2 properties with one as investment is good.

But greedy Sinkies self pawn and continue to speculate on properties. So in 2013 Government imposed 7% for second properties & 10% for third.

###

Yes, 3% for third property, any takers?
Wow all queue up from Singapore to JB...

that was 2011, now pay 25%!!!

###

 

[NiShiZhu]

###

Yes, 3% for third property, any takers?
Wow all queue up from Singapore to JB...

that was 2011, now pay 25%!!!

###

For someone who don’t believe in paying absd, even during that era, I already started using my uncle’s name (putting myself as guarantor) just to avoid that 3%.

 

[ThinkCarefully]

For someone who don’t believe in paying absd, even during that era, I already started using my uncle’s name (putting myself as guarantor) just to avoid that 3%.

###
You are making TS question sound irrelevant since 3% is already no go for you...

###

 

[runforyourlife]

Bo bao one. Worst case is to sell off if one gets out of job. But that would meant never to breakeven. This is the main concern. Dun know the bros out here. But to come out with absd in the first place was like... u know what I mean, we only average joe.

Even for sell 1 buy 2 it’s over leveraging for 1 under each name as that’s assuming one will always have a job to sustain.

mince kanna retrench den hoseh Liao need pay ssd. If not then still ok

 

[sneezybum]

Hello all, is keeping existing hdb still worth? Waiting for Top of our 2nd ppty bout 1 to 2 years later. Still undecided
whether to keep existing hdb(fully paid) for rental. Based on current market of my area, the rental is about 2.2k. Paid about 200k of absd so in simple terms, it takes about 7.5 years to breakeven. And thats excluding property tax, income tax, etc.. Views and opinions greatly appreciated!

I'm in the same shoes as you, except my condo is expected to TOP ard Sep/Oct 2022. Paid $200k ABSD in Apr 2020. Since then, I've seen neighboring units of my HDB flat transact $80k to $100k higher than 2020 prices.

I've seen my fair share of videos from the various property agent/property investor youtubers. I am of the belief that HDB prices cannot keep increasing indefinitely. Current prices are driven mostly by demand from couples opting for resale flat due to longer BTO construction time.

Managing and looking for tenants is easy in this period where demand outstrips supply but once more BTO flats comes on the market, I do not think this would be the case. Rental prices could drop by then and my unit could remain untenanted for some time. Prices would also be lower than current pricing due to lease decay and increased supply.

Recent global developments (Ukraine war, stagflation looming, rising interest rates) have further added to our conviction to sell and get back the ABSD paid. Just my 2 cents.

 

[runforyourlife]

I'm in the same shoes as you, except my condo is expected to TOP ard Sep/Oct 2022. Paid $200k ABSD in Apr 2020. Since then, I've seen neighboring units transact $80k to $100k higher than 2020 prices.

I've seen my fair share of videos from the various property agent/property investor youtubers. I am of the belief that HDB prices cannot keep increasing indefinitely. Current prices are driven mostly by demand from couples opting for resale flat due to longer BTO construction time.

Managing and looking for tenants is easy in this period where demand outstrips supply but once more BTO flats comes on the market, I do not think this would be the case. Rental prices could drop by then and my unit could remain untenanted for some time. Prices would also be lower than current pricing due to lease decay and increased supply.

Recent global developments (Ukraine war, stagflation looming, rising interest rates) have further added to our conviction to sell and get back the ABSD paid. Just my 2 cents.

With 200k absd paid, it’ll be tough to get back 300k. Even so the overall profit minus fees is below 100k

 

[sneezybum]

With 200k absd paid, it’ll be tough to get back 300k. Even so the overall profit minus fees is below 100k

Yah, that's why I am definitely selling.

In hindsight, I'm happy with my decision to pay the ABSD. If I had sold off my HDB flat prior to exercising my OTP and avoided ABSD, I would have received $80k to $100k lesser than current pricing. Adding in 3 years of rental @ $3k/month, that's another $96k.

The lower selling price in 2020 plus additional 3 years rental also comes up to $200k.

 

[runforyourlife]

Yah, that's why I am definitely selling.

In hindsight, I'm happy with my decision to pay the ABSD. If I had sold off my HDB flat prior to exercising my OTP and avoided ABSD, I would have received $80k to $100k lesser than current pricing. Adding in 3 years of rental @ $3k/month, that's another $96k.

The lower selling price in 2020 plus additional 3 years rental also comes up to $200k.

Well that means if u remain in your hdb vs selling , all you earn is 50k over 3 years.