Views on 2nd property

[mskate88]

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!

Uhm, if you are open minded, here's a nice read: https://mothership.sg/2018/05/married-couple-divorced-buy-hdb-flat-as-single/

Not exactly the same situation, but similar concept applies

 

[rlskyline]

Uhm, if you are open minded, here's a nice read: https://mothership.sg/2018/05/married-couple-divorced-buy-hdb-flat-as-single/

Not exactly the same situation, but similar concept applies

haha think buy 2 condos better than divorcing

 

[ThinkCarefully]

###

some already shared, if you disallow decoupling, couples would divorce to buy one property each...

this is Singapore..

###

 

[fearhimwhofearsnothing]

Think property makes a lot of sense only if there's no ABSD. Rental yield is quite strong

 

[elvintay07]

I think you would be better off selling your HDB & putting the money in a well managed REIT. Assuming u can get back the ABSD remission. Not investment advice.

I think this makes more sense than you do your own rental

 

[Squeezer]

The govt is WRONG in this aspect. They are allowing couples to divorce and circumvent the rules to own 2 properties. They should go back to the old ABSD scheme and let Singaporeans own a 2nd property (tax on the 3rd onwards) without penalising those who want to go by the book.

While the scholars think of ways to cap the property market from running away with prices, they neglect to see this. When TWO people get married, they can only buy ONE property and get penalised for buying another unless the buy using single name but how many can afford to do so? Likely when they get older and more affluent and then the answer is Divorce.

No wonder the birth rates are getting lower..... why get married and divorce justo to buy another unit?

 

[CaptainSGP]

The govt is WRONG in this aspect. They are allowing couples to divorce and circumvent the rules to own 2 properties. They should go back to the old ABSD scheme and let Singaporeans own a 2nd property (tax on the 3rd onwards) without penalising those who want to go by the book.

While the scholars think of ways to cap the property market from running away with prices, they neglect to see this. When TWO people get married, they can only buy ONE property and get penalised for buying another unless the buy using single name but how many can afford to do so? Likely when they get older and more affluent and then the answer is Divorce.

No wonder the birth rates are getting lower..... why get married and divorce justo to buy another unit?

Want to divorce even with the new mutual consent amendment also not easy.

https://www.singaporedivorcelawyer.com.sg/faqs-divorce-by-mutual-agreement/

 

[Clazav]

The govt is WRONG in this aspect. They are allowing couples to divorce and circumvent the rules to own 2 properties. They should go back to the old ABSD scheme and let Singaporeans own a 2nd property (tax on the 3rd onwards) without penalising those who want to go by the book.

While the scholars think of ways to cap the property market from running away with prices, they neglect to see this. When TWO people get married, they can only buy ONE property and get penalised for buying another unless the buy using single name but how many can afford to do so? Likely when they get older and more affluent and then the answer is Divorce.

No wonder the birth rates are getting lower..... why get married and divorce justo to buy another unit?

Hmmm would you prefer to divorce so that you can get two hdb, or just sell off hdb and buy 2 condos? I guess it is the financial ability that decide.

 

[Squeezer]

Hmmm would you prefer to divorce so that you can get two hdb, or just sell off hdb and buy 2 condos? I guess it is the financial ability that decide.

Just wanted to sound out to gahman not to tax married couples for having a 2nd property thats all, not to get 2 HDB.

Divorce just to avoid ABSD? No I won't do that. But for money, some people are willing to do so.

 

[Clazav]

Just wanted to sound out to gahman not to tax married couples for having a 2nd property thats all, not to get 2 HDB.

Divorce just to avoid ABSD? No I won't do that. But for money, some people are willing to do so.

Some random thought here.. people have being asking gov to lower the age of singles in buying hdb. I guess gov should not budged, because it will just encourage ppl to stay single since they can manage to buy 1 hdb individually. After all, when a couple buys a hdb, they are only entitled to 0.5hdb each, so effectively, it is less than single buying 1 hdb.

 

[runforyourlife]

Some random thought here.. people have being asking gov to lower the age of singles in buying hdb. I guess gov should not budged, because it will just encourage ppl to stay single since they can manage to buy 1 hdb individually. After all, when a couple buys a hdb, they are only entitled to 0.5hdb each, so effectively, it is less than single buying 1 hdb.

It’s all about balancing dollars and cents for govt. Then they think about family planning. Singles if are some 30-40% worth then maybe got chance

 

[8zaoyu]

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

IF you don't sell, you are owners of 2 or 3 properties, you cannot get back especially a HDB later. If you keep thinking of that ABSD 200k Lost and future ownership taxes and hard to get desired profiles of tenants or desired tenant incomes, make things worse. Think of the HDB or your pte pty as places you can toggle! 那 里 凉 那 里 住
PS: Applies to those who had paid the 7% or 12%/15% ABSD already (think twice/thrice) Unless of course, you can sell yr HDB for that million $, no need to pity the million $ buyer, their partner can afford another million $ pte pty.

 

[fuusha99]

haha think buy 2 condos better than divorcing

Nowaday marriage is a business partnership.
Couples marry for BTOs and divorce for BTOs

 

[Laneige]

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!

See yr absd
Seem liked yr absd is not much?
Yr hdb can sell how mich
How old etc

liked someone said sometimes is gd to just sell n move on
If eg yr absd is 200K n rental is 4k u also need 4plus to hit even but now high rental is just temporary
Might drop back in few yrs time

then yr hdb now sell is high also
Ur hdb might depreciate along the way n if yr hdb 500k n above can reduce yr loan by a big amt of interest Will it be 100k or not Ah? Must sit down n calculate ….

all in all, is it better To just sell n move onto yr private n then from there see next move lo

unless u want to move back n stay ?

somwtimes u move on means the fengshui of the house no longer suitable liao
Just time to move liao

 

[Laneige]

I wud never ever consider paying an absd of $200k just to hold a $500k-$800k property (hdb)

It just doesnt feel right

Ya that’s almost 900k n more
The interest saved is a lot
Can also be used as a deposit too

 

[ytppdnoces81]

Based on new CM, example.

Case 1
Own Hdb, cost 700k
Buy Private, cost 1.2mil
Eg. Absd 20% of 1.2mil =240k
Loan for private = 900k (75%)
Assuming 25 years, assume average 3.5% for 25 years. End of 25 years interest payment will be 451k.
So means will lose out 451k + 240k (absd) =691k in total? 691k rental (4k) must be more than 14 years then can recover n start passive income? Havent include income tax, ppty tax, agent fee, so on.

Case 2
Now, lets say, i decide to sell hdb for 700k, I get back 240k. Thats 940k back I can clear the private at a go. Though for this case, I am entirely wipe out, at least, i dun need years to recover 691k. I do not have 2 property, but I can already start again from square 1 without paying interest n absd.

Did I not see something or miss out anything? So isnt not holding a way better choice? Even if say, the absd were lesser than 20 % before, i think also better to have one ppty.

 

[8zaoyu]

1.2mil is price for 1 or 2 bedders less than 700 sq ft these days, usually more for renting out. But, if you have small kids who do not need their personal room spaces and have a car, good to stay on in the condo and rent out the HDB (if worth 700k must be the 4 or 5 rm HDB- can always reno it like a condo showflat)
If you have no issue with mortgage payments and can tolerate the current high mortgage interest rates. Why sell either? But if you ask me to pay the high interest rates some more for 25 years, then it is a no way from me. I had rather fully pay up the property the whole family plus my furkid wish to stay.

 

[dilphinus]

Based on new CM, example.

Case 1
Own Hdb, cost 700k
Buy Private, cost 1.2mil
Eg. Absd 20% of 1.2mil =240k
Loan for private = 900k (75%)
Assuming 25 years, assume average 3.5% for 25 years. End of 25 years interest payment will be 451k.
So means will lose out 451k + 240k (absd) =691k in total? 691k rental (4k) must be more than 14 years then can recover n start passive income? Havent include income tax, ppty tax, agent fee, so on.

Case 2
Now, lets say, i decide to sell hdb for 700k, I get back 240k. Thats 940k back I can clear the private at a go. Though for this case, I am entirely wipe out, at least, i dun need years to recover 691k. I do not have 2 property, but I can already start again from square 1 without paying interest n absd.

Did I not see something or miss out anything? So isnt not holding a way better choice? Even if say, the absd were lesser than 20 % before, i think also better to have one ppty.

How can cost of buying and cost of selling of the hdb be the same, your example of 700k.

You define your 700k cost is what cost first.

Since you take the revised absd %, meaning you don't have to sell now, or rather, decide now. You have to wait for the new property to top first right?

Your numbers and timeline all over the place. Your #2 decide to sell to get back the absd, you know the market value of your hdb? It's 700k now but you aren't selling now right? Becos if you are selling now, you will be getting the absd you had already paid, which isn't 20%.

#2. You sell the HDB, you still holding on to 1 private property. How is it start from square 1 without the absd?

Give you one real life example. HDB flat bought 10 years ago. Private property just top. Selling price of hdb flat (recently sold) at current market can cover the COV paid (damn hot 10 years ago) and renovation cost and interest. Meaning they lived for free in the 'just sold' hdb for the last decade.

 

[Laneige]

So ts gotten key n decided or not

 

[tonymontana74]

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!

woth to keep any property for rental, unless you can reinvest (if sold) or you have other better investment. oh, but i read again, u alrd bot 2nd property and paid absd 200k, but trying to get remission. then in that case, sell. 200k is a lot.
u should have plan properly.. absd is a killer. try not to pay.
rental will not always be so high, these past 2 years is special. when the supply comes back and evens out the demand your rental can drop a lot.