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Shd I Sell Or Rent Out My Hdb After Buying Condo?

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i wanna ask you guys, how much should we have comfortably in our OA before we can starting looking at pte properties? any other approaches that i can take to fulfil my dream of staying condo by 35 years old? :dunno:

It is not how much $$ in your OA.

It is depend at that time, how much min sum component u need to have in your CPF before you can use it to pay ur 2nd property.

To use CPF for 2nd property, u need to read up min sum component requirement.

HDB has MOP.

Bank has 60% loan limit

CPF has min sum component.

:P

 

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hi peers, reading this thread really blows my mind off. :wacko:

guess my journey to "own pte, rent public" is still far from where i am now. Just completed renovating my 5i unit @ sims dr for nearly 60k. though we didnt take up any loans (except interest free one from parents), i still find it a waste to dump so much $$$ into the non-asset column. this house purchase also wipe out our entire CPF.

as we are only started out working for 3 .5 yeas, almost 85% our monthly combined CPF OA contribution will used to finance the HDB loan. if our salary (suay suay) stay this range or increase slower than property prices, does this mean that we will have to work until nearly 60 years old (finish paying my 30 years hdb loans) before we can really accumulate our OA balance before we can buy a pte condo which is at least $1m now. hahaha.. this sound crazily sadzz.. :jawdrop:

i wanna ask you guys, how much should we have comfortably in our OA before we can starting looking at pte properties? any other approaches that i can take to fulfil my dream of staying condo by 35 years old? :dunno:

Yong men,must understand rome not built within one night.

HDB resale price index: 2007: 16.5%, 2008: 13.8%, 2009: 8.1%, 2010: 13.4%.

CPI for past year: 3-5%

So, chow chow, annual wage increase should be abt 15+5=20%?? (for one without a roof yet). Now you have a roof, need not to race against hdb resale PI.

As a yardstick, comfortably just loan 60% for private (40%cash+cpf+agent+stamp+reno)of course other financial liabilities(maid, car, pet, parents, children, taxes, pub, telecom...etc)take into consideration as well. Standby 2years instalments without wage income.

Money, money, money.

- no pet

- no car

- no children

- use candle at night

- eat/cloth minimum, save this & that.

- Sidelines:

- partime taxi driver?( take time to get licience, no cpf, summons, accidents,...)

- ppt, insurance agent?(Need exam, contacts network....)

- stock market? (need capital first, know-how the second...)

- 4D/Toto/big sweep/football (sure tio makan)

- illegal ah long?

So...

Edited by godloveyou
 

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unless income increases substantially, if not "own pte, rent public" is largely out of reach for most people given that loan limit has been cut. Even a shoebox apartment needs substantial amount of downpayment.

upgrade to condo by 35 still possible though if both are working and progress through your careers. :)

but then your reno depreciation would be super high la.... haha...

back to topic,

renting out hdb is always preferred as hdb still mysteriously manages to retain its value regardless of the lease remaining. But most people would need the "profits" from the hDB as downpayment for the condo.

Friend of mine bought a new flat from hdb at ulu place at cheap price, and lived there for 5 years (suffering la...damm ulu place). As the time goes by, amenities and transport improved and of cos valuations went up. Made paper profit of 100k (exclude hdb interest, and whatever expenses...etc) from the disposal. Then bought a freehold condo 800k+ using the profits as partial downpayment.

of course, during the 5 years, his income increased sufficiently to pay instalments...

 

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It is not how much $$ in your OA.

It is depend at that time, how much min sum component u need to have in your CPF before you can use it to pay ur 2nd property.

To use CPF for 2nd property, u need to read up min sum component requirement.

HDB has MOP.

Bank has 60% loan limit

CPF has min sum component.

:P

60% is if there is another mortgage/loan outstanding right?

 

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Saw someone ask about payment of property but i'm abit lazy to start another thread yet i have this lingering question in my mind for more than 6months.

Property loan left : 700k

Loan tenure : 30yr

Both our cpf remainder not utilised : 80k (OA)

Loan contract :2yr means next jan can refinance (correct terminology?)

Current cpf in my OA (not sure about his) : stuck in investments, think it's unit trust or something. Foolishly bought before recession now make less loss or abit more but definitely less than 5% of cpf rate

reason why i didn't dump all our cpf when we bought our place last year :market down if i liquidate means i make about 10k loss, never make loss so i felt abit unhappy. plus bf wanted to buffer enough in cpf in case i strike jackpot and decide to stop working and take care of kid.

Question : Should i liquidate out my cpf investments then dump it into the property next year when i refinance? if there's no longer a need to buffer for cpf payment for the property if i stop working?

I wanted to ask my insurance agent but she'll sure tell me to park it with them. Wanted to ask my mortage agent but i'm sure he'll say leave it there then i'll take higher loan hence higher commission for him. I wanted to ask my parents but they sure tell me they don't know. So don't know who else to ask and i read and it seems this bepgof quite clever.

But ultimately as a consumer, which is better? quickly pay off the loan?

 

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Saw someone ask about payment of property but i'm abit lazy to start another thread yet i have this lingering question in my mind for more than 6months.

Property loan left : 700k

Loan tenure : 30yr

Both our cpf remainder not utilised : 80k (OA)

Loan contract :2yr means next jan can refinance (correct terminology?)

Current cpf in my OA (not sure about his) : stuck in investments, think it's unit trust or something. Foolishly bought before recession now make less loss or abit more but definitely less than 5% of cpf rate

reason why i didn't dump all our cpf when we bought our place last year :market down if i liquidate means i make about 10k loss, never make loss so i felt abit unhappy. plus bf wanted to buffer enough in cpf in case i strike jackpot and decide to stop working and take care of kid.

Question : Should i liquidate out my cpf investments then dump it into the property next year when i refinance? if there's no longer a need to buffer for cpf payment for the property if i stop working?

I wanted to ask my insurance agent but she'll sure tell me to park it with them. Wanted to ask my mortage agent but i'm sure he'll say leave it there then i'll take higher loan hence higher commission for him. I wanted to ask my parents but they sure tell me they don't know. So don't know who else to ask and i read and it seems this bepgof quite clever.

But ultimately as a consumer, which is better? quickly pay off the loan?

do you already know how much you'd save if you refinanced vs the costs to you of refinancing now/when you want to (eg, penalty, if any, included). Worth a read of your property loans terms to determine what is at stake for you should you refinance (whether with another bank or same bank)

Bepgof, where you? iirc you got before calculate something like that before right?

Edited by random_username
 

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Bepgof, where you? iirc you got before calculate something like that before right?

pantieileen Posted @ 04:56 PM

u 05:12 PM start to ask where is bepgof?

He full time finance adviser in Renotalk ar?

 

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pantieileen Posted @ 04:56 PM

u 05:12 PM start to ask where is bepgof?

He full time finance adviser in Renotalk ar?

yes ma'am! my bad! :unsure: (<-- sorry, that's the closest i could find to a paiseh face) just also looking forward to hear what suggestions and analyses can be given :)

 

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But ultimately as a consumer, which is better? quickly pay off the loan?

It lies with one's "life style choice" and his "comfort zone".

Assume interest rate at 1.5%:

700k loan, mnthly instalment=$2415, monthly interest = $875

650k loan, monthly instalment =$2243, monthly interest = $812

600K loan, monthly instalment=$2070, monthly interest =$750

Answers to me are quite obvious:

- If CPF OA's investment <$50k, can forget to take any action= no much difference.

- If CPF OA's investment =70K(10% of 700k) or 100K, wise to do partial payment, but must see what is the amount of "loss" if quit from the investment.

If do partial payment 100K, can save $125 per monthly. If the "loss" is more than 125x6=$750, I will just wait. Economic is picking up globally, give another 6 months to see.

Life is always a waiting game, has holding power don't worry. Patience pays. Just for info, I've abt $220k cash "stuck" in stk mkt, I just wait.

Next, thought economic is picking up & some countries started adjusted upward their domestic interest rates. Singapore's MAS prefers to letvSGD to gain "strength" in free mkt, instead of adjusting domestic interest rates to fight the inflation (or consumer price index). Singapore's gov is an "old bird" on this. China is considered relatively "young bird", keep adjusting this & that (esp property & banking) within short time frame. USA still in "ICU", economic stops/goes/stop.

Edited by bepgof
 

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pantieileen Posted @ 04:56 PM

u 05:12 PM start to ask where is bepgof?

He full time finance adviser in Renotalk ar?

Thank everyone for seeing me "up" le, feel paiseh also. We are in a very volatile mkt, at times feel tied following up latest global news....how nice just to lead a carefree life.

Edited by bepgof
 

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unless income increases substantially, if not "own pte, rent public" is largely out of reach for most people given that loan limit has been cut. Even a shoebox apartment needs substantial amount of downpayment.

upgrade to condo by 35 still possible though if both are working and progress through your careers. :)

but then your reno depreciation would be super high la.... haha...

back to topic,

renting out hdb is always preferred as hdb still mysteriously manages to retain its value regardless of the lease remaining. But most people would need the "profits" from the hDB as downpayment for the condo.

Friend of mine bought a new flat from hdb at ulu place at cheap price, and lived there for 5 years (suffering la...damm ulu place). As the time goes by, amenities and transport improved and of cos valuations went up. Made paper profit of 100k (exclude hdb interest, and whatever expenses...etc) from the disposal. Then bought a freehold condo 800k+ using the profits as partial downpayment.

of course, during the 5 years, his income increased sufficiently to pay instalments...

yeaaa... most friends and relative sold their hdb to use the proceeds for condo. ur friend's ulu place sound like pungo, sengkang or jurong west areas to me... haha..

nowadays freehold condo $800k should be 2 rooms only right? my uncle bought his 3-bedrooms (1320 sqf) kovan melody for 650k in 2005. now burst over $1.2m le. so, probably ur friend 800k unit will still shoot up. shagged, by then we can sell our hdb, dunno how crazy private prices will be like...

probably go into landed? head that landed only for singaporeans? correct?

 

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yeaaa... most friends and relative sold their hdb to use the proceeds for condo. ur friend's ulu place sound like pungo, sengkang or jurong west areas to me... haha..

nowadays freehold condo $800k should be 2 rooms only right? my uncle bought his 3-bedrooms (1320 sqf) kovan melody for 650k in 2005. now burst over $1.2m le. so, probably ur friend 800k unit will still shoot up. shagged, by then we can sell our hdb, dunno how crazy private prices will be like...

probably go into landed? head that landed only for singaporeans? correct?

Foreigners can buy landed properties after seeking approvals from govt. Jet Li, Gong Li, Jackie Chan etc own landed properties in Singapore hehe.

 

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yeaaa... most friends and relative sold their hdb to use the proceeds for condo.

I did that few years ago, stayed in condo for 3yrs+ then sell away and bought a resale HDB, now stay in HDB. Started realising HDB units are being "subsidised" by gov, why should singaporeans give up the "privilege" by selling away HDB and "fighting for price with foreigners" to stay in condo?

nowadays freehold condo $800k should be 2 rooms only right? my uncle bought his 3-bedrooms (1320 sqf) kovan melody for 650k in 2005. now burst over $1.2m le. so, probably ur friend 800k unit will still shoot up. shagged, by then we can sell our hdb, dunno how crazy private prices will be like...

Depending on CCR/OCR/RCR and amenities, psf price varies a lot le.

Edited by bepgof
 

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yeaaa... most friends and relative sold their hdb to use the proceeds for condo. ur friend's ulu place sound like pungo, sengkang or jurong west areas to me... haha..

nowadays freehold condo $800k should be 2 rooms only right? my uncle bought his 3-bedrooms (1320 sqf) kovan melody for 650k in 2005. now burst over $1.2m le. so, probably ur friend 800k unit will still shoot up. shagged, by then we can sell our hdb, dunno how crazy private prices will be like...

probably go into landed? head that landed only for singaporeans? correct?

ulu ulu bt panjang...haha...almost there already la... need to drive out for makan....how sad...though he got car la...

its a 20year old freehold condo, 3 bedroom. very spacious kind.

price shoot up is good? not really, if he sell high means he have to buy high. So buy bigger, better location still need to top up more..at the end of the day, getting bigger bank loan only...

its a fallacy to think that rising housing prices are good...its only good if you have enough to invest in 2nd property. If not, rising prices makes it harder for people to upgrade.

i think at our stage now, more important is to climb higher up the ladder. Let's talk about it when we get there.... hahaa :)

 

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