How much are you earning per annum?

Many people are now taking profit in their HDB flat. There are people who bought their BTO HDB flat for $200k plus five years ago and now selling at $600k plus. They make big profits of $400k plus. They then rent a one bedroom condo for $3k per month (or $36k pa) for two years (total rental spent only $72k). If condo price drop by 50% in two years, they can use $300k as downpayment for a condo. If the condo is $1m today, if price drop by 50% to $500k, then then need to borrow only $200k to buy the condo. Cash out of HDB flat and rent condo for two years could be a good strategy to upgrade to a condo in two years time.

While I admit that my net worth of $5m came mainly from property price gains, I would advice against playing with your only home. Maybe if you are childless, but definitely no no if you have school going children. It is very disruptive for the children and even yourselves. Unless you hit the jackpot of $1m price gain, the inconvenience and disruption may not be worth the $100k - $200k gains. There is also the risk that the price don't drop after you sell your home, then how? Buying back a similar unit even at the same price means that you have to cough up stamp duty, legal fees, and renovation all for nothing.

We have been patiently building up our CPF ($1m in the OA) to wait for the price correction to buy our 3rd condo. It has been 3 yrs already.

At the end of the day, it is your choice. Condo investors like us welcome tenants like you.

Originally Posted by Unregistered

Many people are now taking profit in their HDB flat. There are people who bought their BTO HDB flat for $200k plus five years ago and now selling at $600k plus. They make big profits of $400k plus. They then rent a one bedroom condo for $3k per month (or $36k pa) for two years (total rental spent only $72k). If condo price drop by 50% in two years, they can use $300k as downpayment for a condo. If the condo is $1m today, if price drop by 50% to $500k, then then need to borrow only $200k to buy the condo. Cash out of HDB flat and rent condo for two years could be a good strategy to upgrade to a condo in two years time.

You must be joking. Do you really believe prices will be allowed to collapse by 50%????? if that happens, we will be in deep economic collapse as the financial system will crash and all funds will flow out. Unemployment will shoot up and bankers, property agents and lawyers will be on the streets begging. Looks like the oversupply situation is very serious and could be a miscalculation hence new land supply will need to be halted immediately. More immigrants and FTs will need to come in big time as the new condos need to be rented out to prevent a collapse of our property market and financial system.

Originally Posted by Unregistered

Many people are now taking profit in their HDB flat. There are people who bought their BTO HDB flat for $200k plus five years ago and now selling at $600k plus. They make big profits of $400k plus. They then rent a one bedroom condo for $3k per month (or $36k pa) for two years (total rental spent only $72k). If condo price drop by 50% in two years, they can use $300k as downpayment for a condo. If the condo is $1m today, if price drop by 50% to $500k, then then need to borrow only $200k to buy the condo. Cash out of HDB flat and rent condo for two years could be a good strategy to upgrade to a condo in two years time.

Originally Posted by Unregistered

You must be joking. Do you really believe prices will be allowed to collapse by 50%????? if that happens, we will be in deep economic collapse as the financial system will crash and all funds will flow out. Unemployment will shoot up and bankers, property agents and lawyers will be on the streets begging. Looks like the oversupply situation is very serious and could be a miscalculation hence new land supply will need to be halted immediately. More immigrants and FTs will need to come in big time as the new condos need to be rented out to prevent a collapse of our property market and financial system.

It did collapse 40% - 50% in the late 90s.

Originally Posted by Unregistered

It did collapse 40% - 50% in the late 90s.

We have learnt from the past. This time round we should know that oversupplying the market is dangerous. Hence, new land supply will be stopped and more immigrants and FTs must come in to rent the new empty condos. Also, greater enforcement needed to prosecute those who rent out their BTO flats illegally. We must not only confiscate these flats but also impose big fines for those who break the HDB rulings. Nowadyas you see so many foreigners in BTO estates, they may be illegal tenants.

Originally Posted by Unregistered

We have learnt from the past. This time round we should know that oversupplying the market is dangerous. Hence, new land supply will be stopped and more immigrants and FTs must come in to rent the new empty condos. Also, greater enforcement needed to prosecute those who rent out their BTO flats illegally. We must not only confiscate these flats but also impose big fines for those who break the HDB rulings. Nowadyas you see so many foreigners in BTO estates, they may be illegal tenants.

It could collapse again. Greenspan thought Fed had effectively solved the boom and bust cycles of financial markets but he was wrong. Same goes for property markets.

Originally Posted by Unregistered

It could collapse again. Greenspan thought Fed had effectively solved the boom and bust cycles of financial markets but he was wrong. Same goes for property markets.

Since the risk of collapse is high, the oversupply situation must be addressed immediately. Cannot allow property to collapse or else our financial system and economy will collapse and crash.

Singapore is a small country with an equally small economy that is highly dependent on external factors. If the world economy goes into a tail spin, there is nothing much the gahmen can do.

If the world economy does not go into a crisis, and people can keep their jobs, they can hold on to their properties. In fact after the 7th cooling measure and the TDSR, people are still buying - they are buying overseas properties. This goes to show that Singaporean have money, only don't know where to spend the money except on property.

If the economy collapses, and people get retrenched, property prices will also collapse whether there is over supply or not. People without jobs simply cannot afford to buy even if it is a buyers market. Banks will not lend to people without jobs.

I think right now, the gahmen has done enough already to suppress the demand. There is a slew of new homes coming on stream but there is also a lot of money sloshing around waiting for opportunities. I am one of them, waiting for the right time, but been waiting since 2008 when every newspaper was screaming world economy meltdown. But in Singapore, it was only a small dip and the it went back up sharply. As I am getting older and nearer to retirement, I am not sure if I still want to invest in another property if the opportunity does not come soon.

Originally Posted by Unregistered

Since the risk of collapse is high, the oversupply situation must be addressed immediately. Cannot allow property to collapse or else our financial system and economy will collapse and crash.

It is not easy being the gahmen. People say property prices too high when they are buying, but once they bought they want the prices to go up even more.

I think the gahmen should just limit the land tenure to 50 years, and people have to renew the lease after that - just car COE. In this way, the property prices will drop as it nears the 50 year limit.

Originally Posted by Unregistered

We have learnt from the past. This time round we should know that oversupplying the market is dangerous. Hence, new land supply will be stopped and more immigrants and FTs must come in to rent the new empty condos. Also, greater enforcement needed to prosecute those who rent out their BTO flats illegally. We must not only confiscate these flats but also impose big fines for those who break the HDB rulings. Nowadyas you see so many foreigners in BTO estates, they may be illegal tenants.

55, 53 years old couple. Combined salary $180k pa. Lives in a one year old condo worth $1.2m. Mortgage outstanding $250k. Total net worth $2m including our condo, savings, CPF, stocks. Upon retirement at 65, plan to sell the condo and buy a 3 room HDB flat. Will use the net cash proceeds for retirement spending and stocks investments.