Appreciate Views On Housing Matters

Qaz · #1 (**permalink**) 10-08-2011, 12:28 AM

Hi Guys, would appreciate your views on what I had done with regards to my housing. Its something i have done so I'm not looking for advise whether i shud have done it or not but rather want to get people views and if there serious downside on what i have done, I can take other defensive measures to mitigate the downside.. so here goes my story :

- Bought new 5RM HDB fm govt in 2006 for 260K
- Rent out the HDB rooms in 2009 and rented a landed property to stay (rental returns & cost cancel each other)
- Sold the HDB in 2011 for 520K and received 208K cash nett & have balance 190K in CPF (combine with wife)
- bought EC at 1.05m for TOP 2014
- plan to continue renting the landed at 1.7K/mth till the EC TOP date
- paid 5% cash & the balance 156K is invested in trust funds

So what do u guys feel abt this and what are the possible downside?

#2 (**permalink**) 10-08-2011, 12:59 AM

Quote:

Originally Posted by Qaz

Hi Guys, would appreciate your views on what I had done with regards to my housing. Its something i have done so I'm not looking for advise whether i shud have done it or not but rather want to get people views and if there serious downside on what i have done, I can take other defensive measures to mitigate the downside.. so here goes my story :

- Bought new 5RM HDB fm govt in 2006 for 260K
- Rent out the HDB rooms in 2009 and rented a landed property to stay (rental returns & cost cancel each other)
- Sold the HDB in 2011 for 520K and received 208K cash nett & have balance 190K in CPF (combine with wife)
- bought EC at 1.05m for TOP 2014
- plan to continue renting the landed at 1.7K/mth till the EC TOP date
- paid 5% cash & the balance 156K is invested in trust funds

So what do u guys feel abt this and what are the possible downside?

sounds like you're ok. what exactly are you worried about? thought you can't sell your EC now, the EC also won't have a market value until 5 years after TOP, right? so you won't even know if you'll be suffering a paper loss.

on your second point, did the rent you collect cover both the landed cost and HDB mortgage installments?

where in singapore can you rent a landed for such a low price? why aren't more people renting landed then?

Qaz · #3 (**permalink**) 10-08-2011, 01:50 PM

my main concern is that loan interest rates go up increasing the mthly payment to unsustainable level or/and property value goes down to a level that I need to do cash top up.

Renting a terrace unit in changi area. Chance upon this 2 yrs ago that's why i moved out of my hdb. Dont know why more people not doing this, maybe they not aware got such low rental places...

#4 (**permalink**) 10-08-2011, 04:04 PM

loans rates should stay ultra low for next two years.

undiscern · #5 (**permalink**) 10-08-2011, 04:13 PM

You are not allowed to rent out your HDB flat before 5 yrs of buying it, unless posted overseas.

undiscern · #6 (**permalink**) 10-08-2011, 04:15 PM

Also, with 1.05m, you should have gotten a freehold housing in east coast area. bad move. my friend bought a penthouse unit 1400+ sqft, freehold at katong area for less than 1m.

Qaz · #7 (**permalink**) 11-08-2011, 01:03 AM

700psf for a freehold condo? which development?

I rented out rooms, that's why only $1700 combined. Wud have gotten more if I rented out whole unit.

#8 (**permalink**) 11-08-2011, 08:04 AM

From a numbers perspective, think you have done well. I'm generally negative on the housing market but think an EC is generally a safe investment.

However what you have done (renting out hdb within 3 yrs) may not have been legal, as mentioned by another poster above.

undiscern · #9 (**permalink**) 11-08-2011, 11:08 AM

Quote:

Originally Posted by Qaz

700psf for a freehold condo? which development?

I rented out rooms, that's why only $1700 combined. Wud have gotten more if I rented out whole unit.

Quite a number of boutique development about 5yrs old was going at that price at the time u book your EC. look around propertyguru trends. but since you have footed for your EC, no need to look back.

Qaz · #10 (**permalink**) 13-08-2011, 02:26 AM

I just book my EC last week, have look around for options in that price range but only available ones are suburban old condos / ECs.

Since I have not yet exercise my options, pls share which 5yr old condos is east coast condo is going at $700psf. The loss fm not exercising my option for the EC is minimal if i can get a penthouse condo at east coast for the same price!!