Rent out HDB and stay in condo

[bjhchong]

I believe parental support compliments accumulation of wealth (despite the stigma... :P) heck, how did our Dick Lee become so great if not for parental support?

Originally Posted by bjhchong

I believe parental support compliments accumulation of wealth (despite the stigma... :P) heck, how did our Dick Lee become so great if not for parental support?

You have something against Dick Lee? Or just envious he's born with silver spoon? Btw, I like his Mad Chinaman album. He's damn talented.

why is everyone so sure of the demand in the rental market (hdb/condos/etc) in the coming years?

" angie why is everyone so sure of the demand in the rental market (hdb/condos/etc) in the coming years? "

Because garment says Singapore is the best place to live in the world and the whole world wants to come live in Singapore. Those foreigners who says they don't want to are just not truthful. More people = more demand for land and rental.

Originally Posted by angie

why is everyone so sure of the demand in the rental market (hdb/condos/etc) in the coming years?

Easy. We have the TWO integrated resorts, F1 for the next 4 years, Youth Olympics, and soon, more funds in our Temasek Sovereign Fund which in the long term can generate respectable profits.

Even at this "worst" recession since independence (or since great depression depending on where you're from), our unemployment is only 3.3%. This shows our government is doing a superb job in making our economy extremely resilient.

Furthermore, look at the condo showroom crowds. The people can't be wrong. If they are wrong, they will be screwed. Will the government allow this to happen?

We should all stock up on stocks and property NOW when they are still cheap. When the economy recovers, we are sure to reap HUGE profits.

[macman]

I am currently staying in an HDB massionette in Toa Payoh. The recent selling price of similar flats is now about $140K above what I purchased it for. I am still eligible to purchase a new HDB subsidised flat but will probably not be eligible in 1 or 2 years time due to the household income restrictions. I am considering the following options

1) Do nothing and hopefully the price of my flat will increase further
2) Buy a small condo and rent out my flat
3) Sell the flat and buy a smaller new subsidised flat

What would you do or are there any other better options? thanks for the advice.

[Husky]

Originally Posted by macman

I am currently staying in an HDB massionette in Toa Payoh. The recent selling price of similar flats is now about $140K above what I purchased it for. I am still eligible to purchase a new HDB subsidised flat but will probably not be eligible in 1 or 2 years time due to the household income restrictions. I am considering the following options

1) Do nothing and hopefully the price of my flat will increase further
2) Buy a small condo and rent out my flat
3) Sell the flat and buy a smaller new subsidised flat

What would you do or are there any other better options? thanks for the advice.

If I am in your position, I will buy a small condo and rent it out. Use the rent to pay for (at least part of) the mortgage.

But really depends on your priorities in life. If you think you have slogged enough and want to "enjoy" some fruits of your labour. Rent out your flat, buy a condo to live in.

I would pick (3). Since you are not a high income earner, it's better to be conservative. Do not overstretch. I'm of the view that the housing market - both HDB and condo - is frothy and bubbly now. Whether the bubble will burst soon is anyone's guess, but why take the risk? You're already up 140k and still have a shot at the second cherry bite. Take it!

My 2 cents.

Originally Posted by macman

I am currently staying in an HDB massionette in Toa Payoh. The recent selling price of similar flats is now about $140K above what I purchased it for. I am still eligible to purchase a new HDB subsidised flat but will probably not be eligible in 1 or 2 years time due to the household income restrictions. I am considering the following options

1) Do nothing and hopefully the price of my flat will increase further
2) Buy a small condo and rent out my flat
3) Sell the flat and buy a smaller new subsidised flat

What would you do or are there any other better options? thanks for the advice.

[poor]

Originally Posted by conservative

I would pick (3). Since you are not a high income earner, it's better to be conservative. Do not overstretch. I'm of the view that the housing market - both HDB and condo - is frothy and bubbly now. Whether the bubble will burst soon is anyone's guess, but why take the risk? You're already up 140k and still have a shot at the second cherry bite. Take it!

My 2 cents.

i totally agree!
you are eligible for it before it expired. grab another new unit and start to make another 140k. unless you are enough with 140k you've made and life is not good with HDB.

Originally Posted by Magdeline

Thanks to all. The link is exactly what I'm looking for.

I plan to move to condo for a better quality of living - better security, good private facilities like gym and pool. At the same time, I wish to keep my HDB as there's still the very low-cost HPIS which is a form of life insurance. With the HPIS, it's as if my husband and I are each insured for a couple of hundred K. Now, speaking of this, does anyone know if the HPIS will be voided if we rent our flat out? Logical reasoning tells me no, unless there's some black and white stating this (I couldn't find any so far).

Hi Magdeline, HPIS will not void if you rent out your flat. HPIS from HDB follows the flat not the owner. It will expire if you sell your flat and you have to buy new one for your next flat at a higher premium due to older age or higher loan amount.

Hope this help.