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23-05-2022 05:41 PM
nixiak
Quote:
Originally Posted by Unregistered View Post
That is utter rubbish. You don't build equity when you pay down your mortgage, you are simply paying down your loan. I mean you wouldn't say you "build equity when you pay down your personal loan", do you? So why is paying down a mortgage loan different? That you assume the value of your property is only going 1 way i.e. up?

Don't forget to factor in other cost of buying a house like property tax, absd, lawyer fees, disbursement fees, valuer fees, agent fees, insurance fees, increasing facility fee and sinking fund, maintenance and servicing fees, replacement of appliances cost, etc. Add it all and you will soon find it is more cost effective to just rent instead.
In the case when you took a loan of 500K from the bank, and you paid up that 500k (actual amt does not include loan interest yet), that is the equity in the house value. It is like saving money into the house. When you choose to sell the house, this 500k will come back to you in the form of cash. Even if you choose not to sell the house, and take an equity loan from the bank instead, you can still take this value out of a condo (not HDB). Of course, there are other costs involved you have to pay, if your capital appreciation far exceeds all these costs (property tax, absd, lawyer fees, disbursement fees, valuer fees, agent fees, insurance fees, increasing facility fee and sinking fund, maintenance and servicing fees, replacement of appliances cost, etc), then you are getting that equity back and perhaps more from the appreciation of property value.
While if you pay rent, the landlord uses that for the mortgage payment. He loans 500K and maybe when he sells the house, he still owes the bank 100k so the difference of 400k (even lesser after subtracting all the interest) is his equity. The tenant is the one paying money to build the landlord's equity. However, the tenant does not have to pay the huge downpayment and all the related costs just to have a roof over his head, it is his tradeoff, you don't get back what you have paid for. While if you own the house, and pay down the loan, whatever you have paid, will be unlocked and come back to you when you sell the place.

Government will not allow housing cost to drop drastically, because people are heavily vested into their properties here. it can only stabilise or go one way up over the long term.
23-05-2022 10:19 AM
Unregistered
Quote:
Originally Posted by Unregistered View Post
If you have the possibility, of course, buy. You spend money in vain on rent. It's a different situation if you want to move in the future, but still, I would never rent a place.
That's because you make a couple of unfounded assumptions and leave out some important cost 1) you assume prices of property will only go up from your purchase price which is simply not true. There is no guarantee buying a $2m resale property today will be worth more 5 years from your purchase date. 2) You do not factor in upfront and ancillary cost like bsd, absd(if applicable), agent fees, lawyer fees, valuation fees, disbursement fees, insurance fees, service and maintenance fees, etc.
23-05-2022 10:13 AM
Unregistered
Quote:
Originally Posted by nixiak View Post
When you buy a property, you build equity when you pay monthly mortgage
When you own and rent out a property, you build equity when your tenants pay the monthly mortgage for you.
When you rent a property, you help your landlord build equity.

No right or wrong, it depends on your needs and which phase of life you are in and what is your plan if you choose to rent a property.

Disclaimer: I'm not a real estate agent
That is utter rubbish. You don't build equity when you pay down your mortgage, you are simply paying down your loan. I mean you wouldn't say you "build equity when you pay down your personal loan", do you? So why is paying down a mortgage loan different? That you assume the value of your property is only going 1 way i.e. up?

Don't forget to factor in other cost of buying a house like property tax, absd, lawyer fees, disbursement fees, valuer fees, agent fees, insurance fees, increasing facility fee and sinking fund, maintenance and servicing fees, replacement of appliances cost, etc. Add it all and you will soon find it is more cost effective to just rent instead.
21-05-2022 11:54 PM
nixiak When you buy a property, you build equity when you pay monthly mortgage
When you own and rent out a property, you build equity when your tenants pay the monthly mortgage for you.
When you rent a property, you help your landlord build equity.

No right or wrong, it depends on your needs and which phase of life you are in and what is your plan if you choose to rent a property.

Disclaimer: I'm not a real estate agent
29-04-2022 05:51 PM
Unregistered
Virtual Office

Renting must be very expensive now. Especially if you are renting in Singapore central region. I believe you can follow what I did last time which is using a virtual office.

I came across this article and think that it is actually a brilliant idea since it save a lot of costs too.

s://.paulhypepage.com/virtual-offices-in-singapore/
22-06-2021 02:27 PM
Unregistered If you have the possibility, of course, buy. You spend money in vain on rent. It's a different situation if you want to move in the future, but still, I would never rent a place.
18-12-2020 04:48 AM
Unregistered Well, it depends on the place you want to rent or to buy the flat. I live in Myrtle Beach, and here there are certain prices while in other cities the prices are totally different, so give us more details. Also, I think the best advice you can get from a real estate expert. There are companies that are specialized in this field and only after consulting such an expert you will have the entire image. When I moved here, I also couldn't find a suitable fat, but after talking with a real estate expert he told me about all the [url=s://.myrtlebeachcondoforsale.net]north myrtle beach condo for sale[/. In only a few days I found the perfect flat.
09-12-2020 02:50 AM
Bleland I think it's better to rent a condo. This is much more profitable. If you don't like something, you can rent another. I often rent kips bay 2 bedroom on vacation. I spend every vacation in this apartment. And it doesn't depend on the time of year. I really like how looks this apartment. The windows overlook the courtyard. I can see my car in the yard. Also, very nice view from the window. I just live in a house on the ground and the whole view from my window is my yard. And when I rent an apartment, I see a huge variety.
18-11-2020 11:15 PM
Unregistered
Quote:
Originally Posted by hdbsiao View Post
with so many new supply or condo coming out the next 2 years will it be good to rent a condo or to buy a condo ???

Anyone can share the cost of renting a condo now ??
stay until die = buy
08-10-2020 11:30 AM
Unregistered
Quote:
Originally Posted by Unregistered View Post
I prefer to buy it instead of renting one. Cause if u rent a condo, its like helping the owner to pay the installment. But if course it depend on ur financial planning
I don't agree with that sentiment. If you think about it, when you buy a condo, you typically will need to get a home loan, and you are paying loan installment monthly. Yes you don't pay to a landlord, but you still pay monthly a similar amount as interest to the bank. So no difference.

The key question you want to ask yourself is, do you want to invest in real estate at this point? Or do you want your capital in other assets? Of course, that is the objective way to look at things, and I know wives typically prefer to live in self-owned house vs rental - maybe their nesting instinct. Speaking from experience.
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