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Thread: Rent out HDB and stay in condo Reply to Thread
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Topic Review (Newest First)
19-11-2009 03:23 PM
Unregistered
Thanks.

Thanks to all contributors. [Very insightful and relevant.]

My contribution: To remind the importance of Financial Ratios.
[Melting pot: Debt, equity, cashflow, Cost of capital, WACC, Gearing/leverage, etc]

Rhetorical question:
"Will you gamble the 'shirt' on your back". [In context: house where you are presently staying. Roof over your head.]
18-11-2009 10:39 AM
Unregistered Confirmed - you can do all cash. I've a condo and HDB flat, condo is all cash.
Once your CPF hits the 50% Min sum (OA+SA+SRS = ~55k), you can get the bank (or actually lawfirm) to apply for 2nd property financing under CPF, which I did recently, thanks to some market run up and emptying my CPF into the market before buying flat earlier.
07-10-2009 04:29 PM
Unregistered
Quote:
Originally Posted by springsummer View Post
Pls take note though...
to buy the 2nd property, you will have to fulfill CPF Multiple Property Rules .
It basically states:
- if you're below 55yo, you'll have to put half of Min Sum (around S$55k currently) in your CPF (combined OA & SA) before you can purchase the 2nd property. Note: Each husband & wife must put half of Min Sum (husband $55k, wife $55k)
- if you're 55yo and above, you'll have to put full Min Sum in your CPF

ONLY the excess of the amount can be used to finance your 2nd property.
If I don't satisfy the CPF requirement, can I still buy a condo, pay down payment with cash and pay installment in cash, stay in the condo and rent out the HDB? From what I heard and read so far, the answer seems to be yes. Can anyone confirm?
05-10-2009 05:11 PM
springsummer Pls take note though...
to buy the 2nd property, you will have to fulfill CPF Multiple Property Rules .
It basically states:
- if you're below 55yo, you'll have to put half of Min Sum (around S$55k currently) in your CPF (combined OA & SA) before you can purchase the 2nd property. Note: Each husband & wife must put half of Min Sum (husband $55k, wife $55k)
- if you're 55yo and above, you'll have to put full Min Sum in your CPF

ONLY the excess of the amount can be used to finance your 2nd property.
01-10-2009 06:13 PM
Unregistered yes, it is a good choice to rent out your HDB unit/common to earn a decent income stream to supplement your lifestyle and needs.
I am doing that now and living with my parents. the extra cash is very useful.
also if u need an agent for this manner, drop a me msg at [email protected] because i am in this industry servicing clients ranging from students to working professionals.
30-09-2009 05:11 PM
lerevenant Hi Guys,

Read this thread with interest. I am at he same crossroads. I will be qualified to rent out my 5 room flat come Feb 2010 (fulfilled the 5 years MOP) and have been thinking renting it out while i scout for a small boutique condo.

Just like more opinions on whether this is a wise move.

Regards
05-09-2009 01:38 PM
glenndanker Yes, I have friends doing that. There is nothing wrong, our parents and granny time they used to live together, more loving and concern, better relationships. Another thing you can accumulate passive income for better future for all, why not?So I vote that you rent out the condo, do your maths, be wise with money.. play cashflow game
13-08-2009 10:24 AM
teaengpeng
Hpis

Quote:
Originally Posted by Unregistered View Post
sorry i just started out and i'm not familiar with HDB matters.

what does HPIS stand for?
HPIS stand for Home Protection Insurance Scheme and is a mortgage-reducing insurance scheme which helps the insured members and their families pay off their outstanding housing loans in the event of the insured members' permanent incapacity or premature death before age 65.

Members who are using CPF to pay their monthly housing loan installments on their HDB/HUDC flat under the Public Housing Scheme (PHS) have to be insured under HPIS, provided they are in good health at the time they apply for cover. Members who are not using CPF to pay their monthly housing loan repayment may choose not to be insured. However it is not recommended as housing loan is usually the largest liability a person has.

You can read more on HPIS on the following CPF weblink:
CPF Board - Ask Us - Explore FAQ
13-08-2009 10:13 AM
teaengpeng
Hpis

Quote:
Originally Posted by Magdeline View Post
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.
12-08-2009 10:23 AM
poor
Quote:
Originally Posted by conservative View Post
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.
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