Shd I Sell Or Rent Out My Hdb After Buying Condo?

[bepgof 20]

A bit similar to buying/selling shares except that properties are less liquid. When you collect rent, it is like collect dividend ....

So whether you are going to rent or sell, it is like asking the question - should i hold or sell my shares ...

BO,

Pardon me for side track a bit here. Reading yr reply, reminded me of my "General Magnetic" stock which was bought many years back, get delisted recently from SGX. Have received the certificate for CASh portion, CPF portion till held by UOBKayHian.

The liquid now harden up becomes "solid". Think of to frame up the "solid" for the time being and present to son when he is 21 as present, hope further this "solid" become liquid one day.

Edited June 11, 2010 by bepgof

[joleena 0]

Hi all,

I need advice on this issue, I hope those HDB upgrader like me can advise me.

I'll be buying a condo, currently i stay in a 3 room flat, this flat can fetch $1800 - $2000 rental per mth and if i sell it is around $300,000.

I need to borrow about $500,000 for my condo if i were to rent out the hdb and $200,000 if I were to sell off the HDB.

I wonder what are the things i need to consider between this 2 options (e.g. property tax, tax on rental, interest on the new mortgage) and should i rent the 3 rooms out or sell it off?

Thanks!

sell your 3 room off at $300k but u wont get all back - u need to deduct amount still owing to hdb, cpf interest, etc. So, if u sell off hdb, may still need to borrow > $200k

3 room flat has very good rental yield now. you should rent out - 1 year get $20k, 2 years get $40k.. maybe better than COV when sell

[musicbox 0]

Hi all,

Thanks for the advice. I've dicided to rent out my 3 room after buying the condo, anyway now bank don't have lock in period i can still sell it off and repay my condo loan partially within first year.

Yes the yield is higher than renting out a private, considering i only bought the 3 room at $182k back in 2004

Once again, thanks all!

[Warrior88 0]

Hi all,

Thanks for the advice. I've dicided to rent out my 3 room after buying the condo, anyway now bank don't have lock in period i can still sell it off and repay my condo loan partially within first year.

Yes the yield is higher than renting out a private, considering i only bought the 3 room at $182k back in 2004

Once again, thanks all!

Can invite all forumers for sashimi buffet with dom perignon champagne after you collect the first rental

[bepgof 20]

Hi all,

Thanks for the advice. I've dicided to rent out my 3 room after buying the condo, anyway now bank don't have lock in period i can still sell it off and repay my condo loan partially within first year.

Yes the yield is higher than renting out a private, considering i only bought the 3 room at $182k back in 2004

Once again, thanks all!

Congrat!btw may I know which condo u are buying?

Edited June 11, 2010 by bepgof

[bepgof 20]

Can invite all forumers for sashimi buffet with dom perignon champagne after you collect the first rental

Musicbox,

Wow, I like sashimi buffet! remember to count me in hor.

Edited June 11, 2010 by bepgof

[dreamhouse 0]

i'm in a similar situation...have also decided to rent out my hdb...

another consideration is the cpf minimum sum rule since you are holding on to 2 properties

ie if you want to use cpf for instalment payment, your OA + SA must have at least 50% of prevailing minimum sum of ~$130+

simple way to calculate whether to rent or sell your hdb is to consider:

A) how much your hdb can fetch if you sell today

B) what is the rental yield per year (after deducting related expenses)

C) how much is your private home loan interest rate

if B / A > C then you can consider renting out

of course, all 3 figures change over time, so you can re-evalute every year

[bepgof 20]

i'm in a similar situation...have also decided to rent out my hdb...

another consideration is the cpf minimum sum rule since you are holding on to 2 properties

ie if you want to use cpf for instalment payment, your OA + SA must have at least 50% of prevailing minimum sum of ~$130+

simple way to calculate whether to rent or sell your hdb is to consider:

A) how much your hdb can fetch if you sell today

B) what is the rental yield per year (after deducting related expenses)

C) how much is your private home loan interest rate

if B / A > C then you can consider renting out

of course, all 3 figures change over time, so you can re-evalute every year

- Clever, straight forward.

- Years ago, I experencied doing "homework" till calculator battery run out.

- Later put many formular and conditions here & there in spreadsheet to present many sceneriors and want to pick the "optimum".

- I think I should register the patent for this spreadsheet. But who will buy? Pricing is another issue.

- Along the way of building formular & conditions, the details went & "stayed" in my brain till now.

Edited June 11, 2010 by bepgof

[dreamhouse 0]

sorry cpf minimum sum should be $130k+

bepgof - for me, i don't believe such things can be optimised because we never know what will happen in the future...

as long as the decisions you make are not too wrong, you'll be ok

the journey of life is meant to be enjoyed - don't sweat the small stuff

[bepgof 20]

sorry cpf minimum sum should be $130k+

bepgof - for me, i don't believe such things can be optimised because we never know what will happen in the future...

as long as the decisions you make are not too wrong, you'll be ok

the journey of life is meant to be enjoyed - don't sweat the small stuff

Optimum refers at that point of time/siuation. True, envirnoment is very dynamic & volatile, like a soccer match, many players "run" at/to different locations at the same time. That was why at later stage I added in those "conditions" in the SS.

- Heard of : a wrong move of one chess, loss the whole game??

Edited June 12, 2010 by bepgof

[rachelcheng 0]

I chose to sell my 5 room hdb at $455K instead of renting out. I bought my hdb at $210k(after 30k grant). Initially I planned to keep both, hdb for rental. BUt I am just too risk adverse and afraid of issues with difficulty to find tenants, problematic tenants etc etc plus other hassles and finally gave up and sell off my hdb. M still holding on to the proceeds.. Contemplating whether or not to reduce my outstanding loan of 700K, or standby to buy another property when market crash..

Edited January 27, 2011 by rachelcheng

[blue_skies 3]

I chose to sell my 5 room hdb at $455K instead of renting out. I bought my hdb at $210k(after 30k grant). Initially I planned to keep both, hdb for rental. BUt I am just too risk adverse and afraid of issues with difficulty to find tenants, problematic tenants etc etc plus other hassles and finally gave up and sell off my hdb. M still holding on to the proceeds.. Contemplating whether or not to reduce my outstanding loan of 700K, or standby to buy another property when market crash..

I would hold the proceeds if I were you to buy another ppty In the meantime, deposit the money in SGD fixed deposit and enjoy priority banking for a while. Haha!

[bepgof 20]

If financially viable, should always hold the HDB unit, as Singaporeans. You'll understand as you grow older.

I chose to sell my 5 room hdb at $455K instead of renting out. I bought my hdb at $210k(after 30k grant). Initially I planned to keep both, hdb for rental. BUt I am just too risk adverse and afraid of issues with difficulty to find tenants, problematic tenants etc etc plus other hassles and finally gave up and sell off my hdb. M still holding on to the proceeds.. Contemplating whether or not to reduce my outstanding loan of 700K, or standby to buy another property when market crash..

Edited January 27, 2011 by bepgof

[random_username 0]

a big difference now (imo) is that, just very generally, if one has sold the HDB and buying private, the hdb cannot be bought again unless the pte is disposed of; in that sense selling the hdb would close off one option. Have i understood wrongly how it works?

also, Rachelcheng, if you are intending to buy another property and assuming you're not intending to sell it off immediately and letting it stay idle is not an alternative, then would you not have to deal with the rental issues you were hesitant about? If not, what changed your mind? TIA for sharing.

[steelze 0]

hi peers, reading this thread really blows my mind off.

guess my journey to "own pte, rent public" is still far from where i am now. Just completed renovating my 5i unit @ sims dr for nearly 60k. though we didnt take up any loans (except interest free one from parents), i still find it a waste to dump so much $$$ into the non-asset column. this house purchase also wipe out our entire CPF.

as we are only started out working for 3 .5 yeas, almost 85% our monthly combined CPF OA contribution will used to finance the HDB loan. if our salary (suay suay) stay this range or increase slower than property prices, does this mean that we will have to work until nearly 60 years old (finish paying my 30 years hdb loans) before we can really accumulate our OA balance before we can buy a pte condo which is at least $1m now. hahaha.. this sound crazily sadzz..

i wanna ask you guys, how much should we have comfortably in our OA before we can starting looking at pte properties? any other approaches that i can take to fulfil my dream of staying condo by 35 years old?