midnightbaker
New Member
- Joined
- May 13, 2020
- Messages
- 2
- Points
- 1
Hi all.
Have purchased first property: resale HDB prime location (26 years old this year. Point block, near 3 MRT stn, mature estate, 4rm) for 648k, slightly below valuation of 650k. Bought with grants, HDB loan. mortgage about 2.6k. Did minimal renovations (about 35k)
Based on desktop searches, properties in the block and the next block are rarely on sale and easily snatched up despite the price range. This is a considerably young resale HDB Unit in the very mature estate.
As our work requires us to travel alot, we have rented out the apartment @ 2.8k/mth for the past 2.5years.
Will be moving back to Singapore soon for a few years b4 we have to relocate again for work.
Am planning to move to a place closer to a good primary school. The initial plan is to continue renting out the HDB Unit and rent a smaller 2 bedder condo near our preferred primary school (minimal or no cash topup required). However, we note that HDB flats tend to depreciate alot after hitting the 30 40 year mark. Our end goal is to eventually upgrade to a EC or PC.
On that note, would like to seek advice from the gurus here on what would be the more sensible decision with our current property moving forward (monthly combined income about 10 to 13k, have 1 kid planning to have 1 more).
The last transaction for our block similar unit same floor was 665k earlier this year. If we were to sell our resale flat at valuation, we are still expected to make a loss , after deducting the CPF used, accrued interest etc (about 60k). Further loss to be made for the other costs such as agent fees etc. The rent collected so far would kinda offset the losses.
Options available:
A) continue to rent out this flat, rent a smaller condo near to pri school, move back to this flat after 30mth for sch registration priority. Forget about PC/EC dreams. (flat would be more than 30 years old at this point. Just stay till die after the pri sch registration thingy)
B) sell the resale flat first despite the net loss and rent the preferred smaller condo unit near preferred school. (the houses near our preferred sch are insanely priced, newton/novena/toapayoh/Balestier District). Buy a resale or new launch PC/EC after our 30mth rental period at the prime sch zone.
On this note, would resale PC or newly launched PC be a better choice to avoid the resale levy if I were to go for newly launched EC? The PC/EC would likely be our last property and we would be renting it out when we are working overseas in future.
Is it true that most people make a loss when they sell their resale property? Would it make a difference is we sell the resale property before it turns 30? We love the location of our resale property and we would not be able to afford a PC at the area where we stay. If we were to upgrade to EC/PC (family sized), would likely be at a less central location.
Some additional background info: our work requires us to be relocated overseas regularly. We would not really be in Singapore in a long term basis. We would be in Singapore at an irregular basis. So it is tough to decide which property to go for and our future property plans.
The reason why we bought a resale at a prime location as our first property so that it would be easy to rent out. But now looking back, not sure if we had made the right decision since our eventual goal was to hopefully own a PC/EC. Wished we did more homework.
Appreciate any advice please! Thank you.
Have purchased first property: resale HDB prime location (26 years old this year. Point block, near 3 MRT stn, mature estate, 4rm) for 648k, slightly below valuation of 650k. Bought with grants, HDB loan. mortgage about 2.6k. Did minimal renovations (about 35k)
Based on desktop searches, properties in the block and the next block are rarely on sale and easily snatched up despite the price range. This is a considerably young resale HDB Unit in the very mature estate.
As our work requires us to travel alot, we have rented out the apartment @ 2.8k/mth for the past 2.5years.
Will be moving back to Singapore soon for a few years b4 we have to relocate again for work.
Am planning to move to a place closer to a good primary school. The initial plan is to continue renting out the HDB Unit and rent a smaller 2 bedder condo near our preferred primary school (minimal or no cash topup required). However, we note that HDB flats tend to depreciate alot after hitting the 30 40 year mark. Our end goal is to eventually upgrade to a EC or PC.
On that note, would like to seek advice from the gurus here on what would be the more sensible decision with our current property moving forward (monthly combined income about 10 to 13k, have 1 kid planning to have 1 more).
The last transaction for our block similar unit same floor was 665k earlier this year. If we were to sell our resale flat at valuation, we are still expected to make a loss , after deducting the CPF used, accrued interest etc (about 60k). Further loss to be made for the other costs such as agent fees etc. The rent collected so far would kinda offset the losses.
Options available:
A) continue to rent out this flat, rent a smaller condo near to pri school, move back to this flat after 30mth for sch registration priority. Forget about PC/EC dreams. (flat would be more than 30 years old at this point. Just stay till die after the pri sch registration thingy)
B) sell the resale flat first despite the net loss and rent the preferred smaller condo unit near preferred school. (the houses near our preferred sch are insanely priced, newton/novena/toapayoh/Balestier District). Buy a resale or new launch PC/EC after our 30mth rental period at the prime sch zone.
On this note, would resale PC or newly launched PC be a better choice to avoid the resale levy if I were to go for newly launched EC? The PC/EC would likely be our last property and we would be renting it out when we are working overseas in future.
Is it true that most people make a loss when they sell their resale property? Would it make a difference is we sell the resale property before it turns 30? We love the location of our resale property and we would not be able to afford a PC at the area where we stay. If we were to upgrade to EC/PC (family sized), would likely be at a less central location.
Some additional background info: our work requires us to be relocated overseas regularly. We would not really be in Singapore in a long term basis. We would be in Singapore at an irregular basis. So it is tough to decide which property to go for and our future property plans.
The reason why we bought a resale at a prime location as our first property so that it would be easy to rent out. But now looking back, not sure if we had made the right decision since our eventual goal was to hopefully own a PC/EC. Wished we did more homework.
Appreciate any advice please! Thank you.
