Cash out by selling off my HDB flat.
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Hi all,
I have been given this advice by two person already...
Now is a sellers market in terms of property and hence it is unwise to sell and then buy a property...
Why don't I just sell of my HDB flat as it will command a higher price now and stay in a rented apartment until the time when the bubble burst and then buy a property again.
In the meantime I am looking at $100K to invest in a business of my choice. Of course I have put aside 2 years worth of rental from the income I gained from selling my HDB flat...
Is this a sound advice...
Thank you for reading and giving this message your attention...
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To
MBS needs more sponsors....
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Totally a bad idea for you.
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What business?
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Thank you so much for the attention and comments.... keep it coming please...
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Originally posted by anisandriaidil:
What business?
Construction Industry
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So you intend to sell high and buy low.
When you buy low, what are you buying?
Same, or comparable home as your present one, or one that is of a lower standard or smaller size.
Do you think you can buy a better home than the present one with the cash in hand, which may have depreciated, or spent or gambled away.
Many enbloc millionaires became dissapointed because they found out their windfall is not enough for the new home they wanted, and have to settle for a lower value house to profit.
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wat kind of construction?
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Originally posted by mancha:
So you intend to sell high and buy low.
When you buy low, what are you buying?
Same, or comparable home as your present one, or one that is of a lower standard or smaller size.
Do you think you can buy a better home than the present one with the cash in hand, which may have depreciated, or spent or gambled away.
Many enbloc millionaires became dissapointed because they found out their windfall is not enough for the new home they wanted, and have to settle for a lower value house to profit.
That's the basic idea but actually I want to free up some cash, around $100K to start a business in the construction industry...
I figure that the price of the HDB flat is currently quite high but it's also true that even when the bubble burst eventually, our currency may have depreciated and hence the price of property may seem to be high due to it even after that time comes.
But this is the opportune time to release some cash to set up my business without having to take credit from the bank. -
Then I suggest you secure a smaller house, fully paid up, and use remainder of the money for your business.
Have a secure home first and build up from a firm foundation.
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Originally posted by mancha:
Then I suggest you secure a smaller house, fully paid up, and use remainder of the money for your business.
Have a secure home first and build up from a firm foundation.
But the price of a smaller unit is unrealistically high... a 3 room flat can fetch as high as $300K.... if I do get a cheaper one, it will almost always comes with a baggage e.g. a target for loanshark (my front door will their arty-farty canvas) or some other undesireable condition...
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Good, now you are thinking.
People don't plan to fail, they usually fail to plan.
Darkness_hacker said it is not a good idea. It need not be a good idea. It only need to be an idea for you embark on. Nothing venture nothing gain.
Thats why I tell you secure your housing first, then venture.
You will usually regret what you did not do or what you wish you had done.
Seldom regret what you tried, even when the outcome fell short of expectations.
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Originally posted by mancha:
Good, now you are thinking.
People don't plan to fail, they usually fail to plan.
Darkness_hacker said it is not a good idea. It need not be a good idea. It only need to be an idea for you embark on. Nothing venture nothing gain.
Thats why I tell you secure your housing first, then venture.
You will usually regret what you did not do or what you wish you had done.
Seldom regret what you tried, even when the outcome fell short of expectations.
A very wise reply which I appreciate very much...
however I do not want to be stuck with a property that's overpriced ...
I see the current property market as a sellers market rather than a buyer's market which I think will likely be for a couple of years down the road, with the onset of building more houses in the next 2 years the trend will likely reversed... that's why I'd rather go for the rental market than buying a property now...
This is where this discussion will benefit everyone tuning in..
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You must look at demand vs supply. I really doubt there would appear to be any bubble to be burst in the spore property market. Just look at New York, espcially in Manhattan, even with the subprime crisis, apartment and townhouse lots still worth USD3million and above. In island like Spore, overpopulation and housing problem, I can bet you, the price is going to stay sky high.
Stick to yer property, don't sell, you may regret.
However, if you feel you need the 100k desperately by selling it - instead of renting a room, why don't you go to Johor and stay there?
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Risky... trading off something u can fall back on anytime.Seems like too a high risk and relying alot on market speculation. While it is not wrong to believe in what u are thinking of embarking to do, like all gains, lack or risks results in risking nothing and eventually having nothing at all. How about renting HDB out and secure loans for your investment ? Any market, property pros here care to share insights ?
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Originally posted by kifjab:
A very wise reply which I appreciate very much...
however I do not want to be stuck with a property that's overpriced ...
I see the current property market as a sellers market rather than a buyer's market which I think will likely be for a couple of years down the road, with the onset of building more houses in the next 2 years the trend will likely reversed... that's why I'd rather go for the rental market than buying a property now...
This is where this discussion will benefit everyone tuning in..
the valuation of hdb flats will still be high.... hdb are selling new flats at S$400K now.do u think they will allow the valuation to drop after 2 years? what will the owners think? that why price can go only up... or maintain...
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Originally posted by BadzMaro:
Risky… trading off something u can fall back on anytime.Seems like too a high risk and relying alot on market speculation. While it is not wrong to believe in what u are thinking of embarking to do, like all gains, lack or risks results in risking nothing and eventually having nothing at all.
How about renting HDB out and secure loans for your investment ?
Any market, property pros here care to share insights ?
Yes, I like the idea of renting my flat away... stay in Johor and use the difference in rental to pay off the loan I secure to set the business...
Really slick...
Of course I would like to hear from anyone else ... keep the feedback coming... thank you so much...
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Its a bad idea as long as it involves renting a property on a long term basis.
Yes, you can cash out the profits from the sale. But how much cash can you get? after you cleared your bank loan, and return back the portion you used from CPF?
And how long do you plan to rent? are you going to rent only a room, or renting the whole apartment? nowadays, a room cost around $700-800/month, close to what you are paying monthly to own your hdb flat.
At this rental rate, it would bleed you dry of whatever profits you get from the sale of your flat.
If you really want to cash out, it is better that you downgrade immediately. 4 room to 3 room, so that at least you won't waste money on rentals.
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Originally posted by deathmaster:
Its a bad idea as long as it involves renting a property on a long term basis.
Yes, you can cash out the profits from the sale. But how much cash can you get? after you cleared your bank loan, and return back the portion you used from CPF?
And how long do you plan to rent? are you going to rent only a room, or renting the whole apartment? nowadays, a room cost around $700-800/month, close to what you are paying monthly to own your hdb flat.
At this rental rate, it would bleed you dry of whatever profits you get from the sale of your flat.
If you really want to cash out, it is better that you downgrade immediately. 4 room to 3 room, so that at least you won't waste money on rentals.
I am beginning to appreciate the fact that owning a property beats everything else... I will definitely not sell my property now having realize all the potholes I might encounter in the future...
Now there are actually other options in order to free up some cash for my startup...
What you have brought up is certainly true especially the part where you said the amount of rental I am going to pay is equivalent to the amount I am paying for my flat now...
Kudos to everyone here and I am glad it is all straighten out now and I am definitely clearer having been given other perspectives about this issue...
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If anyone can predict the market, they are already a billionaire. Are your friends giving you those advice, already a billionaire themselves? If not, are you sure you want to gamble based on friend's advice? Because at the end of the day, cannot blame anyone, must take all the responsibility on yourself if anything goes wrong. As with all gamble, the most important thing to ask yourself is, if it's lost, are you able to absorb the loss and proceed with your life?
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Originally posted by kifjab:
Hi all,
I have been given this advice by two person already...
Now is a sellers market in terms of property and hence it is unwise to sell and then buy a property...
Why don't I just sell of my HDB flat as it will command a higher price now and stay in a rented apartment until the time when the bubble burst and then buy a property again.
In the meantime I am looking at $100K to invest in a business of my choice. Of course I have put aside 2 years worth of rental from the income I gained from selling my HDB flat...
Is this a sound advice...
Thank you for reading and giving this message your attention..
seem like a very familiar story !!! that been told and told - and people still do it.
Well yes work out seem good deal - put a side $50,000 for rent (2yrs) then 100k for business. But then then after 2 yrs - $50,000 payed up as rent, 100k in business - yield breakeven .
$150,000 gone . And 2 years have gone by - same size property - have gone up $100k - due to more expensive labour, land , materials and other stuff . What money you still have left to buy new property ? I think you are very worst off !!!
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Originally posted by storywolf:
seem like a very familiar story !!! that been told and told - and people still do it.
Well yes work out seem good deal - put a side $50,000 for rent (2yrs) then 100k for business. But then then after 2 yrs - $50,000 payed up as rent, 100k in business - yield breakeven .
$150,000 gone . And 2 years have gone by - same size property - have gone up $100k - due to more expensive labour, land , materials and other stuff . What money you still have left to buy new property ? I think you are very worst off !!!
Hence, I brought the story here to bust the myth... :)
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Dude
IMHO you will meet naysayers all of your life. You want to do something, do it.
And the collective IQ in this forum is too low to get any valuable advice.
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insurance and real estate is also a business. so is a stall in a food court.
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Originally posted by Bio-Hawk:
Dude
IMHO you will meet naysayers all of your life. You want to do something, do it.
And the collective IQ in this forum is too low to get any valuable advice.
I appreciate your opinion bro...
On the contrary... found very good perspectives here which I can combine and mix to suit the level of risk I want to take...
I would like to thank everyone who has participated in this discussion... I can now table all the options for my family to decide ... but proceed I must...