im 33 now. so maybe by 38 to 40 i will be able to buy the property?
im 33 now. so maybe by 38 to 40 i will be able to buy the property?
I've invested in some local properties and made decent margins over the last 10yrs. I cashed out at the right time, not the best but good enough and still hold two private properties in Singapore. I did not look at anything here in the past 1.5yrs as everything went absurd but just had a look again few nights ago and some late 1990s built projects are looking reasonably good value.
Commercial is always the best investment because the rental yield can be generous but only the right ones which don't come cheap but they are impossible for most to buy now.
Industrial is not for the general public. There's a lot of hype over the last 2-3years simply because of curbs on loans+stamp duties and agents+developers got creative with their marketing. Please be careful as industrial projects have a lot of restrictions & classifications/zoning so your pool of rental clients is small meaning competitive. Also, most of them are either 99 or even 30-60yrs only. Are you prepared to run a business/office there if there's no tenant?
In short, I feel that Singapore's property prices still need a correction, it won't crash as our government won't allow what happened in 1998 and many curbs+preventions put in place will soften the effect. So, upgraders can still search & possibly invest on a 2nd property provided you're not an HDB dweller.
I've split my investment overseas now & seeing 10-20% gain on paper in the last 6 months while another is giving 120% in 3yrs. Some countries are very attractive if one is brave but be prepared to lose if all goes wrong as I did lose 20% on one project & had to cut loss.
Just sharing & not selling any schemes here
Last edited by NineEleven; 19th May 2014 at 10:27 PM.
"Like Moths, photographers gather at the sight of light" Robert Doisneau
My Little Port
This is what I call counting your chickens before they are hatched & like some kind of self congratulation & boasting What they say about self praise?
If you buy a flat at $200,000 & can sell it for $580,000 you made a paper profit of $380,000
If you sell it, where you going to live, on the streets ???
If you can buy back another flat of the same type & location at $200,000 then you can claim you made $ 380,000. Can you???
If you can buy back another flat of the same type & location at $400,000, then you can claim you made $ 180,000, Can you???
If you buy a smaller flat (say 3 room) of equal quality at same location at $ 400,000, you have downsized, downgraded & translated 1 room into $$$ & cannot claim to make all of $ 180,000. If you moved to cheaper location, then its also downgrading.
Thing is, even if we have the money, we CANNOT, NOT ALLOWED to own 2 HDB flats, one to live in, the other to "invest". If you can then you can say really make money on your "investment" property, HDB asset. Consider what have you done, what smart strategies you employed to make this capital gains other than buying a HDB flat & which you are so very proud of??? You must be a first timer! Or a property agent.
Hundreds of thousands of people in Spore live in HDB flats & they can tell you the same story, they bought their flat in 19XX & now its worth so much more. You are not the first or last one. Some are so proud like they made so much money but is it really like what the Govt say S'porens are sitting on a gold mine when they own HDB flat? If you say you can afford, buy a bigger flat after selling (at market rate), then you can claim upgrading, but you pay for this, its not free. Some see these capital gains as profits, others may see it as inflation, rising costs. If you can say buy a semi-D at $400,000 (like in M'sia) it would be like wow so cheap, fantastic. If you paid $2,000,000 for it, what's so great about it, about paying the highest price except to boast you have money (provided it's not borrowed which means the bank own 70-90% of it, not you as is often the case)? Price equals cost, but not necessary value or gain.
When we buy from the govt, we buy it at a subsidized price of $60,000 or more compared to buying from the market. This account for part of the gain when one sell in the open market, nothing to do with how smart one is. The govt learned their lessons too, owners used to get "2 bites of the cherry" now its 1 bite (if you know what this means), you just got your first bite.
Btw my friend's 4rm flat in AMK at choice location facing Bishan park & brand new SERS flat fetches only +-$ 450K & 4rm flat at Fernvale (where you staying) fetches $580,000? Is it like those prices found in agents' flyers instead?
Last edited by s1221ljc; 19th May 2014 at 11:34 PM.
Paper profit ? Does that consist of paper money ?
check the price from hdb recent transaction, not frm flyers. i stayed at 18rh floor unblocked view.
i have own companies, will invest in them to buy property and rent out.
before i buy, i will stay in 2nd bto flat. the profits from 1st flat will not be paying for 2nd bto flat. ok full stop.
apologies if i have made you upset or hype up for what i said. if you do have friends who are property agent, do check with them and find out more from hdb website.
do, do that during free time cos it will take a bit of yr time.
But on the other side: with all this speculations the market gets driven up - which hits all people. Shop rentals, office rentals and other basic costs are going up and will be passed down to the sustomers and consumers. Which includes you. So your wild dreams will partially hit back on you and your friends and family members. Are you willing to share your gains with family and friends to offset those effects that made your profits? That would only be fair, a bit.
Lawrence -- live your dream and good luck. Just do your thing. If you've done your sums well you'll be fine
Basically, what Lawrence was trying to say that he bought his first BTO flat from HDB at around $200k 5 years ago. Now he wanted to cash out at $580k. After which, he will ballot for a second time BTO flat from HDB at the same estate, not necessarily same area.
The BTO flats launched in 2014 consists of Punggol area which Lawrence is currently staying. For a 4-room flat, you can get around $300k excluding grants. He has to pay a resale levy of $40k from his previous sold flat. Therefore, he will receive around $240k extra in terms of CPF and cash. Of course, while waiting for the second BTO flat to be ready, you will need to find a place to stay. Most of time, you will stay at your parents or in-laws place for 2-3 years while waiting for the second BTO flat to be ready.
Yes, he will 'benefit' with such an arrangement if he sticks to HDB and direct application. People who are eligible and don't mind the hassles such take advantage.
However, as a whole, did you realize the cost of your HDB keeps going up? Not by inflation but market value to match the private and satisfy people that wish to upgrade such as this situation. Is this what we wish to see and hope to continue?