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Thread: Selling of HDB flat

  1. #1
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    Default Selling of HDB flat

    Morning

    I have being bothered by this matter for weeks and need advise.
    I just started work in a new place and can't find time to sit down to analyse

    Currently I am staying in Yishun for 18 years. My first (resale) flat when I got married, a top floor airy unit. I am told as on this year it is about 27 years or more. I am the 3rd owner. I have fully paid up to HDB about 8 years ago. I have 2 kids in secondary schools.


    My wife told me to get another place since the money in CPF cannot be fully withdrawn.

    Because I 100% used CPF to buy this unit, I "owe" CPF coming to $550k including the accural interest. This amount is increasing every month. And I was told only sellig the house is one of the way to return this amount back to CPF.

    Don't get me wrong, I am not asking for advise on how to maximise profit or cashflow.

    I don't want to get into debt or financially stretched again. Firstly I don't have much confident in the future after being retrenched twice since 2008. Thank goodness I found a job in a Pharma company with a 5year strategy plan to pump up production and I am involved in it.

    Secondly is buying of house a better way to utilise CPF?

    I thought when I got my present job, I could have spare cash to explore (digital) photography and shooting bird with interchangeble lens and learn photoshop for post processing............


    Thank you
    EisMann

  2. #2
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    Default Re: Selling of HDB flat

    Since u already paid up the flat. If situation permits it's better to get a second property. It's 20% down.
    If you sell off this, then buy another, in terms of gains, there's not much as its just "cashing out" sort of. . The new property still need interest..
    Anyways, you are very fortunate as younger generations now have a 30 year debt.. wonder if they have spare cash for the "what ifs" in life.

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    Senior Member UncleFai's Avatar
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    Quote Originally Posted by ryanlio View Post
    Since u already paid up the flat. If situation permits it's better to get a second property.
    I am no investment expert but I don't think it is a good idea to put everything into one form of investment, in your case property.

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    Senior Member Sion's Avatar
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    Default Re: Selling of HDB flat

    Quote Originally Posted by ryanlio View Post
    Since u already paid up the flat. If situation permits it's better to get a second property.
    Spend the extra money on a good camera and several great lenses and travel round the world taking photos.

    You can't bring the 2 properties with you when you go. But you have lived a meaningful and rich life with a world horizon.

    Last edited by Sion; 19th July 2015 at 02:41 PM.

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    Default Re: Selling of HDB flat

    Yes.. travel.. haha.

  6. #6

    Default Re: Selling of HDB flat

    Since you’ve fully paid your flat and no plan to sell it, the figure shown is only an indicator.

    Your main goal now should be working towards your Full Retirement Sum (OA+SA) asap. If, and only if you do not need to utilised your OA $$ (e.g. for education.. etc), transfer them to SA to earn more interest.

    Suggest you make an appointment with CPF Board to discuss your thought once you’ve settled down your current job.

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    Member Bukitimah's Avatar
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    Default Re: Selling of HDB flat

    In Singapore term, it is call upgrading and hoping that your next HDB investment will bring in higher profit. While it may be true that by selling off what you have purchased, you can now re-invest and buy a newer bigger unit.

    From what you have described above, you should be in your late 40 or early 50 and have experienced being retrenched twice. Today buss words is restructuring. You ready to take that on if it happens?

    Only you know your financial situation and the fire in your belly.

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    Default Re: Selling of HDB flat

    Quote Originally Posted by splim View Post
    Since you’ve fully paid your flat and no plan to sell it, the figure shown is only an indicator.

    Your main goal now should be working towards your Full Retirement Sum (OA+SA) asap. If, and only if you do not need to utilised your OA $$ (e.g. for education.. etc), transfer them to SA to earn more interest.

    Suggest you make an appointment with CPF Board to discuss your thought once you’ve settled down your current job.
    SPLim,

    Will drop in CPF board this week to find out more of Full Retirement Sum.

    Thanks for the advice.

    EisMann

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    Default Re: Selling of HDB flat

    Quote Originally Posted by Bukitimah View Post
    In Singapore term, it is call upgrading and hoping that your next HDB investment will bring in higher profit. While it may be true that by selling off what you have purchased, you can now re-invest and buy a newer bigger unit.

    From what you have described above, you should be in your late 40 or early 50 and have experienced being retrenched twice. Today buss words is restructuring. You ready to take that on if it happens?

    Only you know your financial situation and the fire in your belly.
    BuktTimah,

    Unfortunately I don't know about my finacial situation except I know I have to live within my means and not to be in debt. One of the Financial Planner's buzzword maximise your saving, I have no idea how to execute that.

    Care to share how you plan for retirement?

    Thank You
    EisMann

  10. #10
    Senior Member Big Kahuna's Avatar
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    Default Re: Selling of HDB flat

    Not sure how much you put in on your current flat but owing $550k to CPF...that is a lot....unless your house worth 600k and above...I doubt Yishun can fetch anything near....you will not have any cash surplus if you change house....besides, what is your budget for the next one? It's not a zero sum game....sadly the market is in downturn and job security is something we constantly worrying....imo if you already paid up this one,,,just hang on to it unless you really unhappy with it's condition....at least you do not need to worry about the monthly commitment....

  11. #11
    Senior Member Nikonzen's Avatar
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    Default Re: Selling of HDB flat

    I advise wait until children are off then evalute your position. Big change.
    Expand your mind or get left behind

  12. #12
    Member Bukitimah's Avatar
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    Default Re: Selling of HDB flat

    Quote Originally Posted by EisMann View Post
    BuktTimah,

    Unfortunately I don't know about my finacial situation except I know I have to live within my means and not to be in debt. One of the Financial Planner's buzzword maximise your saving, I have no idea how to execute that.

    Care to share how you plan for retirement?

    Thank You
    EisMann
    I am no expert in finance but I always try to be a bit more conservative when comes to financial commitment. Don't want to be caught with your pants down.

    You have to know your finance, otherwise you are not ready to go into any major investment. Buying your 1st HDB when you start off your family (most likely in your twenties), is a no brainer simply because you need to work for the next 30 or more years. You just need to ensure you buy something within your means and spread out the years. In our context, a 3 rooms HDB would have fit in for most of us.

    As you build up your nest, you may then consider upgrade or even buy a 2nd property. This is when you need to know your finance. In your case, if you need to pump back $500K into your CPF, it sounds to me you have taken a max loan when you fist started. So, if you are going to use that $500K to roll over for your new flat with limited cash outlay or CPF contribution to pay up for the next 10 years, it seems logical but not without risks.

    Are you OK to continue your morgage if you lose your job tomorrow? Are you able to manage your finance with half your current pay for next 1 year and yet fulfil your morgage? What kind of saving you have and other income only you know.

    Many Singaporeans are looking toward retirement by downgrading. I suppose you are also thinking of this when you want to upgrade now. Beside upgrading your HDB, there are other forms of investments that can fit your needs. Do explore them too. Afterall, property is a huge commitment and require many years. It is not something you can decide to withdraw anytime and usually that is a bad time.

    Cheers.

  13. #13
    Moderator Octarine's Avatar
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    Default Re: Selling of HDB flat

    Quote Originally Posted by Nikonzen View Post
    I advise wait until children are off then evalute your position. Big change.
    Asian kids are mostly different in that regard. Depending on the family traditions it might take a long time till they leave the parents home, usually not before getting married.
    Sometimes the kids still stay with the parents after marriage, even when the first child is born.
    Exceptions exist, though.
    EOS

  14. #14
    Senior Member creampuff's Avatar
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    Default Re: Selling of HDB flat

    Many people upgrade because they need more room as the kids grow up or if they are more financially stable to commit to a new property, either for investment or to stay in. If you're happy with your current flat, stick to it and build up your cash reserves for your nest egg and avoid going into more debt, especially if you're past 45. In the current Singapore market it is not easy to flip and make huge profits unless you have a decent cash reserve to begin with as it then gives you more options to consider. Understand that Singapore's property market is ridiculously expensive so there are big risks if you read the market wrong. Make sure you plan enough for your eventual retirement or a game plan to have a passive income stream. Pay off all your loans and set money aside for your kid's higher education. Getting another property is not always the answer. Upside on capital gains for property can be limited, rental yields can vary widely and may not even cover your loan repayments.

  15. #15

    Default Re: Selling of HDB flat

    Quote Originally Posted by EisMann View Post
    .... I was told only sellig the house is one of the way to return this amount back to CPF.
    ...
    https://www.facebook.com/AYRbyCPF/ph...type=1&theater

  16. #16
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    Default Re: Selling of HDB flat

    Thanks SPLim,

    Hainz! If my wife sees this, she will immediately ask me to go for 1st appointment!!!

    Already taken 1 day leave to make appointment with CPF this afternoon.

    Anyway thanks for the link.


    Can't imagine if she insists to move, I insist to stay put........ Will open another topic here..

    EisMann

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