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Hi,

May I know which block and how much balance lease is your HDB having? If the balance lease is touching 60 years and below, it might be good to sell it as for such HDB, the buyer may not be able to use full CPF and loan, which means they can't offer a high price for your unit unless they are willing to top up with more cash. Naturally, the price is likely to depreciate further.

If there's still enough balance lease (eg. 70-75 years), it might be a good idea to keep for 1-2 years to see how the market pans out. However, the key question to ask is whether the 110K can be recouped by the time you sell your HDB (through any potential appreciation), and also whether the monies saved each month (eg. 2-3k) for the mortgage can be re-invested and generate yields to recoup the 110K.
JLD spans quite a huge area, but in my humble opinion the full potential will only be unlocked 10 years down the road.

Without more details, its difficult to offer better recommendations. Thanks and look forward to value-add to your housing plans further.

Warm Regards,
Ivan Ng ERA ASAP
(ASk Anything Property)
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Hi upgrader,

It would depend on where your HDB unit is. The 400 & 500-series in the lakeside area have remaining lease of only slightly above 60 years, and that's already difficult to obtain a maximum loan for, let alone the reduced CPF utilisation threshold when it falls below 60 years.

You'd have to gauge if the rental income (say $2500/mth) is substantial enough to cover ABSD as well; you'd need ~4 years of rental.

Feel free to contact me at your convenience, and we can carry on from there.

Thanks and regards,
Teck Chuan, Ng
BBA (Finance), NUS
ERA Realty Network Pte Ltd
Mobile: 9137 4602  Read More

Afternoon,

Firstly, when you have done your financial planning, did you factor in the funding aspect from the sales of your HDB unit? Will it be too tight for you should you forgo the ABSD and funds locked in your HDB unit?
Secondly, which cluster are you unit located? We need to be sure that the HDB unit will be depreciate with time due to the deduced lease, in 10 years time.
Lastly, based on the conservative rental rate, will it be sufficient to cover the ABSD paid, over a period of 10 years?

Do feel free to contact me should you require additional assistance.

Regards
Mike Lim
 96929209 
m52i@yahoo.com
ERA Read More

Hi,

Re: Our Preferred SG Professional- Agent.myweb.sg & Agent.irealtor.sg

Recommendation if your financial strong. It always best to keep your HDB as HDB have the higher rental yield vs private property in regardless it is leasehold. Majority properties in SG is leasehold, so not much difference :)

Feel free to engage me as your agent. I can assist you based upon your stated contents and walk you through the entire process with options.

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Dear sir/madam,

I am unsure of both your age, therefore the ultimate objective from an investment perspective is that the investment property should have high liquidity and allow you to obtain significant retirement funds after liquidating the property. Your existing HDB could work against this principle given that rental returns in comparison to past is poor, and you are not guranteed continuous occupation, therefore may run into some risks in terms of financing your loan.

Work on investing the funds generated from the sales into something which allows you comfortable return and high liquidity, for example an endowment plan that allows you to get higher interest rates over years and allows certain form of liquidity if required moving forward. I have spoken to 2 financial planners from different companies offering such schemes and I think the mid term returns for an uncertain market is relatively attractive. Perhaps you may wish to speak to your financial adviser on this aspect before making a decision.

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Geryl LIM
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Good evening,

I have been staying along Jurong West St 42 for past 30 years. in fact, the HDBs over here has reached its peak. The value might not appreciate any further due to its age.

Buyer will have problems utilising their CPF OA funds and obtaining max loan due to age of a property once it reaches 40 years old.

I will always advise my clients to dispose off property with no further capital appreciation potential. With the sale, they can invest in other property with more potential (younger in age, better in location etc).

Yes true of course HDBs are always strong in their rental yield performance due to their lower entry cost compared to condo.

But should you continue to hold on to it?

Btw may I know whether your condo is purchased under joint names?

If you decide to sell off your HDB now, you still stand a chance to claim back the ABSD of $110k!!! that you had paid for this condo. This is provided you can sell off your HDB within 6 months from TOP of your project if not you can try to request for extension for it.

Conclusion, perhaps its better to sell off your HDB and claim back your ABSD. Use the sales proceeds and refund of ABSD to invest on another private property.

If you intend to purchase BTO or EC, do take note that you have to dispose off all private properties and observe 30 months waiting period before you can apply for either. Thus during the waiting and construction period, you have to rent a place to stay.

Hope my sharing is beneficial to your decision making.

Probably you can share more with me so I will be in a better position to advise and assist you further.

Warmest Regards,
YT TAN 陈永达 | ACCA Graduate, RES
R043025D
Propnex Realty Pte Ltd

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Good day sir / madam

I think the ABSD of $110 k is too much for the rent you can collect from your hdb.

In addition , please factor in additional costs if you choose the hdb rental route ,

Costs such as ,

Hdb property tax .

Income tax generated from hdb rental .

Agent fees to rent out your hdb .

Bad paymaster tenant .

No rent during vacant months in your hdb .

Wear and tear / conservancy fees .

Kindly contact me for a no-obligations chat for your property needs .

My charges are 1% commission for exclusive selling rights to your hdb , or 2% for open listing .

Joanne_chia
Chia_joanne@yahoo.com.sg
Hp 8333 3327  Read More