To sell or rent?

[1sickpuppy II]

Hiya would like some feedback from you guys out there if you guys don't mind. Lets say you are staying in 1 house and the other house is left empty as all your offsprings have matured and left you to build their nests in other countries. Would you sell away that empty house and add the $ to your retirement nest, leave it empty as a day may come that your offsprings would return and might want to stay in that house or rent it out and use the rent as your daily pocket money.

If I sell away its 500k and the highestrental offer is $1500/mth.

 

[po2wq]

u dun sound like u hv n immediate nid 4 ze moni ... kip it la! ...

wait 4 ah loon n ah tan 2 push up ur property price la ... in ze mean time, can rent out 2 collect xtra pocket moni ...

but rent out $1500/mth is 2 chip la ... rent 2 prc mei-mei per bed space can bring in mor moni ... n dat cums wif intangible benefits as well ...

 

[silverfox@]

Hiya would like some feedback from you guys out there if you guys don't mind. Lets say you are staying in 1 house and the other house is left empty as all your offsprings have matured and left you to build their nests in other countries. Would you sell away that empty house and add the $ to your retirement nest, leave it empty as a day may come that your offsprings would return and might want to stay in that house or rent it out and use the rent as your daily pocket money.

If I sell away its 500k and the highestrental offer is $1500/mth.

It depends whether there is anymore outstanding loan from this property and also did you use your CPF to buy it. Also you need to consider after selling it, how much cash you are getting back.

Renting at 1500 you still need to pay annual property tax at 10%. And if you are getting short term lease, you have to touch up the house if you intend to sell and get a good price in future.

If you have a $5000 rental and a $1500 rental, renovation costs in touching up is the same and not based on how much you collect from rental.

Another issue is since its about $500K, I supposed its not a landed property so there is no capital appreciation for such property. Selling it at $500K and if its all paid up with Cash, its much better than leasing it out.

 

[Meltdown]

RENT IT OUT as the old rich always focus on accumulating real assets like businesses, real estates, farm lands, precious metals, antiques, paintings, royalties, intellectual properties, etc.. It's even better if those real assets can generate cash flow like your house which can be rented out for 1.5K a month.

It you sell your house, where are you going to safely invest the sales proceed? Deposit it in a bank? Invest in stocks, bonds, or unit trusts?

If you deposit it in a bank, banks can fail in today's global financial crisis. If the bank doesn't fail, the money will be wiped out by the upcoming global hyperinflation. Therefore, depositing the money in a bank has (2) potential risks.

Invest in stocks, bonds, or unit trusts and your investments will be wiped out by the crooks on Wall Street and Goldman Sachs as they got all the inside info as to when to pull the plug and crash the markets when they short the markets. Even if you invest in gov't bonds, the risk of being wiped out is very high as Sovereign Debt Defaults will be the next tsunami in this emerging global financial crisis. Paper assets are fiat while real assets are real wealth. Paper assets are not the same as real assets!

Real Estates are real assets which cannot be wiped out by bank failures, currency devaluation, hyperinflation, stock and/or bond market crash, sovereign debt defaults, and global derivative meltdown. Your house will still be there even if all of the aforementioned crisis scenario happen.

Remember that the old rich always focus on accumulating real assets, not paper assets. For them, paper assets are only for trading and speculation purposes to make quick profits.

 

[bodycells]

i suggest renting out to keep cash inflow to you. At least treat it as a hobby of doing business.

 

[silverfox@]

Renting out at $1500 a month, one must understand the category group of people they are renting out to.

Will this category group treat their rented lease like their own home? If rented out for 2 years is $36K, minus agt comm, minus touch up to lease out again, minus property tax. You would be getting not more than 3% returns a year

 

[0939]

So why dont you tell us what kind of houses you owned.

 

[IR123]

Rental is my preference unless you can get a new flat direct from HDB

A net 2% return is acceptable (to me) especially if there is potential for enbloc or your flat is located in a desirable location within your estate.

In any case, flat prices will be on the uptrend given our government's FT policy.

 

[1sickpuppy II]

So why dont you tell us what kind of houses you owned.

Okay I am living in a terrace house somewhere in the east at the moment. The house I am thinking of selling, renting or just leave it empty for my offsprings return or for my guest is a 5rm 20yo pegion hole somewhere up north. I have fully paid up both my houses and the only thing is sometimes we still go back to stay in that 5rm pegion hole is that everything we need is just down there like wet market, coffeeshops and supermarkets unlike this terrace where I have to walk over 20mins just to bedok south hawker center just for a cup of coffee.

 

[JI_Fled]

Burn it down and claim insurance from CUNT COMFORT. CASH $$

 

[silverfox@]

Okay I am living in a terrace house somewhere in the east at the moment. The house I am thinking of selling, renting or just leave it empty for my offsprings return or for my guest is a 5rm 20yo pegion hole somewhere up north. I have fully paid up both my houses and the only thing is sometimes we still go back to stay in that 5rm pegion hole is that everything we need is just down there like wet market, coffeeshops and supermarkets unlike this terrace where I have to walk over 20mins just to bedok south hawker center just for a cup of coffee.

You stay Lucky hgts or Sennett Area? But that area walk to Bedok South hawker centre don't need 20mins, unless you are talking about further down which is nearer to Eastwood. Siglap no need say even further. But the difference is landed areas are not really near to amenities because most of the people drive while the convenience of HDB is near to amenities and transport.

If you have paid up fully for your HDB, does the payment comes from your CPF, or you pay by cash? If you pay by cash, you should sell it. If you pay by CPF, then you rent it. But then again if its $1500 per month to lease it out, you need a 2 year lease and not those on short term leases. Even then I think 2 years is short. Because think about after 2 years, you going to find a new tenant and the costs spend to do minor touch up.

 

[1sickpuppy II]

You stay Lucky hgts or Sennett Area? But that area walk to Bedok South hawker centre don't need 20mins, unless you are talking about further down which is nearer to Eastwood. Siglap no need say even further. But the difference is landed areas are not really near to amenities because most of the people drive while the convenience of HDB is near to amenities and transport.

If you have paid up fully for your HDB, does the payment comes from your CPF, or you pay by cash? If you pay by cash, you should sell it. If you pay by CPF, then you rent it. But then again if its $1500 per month to lease it out, you need a 2 year lease and not those on short term leases. Even then I think 2 years is short. Because think about after 2 years, you going to find a new tenant and the costs spend to do minor touch up.

Well 20mins maybe for young chaps like you but for me its around 30mins given my bones are not that nimble anymore. As for the pegion hole all of it is paid by CPF and if I would to sell it away then I would get back 300k and the rest back into my CPF and get it at a later date.

 

[middaydog]

unlike this terrace where I have to walk over 20mins just for a cup of coffee.

why dont you open a kopi tiam inside your terrace plus small provision shop selling light bulb, batteries and sorts so your naybours won't have to walk 20 minutes

 

[silverfox@]

Well 20mins maybe for young chaps like you but for me its around 30mins given my bones are not that nimble anymore. As for the pegion hole all of it is paid by CPF and if I would to sell it away then I would get back 300k and the rest back into my CPF and get it at a later date.

Actually you just raised a point. A lot of ppl do not realise why HDB flats in mature estates are going up. Because due to greying population, there are landed owners "downgrading" to smaller HDB units and cashing out by selling away their private property. Cleaning up a big house, walking up and down the stairs, far from amenities has become a drawback for them.

Near mrt, market, kopitiam, shops etc have made it very attractive for them. Paying full cash for HDB flats after selling their landed is what many have done. Zero loans. Even high COV requested by hdb sellers is acceptable to landed owners.

 

[myfoot123]

The first thought that came to my mind is to rent it out. Killing two birds in one stone, regular passive income and still maintain ownership.

 

[garlic]

Rent out the landed.. stay in five room HDB.. get more rental, near amenities, sell the car, knees no need pain anymore and you get any potential asset appreciation. At your age and with all kids gone, living in a landed is no longer as advantageous anymore, compared to a 5-rm hdb with good amenities; other than "feeling good". Do a small reno on the 5-RM HDB and it will feel very spaceous already...

 

[IR123]

You are on a roll. With both properties fully paid, you have the luxury of many options which can give you good returns. In any case, owning a HDB flat in most areas of Singapore, is a very good option. Good for you!

Perhaps if you still have earning power, why not let the status quo remain while you earn your daily keep. Your properties can be given to your next generation or bequeath to a charity or be the basis of a foundation that brings hope to the less fortunate. That, to me, are good alternatives.

Provided Singapore remains in good hands and continue its political and economic stability, Singapore will remain a magnet for the foreigners. The landscape of Singapore and Singaporeans are changing and there is already obvious impact on property prices. Another 100,000 will be coming in and this will sustain property prices and rental yields.

A housing agent friend told me that property prices are at a high and he is expecting it to fall. Perhaps you can do your own queries. If this is your opinion too, you can consider selling one property in order to buy it back at a lower cost later, provided current and future CPF rules allows you to take out your money.

For me, I will always keep my HDB flat.

 

[1sickpuppy II]

Thanks guys for all your feedbacks will take them into consideration. My wife still prefer to stay in the landed property as she likes to do some gardening and nice neighbours. Thou the 5rm have all the convinence it does have its downs too. Like not so nice neighbours and kind of noisy at night. Well...... I guess I can't have both worlds :(

 

[IR123]

All the best to your decision-making. I know very little about the property market and thus are the opinions of a mildly-informed person. You are far more fortunate than many.

 

[silverfox@]

Thanks guys for all your feedbacks will take them into consideration. My wife still prefer to stay in the landed property as she likes to do some gardening and nice neighbours. Thou the 5rm have all the convinence it does have its downs too. Like not so nice neighbours and kind of noisy at night. Well...... I guess I can't have both worlds :(

If I were you, I would sell the 5rm flat, use the money to buy a 4rm flat near a matured estate with mrt station nearby. Fully paid up with cash/cpf, zero loan.

After that stay in this 4rm for 3 years, rent out your terrace. 3years later, you can decide to rent your 4rm which can fetch around $2k based on location.