Upgraders can offset condo mortgage with HDB rent

[Onitsuka]

Not exactly. If you are a HDB flat dweller, as long as you have fulfilled the Minimum Occupation Period of 5 years, you can buy a private condo and still keep your flat. However, if you are a private condo owner and you want to buy a HDB flat, you must sell your private condo.

Thanks for the clarifications.

I had always been under the impression that HDB would require one the Lessee to stay in HDB flat as long as he owned one. And that the Lessee would only be permitted to rent out the entire HDB flat if he was leaving for overseas.

 

[lifeafter41]

the people who can afford condo loans are shit skins and south indian talents,i believe their finance and job security is much much better than you, why you worry?

I worry for my friends that have bought into the fairytale.
Some have 2 or even 3 properties, but are not happy when it comes to paying the mortgage.
The finances are always tight...........and even worse, if job security is at stake.

Can't imagine if the interest rate increase another 2% to 4%...........

 

[ginfreely]

The theory centres on HDB as "subsidized" "affordable" housing. Therefore, because they are subsidized and affordable, they need to be reserve for only the people that are lower income and less fortunate. SOme one who already owns a private condo is obviously far wealthier then the typical flat dweller, therefore they do not pass the rule of affordability and hence cannot receive subsidized housing. Whether HDB flats are truly affordable or subsidized is open to debate.

If they really going on the basis of HDB being subsidised housing for lower income and less fortunate, then there should be no such thing as buy HDB then buy condo and rent out the HDB. All buyers should made to stay in the HDB they bought, which is not the case at all. That's why there should not be a disparity in treatment to allow the reverse in buying sequence, buy condo and then buy HDB, especially if the condo buyer intend to stay in the HDB instead of the condo.

 

[ginfreely]

Then why cannot buy resale? Technically these are unsubsidised flats.

Yeah why cannot buy resale? Not just unsubsidised flats but buying without a cent of grant. In fact, it is still ok and considered fair to allow condo buyer to buy BTO as long as they have never bought one before. Why can give money freely to foreigners but Singaporeans cannot?

 

[xebay11]

Yeah why cannot buy resale? Not just unsubsidised flats but buying without a cent of grant. In fact, it is still ok and considered fair to allow condo buyer to buy BTO as long as they have never bought one before. Why can give money freely to foreigners but Singaporeans cannot?

Next election vote wisely.

 

[ginfreely]

Next election vote wisely.

Every election vote wisely. Next election maybe don't vote.

 

[Asterix]

Interesting, the property owning democracy had its roots in the Great Depression, except in Sinkieland one wonders if you really "own" your HDB flat, but one thing is for sure, house prices go up as well as down. In other words, safe as houses equals bullshit!

[video=youtube;BUywXLdNi1o]https://www.youtube.com/watch?v=BUywXLdNi1o[/video]

 

[Papsmearer]

If they really going on the basis of HDB being subsidised housing for lower income and less fortunate, then there should be no such thing as buy HDB then buy condo and rent out the HDB. All buyers should made to stay in the HDB they bought, which is not the case at all. That's why there should not be a disparity in treatment to allow the reverse in buying sequence, buy condo and then buy HDB, especially if the condo buyer intend to stay in the HDB instead of the condo.

In the past when the HDB was really a public housing entity, you had to sell your flat back to the HDB at the same price you bought from them, if you wanted to buy another property. Whether it was another HDB flat or a private condo. this was done to prevent speculating on HDB flats. Also, at that time, if you owned a HDB flat, and you wanted to buy your condo, you had to inform the HDB and sell your flat back to the HDB. All the flats returned to the HDB were at the original price the flat dweller paid for. They in turn were passed on by the HDB to the next buyer also at the same price. This way, public housing was reserved for the people who really need it. Now adays, public housing is build for FTs to buy. All they have to do is get SPR and apply for the flats. There are almost 1.1 million HDB flats, and a population of 3.5 million singaporeans. You telling me that average sinkie household is less then 3.5 people living in it? I don't believe it. Basically, there are many new flats that are being build for rentals.

 

[ginfreely]

In the past when the HDB was really a public housing entity, you had to sell your flat back to the HDB at the same price you bought from them, if you wanted to buy another property. Whether it was another HDB flat or a private condo. this was done to prevent speculating on HDB flats. Also, at that time, if you owned a HDB flat, and you wanted to buy your condo, you had to inform the HDB and sell your flat back to the HDB. All the flats returned to the HDB were at the original price the flat dweller paid for. They in turn were passed on by the HDB to the next buyer also at the same price. This way, public housing was reserved for the people who really need it. Now adays, public housing is build for FTs to buy. All they have to do is get SPR and apply for the flats. There are almost 1.1 million HDB flats, and a population of 3.5 million singaporeans. You telling me that average sinkie household is less then 3.5 people living in it? I don't believe it. Basically, there are many new flats that are being build for rentals.

Got such thing in the past that resale in HDB allowed? Must be a very long time ago as I remember resale levy existed since a long time ago. Anyway with 80% or 1m HDB flats now, I don't think it is possible they do away with resale. But as long as they keep the rules simple for people to buy and stay in HDB flat that is good enough. Currently there are many restrictions such as the one earlier discussed that makes no sense. Another harsh rule is people must sell private and wait 30 months before applying BTO. This easily means 5 years or more to get a BTO depending on how long before successful application and building time. On the other hand, new citizens can apply flat as soon as they are citizens. No restrictions at all and yes all the new flats seem to be for them instead.

 

[hbk75]

That is why in the next downtown. Alot of people who have purchased expensive btos and hdbs will kenna jia lak. Back in the past, all hdb financing have to be under hdb loans. But marlboro tan introduced bank financing for hdb flats back in year 2002 and alot of people actually went for bank loans during 2010-2013 when bank rates were much cheaper than hdb loans. Little did they know that banks can take back your hdb or asking you to top up with cash if the house value drops lower than your loan amount.

 

[xebay11]

That is why in the next downtown. Alot of people who have purchased expensive btos and hdbs will kenna jia lak. Back in the past, all hdb financing have to be under hdb loans. But marlboro tan introduced bank financing for hdb flats back in year 2002 and alot of people actually went for bank loans during 2010-2013 when bank rates were much cheaper than hdb loans. Little did they know that banks can take back your hdb or asking you to top up with cash if the house value drops lower than your loan amount.

If Sinkies were prudent, they would actually save more through better interest rates.

 

[frenchbriefs]

I worry for my friends that have bought into the fairytale.
Some have 2 or even 3 properties, but are not happy when it comes to paying the mortgage.
The finances are always tight...........and even worse, if job security is at stake.

Can't imagine if the interest rate increase another 2% to 4%...........

That means ur friend is subprime mortgage,triple b rated junk,toxic securities,one broken refrigerator away from default,the bank is lending money to people they shouldnt lend.1 2%rise in interest and he defaults.imagine housing prices drop by twenty percent.tell me which bank he borrow from I go short it.next 2016 subprime crisis coming.

 

[hbk75]

If Sinkies were prudent, they would actually save more through better interest rates.

one should not be greedy for low rates when mortgages can spread over a period of 30 years. 30 years alot of things can happen. USD reserve status may be threaten and they may hike rates to those double digits seen in the early 80's. Or a recession when banks started hike rates because of currency out flow.

 

[Papsmearer]

I worry for my friends that have bought into the fairytale.
Some have 2 or even 3 properties, but are not happy when it comes to paying the mortgage.
The finances are always tight...........and even worse, if job security is at stake.

Can't imagine if the interest rate increase another 2% to 4%...........

But what is their option? Invest in Bonds or fixed rate instruments? The rate is so low. Stock market? Risky like hell. Same for commodities. Left only property market.

 

[hbk75]

But what is their option? Invest in Bonds or fixed rate instruments? The rate is so low. Stock market? Risky like hell. Same for commodities. Left only property market.

property market rising like no tomorrow is not because of demand. was due to unconventional monetary policies from FED reserve. print alot of money to lend u.

 

[frenchbriefs]

But what is their option? Invest in Bonds or fixed rate instruments? The rate is so low. Stock market? Risky like hell. Same for commodities. Left only property market.

Rubbish all my money is now invested in s&p 500,s&p 600,us all reits etf,us dividend aristocrats etf,singtel,china merchant and croesus retail.every month expanding portfolio by 2k,waiting to huat ah!!!

 

[xebay11]

Rubbish all my money is now invested in s&p 500,s&p 600,us all reits etf,us dividend aristocrats etf,singtel,china merchant and croesus retail.every month expanding portfolio by 2k,waiting to huat ah!!!

Expanding by $2k per month is Huat? What have you been smoking? Even any cheap HDB can yield that per month in rentals and then there is capital appreciation as well.

 

[xebay11]

one should not be greedy for low rates when mortgages can spread over a period of 30 years. 30 years alot of things can happen. USD reserve status may be threaten and they may hike rates to those double digits seen in the early 80's. Or a recession when banks started hike rates because of currency out flow.

Huh? Since when was low interest rates bad? I was comparing HDB vs lower interest bank loans, the only disadvantage in taking bank loan is the possibility of your HDB being seized, but it you are prudent and play your cards right, this disadvantage would never occur. So you can benefit from lower interest rates, only people who are over committed and stretched, would worry about not being able to pay the loan and property being repossessed by the banks.

 

[frenchbriefs]

Expanding by $2k per month is Huat? What have you been smoking? Even any cheap HDB can yield that per month in rentals and then there is capital appreciation as well.

i mean investing 2k per month,2k per month passive income is long way to go,need at least 300k portfolio.

 

[hbk75]

Huh? Since when was low interest rates bad? I was comparing HDB vs lower interest bank loans, the only disadvantage in taking bank loan is the possibility of your HDB being seized, but it you are prudent and play your cards right, this disadvantage would never occur. So you can benefit from lower interest rates, only people who are over committed and stretched, would worry about not being able to pay the loan and property being repossessed by the banks.

low rates are not bad if you have a stack of ready cash to standby and pay off if rates really goes up to high levels. no for over leveraging like what most sinkies are doing now.