Singapore - Housing 04 (Jan 10 - Mar 10)

Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby b0rderc0llie » Fri Jan 22, 2010 6:58 pm

Aspellian wrote:ah ya, you so young! got lots of time and opportunities...
:D


Hehe, thanks for your encouragement. I'm playing a speculative game with properties. Betting that housing prices are high now and will correct. That is why I am renting and does not own any properties.
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby kennynah » Fri Jan 22, 2010 7:00 pm

just remember not to speed in your sports cars....especially not to drive when u drink... then you will have the chance to see your investments work out years later... 8-)
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby b0rderc0llie » Fri Jan 22, 2010 11:21 pm

Hehe thanks... I do not drink, so no problem with drunk-driving :)
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby Aspellian » Sat Jan 23, 2010 12:13 am

b0rderc0llie wrote:
Aspellian wrote:ah ya, you so young! got lots of time and opportunities...
:D


Hehe, thanks for your encouragement. I'm playing a speculative game with properties. Betting that housing prices are high now and will correct. That is why I am renting and does not own any properties.


That's smart and courageous of you to think out of the box when you decide to rent. I have friends who just buy properties (irregardless of timing) simply because they are getting married (also valid reason but high risks).... as long as your MRS have the same mindset as you, time is on your side! :D

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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby Musicwhiz » Sat Jan 23, 2010 12:23 am

Aspellian wrote:That's smart and courageous of you to think out of the box when you decide to rent. I have friends who just buy properties (irregardless of timing) simply because they are getting married (also valid reason but high risks).... as long as your MRS have the same mindset as you, time is on your side! :D


Aspellian,

Your friends can choose to buy cheaper properties, and benchmark the repayments to their combined salaries. It's basically a matter of being prudent, I feel.

As for renting right now, it may seem like a good idea but since we don't know how things will turn out, I'd prefer not to comment on it for now.
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby b0rderc0llie » Sun Jan 24, 2010 5:58 pm

Musicwhiz wrote:As for renting right now, it may seem like a good idea but since we don't know how things will turn out, I'd prefer not to comment on it for now.


Just had a talk with my cousin today, and I found out that he is renting a place too. He is very bullish about properties, so I asked him why did he rent instead of buy. He told me that he already has a place which will be ready in 2 years time, that's why he is renting for now.

Anyway, for the place he is renting, he is paying a rental yield of 1.9%. For the place that I am renting, I am paying a rental yield of 2%. Based on the yield, I prefer to rent instead of buy, and invest the money in the stock market to generate higher yields. For HDB rentals with yield of 6-7%, I will find it more appealing to buy.

As for how things will turn out in the future, I have also thought it out. If housing prices go lower, then I will buy a house at a cheap price. If housing prices go higher, chances are that the stock market is high too, and since I am invested in the stock market, I'll be richer. So, I can either buy an expensive house, or if rental rates are still low, I can continue to rent. Since I do not mind not having a permanent place, and would actually like to move around, this is my strategy for now :)
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby Aspellian » Sun Jan 24, 2010 7:04 pm

b0rderc0llie wrote:
Musicwhiz wrote:As for renting right now, it may seem like a good idea but since we don't know how things will turn out, I'd prefer not to comment on it for now.


As for how things will turn out in the future, I have also thought it out. If housing prices go lower, then I will buy a house at a cheap price. If housing prices go higher, chances are that the stock market is high too, and since I am invested in the stock market, I'll be richer. So, I can either buy an expensive house, or if rental rates are still low, I can continue to rent. Since I do not mind not having a permanent place, and would actually like to move around, this is my strategy for now :)


That sounds like a good plan. all the best!

I am hoping to rent out my HDB 3-5 years time and I calculated that the potential net rental yield could be 8% - so unlikely i will sell.
When a nice (down) cycle comes along, I will look to buy a "distressed" and soon-to-be TOP condo (cos my MRS prefers NEW condo). Hopefully the price is 20% below what the purchaser paid for at the peak - but the purchaser is forced to sell as the highly leveraged plans failed. A distressed seller is a much "willing" seller!

In the meantime, I aim to value-add in my workplace (create higher growth through better deals), get higher salary and fat bonus, save hard, spend wisely, invest wisely and enjoy life's journey! :lol:

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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby Aspellian » Sun Jan 24, 2010 7:07 pm

Musicwhiz wrote:
Aspellian wrote:That's smart and courageous of you to think out of the box when you decide to rent. I have friends who just buy properties (irregardless of timing) simply because they are getting married (also valid reason but high risks).... as long as your MRS have the same mindset as you, time is on your side! :D


Aspellian,

Your friends can choose to buy cheaper properties, and benchmark the repayments to their combined salaries. It's basically a matter of being prudent, I feel.

As for renting right now, it may seem like a good idea but since we don't know how things will turn out, I'd prefer not to comment on it for now.


But nowadays, the HDB ceiling of combined income of $8k forces many white collar to buy condos especially now HDB flats (at better locations) are comparable to condo prices. Between paying $500k-600k for a HDB flat, some people prefer a condo. and when one starts to look for condo, the "standards" change. and their budget become $800k or more. vicious (and clever) cycle to force one to have a root in a country!

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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby winston » Sun Jan 24, 2010 7:11 pm

Hi BC,

If you look at yield only, renting would be the approach..

However, people buy because:-
1) they expect an influx of FTs to boost up property prices as if those new FTs can afford the properties in Spore :?
2) they think that Spore would be the next playground of the ultra-rich, especially with the two new IRs as if the ultra rich has no other place to go :P
3) they think that there's no more land as if the developers cant build higher :o
4) they think that the economy would continued to be strong ;)
5) they think that it's still cheap compare to Japan, HK, London and Dubai :lol:
6) they think that there would be a bigger fool to buy it off them :P

Ok, it's Sunday so I'm just yapping out loud :P

Not vested.

Take care,
Winston
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby kennynah » Sun Jan 24, 2010 7:48 pm

is this combined $8K salary ceiling regulation applicable to direct purchases from HDB? or applicable also to open market purchases?
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