Saturday, 12 November 2016

Sell or Keep - aging HDB

The concept of retirement for me would be cashflow; passive cashflow covering expenses. Ideally, I would want to buy more properties in Singapore. Cooling measures in Singapore makes it difficult for me even if cashflow is wise, even with both properties, I can still keep my mortgage servicing  under 60% in adherence to the restriction of the TDSR.

My HDB bought under my name is 32 years old... it is aging. The neighbourhood is under going Neighbourhood Renewal Programme, which means money is spent to upgrade the estate. Since money is spent on the estate, it would be unlikely that this estate would be en-blocing soon.

I am faced with a dilemma, since I need a bigger space, I need a new space. The current HDB can give me good yield (gross ~ 9%, Nett Cash on Cash ~ 17%), how impressive can this yield be.

My total returns from rental for the next 60 years could yield > $1mil. However, the hdb is unlikely to rise in value anymore.

Going for a new Condo, I have to take on risks and may not get to retire at 45, the returns could be greater than >$1mil...

Decision time...

Update : Jan 17

There was no decision made after all. 2016 proved to be difficult times and I ended up with no new purchase. While windows closed for lending in australia, malaysia is bubbly, singapore restricted. Suffered some setback with decisions in Pattaya against my favour, an appeal is underway. Cambodia finally revealed its intention. Some losses to be expected.