1. FIRST TIMER PROFIT TOOL
Finally the playing field is almost level. HDB 2rm BTO is good value for money, for first timer of average earning means, definitely recommended. There is a potential profit of 250k in 5 yrs to be made (assuming you get all grants, to be eligible salary must be as low as 1500 and below iirc). Case in point, Sengkang 2rm built 2007 resold in 2013 for 260 to 280k. In short, treat it as a money making tool for the mid term. Like how many does with their first hdb bto.
2. STEPPING STONE
Once you have the 250k, it is easier to upgrade to EC if you find a partner or private if you have better earning power then. Assuming prices stay flattish or grow slowly next five years that is.
3. DOWNGRADING OPTION
For those older singles looking to cash out of their current place (could be hdb or old private), it is also a viable option for downgrading. After MOP, they may even cash out and with the previous proceeds and new profit, they may get a new smaller private condo to live out their final years, or if they find someone and get married, the extra cash would help a lot towards getting a new house and starting a new family.
4. FINAL DESTINATION
Of course, it can be viable as an option to retire in for the rest of your life. Asset and debt light, one can spend more freely on other stuff.
Finally the playing field is almost level. HDB 2rm BTO is good value for money, for first timer of average earning means, definitely recommended. There is a potential profit of 250k in 5 yrs to be made (assuming you get all grants, to be eligible salary must be as low as 1500 and below iirc). Case in point, Sengkang 2rm built 2007 resold in 2013 for 260 to 280k. In short, treat it as a money making tool for the mid term. Like how many does with their first hdb bto.
2. STEPPING STONE
Once you have the 250k, it is easier to upgrade to EC if you find a partner or private if you have better earning power then. Assuming prices stay flattish or grow slowly next five years that is.
3. DOWNGRADING OPTION
For those older singles looking to cash out of their current place (could be hdb or old private), it is also a viable option for downgrading. After MOP, they may even cash out and with the previous proceeds and new profit, they may get a new smaller private condo to live out their final years, or if they find someone and get married, the extra cash would help a lot towards getting a new house and starting a new family.
4. FINAL DESTINATION
Of course, it can be viable as an option to retire in for the rest of your life. Asset and debt light, one can spend more freely on other stuff.
You forgot to discuss about the age!
ReplyDeleteApply @ 35, takes 4-5 years to build, 5 years MOP, = 45 years old!
You are right! But there are quite a lot of leftover units from previous exercises, some even ready built, if you are lucky like strike toto you may get! Lol
DeleteShave off 4yr construction time.