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Dear guru, please advise me on the following. My parent had a 4 room HDB at central area. Which would be a better option:
1) I am 36 years old and able to buy a 3 room resale flat at the same area about 430K. Both HDB were about 30 years old.
2) Sold away the 4 room HDB flat and apply a new EC in suburban area for 900K with my parents?

Thank you.
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4 Answers

Hi,

Based on the limited info shared, assuming you are purchasing under the Single Singapore Citizen Scheme for Option 1,
Option 1)
Holding 2 HDBs with balance lease of about 69 years, when it comes to resale value later, it might be reduced significantly. Flats with 60 years balance lease or less, the incoming buyers CPF usage and loan will be restricted. However, you have the option of renting out your parents HDB while they move in with you into the new unit. There is rental income to secure their retirement.

Option 2)
If the location suits you and your family, you parents will get to enjoy condo lifestyle into their golden years, while you have a property with strong capital appreciation potential and condo lifestyle. The resale value is not an issue. There will be no rental income, and you will be solely supporting the mortgage repayments as they near retirement years. However, the sales proceeds from HDB will be able to fund a portion of the property cost from the onset, hence repayments should be manageable.

More importantly, what are your objectives and priorities? Thanks and hope to understand your requirements further so to value-add to your housing plans further.

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Ivan Ng
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Dear sir/madam,

I would say that alot will be based on what intangible value each option can project for you, which is very much different for individuals. For example, my family, in laws and parents are all staying in the east, therefore moving away from the east will create alot of inconvenience for me but the value of me purchasing near my parents homes will create lots of value which cannot be measured by dollars and cents. My office location is also in the east, therefore it has alot more value for me to be staying here.

Shifting to another location, upgrading to an EC with facilities may not mean as much to me in terms of value although my children may love the pool and I may like to have a gym in the project.

Therefore the value of which option is better for you can be best answered by yourself.

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Hi!

Thank you for your query!
Perhaps you could share more on your requirements, lifestyle preferences and most importantly, finances (Cash / CPF OA) on hand for me to be in a better position to advise. With that in mind, I will be able to conduct a comprehensive financial cash calculations and progressive payments w timeline to asses which residence option will best suit your interest and property portfolio. Best, to take this step by step, with a long term perspective ; % scope of appreciation and capital gains in mind.

I had a client, with a similar dilemma recently, and I advised him to purchase an EC after the thorough preliminary checks and calculations. The 1st testimonial in the following link illustrates how I went about assisting him in a step by step and systematic manner : http://www.kumarrai.com/agent-page/88280/testimonials

Furthermore, it will be apt for me to map out the live transaction caveats and illustrate the price analysis ( capital gain / rental & sales report ) to explain in depth more on the procedural framework involved. You can also take this opportunity to clear your enquiries and allow me to give you more market insights , and suggest alternatives to leverage on the weak market! Look forward to your reply!

D Kumar
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ERA Associate Division Director
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GAN ENG JOO ONASSIS
Hi,

Pls feel free to contact me to have a discussion.

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