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Hi Mrs. Lee,

May I know the location of this hdb? For older flats, its likely their prices have peaked but their rental yields are high if you have bought it years back. Do note a 7% ABSD is applicable for a 2nd property purchase, hence it might take some years worth of rental to "recover" the ABSD. It would be ideal if I can have more info so to make better recommendations.

May I understand your plans further so to make better recommendations? Thanks and look forward to value-add to your housing plans.

Warm Regards,
Ivan Ng ERA ASAP
(ASk Anything Property)
Proactive. Sincerity. Feedback.
SMU BBM (Finance), Magna Cum Laude

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Hi Ms Lee,

Cash is king, as long you have the sufficient cash or CPF to pay for the 20% upfront payment + ABSD for your second property. You do not have the needs to sell your hdb to finance your private property. Simple .. :)

I am contactable at 92222389  or onassis@sgrealtor.com / sgagent.com

In all Areas of Singapore. Sale/Buy/Lease/Rent, Please call and/or drop me an email me. I’m always at your Services.

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Afternoon Skye,

The basis will be based on your financial status and planning. Do you have funds to support the purchase without selling your HDB unit, not forgetting ABSD payable?

Regards
Mike Lim
 96929209 
m52i@yahoo.com
ERA Read More

Hi Mrs Lee,

Sell it and reduce the ABSD applicable. It is up front savings in a lump sum you will be getting. Even if you can afford the ABSD up front, I will advise you to use this amount of money for other investments which can allow you to see better returns a shorter period of time than retaining your HDB, where it could take at least 3-5 years to just recover back the ABSD you have paid before you even see returns. This is assuming that value of your HDB does not come down as it ages and you have consistent rental income and no costs in terms of maintenance of unit.

I can assist you in this restructuring process like I have done so for my existing clients.

Tenants can visit http://bit.ly/SGExpatRental (Official Rental Requirements - Singapore Expatriates) to indicate your rental requirements.

Claim your free home report today at http://bit.ly/ClaimFreeReport.

Visit and Like my facebook page at https://www.facebook.com/propertyblogshop/

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My self introductory video on https://youtu.be/6UfrCOCB6Mg

Regards,

Geryl LIM
Associate Marketing Director
Global Alliance Property (L3010679B)
CEA Reg R014783H
Mobile: +65-81577565  /+65-92787772
Email: geryl7772@gmail.com

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Hi Mrs Lee
u will be liable for additonal stamp duty. Lets have a thorough discussion so I can do a restructuring for you.
You may reach me via 91442664  for a detailed discussion.
Tricia Tan 91442664  Read More

Hi Skye,

My advice is for you to sell off your HDB.

Let me give you a simple anology. Let's say you purchase a S$1million condo, you will be liable to pay ABSD of S$70,000. This sum is on top of the normal stamp duty that you will have to pay.

Assuming you can rent out your 3RM flat at S$2,500 per month (which is a very very tough ask as average rental for 3RM is below S$2,000), you will need 70000/2500 = 28 months, just to recover your cost of ABSD (S$70,000).

Next, you have to ask yourself, what are the chances your 3RM flat appreciate more than S$70,000 over this 28 months period to S$400,000?

I hope my brief breakdown of the finances can help you with your decision.

Should you require my professional assistance, feel free to contact me at 9748 6305  . I will be happy to assist you in your restructuring.

Thank you and have a nice day!

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More

Good evening Skye,

perhaps you can share more information with me so I will be in a better position to provide you constructive suggestions.

Usually I will advise my clients to restructure their property portfolio by cashing out from their existing property in the event that there's not much further capital appreciation potential, rental perspective is not that great, aging property where prices will usually decline over time etc.

In addition, do take note that you can earn interest if you keep your CPF OA funds untouched but when you use it for property investment, you wont earn interest but will have to pay interest for using your own money. In some instances, my clients suffered negative sale cause CPF OA funds have been depleting their cash sales proceeds.

Maybe from this, you can gauge whether should you keep your HDB.

I think you are pondering whether to keep HDB and purchase a private property or just an upgrade.

By holding on to existing HDB, you have to take note of the cooling measures applicable to you:

1) 7% additional buyer's stamp duty as Singaporean
2) if you use CPF OA funds in your HDB, you have to set aside basic retirement sum $80.5k in your CPF OA + SA first before you can use the excess CPF OA funds in this purchase.

So question is will you want to pay the ABSD? Do you have sufficient cash to purchase a private property if you cant use CPF OA funds?

By letting me understand your situation, I will be able to assist you further.

Hope to hear from you soon!

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Warmest Regards,
YT TAN 陈永达 | ACCA Graduate, RES
Senior Associate Marketing Director
R043025D
Propnex Realty Pte Ltd
Estate Agent no. L3008022J
Blk 480 Lorong 6 Toa Payoh, #10-01/11-01 HDB Hub East Wing, Singapore 310480

(M): +65 9111 5171 
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Hi Skye,
Ideally is to keep the 3 room flat for rent. The rental collected can be used to service the monthly instalment of the condo. Fyi, 7% ABSD is payable for 2nd property. To share with you and advise you more accurately on you plan, kindly drop me an email.

To assist and advise you more in details, kindly drop me an email for me to share.

I am contactable at my mobile or email.

CK Ang
 9046 3808 
res.ckang@gmail.com Read More