Asked by Anonymous
Hi there,
Am what to do next with my current property
Currently own a 3 bedder condo unit at D19, with my family
Purchased the property at a decent entry price in 2019 and thankfully the property has appreciated over the last 3 years.
Objective
My key objective, would be the following
1> find another property that could provide a better capital appreciation potential
Options
Am pondering over the following options
Option 1> Stay status quo - hoping that the current property continue to appreciate further
Option 2> Sell and purchase a resale property - ideally selecting a resale property with better capital appreciation potential in the next 3 to 5 years
Option 3> Sell and purchase a new launch, and rent for 3 years - this options is conceived with the consideration of new launch providing better capital gain over 3 year holding period, with saving on interest expense, renovation expense, vs the option of buying resale in option 2. Noted that rental expense over (4,500 x 12 x 3) will be incurred over 3 years
Concerns
1> My concerns over option 2 would be purchasing a resale property with little growth, i.e price appreciation, or would require a long holding period of greater than 5 years to realize reasonable capital gain. This will result in me being stuck with a larger mortgage payment that eats into monthly cashflow while not achieving my objective of attaining greater capital gain
2> My concern over option 3, would be the cost of paying rental for 3 years eats into the profit or worst case the new launch did not appreciate much, resulting in a sunk cost incurred for rental over 3 years
Am what to do next with my current property
Currently own a 3 bedder condo unit at D19, with my family
Purchased the property at a decent entry price in 2019 and thankfully the property has appreciated over the last 3 years.
Objective
My key objective, would be the following
1> find another property that could provide a better capital appreciation potential
Options
Am pondering over the following options
Option 1> Stay status quo - hoping that the current property continue to appreciate further
Option 2> Sell and purchase a resale property - ideally selecting a resale property with better capital appreciation potential in the next 3 to 5 years
Option 3> Sell and purchase a new launch, and rent for 3 years - this options is conceived with the consideration of new launch providing better capital gain over 3 year holding period, with saving on interest expense, renovation expense, vs the option of buying resale in option 2. Noted that rental expense over (4,500 x 12 x 3) will be incurred over 3 years
Concerns
1> My concerns over option 2 would be purchasing a resale property with little growth, i.e price appreciation, or would require a long holding period of greater than 5 years to realize reasonable capital gain. This will result in me being stuck with a larger mortgage payment that eats into monthly cashflow while not achieving my objective of attaining greater capital gain
2> My concern over option 3, would be the cost of paying rental for 3 years eats into the profit or worst case the new launch did not appreciate much, resulting in a sunk cost incurred for rental over 3 years
226 views
