Good afternoon upgrader,
Nowadays you cant do decoupling for HDB thus ABSD is unavoidable if you want to purchase a second residential property.
If you decide to hold on to HDB and rent it out at the same time, pay ABSD, you will have to calculate how long do you need to rent it out to cover the sales proceeds and ABSD.
For instance, rental is $2000 not inclusive of property tax, maintenance costs etc.
Sales proceeds is $$100k and ABSD is $70k. You will need to rent it out for at least 7 years assuming it is occupied without any rental loss.
At the same time, the rental wont be able to cover your mortgage for second property for the same period as well. So what do you think will be a better option?
As an owner, you know it yourself that as the property gets older, the value will drop. If you feel there wont be any upside and more competition for sale or rental in future, what should you do?
Perhaps you can share more with me on your current HDB and your next ideal accommodation so I will be in a better position to assist and advise you further.
Let's see which option works best for you and whether will you possibly have any cash reserves for raining days.
Just to share!
Only a one time sign up, you will be able to receive a free SMS update on the value of your home and neighborhood from me on a monthly basis.
Click this now: http://goo.gl/Gg5pe3!
Join me on board towards a hassle free update on valuation now!
YT TAN 陈永达 | ACCA Graduate, RES
Senior Associate Marketing Director
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
No.1 team in Propnex