Buying a second new HDB Vs Resale Flat

With rising costs and increased learning needs, financing our children's education is no longer a simple walk in the park. Discuss with other parents about how they are managing their finances to cope with their expenses.

Buying a second new HDB Vs Resale Flat

Postby xueyan » Wed Feb 22, 2012 2:24 pm

Hi

Dh and I are thinking about whether we should buy a new HDB or a resale HDB.

We have utilized one chance of buying a new HDB (our current house). The price of current flat we are staying is quite good, i mean comparing the price we bought and the recent transacted price in the neighbourhood. So we thought of cashing out the profit. However as we are not young anymore, we resist the idea of getting a big loan if we buy a resale flat. Resale flat definitely cost a lot more than a new flat. As such we thought we could buy a second new HDB. I understand we have to pay a lump sum levy of $45,000 back to HDB. Besides that, what are the other considerations?

Thanks!

xueyan
BlueBelt
BlueBelt
 
Posts: 296
Joined: Tue Jun 16, 2009 4:45 pm
Total Likes: 0


Re: Buying a second new HDB Vs Resale Flat

Postby hquek » Wed Feb 22, 2012 4:06 pm

xueyan,

If you do not pay the levy and your resale flat goes for enbloc in future, you won't be eligible for some subsidy or you may choose to give back that 45K PLUS interest - but you will still be able to select a replacement flat. This happened to my dad years back - i'm not sure if there was any change.

resale vs new - it's not easy. some things i would consider:
1. location - must I stay in this location? what are the flat options
2. renovation - resale tend to cost more in terms of renovation
3. size - old flats may be larger in size compared with new ones
4. choice - most of those that sold their units in my block are low floor, the high floors have been there and they dun look like budging. Going for new will let you choose high floors/better facing etc.

hquek
Councillor
Councillor
 
Posts: 6535
Joined: Fri Jul 18, 2008 10:07 am
Total Likes: 70


Re: Buying a second new HDB Vs Resale Flat

Postby Jimm1978 » Thu Apr 26, 2012 3:13 pm

Hi xueyan, like hquek said..there are several things you have to consider for resale flat. A resale flat in a good location is going to cost so much more and you don't have that many options ie level, unit etc. You'll have to do the math and see if the profit after returning the $45k plus interest back, is worth it. There's a possibility that you will still have to take out a property loan, but a much smaller one. In addition right now, the local banks like DBS, POSB, OCBC etc have very low SIBOR.

Jimm1978
YellowBelt
YellowBelt
 
Posts: 12
Joined: Thu Mar 22, 2012 4:33 pm
Total Likes: 0


Re: Buying a second new HDB Vs Resale Flat

Postby LOLMum » Thu Apr 26, 2012 3:17 pm

one risk every buyer of a resale flat has to to face is suay suay pick a flat that is marked by loansharks.

also do a check to make sure neighbours on the left, right, front, back, upstairs and downstairs all okay.

LOLMum
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 3808
Joined: Fri Feb 19, 2010 7:25 pm
Total Likes: 1


Re: Buying a second new HDB Vs Resale Flat

Postby fightingmom » Thu Apr 26, 2012 3:44 pm

LOLMum wrote:one risk every buyer of a resale flat has to to face is suay suay pick a flat that is marked by loansharks.

also do a check to make sure neighbours on the left, right, front, back, upstairs and downstairs all okay.


If that is your worry- I would suggest to knock on the Neighbours' Doors to check and ask politely or get the agent to do it if u engage one . Especially those vacant units, it is better to find out who lived there before and maybe the history of its occupants of any. We are talking a peace of mind and nowadays cannot just sell like that - got to stay at least 5 years if a housing grant is taken.

fightingmom
KiasuGrandMaster
KiasuGrandMaster
 
Posts: 6805
Joined: Tue Apr 26, 2011 9:52 pm
Total Likes: 6




Return to Money Matters