taxico wrote:bro75 wrote:Why did we pay the COV? which I did when I bought my HDB. Because, paying the COV allowed me to buy the flat I want during that time. I could have insisted in paying less, but I will not be able to get the flat. During that time (2010), it was a good decision as both rentals and HDB prices shot up afterwards. As of this time, it is still a good decision versus renting. I believe COV more or less reflects the true market value rather than the official valuation which lags the market.
wouldn't the true measure of the COV's "worth" be apparent only after you've sold your flat? (as opposed to the perceived prices in flat owners' heads)
Do you mean whether the COV is worth paying for at that time? You are correct but since we cannot predict the future, we have to make a decision based on conditions at that time. At the time we bought, MOP for PRs is only one year and you do not need to sell your private
property. PRs can also buy immediately after being approved. Interest rates were low and there were fewer loan restrictions. Rents were starting to rise again after falling on 2009. We also looked at other properties and got quoted higher COVs than what we ultimately settled for.
If I sold my flat now (based on last transaction values at my area), I would have netted some amount, so it is worth it now but who knows down the road. For now, we feel that what we paid for was worth it. I know the situation can change as we saw in other parts of the world.