That's kind of contradicting isn't it............ oh I seerevhappy wrote:Hi All,
I am planning to stay here for may be the next 10 years. I was wondering whether it would be better for me to buy an HDB apartment. (If and When I get PR, that is)
My friend tells me this is suspicious. Spider-sense tingling.I know of someone...The agent helps her to make a profit.
Better more like you CAN get your PR. Not until - there's no guarantees any longer.revhappy wrote:I did some more research and calculations and have come to the conclusion that if the tenure of stay is 3 years or more it is better to buy than to rent!
Consider a 3 room HDB appartment in Tampines that was constructed 25 years ago. It costs about 250K $ and rents are 1500$ At the moment.
The rental yield in Singapore is 5% whereas mortgage rate is only 1.4% for the first 2 years and then max it goes to 3-4%. The additional costs while buying is about 3.5% and 3% while selling. Bet you the 3-4% is not ironclad guaranteed.
So even if the appartment value doesnt appreciate you break even after about 3 years.
So it seems to be a no brainer that buying is always better here if you have visibility of beyond 3 years and are able to cough up the 20% downpayment+COV
Does anybody disagree with the above? The cases when buying can be a wrong decision are:
1) Rental yield falls below the mortage rate. Has that ever happened in Singapore? Yes, quite often over the last 4 recessions. Of course that is also depending on the length of the mortgage you are taking up.
2) The inflow of foreigners reduces drastically hence bringing rentals down. That is already happening.
3) Appartment value depreciates more than 10% over a period of 10 years.
Welcome your suggestions!
God I cant wait untill I get my PR
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