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Renounced PR, re-enter with EP

Relocating, travelling or planning to make Singapore home? Discuss the criterias, passes or visa that is required.
revhappy
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Postby revhappy » Thu, 08 Mar 2012 9:31 am

zzm9980 wrote:
hellodollar wrote:if your REP expired and you can't renew your PR status, then you can't own a HDB flat. Either you have to surrender it back to HDB or sell it.



And RevHappy , it wasn't even implied as anything snide, I was making a joke as I actually just learned myself this was a common scam :D Why even bother with an HDB though? I've looked myself, and it seems for what you need up front for down+COV, might as well just put it down on a private condo :(


Haha, Yeah, I know that you didn't imply, but I just wanted to clarify that I was seeking info and not suggesting the poster about what he should have done :)

BTW, regarding the condo vs hdb, although the initial amount maybe same, the amount of risk you are taking on your books is totally different. A 3 room HDB costs 350K whereas a 2 bedder condo of decent size costs 800k. A 20% drop in price in HDB means you just lose 70k where in case of the condo you lose 160k. I am just looking at saving rent here and not really capital appreciation

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Postby sundaymorningstaple » Thu, 08 Mar 2012 9:55 am

revhappy wrote:
BTW, regarding the condo vs hdb, although the initial amount maybe same, the amount of risk you are taking on your books is totally different. A 3 room HDB costs 350K whereas a 2 bedder condo of decent size costs 800k. A 20% drop in price in HDB means you just lose 70k where in case of the condo you lose 160k. I am just looking at saving rent here and not really capital appreciation


Which was exactly the reason I bought my HDB in 1999. The Asian financial market crashed in '97 and property bottomed out in Jan-Feb 99. My rent shot up from $400/mo to 1200/mo. (Used to live in old Black & Whites in Seletar Camp for 15 years before everybody figured out they were worth a lot more money that that) Figured if I was gonna spend 4 digits on rent may as well buy and at live rent free as interest rates no longer made it attractive to leave the accumulating money just sit in the bank. So, at the moment, looks like I've done good as current valuation is around 120K above valuation when I bought it and I've only 19 more payments and it's free & clear. :)

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zzm9980
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Postby zzm9980 » Thu, 08 Mar 2012 10:34 am

revhappy wrote:
zzm9980 wrote:
hellodollar wrote:if your REP expired and you can't renew your PR status, then you can't own a HDB flat. Either you have to surrender it back to HDB or sell it.



And RevHappy , it wasn't even implied as anything snide, I was making a joke as I actually just learned myself this was a common scam :D Why even bother with an HDB though? I've looked myself, and it seems for what you need up front for down+COV, might as well just put it down on a private condo :(


Haha, Yeah, I know that you didn't imply, but I just wanted to clarify that I was seeking info and not suggesting the poster about what he should have done :)

BTW, regarding the condo vs hdb, although the initial amount maybe same, the amount of risk you are taking on your books is totally different. A 3 room HDB costs 350K whereas a 2 bedder condo of decent size costs 800k. A 20% drop in price in HDB means you just lose 70k where in case of the condo you lose 160k. I am just looking at saving rent here and not really capital appreciation


Fair point. I guess I just see HDBs as more inflated now than condos. And most of the 2 Bed HDBs in areas I'd consider seem to be almost 450k after COV. I see that COV value as pure bubble, more so than over-inflated private condos.

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Postby sundaymorningstaple » Thu, 08 Mar 2012 10:47 am

The COV is what drives valuations up over time. :cool:

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Postby revhappy » Thu, 08 Mar 2012 3:08 pm

zzm9980 wrote:
revhappy wrote:
zzm9980 wrote:
hellodollar wrote:if your REP expired and you can't renew your PR status, then you can't own a HDB flat. Either you have to surrender it back to HDB or sell it.



And RevHappy , it wasn't even implied as anything snide, I was making a joke as I actually just learned myself this was a common scam :D Why even bother with an HDB though? I've looked myself, and it seems for what you need up front for down+COV, might as well just put it down on a private condo :(


Haha, Yeah, I know that you didn't imply, but I just wanted to clarify that I was seeking info and not suggesting the poster about what he should have done :)

BTW, regarding the condo vs hdb, although the initial amount maybe same, the amount of risk you are taking on your books is totally different. A 3 room HDB costs 350K whereas a 2 bedder condo of decent size costs 800k. A 20% drop in price in HDB means you just lose 70k where in case of the condo you lose 160k. I am just looking at saving rent here and not really capital appreciation


Fair point. I guess I just see HDBs as more inflated now than condos. And most of the 2 Bed HDBs in areas I'd consider seem to be almost 450k after COV. I see that COV value as pure bubble, more so than over-inflated private condos.


I kind of agree with you, when I did some analysis in early 2010, a 2 bedder decent HDB in Tampines used to cost 250k whereas a 2 bedder condo like Melville park used to cost 700k. At that point if was a PR, I would have bought without any second thoughts.

Now the same HDB costs 350k and the 2 bedder in Melville part costs 800k. So it looks like HDB relatively is overvalued.

But when market turns who knows. HDB might not fall 100k but Melville park may fall more than that. I dont know, but just feel that condos will fall a lot more than HDBs.


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