Wednesday, October 21, 2015

[Final Decision] Change of Plan

Change of plan! I decided to go for a condo instead of HDB. The reason is because my girlfriend and I has been thinking that we should go for condo if we want to shorten the time to get our second property for rental yield. 

In the past few months, we have been contemplating on whether to go for HDB (resale) or go for private property. We got the result, which is going for condo instead because of various reason that we should go for.

First reason: shorten the time to get our second property - because my girlfriend currently owns a condo, so she can sell her condo to purchase another condo for rental yield. (2 to 3 years later after we have higher income and higher savings to get a better/bigger condo)

Second reason: Prevent selling at a loss - because the property market isn't going very well and we guess that next few years, the property price will drop slightly which will result in loss or just a bit of profit which is not the optimal result that we would like to see.

Third reason: Restriction - because if we purchase a HDB we will need to wait for 5 years in order to purchase second property. Secondly, we will need to wait till 35 years old in order to opt for single program, whereby either me or my wife can take off the name under the HDB flat and purchase the second property. If we do not choose this path, we will need to pay 10% stamp duty, which is too much and not really that worth it.

Understanding that there might be risk in purchasing condo as well!

First Risk: Deplete my savings after I make my down payment (should be around $130k to $145K), we aiming for cheap condo either next year or in year 2017 (like high park resident).

Second Risk: Got fired from my job - which is why my wife and I will wait for few years later when we have sufficient savings in order to purchase the condo, as my wife  and I will bear the condo installment (in the case I got fired). If not, I will pay for the installment by myself.

Third Risk: Interest rate increase, this one really no choice, we need to include the possible of interest rate increase into the calculation.

So these are the reason and risk that we have consider in order to come to this conclusion. So what do you think?

1 comment:

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