Considerations between Resale or Condo? Place to stay for long or as an investment

Hey anon, we're assuming you mean resale HDB flat. Our co-founder Race Wong's advice is this: "Consider leasing out the first private property you buy — instead of living in it — and rent a more affordable place for your family.

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For example, if you lease out your newly purchased condo for $5,000 and rent another flat for $2,000, that’s $3,000 every month, or $36,000 annually. In three years, that’s more than $100,000. That’s a lot of money to help you pay off the mortgage.

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If you buy a private property for your own stay, you lose any earning potential from what may be your biggest asset at this point. Not only have you spent the bulk of your savings with this move, but you also now have a bigger mortgage to service and not much cash left over for other investments."

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We also discuss the pros and cons of living in a resale vs condo here: https://ohmyhome.com/en-sg/blog/hdb-vs-condo-ex...

• BTO. You can anyhow buy. Stay long or investment u will still make money. U can make up your mind if you want to invest or live long after MOP. Downside you need to wait 5 yerars to build , then live 5 years before selling

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• If you go into condo you must look at the price of surrounding project, their transaction trend and the price. Not all condo will make money. Thus, you cant choose the place you like, you must choose a place where majority of population like, the capital appreciation around that area and the price you pay.

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• If you going into resale condo (not too old, just TOP), u also must look at surrounding project, like how u select your new launch. If the surrounding project is all $2000psf, the resale psf is below that, it may be a potential buy

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• 1st Factor: you must able to secure a bank loan, with your salary and you have the 5% cash for downpayment.

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• 2nd Factor: you must be ok to pay the instalment every month, ($4 to 5k per mth), prefer mostly by cash, if is an investment.

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• If you want to rent out, let the tenant pay for majority of the instalment. You/your spouse must be ok to live with parent or in-law.

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• $$$ VS Privacy. Can only choose one.

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