HDB upgrade to EC or Private Condo?

• 1st things to consider is Affordability before profit.

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• Upgrade from HDB to EC is very complicated, u may want to engage an agent to help you plan your financial, i just roughly touch on it (U no need to pay agent fee, the developer will pay the agent)

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• when u dispose ur subsidised HDB to buy an EC u need to pay a levy. You must have the $$$

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• Then u definately wont sell your hdb immediately, when the EC only ready in 5 years time. Else where will you stay?

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• then you need to borrow $$$ from bank. It will considered 2nd loan if u never sell your hdb. The loan amount will be lower.

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• there is 2 type of payment scheme for EC: progressive payment and deferred payment. You probably have to choose deferred payment scheme. The downside you will end up paying more compared to the progressive payment.

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• In addition, because EC is a hdb before privatise, ur loan calculation will factor MSR+TDSR, meaning you can borrow less money i.e. you can borrow more $$$ for a $1 mil condo VS $1 mil EC. You need alot of cash for downpayment.

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• Also now u living in a hdb, as we know most hdb depriciate as it age. If you thinking of using the sale proceed to fund the EC, u must take into consideration the price of your hdb in 5 years time.

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• you ask me, i favor condo.

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