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Anonymous
We are a couple exploring a few options. I am below 35 years old, while my partner is 36.
1) Buy resale flat to stay, and buy 1BR condo for investment in 3-5 years time . Thereafter, move to condo and rent out resale flat.
2) Buy a 2BR condo together, stay for 3 years and flip it to get a bigger condo.
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Go for option 1 to stay.
But size it right such that he is able to buy at least a 4 room flat so that you do not need to move to a bigger flat if you guys have kids.
Concurrently buy a condo under your own name. Preferably New Launch so that you can see bigger capital appreciation nearing TOP.
Once reach TOP, Review your plans again.
If you need a bigger unit, see if you guys want a bigger flat or not?
If not continue stay in the 4 room flat.
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Tan Choong Hwee
26 Apr 2021
Solutions Specialist at Providend
I would pick option 1. Lower upfront downpayment commitment, flexibility in choosing which property ...
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Between the 2 options, option 1 is more sensible. There's no guarantee you will be able to flip it after 3 years for a profit, and the next condo you find may be much more expensive than what you anticipate..Transactional fees eg. stamp duties and all will also eat into your potential profits.
But have you thought of this...
Is a condo truly an upgrade over a resale HDB? You may find that if you don't use the facilities you end up having a downgrade in terms of location and space.
Also do consider that financing for a second property may be difficult in terms of the downpayment and maximum bank loan available in one person's name.
Lastly HDB does have specific rules in terms of inheritance in the event of one partner's demise. If it is not joint owner the person inheriting the HDB might have to sell the HDB upon inheriting it or sell the condo and move to the HDB.