Asked by Anonymous
My wife and I moved in 2 years ago and we are worried that our resale flat will lose its value if we live here too long. When do we know if it’s a good time to start looking for a new property? We are both working professionals with a combined income of approximate $9000. Thank you all in advance!
You would have lost a certain pool of buyers after your flat turns 40 years old. That's because buyers can't use their cpf for the flat after it is 70 years old. For flats that are in between 40-70 years old (meaning remaining lease of 60-30 years), buyer's age plus remaining lease must be at least 80 years for them to still be able to use cpf and/or take max loan. Or else they have to buy your flat using more cash. Unless your house is in a prime district and many people are willing to spend cash, I would say your flat loses value after 40 years.
It would be good to sell before the HDB flat reaches 40 years old. However, you need to fulfill your 5 years MOP before you can sell. You may also want to reconsider whether you want to just breakeven, make a profit or a loss, taking into account of your interest and loan repayments amount.
I believe your house buy value consider good and should be able to make profit after 5 years when you meet Minimum Occupation Period (MOP). Personally, I'll sell it and buy another one although I may incur additional charges and taxes but the HDB over 40 years old will be hard to sell with the additional rules and regulation except your house location is very good.