Asked 2w ago
I might be outlier. Currently, I'm staying in a condo with my parents. They have agreed to let me to stay with them and they respect my decision of not settling down. With this financial flexibility, should I still aim to buy a property when I hit 35 for solely investment purposes? Or should I channel my savings, from not buying a HDB, to my current investments instead?
My take on this is that it is best to BTO, I feel the opportunity cost of not getting a BTO with the potential to resell it in 5 years or even fully rent it out indefinitely is a waste. The only downside I really see to this is that you have to live in the HDB with other tenants (house hacking) before the MOP date which some people may strongly be against. If not, I'm hopeful(because I haven't done any calculations whatsoever) the rental from the tenants are able to cover your monthly loan payments also ideally a 30 year loan so the monthly out of pocket isn't so heavy.
The other side of looking at it is selling it right after MOP but for this, a little bit more research and thinking has to be done I feel because of said location, accessbility, facilities and whatnot. It is however a somewhat more instant way of getting back your initial capital used for the house that you can potentially invest somewhere else.
Really depends how you want to play the game from here on out I feel. If it were me in your shoes, I'd go for the former simply because I value the steady income I receive and I find joy in planning and preparing my "pipeline of money" whether that may be a BTO or not. Although not everyone wants to deal with the hassle of managing a property. In that sense, investing in reits would be better for somewhat steady income too however without the need to manage people and a property.
BTO a unit which ought to have demand (e.g. location, surroundings, etc) and sell it ASAP (i.e. after MOP).
3 more comments
Best to get a BTO. Because normally cheaper. After 5 years of MOP. Must sell already.
You can get a 3 bedroom, if privacy not an issue
then rent out 1 / 2 room
take 30yr loan if possible, so $$$ deduct from OA is lesser
rental will cover the installment during MOP.