Which is a smarter financial choice - Buy ready to move-in resale flat at $80k higher or buy the cheaper flat requiring some work with spare $80k to remodel the flat the way we want? - Seedly
 

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Asked by Anonymous

Asked on 18 Oct 2018

Which is a smarter financial choice - Buy ready to move-in resale flat at $80k higher or buy the cheaper flat requiring some work with spare $80k to remodel the flat the way we want?

All else being same.

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Julie Tan
Julie Tan
Level 3. Wonderkid
Updated on 07 Jun 2019

I would choose to buy the cheaper flat and remodel it myself as I’m pretty sure I can do it the way I want with less than $80K. Some of the fixtures that come included with the $80K worth of Reno may not last long and also doesn’t seem to be inclusive of furniture.

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Leong Wen Fong
Leong Wen Fong

19 Oct 2018

yea actually 80k feels a little excessive for a house remodelling doesn't it?
Julie Tan
Julie Tan

20 Oct 2018

Yeah it does! especially if one is satisfied with simpler styles/themes.
Siti Putri
Siti Putri
Level 5. Genius
Updated on 07 Jun 2019

The design of the place will be subjective to your liking. So if you like the design and still well maintained fixtures, then yes.

But another point to note is, do you have the extra $80k in cash? If not, it will be part of mortgage loan which is only 1.8%-2.6% interest per year depends on bank or HDB loans. But if u chose to renovate yourself without own cash, then you have to take renovation loan which is 5% interest per year.

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Julie Tan
Julie Tan

20 Oct 2018

I think you raised a really good point that this $80K can be covered using home loan instead of taking personal loan to cover for it! But I guess if one don't have the cash to pay for $80K worth of renovations anyhow, then better to live within means. At the end of the day, better to limit debt.
Daniel Ling
Daniel Ling
Level 5. Genius
Answered on 19 Oct 2018

I had to go through this thought process myself. Here's mine.

does the design really suit you.

Eg: false ceiling is a trend. But it makes your ceiling lower.

Things that are mounted has a lower weight limit.

Reducing the concept of wide and high space for good living.

Every design feature needs to be analyzed to see if it fits.

80k price point is possible for a full renovation

It's not about the smarts. A lot of these designs are driven by emotions. You just have to rise about it.

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Npm Adele
Npm Adele
Level 4. Prodigy
Answered on 19 Oct 2018

Depends on what you need, do you need to move in immediately?

I'd think renovation can cost less than 80k, so you can save money remodelling.

How about other factors such as additional works (and thus, additional costs), the unit's location/age etc?

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Kai Xin
Kai Xin
Level 4. Prodigy
Answered on 27 Oct 2018

Depends on how long you intend to stay there.

Stay there long term, make room for some budget to do up the place according to your style, if not minor works would suffice

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Good Day Every Day
Good Day Every Day
Level 7. Grand Master
Answered on 21 Oct 2018

Neither is a good choice. Buying BTO directly from hdb is better. Just my humble opinion.

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Teo See Hwa
Teo See Hwa, MArketing Associate at Propnex
Level 5. Genius
Answered on 21 Oct 2018

Do note about compond interest in resale HDB and negative sale.

I will not buy resale HDB if I got a choice.

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