Resale HDB in Singapore | Buying Resale Old HDB in Singapore
Property | Real Estateby Priyadarshini 19 January 2022
As they say home is where your heart is. It is true because most people put all their life’s savings to purchase their own house. Especially in Singapore where the cost of living is exorbitant! Many people pour all of their money into their houses, taking out enormous loans that they spend the majority of their lives repaying, because real estate is more than just a place to live! It’s an investment vehicle and a retirement plan. In this blog, we tell you about resale HDB in Singapore. Here’s what you should look out for to re-sale your HDB flat.
The government cautioned in 2017 that not all elderly HDB units will qualify for the SERS (Selective En bloc Redevelopment Scheme). The announcement shocked Singaporeans who had purchased ancient resale apartments in the hope of living to see the day when their house was taken over by the government upon the expiration of their lease. Whatever people say about old resale flats, they’re still on the market, and people will keep buying them despite the uncertainties. As a result, when the government recovered possession of all 191 apartments in the Geylang Lorong 3 neighbourhood on December 31, 2020, we HDB residents watched in shock and bewilderment.
What should you do if you’ve been relying on your HDB to get you through retirement?
Resale HDB in Singapore
Aside From Your Home, You Must Have Other Forms of Savings or Investments
The average Singaporean’s lack of retirement preparedness has been well reported. Prioritizing home purchases over saving and investing in other ways has undoubtedly contributed to this state of things. The CPF system, which was originally designed as a kind of retirement savings, is now used by many people to pay for their homes by emptying their Ordinary Accounts. Many others, although having accumulated significant funds, do not bother to invest because they want to spend it on their first home.
Real Estate Can’t be Your Backup
While it is true that property in Singapore is expensive, as we all know, don’t make the mistake of believing that possessing a large, expensive home automatically entitles you to retire whenever you choose. In April 2017, the government indicated that if you make wise housing decisions, HDB flats could be a good store of asset value. What is the prudent course of action now? Perhaps years of waiting for a BTO in a poorly placed and immature estate? Property is no longer the get-rich-quick investment vehicle it once was. Outside of your home, you must have savings and assets. Don’t put all your eggs in one basket, especially if it’s an outdated HDB resale property. This is a very important factor in resale HDB in Singapore.
Attempt to Maximize your Return on Investment While Purchasing a Home
You should expect the value of your property to plummet as the lease nears its end. Loan limits will narrow the pool of purchasers available to you, and if you don’t manage to sell it at a loss, your only chance will be that the flat is chosen for En Bloc. That isn’t to suggest that you can’t improve your return on investment, even if you’re dealing with an ancient apartment. There are additional methods to make money from your property, such as renting out spare bedrooms in your apartment. If you do intend to sell the apartment, it is preferable to do it as soon as possible. Depending on the lease, you may be able to generate a profit if you sell the flat in 5 to 10 years if the property market improves over the next decade.
Look for a Good Deal!
Finally, it’s critical to investigate the prices of potential flats you’re interested in to ensure you don’t get taken advantage of. Don’t overpay for an HDB flat just because it’s in a trendy neighbourhood right now. Examine the resale prices in your area to ensure you are getting a decent deal. If you want your property to pay off as an investment, you must resell it well before the lease expires. Keep these factors in mind when attempting to buy a resale HDB in Singapore.
You should also strive to maximize the number of housing grants you qualify for as a percentage of the flat’s sale price. Keep in mind that having your parents living with you or within 4 kilometers of your new apartment will add an extra $20,000 to the grants you receive. And, because the grants are based on income, you may wish to apply early in the process, when your income is smaller.