Should I buy my HDB flat now?

[flinger]

Hi ,

What is your opinion on the HDB resale market.

I am looking to move into my own home but when I look at the prices of the resale HDB flats, the COV that people are asking from 30K - 60 K, seems ridiculous to me.

However, I am not sure when this is going go down.

I have the opportunity of staying in another place and waiting it out for a long period of time. My questions is how long should I wait it out.

The houses that use to cost like 280,000 now cost like 340,000. It seems people just want to rip people off.

Any opinions , views that you could share.

Thank You.

[yeokiwi]

Wah.. this is a very difficult question.

Currently, I think BTOs are still the best although most of them are far away from cities. However, they offer the minimal financial damages if a tsunami strikes.

DBSSes and ECs are the worst especially those ECs that are launched recently. For those upgraders, they have to pray that in the 3 years that the exec condo is building, there is no property crash that will affect them when they sell their flats. Lastly, they have to hold on to their babies for 5 years before they can sell. A total of 8 years before selling of their EC is an option. Meanwhile, any rise in interest rate will increase their monthly loan repayment.

Resale flats are good but most dwellers will not bite unless they are offered a good COV. HDB flats are good value and there is really no hurry to offload it.
I looked at the resale flat prices and I think the prices are really high but on a psf basis, i think 4 rooms are still the best bargains.

[brattzz]

if just buying for staying in, make sure it's a comfortable and nice one.. prices will be quite secondary.

if buying for investment, another story!

[Musicwhiz]

Coming from a purely layman's standpoint, I think you should probably wait and see if the cooling measures have any effect on prices, at least in the next 3-6 months.

From the recent news on the "hot" EC launches, the Government may even decide to take more drastic measures to cool down the "fever". So you never know if they may step in one more time. After all, election is round the corner!

[flinger]

Thank you MW and all for your comments. Much appreciated.

MW, that has been my thinking too. I got a lot of family members asking me to buy now, but I don't think it is the right time to buy.

Yeo - I qualify for a BTO and am a 1st time applicant and have not applied for any flats as of yet. But BTO's take 3 yrs plus to build and was wondering that is like way too long, but maybe that is the only choice I have?

What about others? Any other views?

[thinknotleft]

Well, the govt is busily building a lot more flats now. If you can wait 5-8 years, HDB prices may be cheaper then.

The recent EC is hot because it is near the mrt. It may not be sufficient to prod govt into further actions.

With the possiblity of QE in US, the low interest rate environment may last quite a while. The high housing prices may persist for sometime.

[bongster31]

Thank you MW and all for your comments. Much appreciated.

MW, that has been my thinking too. I got a lot of family members asking me to buy now, but I don't think it is the right time to buy.

Yeo - I qualify for a BTO and am a 1st time applicant and have not applied for any flats as of yet. But BTO's take 3 yrs plus to build and was wondering that is like way too long, but maybe that is the only choice I have?

What about others? Any other views?

hi flinger,

dont mind me being a busybody. personally, i think the resale hdb prices will soften. the COV will definitely come down next few qtrs. just have to be patient. personally, i bought a EA n transaction completed in jul before the new rulings was announced in aug. i paid like 28k COV. if u r willing to wait n monitor the next few qtrs, u should be able to even not pay any COV. of coz, it depends on the location n unit of yr choice.

just to share my experience with property investment/purchase. never rush. have a mid to long term view. for example, if u r setting up a family or have elderly at home, u might wanto consider where u want yr kids to study in future or find a unit which is convenient for yr old folks, etc. things to note that the transaction cost of buying n selling a property is very high. for simple illustration, if u make 100k capital gain, approx 50k will go to stamp fees, legals fees, bank fees, reno, etc etc.. not to mention the time n hassle put into it.

please take a look at a few good articles on last thursday BT online which is free after 6pm. there is one very good one which has a chart on the various govt curbing/stimulus measures/crisis's effects on the property price index during the past few decades in spore property history. by looking at the timing of those event corresponding to the space in time on the chart, it should be easy to make an intelligent guess wat the effect n mid term directions the latest measures will have on the property price index.

just my 1 cent worth.

feel free to comment n good luck for yr hdb hunt!

cheers,
bongster31
p/s: if u want the article/chart, give me yr email n i can send it to u.

[flinger]

Thank you MW and all for your comments. Much appreciated.

MW, that has been my thinking too. I got a lot of family members asking me to buy now, but I don't think it is the right time to buy.

Yeo - I qualify for a BTO and am a 1st time applicant and have not applied for any flats as of yet. But BTO's take 3 yrs plus to build and was wondering that is like way too long, but maybe that is the only choice I have?

What about others? Any other views?

hi flinger,

dont mind me being a busybody. personally, i think the resale hdb prices will soften. the COV will definitely come down next few qtrs. just have to be patient. personally, i bought a EA n transaction completed in jul before the new rulings was announced in aug. i paid like 28k COV. if u r willing to wait n monitor the next few qtrs, u should be able to even not pay any COV. of coz, it depends on the location n unit of yr choice.

just to share my experience with property investment/purchase. never rush. have a mid to long term view. for example, if u r setting up a family or have elderly at home, u might wanto consider where u want yr kids to study in future or find a unit which is convenient for yr old folks, etc. things to note that the transaction cost of buying n selling a property is very high. for simple illustration, if u make 100k capital gain, approx 50k will go to stamp fees, legals fees, bank fees, reno, etc etc.. not to mention the time n hassle put into it.

please take a look at a few good articles on last thursday BT online which is free after 6pm. there is one very good one which has a chart on the various govt curbing/stimulus measures/crisis's effects on the property price index during the past few decades in spore property history. by looking at the timing of those event corresponding to the space in time on the chart, it should be easy to make an intelligent guess wat the effect n mid term directions the latest measures will have on the property price index.

just my 1 cent worth.

feel free to comment n good luck for yr hdb hunt!

cheers,
bongster31
p/s: if u want the article/chart, give me yr email n i can send it to u.

Thanx Bongster31 for the detailed write up. I am certainly hoping and praying for some cooling measures to happen further.

As you mentioned, I am looking at the long term as well as planning for all the above mentioned things. The prices I am getting seem to over-stretched. I got one where the valuation is 440,000 and asking 510,000 and and its not at a good location somemore. Crazy fellas.

[brattzz]

ok, hang in there, ECs and DBSS launching also, look out for them!

[koh_52]

fling san,
my short comment, too tire just back from hse hunting....

Hdb resale and private prices are pulling far apart..i.e. HDB cov is dropping and Private properties prices are moving up fast, after the national day cooling measure, on private pty owner cannot buy HDB, this 1 quite effective.

Actually i m chasing after good location HDB resale at bishan, but suddenly new rule kick-in and i stop looking but still many agents called me to inform dat prices dropping as much as 20k-30k now. m i still interested?

However, there a surge in private pty, read the newspaper the number of new launches can tell...I think hot money is flowing into this safe haven red dot tiny state like waterfall , couple with the coming GE most likely in end Dec or early Jan next year.

This evening kena play out by an idiot old bird agent...within half an hour of viewing a FH old apt at aro $1000 PSF, i give a 1% cheq to him , on the way to get the owner sign the option he called me and say got someone offered 10k more than me and ask me the match this price...Apparently, he tot i desperate for the unit, my guess he fixed with the owner to squeeze me another 10k, thereafter divided the extra $...frankly there are many unethical agent around, trying to take advantage but not on me....i told him go and fly kite.....

Anyway, my take is interest rate will be still at super low within next 2 yrs...so its worth to capitalize on this and leverage on properties...my personal opinion only