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05-01-2011, 12:02 AM
Depends. If it's a HDB flat that is 30yrs old, I would sell.
If it's a HDB that is 5-29yrs old, i will rent out.
99LH typically has value that depreciates very fast after 30yrs old.
You might think it's positive cashflow for the rest of the 69yrs left, but the depreciation will more or less nett off the gains from the rental gain.
I would also take into account the time value of money. Overtime, the value of money grows smaller and I would gladly take a mortgage loan(though at 50% LTV).
A private property and a HDB property is vastly different and a switch from HDB to Pte property is preferred for me as I believe HDB prices will be capped to the affordability of 90% of the population. Private ppty prices are left to its own devices and is not necessary to follow the affordability of the 90%.
If it's a HDB that is 5-29yrs old, i will rent out.
99LH typically has value that depreciates very fast after 30yrs old.
You might think it's positive cashflow for the rest of the 69yrs left, but the depreciation will more or less nett off the gains from the rental gain.
I would also take into account the time value of money. Overtime, the value of money grows smaller and I would gladly take a mortgage loan(though at 50% LTV).
A private property and a HDB property is vastly different and a switch from HDB to Pte property is preferred for me as I believe HDB prices will be capped to the affordability of 90% of the population. Private ppty prices are left to its own devices and is not necessary to follow the affordability of the 90%.
