for the hdb seller, it is a massive gain, but not much for the buyer. the property is 39 years old and if the buyer was to sell off next time, alot of issue like financing will surface due to the shorter lease left in the first place. For the condo, it is rather subjective whether the 2m is worth it.
In investment, what goes up will eventually come down. Property prices are in the Euphoria stage, now it is the time to trap those bag holders. If you intend to buy a property that is valued insanely high, that tells you something. If you agree that demand dictates market price, then maybe ask the buyers "local Singaporeans" would you pay $1M for a HDB that has 50 years on the lease. You will probably get the answer.
Obviously if you are buying a roof for your family, HDB will be a better choice. For the past 30 years, HDB has a consistent appreciation in value. Owning a HDB for a number of years, you can still buy a private property when you have enough savings, whereby if you buy a private property, you cannot buy a HDB unless you sell off your private property. This method of investment will be more prudent , consistent and more relaxing. Unless you are super rich, if then why compares Private or HDB. Disclaimer
Josh, have you ever compared a computed estimated amount of rebates, home conservancy fees, property tax, and miscellaneous fees related to living in both public and private apartments? And the thesis of how if the difference between both is used to invest in, say S&P500, over the same period of time, maybe it might be a better 'preservation or wealth' or even appreciation? Ultimately, i feel that any property thesis stems from the initial question that one as to answer: Is this apartment a comfortable shelter or investment buy/buy for profitability?
Hi josh, i noticed u used a 99LH condo as an example to compare w the HDB Say if u used a FH condo example instead, would it be different then? u would def not be worried about lease decay anymore, and if you're purchasing something around 20 years old, perhaps even enbloc would be on the horizon...
Hi Chan, the project was mentioned by the couple and its a 99LH. You might like this =) Is It True That Properties Past 15y Have Very Little Headroom For Growth? | Property Investment SG czcams.com/video/EUi0ZhAVqvI/video.html
Josh, I always believe that one should not buy a resale property as a place to stay and not for investment. HDB's prices are all controlled and moderated by the govt. In this case, this person can be sure that his 1.15M 60-yr remaining lease for this tiong bahru hdb will very HIGHLY likely not make money or preserve his wealth. If he hopes to preserve or to make money from HDB properties then he should just wait for a BTO flat. I personally think that he stands a better chance of preserving his wealth/making money buying THE right condo.
Hi Hazel, Im more of the view that private and HDB resale prices are intertwined. The case study data showed in this specific instance that 10y ago, IF a person bought the 70y remaining TIONG BAHRU HDB lease vs 93y remaining lease TRUMP condo, this instance the HDB was better
Dear Hazel, if you "always believe" it stops you from opening up your mind to other viable ideas. And "always" is not always applicable to different people with different needs. Josh has supported his findings with data, albeit with a small sample dataset.
The answer is obvious - buy the $2m condo such good upside in future. Why is the person renting in the first place is also questionable, should have just got a small condo of his own since he is paying $3400rent - easily the mortgage amount sufficient for a 2b1b OCR condo if he bought in 2020.
$1.15mil for a very old HDB…..only one word need to be said…………SIAO! Think of it, it may be good. In life, we need losers. If not, how can others make money from them
@@joshconsultancy Thanks for your kind advice. I guess any potential buyer should think hard whether the next buyer of this 40 year old HDB will pay higher price or even the same price (which he bought) if he decides to sell 10 years later. Lease decay happens to all types of leasehold properties, be it private or public housing
hi josh, My kids are 15 and 17 years old each of them saved up around 30-50k though out the years from pocket money and CNY hangbao The money is currently kept with me in a log book their weekly allowance i give them in Cash. the younger one is very frugal doent like to spend and save majority of the $ the older one is an impulsive spender they are at age where i want them to be responsible with their money and spendings. Do you think opening a bank savings account is a good idea, but how do i track their spending especially my elder one. what is your advice for their savings assuming is 50k. to put in FD, SA, S&P500 or something else, under their name of course.
Hi Fuusha, this is a good question. Could be featured in a future video =) my gut feeling is FD and SA teaches nothing about wealth building. Hence Id rather lean on investing and even if they blow it through, it will be a good lesson
Hi Josh, you video actually blew my mind. I actually am facing the same dilemma your fan is facing. 1 Million premium HDB or 2 million condo, it is a hard choice
OHMYHOME (Referral link to book now!) - calendly.com/ohmyhome/ohmyhome-joshtan
for the hdb seller, it is a massive gain, but not much for the buyer. the property is 39 years old and if the buyer was to sell off next time, alot of issue like financing will surface due to the shorter lease left in the first place. For the condo, it is rather subjective whether the 2m is worth it.
fair pov
The HDB seller will be laughing his ass off to the bank😅😂
In investment, what goes up will eventually come down. Property prices are in the Euphoria stage, now it is the time to trap those bag holders. If you intend to buy a property that is valued insanely high, that tells you something. If you agree that demand dictates market price, then maybe ask the buyers "local Singaporeans" would you pay $1M for a HDB that has 50 years on the lease. You will probably get the answer.
Obviously if you are buying a roof for your family, HDB will be a better choice. For the past 30 years, HDB has a consistent appreciation in value. Owning a HDB for a number of years, you can still buy a private property when you have enough savings, whereby if you buy a private property, you cannot buy a HDB unless you sell off your private property. This method of investment will be more prudent , consistent and more relaxing. Unless you are super rich, if then why compares Private or HDB. Disclaimer
love tt ^
Josh, have you ever compared a computed estimated amount of rebates, home conservancy fees, property tax, and miscellaneous fees related to living in both public and private apartments? And the thesis of how if the difference between both is used to invest in, say S&P500, over the same period of time, maybe it might be a better 'preservation or wealth' or even appreciation?
Ultimately, i feel that any property thesis stems from the initial question that one as to answer: Is this apartment a comfortable shelter or investment buy/buy for profitability?
If vs equity investment, then it becomes a comparison of past performance. Futile in decision making moving forward.
Hi josh, i noticed u used a 99LH condo as an example to compare w the HDB
Say if u used a FH condo example instead, would it be different then? u would def not be worried about lease decay anymore, and if you're purchasing something around 20 years old, perhaps even enbloc would be on the horizon...
Hi Chan, the project was mentioned by the couple and its a 99LH. You might like this =) Is It True That Properties Past 15y Have Very Little Headroom For Growth? | Property Investment SG czcams.com/video/EUi0ZhAVqvI/video.html
3 to 100 million also got people buying as long as the STATE allows VERY RICH foreigners to BUY.
less politics better. Lets find constructive points for the discussion
Common people trying to live the HIGH LIFE. STRESSFUL
Josh, I always believe that one should not buy a resale property as a place to stay and not for investment. HDB's prices are all controlled and moderated by the govt. In this case, this person can be sure that his 1.15M 60-yr remaining lease for this tiong bahru hdb will very HIGHLY likely not make money or preserve his wealth. If he hopes to preserve or to make money from HDB properties then he should just wait for a BTO flat. I personally think that he stands a better chance of preserving his wealth/making money buying THE right condo.
Hi Hazel, Im more of the view that private and HDB resale prices are intertwined.
The case study data showed in this specific instance that 10y ago, IF a person bought the 70y remaining TIONG BAHRU HDB lease vs 93y remaining lease TRUMP condo, this instance the HDB was better
Well said
Dear Hazel, if you "always believe" it stops you from opening up your mind to other viable ideas. And "always" is not always applicable to different people with different needs. Josh has supported his findings with data, albeit with a small sample dataset.
The answer is obvious - buy the $2m condo such good upside in future.
Why is the person renting in the first place is also questionable, should have just got a small condo of his own since he is paying $3400rent - easily the mortgage amount sufficient for a 2b1b OCR condo if he bought in 2020.
Hmmm... not saying less upside but saying upside part just becoz its private &/or its younger is not certain. The case data points suggested so
Hi Josh, the 5 times annual income includes spouse's?
2. Where do you get the 10yr chart on the 2 properties (time on vid 18:40)?
Thank you.
Hi clarence, yes I view it as include. Naturally for singles the equation looks harder. Charts are from propertyguru
My 4 room is also close to 136sqm. 😉
Wow thats big! Ive never seen any 4rm that size
crazy.. juz throwing money down the drain, even if can afford.. rather pay 50c for $1 worth of commodity though in hindsight, judgement may err..
hmm? Is it the age of the flat or is it coz its HDB? - theres an example of marine parade 5rm sold for $1m w 51y lease
@@joshconsultancy 70 age/ 30 asset class thingy.. the only consolation is saving on maintenance i guess..
Seems like his household is way above income ceiling 😉
Ceiling only for BTO/EC, no income ceiling for resale.
$1.15mil for a very old HDB…..only one word need to be said…………SIAO! Think of it, it may be good. In life, we need losers. If not, how can others make money from them
be nice be nice =)
@@joshconsultancy Thanks for your kind advice. I guess any potential buyer should think hard whether the next buyer of this 40 year old HDB will pay higher price or even the same price (which he bought) if he decides to sell 10 years later. Lease decay happens to all types of leasehold properties, be it private or public housing
@@1965Singaporean the ones who lost money are usually the one who looked at past records or statistics. 😊
@@1965Singaporean hahahahaha let’s make thing simpler and not get so political even though we are from two opposite camps.
60yr lease remaining means rental for one generation. At the end of the day, zero value, next gen got nothing lor.
Eh... by that definition, only freehold matters which may not be the case?
hi josh,
My kids are 15 and 17 years old
each of them saved up around 30-50k though out the years from pocket money and CNY hangbao
The money is currently kept with me in a log book
their weekly allowance i give them in Cash.
the younger one is very frugal doent like to spend and save majority of the $
the older one is an impulsive spender
they are at age where i want them to be responsible with their money and spendings.
Do you think opening a bank savings account is a good idea, but how do i track their spending especially my elder one.
what is your advice for their savings assuming is 50k. to put in FD, SA, S&P500 or something else, under their name of course.
Hi Fuusha, this is a good question. Could be featured in a future video =)
my gut feeling is FD and SA teaches nothing about wealth building. Hence Id rather lean on investing and even if they blow it through, it will be a good lesson
@@joshconsultancy thanks josh
Hi Josh, you video actually blew my mind. I actually am facing the same dilemma your fan is facing. 1 Million premium HDB or 2 million condo, it is a hard choice