• Your Property Partner

    LINCOLN & JESYI

    Real Estate Consultants

    Real Estate Investors

    Team Leaders @ PropNex Realty

    Life Partners

  • TOP 5 REASONS WHY PEOPLE UPGRADE

    FROM HDB TO PRIVATE

    (It is not just for the status and condo facilities..)

    1

    Affordability is Present

    First and most importantly consideration before embarking on upgrading plans. For many cases, it is possible for the upgrade to happen without any top up from cash savings

    2

    HDB Resale Prices on the Downtrend Since 2013

    With no positive signs of improvements with the huge introduction of supply from government with BTO launches and New Towns

    3

    Maximise Monetary Gains from HDB

    This is especially so for flats which just fulfilled the Minimum Occupation Period (MOP)

    4

    Reduce Effect of 'Negative Sales' in the Long Run

    Heard of 'negative sales'? This is a scary reality for many especially when you consider your asset to be a big part of your retirement plans

    5

    A Safe Way to Save Money for Retirement

    Do you know that owning a property with a higher value and better upside potential will help greatly in the long term even though it seems to be 'stressful' to allocate more income into the mortgage repayments for your property?

  • REASON #1 : AFFORDABILITY IS PRESENT

    Upgrade Without Stress With Detailed Financial Planning

    Government Had Stepped in to Control Property Prices

    Overall Prices Based on the Property Price Index 'Stagnated' from 2013 to 2017

    This was to ensure a sustainable property market where property prices are in line with general income levels.

     

    In a bid to promote financial prudence when purchasing a property, the government had introduced Mortgage Servicing Ratio (MSR) and Total Debt Servicing Ratio (TDSR) to enforce a set of strict requirements before the banks are allowed to grant a loan

    Property Prices Are More Generally More Affordable Now Compared to Earlier Years When Income Levels Were Lower

    Due to Cooling Measures, There is Good Gap Between Income and Price Levels

    This is the reason why people who can afford to upgrade are able to take up the desired loan amount based on their income.

    If HDB is Under Joint Names, 2nd Property Purchase Will Incur ABSD

    There Is An Increase of HDB Owners Who Have to Sell Before Buying As They Are Unable to Come Up With 12% in ABSD to Buy First

    Only Executive Condominium (EC) purchase are not subject to ABSD when making a purchase. For Private Properties, ABSD can be refunded provided that it is a matrimonial home purchase (joint name between husband and wife).

  • REASON #2 : HDB PRICES ON THE DOWNTREND

    HDB (Public Housing) Prices MUST Be Kept Affordable for >80% of Singaporeans

    While in the Private Property Market, Prices Increased from 2017

    There is More Upside Potential in the Private Residential Market

    Many HDB owners realise that switching to a better performing asset is important for retirement planning, and to ensure that their hard earned money is put to better use.

    Largely Due to Huge Supply of HDB Build To Order (BTO) Flats

    Demand for Resale Flats Greatly Reduced, Even Till Today

    More HDB home buyers chose to buy direct from HDB instead of the resale market due to cheaper + brand new flats.

  • REASON #3 : MAXIMISE MONETARY GAINS FROM HDB

    Achieving A Good Price Or Not Boils Down to Supply & Demand

    Sell When Demand is Higher VS When Demand is Lower

    Results Can Vary Significantly, Depending On Market Situation

    But for sure, profits are still being made if bought direct from HDB.

    When A HDB Flat Freshly Completes its Minimum Occupation Period, It Usually Has the Most Attention Since Buyers Will Be On the Lookout at New MOP Clusters

    Whether the Demand Can Maintain or Not Depends on Location & Amenities

    This is the reason why many HDB owners are seriously looking to sell once their MOP is fulfilled.

  • REASON #4 : REDUCE THE EFFECT OF 'NEGATIVE SALES' IN THE LONG RUN

    Unlike #3, This Reason is Largely Applicable to Owners Who Either Bought Their HDB from the Resale Market During the Peak, or Had Held On to Their HDB Flat for a Long Time

    Bought Resale Flats During the Peak

    Valuations Would Have Dropped for Owners Who Bought During 2009 to 2012

    Based On Current Supply Levels & Outlook, No Sign of Any Recovery in the Short to Mid Term

    CPF Accrued Interest Will Continue To Accumulate

    Negative Sales Will Be Common Since Flat Valuations Have Come Down for Older Flats

    There is a good chance of $0 cash proceeds when looking to sell for retirement funds.

  • REASON #5 : A SAFE WAY TO SAVE MONEY FOR RETIREMENT

    Forced Savings, Kept In A Safe Asset

    Real Estate in Singapore is Widely Regarded As A Safe Asset

    Due To Government Policies, Open Economy and Limited Land

    During crisis, Singapore's property market is often looked upon as a 'safe haven' for foreigners to keep money safe. This is with the fact that they have to pay a hefty Additional Buyer's Stamp Duty (ABSD) of 20%!

    A Higher Property Value Enables You to Cash Out With More Money When It Comes to Retirement

    Thus, You Have the Option to Have More Money for a Comfortable Retirement

    Above scenario is based on property values which do not increase even after 30 years. This is highly unlikely, especially for private properties.

  • START PLANNING YOUR UPGRADE WITH THE RIGHT KNOWLEDGE

    Get in Touch Now to Arrange for a Non-Obligatory Discussion & Detailed Planning

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