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 #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 #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.
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