You may have seen Facebook ads on upgrading property.
One of them which was well crafted read “HDB becomes your most POWERFUL Asset".
Others were:
Average income HDB owners move into a condo”. Asset progression! Secrets to property upgrading!The advertisements are well designed. But there are potential issues financial with this idea and it does NOT suit everyone.
Some HDBs have huge book value gains!
This post is to illustrate some of my conclusions of how it works…
If you bought a BTO (built to order HDB) especially around 2005 to 2007, chances are that your house has appreciated in value because of the strong upward trend in property prices.
From 2005 to 2012, property price index gained about 20%p.a!!
That is why ads target HDB home owners who bought before 2013.
Assuming that the BTO was bought at $300,000 many years back, perhaps it can be sold off now at $780,000 on the open market.
Propertyguru and 99.co
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