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22 charts showing 4 room HDB resale prices across Singapore

In Singapore, 80% of the residents stay in HDB flats. Some buy new launches while others buy resale flats. In any case, Singaporeans can’t be blamed for having the mindset of wanting to profit from their capital appreciation of their flats. In recent years starting from 2013, housing prices have started a decline when the government implemented multiple rounds of cooling measures. This came about because of various rounds of cooling measures ranging from Additional Buyer Stamp Duties (ABSD), Seller Stamp Duties (SSD) and Additional Conveyance Duties (ACD). The HDB resale market was not impacted as severely as the...

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Negative HDB sales

In recent years, HDB resale volume has been declining in the aftermath of various government cooling measures like the Mortgage Servicing Ratio (MSR) and capping of the loan term for HDB loans. Arising from these policies, there have been cases of negative HDB sales. What is exactly negative HDB sales? It means that after you sold your HDB flat, the resale price is sufficient to pay off the outstanding HDB or bank loan but not enough to repay fully the CPF refund with accrued interests. In this situation, besides having no cash proceeds from the transaction, you may even...

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$1m for 30 year old HDB flat and what now?

Reader: I wonder what you will do if you were me- can you talk to yourself? I finally sold my maisonette for >$1mil, as it almost hit 30 years old. I had paid up my HDB loan a few years ago, so have this full amount available in cash and CPF. I have a family of 5 including 2 teenagers and a helper, so am looking for a place to buy. Although $1mil may sound like a lot, there is hardly any property to buy if I rule out HDB options. My husband and I are in our mid...

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Devastating HDB Loan and CPF Accrued Interest

Ranked Top 75 Singapore Investment Blog by Feedspot Subscribe to Blog via Email Be afraid. Be very afraid after reading this article. This is an article that all aspiring and existing home owners can ill-afford to miss. And I do mean it because you may live to regret for dismissing the message in this article. Today, I am going to share with readers the devastating effect of HDB Loan combined with CPF Accrued interest. Many financial bloggers wrote about CPF accrued interest and HDB Loan. However, they may not have the real experience of purchasing an HDB flat or...

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The Complete Guide: Bank Loan vs HDB Loan

Getting your HDB for the first time can be quite an experience. From applying for your unit to getting your house keys, there seem to be an endless amount of information to read up on. To top it off, a HDB flat is one of the big ticket purchase for many and everyone is trying to make more informed decision to save some bucks. Making informed decision is rather brain draining. To save you from all the hassle, we summarise the differences between a Bank Loan and a HDB Loan into 5 minutes walk in the park. TL;DR: Comparison...

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Why I Would Refinance From HDB Concessionary Loan To POSB Home Loan

TL;DR: If I were still on the HDB Concessionary Loan for the mortgage of my flat, I would switch over to the POSB Home Loan in a heartbeat. Why? $23,000 of savings and perks over a decade. Read on to find out how. WHY I AM LOOKING AT HOME LOANS AGAIN 1) Prefer Lower Mortgage Rates As mentioned in this earlier post, by refinancing from the HDB Concessionary Loan (HDB CL) to a bank loan 4 years ago, I was able to take a small advantage of the low SIBOR rates with some form of certainty, knowing that my...

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23yo bought 40yo HDB flat and worried.

Reader: I am currently 23years old & married. My husband and I purchased a resale flat last year. Back then we did not read nor have knowledge about financial planning.  We purchased what we want and our desired location… Our resale flat is actually quite old. I think is 40 years old this year… Many people called us stupid for buying resale flat instead of BTO ones.  And since we didn’t have proper financial planning, we exhausted our entire CPF to pay for the flat. So, our CPF is 0 now.  We also took a loan of 25 years…...

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How Aspiring Home Owners Can Benefit From HDB Re-Offer Of Balance Flats

The government recently introduced a new scheme for Singapore citizens applying for HDB flats. Known as the Re-offer of Balance Flats (‘ROF’), it pools all unsold flats after a Sale of Balance Flats (‘SBF’) exercise. Heartland Boy thought this was a very interesting scheme. The public seemed to agree too as more than 5,500 applications were received for the 1,394 flats that were available. Here is Heartland Boy’s review of the ROF scheme and how aspiring home-owners can benefit from HDB Re-Offer Of Balance Flats. What Is The Re-offer Of Balance Flats? According to HDB, the Re-offer of Balance...

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HDB loan vs Bank loan – Why I will still continue with my HDB loan

There has been many articles on this discussion and I have been researching on it time after time. Each time I wanted to be convinced to change but I was not. So I spent some time organising my thought process and would like to share them with you here. Why I went with HDB loan in the first place? Lesser cash upfront For the purchase of HDB flat, 20% of the amount is needed as the down payment. If you have sufficient CPF funds and with HDB loan, you can pay this 20% fully with your CPF-OA account. For...

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HDB Lease Buyback Scheme and you.

Reader: Parents in late 60s considering whether to go for lease buy back on their HDB flat (42 yr old flat) or leave it to children. Lease buy back so that parents can increase current monthly pocket money and thus lessen burden. Parents are more inclined to stay in flat. Though selling entire flat can fully monetise the value of the flat, but given that it is already 42 yr old flat, waiting another 10 to 15 year likely will see a drop in property price in the current peak market condition. Plus Singapore is a developed n aging...

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A Comparison between HDB loan and Bank loan for your new BTO

As most of us would know, HDB charges around 2.5% for their loans while we can find a lower rate by taking a bank loan despite the risk of fluctuation in interests. Here is a list of offers we can get from a bank loan. In most of the cases, the difference between both HDB loans and bank loans is about 1%+. Never forget that the extra 1% is paid monthly and it will compound for years. The main difference in terms of payment will be its down payment. You can choose to pay 10% of your HDB value using CPF...

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Which HDB flat to buy?

Reader says: I have read your posts and have been following you for quite some time. Have been reading your posts on purchasing properties and following up on the replies. Really interesting :) I would like to seek your advice for choosing a HDB flat. Hope you don’t mind helping me out. I want to buy a flat that is more accessible and convenient, closer to the central region. I plan to sell the unit after 5 years of stay when my financial is ready for an upgrade. However the flats in the estate I am interested in are...

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Your House Is Not Really Your Asset – How a HDB flat might depreciate over time?

Recently, a particular news shocked many people in Singapore. For the first time, the government has confirmed to take back 191 plots of land in Geylang Lorong 3 when their 60-year lease expires in 2020. For a long while, many people do not believe their housing price will go to zero when the lease expires. This is a confirmation of what is to happen in decades to come for the other housing estates which will have their leases expire in the future. SLA has said no compensation will be given and no extensions are allowed. Unlike land acquisition by the Government,...

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An average HDB household and $1 million.

Some might remember that I talked about an article written by Cai Haoxiang in The Business Times in 2013. He wrote about what an average household’s monthly expenses could look like in 2042, using the Household Expenditure Survey 2007-2008 from the Department of Statistics as reference. 1997-1998, an average HDB household’s expenses was S$2,681. 2007-2008, it was S$3,138. That was an increase of 17%. By 2042, if core inflation is 2% a year, that number would hit S$6,400. In 3 decades, the number doubled and then some. If we were to assume that costs would increase steadily, monthly expenses...

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How to Avoid Cleaning Out Your CPF Balance When You Take a HDB Loan

When you apply for a loan from HDB to buy a flat, it will take all the money from your CPF Ordinary Account (OA) before giving you the loan. This is to reduce the loan amount that you need to service. If you wish to avoid an empty OA account, you can temporarily transfer some of your OA balance out of CPF before you apply for the HDB loan. The pros and cons for either approach are discussed in Clean Out CPF Balance When Taking HDB Housing Loan? A reader recently asked me how to temporarily transfer some of...

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