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I know many readers are waiting for my blog on passive income received in 3Q 2021 but it is going to take a bit more time as there are quite a few things I would like to talk to myself about.
In the meantime, I am publishing a relatively short blog on delays in HDB BTO projects which might be of interest to some readers.
The COVID-19 pandemic and the subsequent Delta variant made life really difficult in more ways than one for many people.
A 99 years leasehold HDB BTO flat is a good quality housing option in Singapore if we are looking for a home to call our own till the day we die.
Related posts:
One of the consequences is the longer time it takes for construction work to be completed and this has, of course, affected the completion of HDB BTO projects as well.
Some people need their flats urgently and have decided to buy resale HDB flats instead of waiting for the completion of their HDB BTO flats.
However, for those who are in less of a hurry, the wiser thing to do is probably to wait.
The two big considerations would be
1. financial cost
and
2. the leasehold nature of HDB flats.
Readers who have been following my blog for a long time would know that this is a topic I have blogged about pretty frequently before.
BTO HDB flats, everything else being equal, are the most affordable form of housing in Singapore.
BTO HDB flats, everything else being equal, are the most affordable form of housing in Singapore.
I would have bought one myself if I could but I did not qualify for one.
There are plenty of conspiracy theories out there about how the PAP government is out to rob us of our CPF savings by selling us 99 years leasehold HDB flats.
It always amuses me to read or to hear stuff like that.
These people are either misled or out to mislead.
They are either misinformed or malicious.
A 99 years leasehold HDB BTO flat is a good quality housing option in Singapore if we are looking for a home to call our own till the day we die.
Unless we have very strong reasons for buying a resale HDB flat, wait for a HDB BTO flat.
Like many things in life, patience will be rewarded.
If you are new to my blog, you might want to read the following blog which I shared with a reader who contacted me recently:
"You mustn't tell people that.
They will look down on you."
Bloggy Award
16 comments:
I'm single too. Can't buy BTO in those days, so I ended up purchased a resale 4 room flat near an MRT station. Its rather old, still got around 61 years lease. Its a simple affordable house that offer a roof over my head for my family and a peace of mind. I gets to pay only the town council fees and gets GST rebates from gov now and then. :)
Hi TDT,
Yes, we should always be mindful and buy what we can comfortably afford.
If we keep our needs simple and our wants few, most of us will not overstretch our finances.
In your case, if the flat is not going to be a legacy for the next generation, I don't see any issue with a shorter lease. :)
References:
1. Buy a private condo and wage slaves we become?
2. HDB flat is 37 Years old and son is only 8.
3. $1m for 30 year old HDB flat and what now?
Yes, I downgraded to a resale HDB debt free after a successful enbloc. The advantages of staying in a HDB is plenty w like lower town council fees. Government dish out lots of goodies too for example 2 of my daughters + wife receive money from Government this year. Last year, 2020 we received more due to COVID19 and election year.
If I were to buy a condo probably I am stuck in paying mortgages though the rates are reasonable.
Hi Siew Mun,
Thanks for sharing your experience with us.
HDB flats FTW! :D
I agree with you. However, sadly singles are disadvantageous when it comes to BTO applicability. Only 2 Room Flexi flats when 35 years old and earning less than 7,000/mth.
In the end, the only option is to purchase from the resale market. However, the price is so jacked up. I wish the government would step in to place some controls in the market.
Hi sugarhoney,
Oh, is the salary ceiling $7,000 a month now?
That's not too bad because it was $5,000 the last time I checked but that was many years ago, if I remember correctly.
Even if I had waited till age 35 or older, I wouldn't have qualified.
Yes, unfortunately, singles are seen as being socially irresponsible in Singapore by the people in power.
"Hey, you singles, go get married and make babies!"
Well, if I did that, I wouldn't be able to retire till, maybe, age 65.
No, not happening.
Having to pay the full unsubsidized market price for a resale HDB flat just didn't sit well with me.
Fortunately for me, doing what I did didn't turn out badly but I can still complain. ;p
Hi AK, i think you can have half dozen kids and still be able to retire lah. :)
Mai scare new couple. Joke aside, 2 kids for me and is quite financially draining in-addition to housing loan.
Yes, it is $7,000 limit now. Considering the price of a 3 room resale flat without any grant.....
Moreover, even if you applied for a 2 room BTO as a single, you will have to pay extra 15,000 premium cos the government said the subsidised price is for a couple applicant....
:(
Hi Cory,
You are being socially responsible in the eyes of our government and we need more people like you. :)
I am just lazy and will always choose the easy way whenever possible. ;p
As I still have my parents to care for, I have to be mindful that money could still run out if things go horribly wrong. -.-"
References:
1. How much passive income is enough?
2. How to have children and a comfortable retirement?
3. How to maintain lifestyle in retirement?
I have 4 kids. Looking forward to 3 of them to graduate from Uni in 2023. :-p
Hi sugarhoney,
Singles have to pay $15,000 more if they were to buy a 2 room BTO flat?
That is terrible!
On second thoughts, it sounds like a lesser evil, if you know what I mean.
It will definitely cost much more than $15,000 to get married and have children.
Yes, I know.
Bad AK! Bad AK! ;p
Hi Siew Mun,
All 3 graduating in 2023?
Gong xi gong xi!
Sounds like you had triplets! Wow!
Sinang already lah. :D
That is so true.
Hopefully I will be able to retire by 48 and then apply for 2 Room Flexi BTO. (Almost two decades later - faraway dream). Less money paying for house + bills = more money to live a better lifestyle in retirement.
Now just continue slogging and throwing money into CPF/SRS in the meantime and reading AK blog!
Hi sugarhoney,
Yes, we CPF members should take full advantage of our membership.
Still paying income tax?
Stuff some money into our SRS account.
Gambatte! :D
References:
1. CPF can be our best friend.
2. SRS: A brief analysis.
Always follow AK !!!! :)
AK Power !!!! 0:)
Gambatte!!!
Hi Laurence,
If you don't mind ending up in a longkang once in a while, you are welcome to always follow AK. ;p
Reference:
What is AK's way of investing in stocks?
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