Don't have to sell HDB flat and buy 2 condos to improve cash flow. (Have a fully paid HDB flat and make money.)

A friend told me he is seriously considering selling his fully paid 5 room HDB flat in RCR to buy 2 shoebox apartments so that he could stay in one and rent out the other for cash flow. 

Hopefully, property prices would go up and he could benefit from capital gain by selling one.





I told him that he would be moving from being debt free to being indebted. 

There is no guarantee that the monthly rental could cover the mortgage payments (plus the much higher monthly maintenance and property tax of a condo).




He says he just wants to make money but how sure is he that he would make money this way? 

I see a strong speculative flavour in his hope that property prices would go up. 

I told him if he thinks property prices would double in 10 years like it did in the recent past, that is speculation.




1.
I told him that if he wants money in the pocket, just rent out 2 bedrooms in his current flat. 

Free cash flow guaranteed. Easy. 

To that, he said that it is very hard to rent out the spare rooms now. 

Oh, and he thinks renting out a shoebox apartment is going to be easier? Duh.





2.
I also told him that if he didn't want to share his home with strangers, he could think about downsizing his current flat to a 3 room flat and he would have more money in the pocket. 

Since his current flat is his first, he could get a BTO 3 room flat. 

It is much cheaper than buying resale.

Or maybe a BTO 2 room flat? 

Price tag? $90,000 maybe. 

So cheap hor?
Purchasing a 2-Room BTO flat








A BTO 2 room flat? Serious? 

Alamak, he was thinking about buying a shoebox apartment to stay in. 

How big do you think a shoebox apartment is?

Of course, he might have to wait a few years but he would be able to pocket a few hundred thousand dollars in price difference. 

Also, he would be getting a fresh 99 years lease. 




3.
Then, there is also the option of looking into HDB's sale of balance flats which would reduce the waiting time.

With the price difference of his old and new flats, he could invest for income and it could even be in the form of a shoebox apartment that he is thinking about once he has served his MOP.

There is no need to always take on more risk in life to have a better life. 





I like to have my cake and eat it too but I don't like to choke on my cake.

Oh, in case you are wondering, he got the idea to sell his 5 room flat to buy 2 shoebox apartments from someone. 

Guess what that someone does for a living?

So clever! Bad AK! Bad AK!





Related posts:
1. Power to be financially stronger.
2. Retirement funding and HDB flats.

5 minutes and less than a dollar? Perfect.

Have you ever had a craving for some food which you have never liked before? 

OK, I know the ladies who have been pregnant before might have experienced this but what about us guys?

Well, I have never enjoyed porridge much. 

So, being on a low carbohydrate diet, it is one thing I do not miss. 





However, whenever I am feeling unwell, I seem to crave porridge. 

I don't know why it is so.

When I told a friend I have been having porridge recently, he asked what about my low carb diet? 

When I told him I have been preparing porridge without using rice, he was dumbfounded.

His expression was priceless and I thought my porridge recipe might be blog worthy.

.





Heat up some frozen fried chicken, frozen cooked vegetables (carrots, broccoli and cauliflower) in a microwave oven. 800 watts, 3 minutes. 

Then, put them in a blender with some hot water.

Blend and we get this. Porridge.

I added some black pepper for taste and also a spoonful of olive oil so that the meal keeps me full longer.

Sedap!





Time taken to prepare the meal? 

5 minutes or so.

Cost? 

Probably less than a dollar.

Add an egg if you like.

Cost?

Probably still less than a dollar.





What did you say? 

Spend 5 hours preparing the perfect bowl of porridge?

Hey, do you think I am really mental? 

OK, don't answer that.





Related post:
How to recession proof your life?