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Hi ak,
My wife had been hankering me about buying a condo coz her sisters all have multiple condos. All renting to service loans. I just feel we are late to the properties game and don't want to get caught in a bloodbath.
In order not to pay ABSD, she thinks we should sell our current flat. But the market is so bad now I don't know whether we could sell at all.
In order not to pay ABSD, she thinks we should sell our current flat. But the market is so bad now I don't know whether we could sell at all.
Her argument is if we wait for market to worsen, though we may get the condo cheaper but our flat price would also drop. So there is no best time.
What would you do if you are in similar position?
Thanks.
R
R
Hi R,
1. Fact. Rental market is getting softer and softer. Even if prices of condos come down a bit more you could be setting yourself up for disappointment as vacancy rate continues to go up and rental market stays soft.
2. If I could, I would have bought a BTO HDB flat. If I had a HDB flat, I wouldn't sell it, especially not because I want to avoid paying ABSD on a second property if I am going to buy one.
3. When a crash happens, condo prices will drop more than HDB flat prices in absolute dollar terms.
OK, now comes the difficult part.
If I were in your shoes, my stress level is probably through the roof because I am not the type to throw pragmatism out the window to please my other half.
Good luck. :)
Best wishes,
AK
See Part 2: here.
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1. Disastrous property investments.
2. If we are not rich....
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