Buy $2m Condo OR $1.15m 5rm HDB? | Buying First Home | Bala Curve

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Today we've a case of someone who is buying either a $2m condo that is 17year old or a $1.15m 5rm HDB flat 39year old. You'd hear on the bala curve as well as what you must know if you are looking to buy a flat now
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0:00 Introduction
1:30 Bala curve
6:00 What is their background
6:36 Ohmyhome value proposition
8:00 5room hdb flat details
9:44 Three learning points
13:53 Condo details
16:28 What is wiser financially
21:30 How to afford the $2m condo
#hdb #condo #resaleproperties #ohmyhome
We do not make any recommendations on whether a security is a buy/sell as every investor has different investment goals and risk profiles. The presentation of ideas from Josh Tan and TheAstuteParent are strictly for education purposes. You are advised to perform independent research yourself or seek a qualified financial adviser. We will not be liable for any losses directly or indirectly from the material. Some of the referral links in the video summary are products and services personally used by Josh Tan and they may pay an affiliate commission or referral bonus.
It is not an endorsement of the product unless explicitly stated and we will not be liable for any losses. The content in this video and any promotions mentioned is accurate as of the posting date.
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About Josh Tan:
Josh holds a degree in Accounting from NTU. In 2016, he co-founded the financial education website TheAstuteParent to provide detailed insurance plan analysis and financial planning tips.
As a ChFC Charterholder, Josh has agreed to be bounded by the ChFC®/S Code of Ethics. This includes, among others, acting in a professional manner when it comes to conducting due diligence on primary and secondary sources of investment-related data, and articulating his investment opinions based on his research and beliefs. Based on his research and analysis, he highlighted his beliefs and opinions, and illustrated the concept of time value of money, as of the time of the video.
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[@joshconsultancy]

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[@DonYang73]

The HDB seller will be laughing his ass off to the bank😅😂

[@easd378]

In investment, what goes up will eventually come down. Property prices are in the Euphoria stage, now it is the time to trap those bag holders. If you intend to buy a property that is valued insanely high, that tells you something. If you agree that demand dictates market price, then maybe ask the buyers "local Singaporeans" would you pay $1M for a HDB that has 50 years on the lease. You will probably get the answer.

[@bigno1900]

for the hdb seller, it is a massive gain, but not much for the buyer. the property is 39 years old and if the buyer was to sell off next time, alot of issue like financing will surface due to the shorter lease left in the first place. For the condo, it is rather subjective whether the 2m is worth it.

[@joshconsultancy]

fair pov

[@jiayu3322]

Obviously if you are buying a roof for your family, HDB will be a better choice. For the past 30 years, HDB has a consistent appreciation in value. Owning a HDB for a number of years, you can still buy a private property when you have enough savings, whereby if you buy a private property, you cannot buy a HDB unless you sell off your private property. This method of investment will be more prudent , consistent and more relaxing. Unless you are super rich, if then why compares Private or HDB. Disclaimer

[@joshconsultancy]

love tt ^

[@clarencechin7]

Hi Josh, the 5 times annual income includes spouse's? 2. Where do you get the 10yr chart on the 2 properties (time on vid 18:40)? Thank you.

[@joshconsultancy]

Hi clarence, yes I view it as include. Naturally for singles the equation looks harder. Charts are from propertyguru

[@cchan4739]

Hi josh, i noticed u used a 99LH condo as an example to compare w the HDB Say if u used a FH condo example instead, would it be different then? u would def not be worried about lease decay anymore, and if you're purchasing something around 20 years old, perhaps even enbloc would be on the horizon...

[@joshconsultancy]

Hi Chan, the project was mentioned by the couple and its a 99LH. You might like this =) Is It True That Properties Past 15y Have Very Little Headroom For Growth? | Property Investment SG kzbin.info/www/bejne/e4bMYY2edrukrKs

[@edwardlumsianming3430]

3 to 100 million also got people buying as long as the STATE allows VERY RICH foreigners to BUY.

[@joshconsultancy]

less politics better. Lets find constructive points for the discussion

[@Irisbeacon]

Josh, have you ever compared a computed estimated amount of rebates, home conservancy fees, property tax, and miscellaneous fees related to living in both public and private apartments? And the thesis of how if the difference between both is used to invest in, say S&P500, over the same period of time, maybe it might be a better 'preservation or wealth' or even appreciation? Ultimately, i feel that any property thesis stems from the initial question that one as to answer: Is this apartment a comfortable shelter or investment buy/buy for profitability?

[@joshconsultancy]

If vs equity investment, then it becomes a comparison of past performance. Futile in decision making moving forward.

[@edwardlumsianming3430]

Common people trying to live the HIGH LIFE. STRESSFUL

[@fool1124]

hi josh, My kids are 15 and 17 years old each of them saved up around 30-50k though out the years from pocket money and CNY hangbao The money is currently kept with me in a log book their weekly allowance i give them in Cash. the younger one is very frugal doent like to spend and save majority of the $ the older one is an impulsive spender they are at age where i want them to be responsible with their money and spendings. Do you think opening a bank savings account is a good idea, but how do i track their spending especially my elder one. what is your advice for their savings assuming is 50k. to put in FD, SA, S&P500 or something else, under their name of course.

[@joshconsultancy]

Hi Fuusha, this is a good question. Could be featured in a future video =) my gut feeling is FD and SA teaches nothing about wealth building. Hence Id rather lean on investing and even if they blow it through, it will be a good lesson

[@fool1124]

@@joshconsultancy thanks josh

[@lulukobe8nba]

Hi Josh, you video actually blew my mind. I actually am facing the same dilemma your fan is facing. 1 Million premium HDB or 2 million condo, it is a hard choice

[@hhspore]

Josh, I always believe that one should not buy a resale property as a place to stay and not for investment. HDB's prices are all controlled and moderated by the govt. In this case, this person can be sure that his 1.15M 60-yr remaining lease for this tiong bahru hdb will very HIGHLY likely not make money or preserve his wealth. If he hopes to preserve or to make money from HDB properties then he should just wait for a BTO flat. I personally think that he stands a better chance of preserving his wealth/making money buying THE right condo.

[@joshconsultancy]

Hi Hazel, Im more of the view that private and HDB resale prices are intertwined. The case study data showed in this specific instance that 10y ago, IF a person bought the 70y remaining TIONG BAHRU HDB lease vs 93y remaining lease TRUMP condo, this instance the HDB was better

[@Victor-rt3fx]

Well said

[@henrylee1269]

Dear Hazel, if you "always believe" it stops you from opening up your mind to other viable ideas. And "always" is not always applicable to different people with different needs. Josh has supported his findings with data, albeit with a small sample dataset.

[@prophunter8865]

The answer is obvious - buy the $2m condo such good upside in future. Why is the person renting in the first place is also questionable, should have just got a small condo of his own since he is paying $3400rent - easily the mortgage amount sufficient for a 2b1b OCR condo if he bought in 2020.

[@joshconsultancy]

Hmmm... not saying less upside but saying upside part just becoz its private &/or its younger is not certain. The case data points suggested so

[@ryanyoutube7315]

My 4 room is also close to 136sqm. 😉

[@joshconsultancy]

Wow thats big! Ive never seen any 4rm that size

[@ryanyoutube7315]

Seems like his household is way above income ceiling 😉

[@joshconsultancy]

Ceiling only for BTO/EC, no income ceiling for resale.

[@Victor-rt3fx]

$1.15mil for a very old HDB…..only one word need to be said…………SIAO! Think of it, it may be good. In life, we need losers. If not, how can others make money from them

[@joshconsultancy]

be nice be nice =)

[@Victor-rt3fx]

@@joshconsultancy Thanks for your kind advice. I guess any potential buyer should think hard whether the next buyer of this 40 year old HDB will pay higher price or even the same price (which he bought) if he decides to sell 10 years later. Lease decay happens to all types of leasehold properties, be it private or public housing

[@Victor-rt3fx]

@@1965Singaporean the ones who lost money are usually the one who looked at past records or statistics. 😊

[@Victor-rt3fx]

@@1965Singaporean hahahahaha let’s make thing simpler and not get so political even though we are from two opposite camps.

[@Huatgaobaydinchu]

crazy.. juz throwing money down the drain, even if can afford.. rather pay 50c for $1 worth of commodity though in hindsight, judgement may err..

[@joshconsultancy]

hmm? Is it the age of the flat or is it coz its HDB? - theres an example of marine parade 5rm sold for $1m w 51y lease

[@Huatgaobaydinchu]

@@joshconsultancy 70 age/ 30 asset class thingy.. the only consolation is saving on maintenance i guess..

[@DonYang73]

60yr lease remaining means rental for one generation. At the end of the day, zero value, next gen got nothing lor.

[@joshconsultancy]

Eh... by that definition, only freehold matters which may not be the case?