Can You Really Sell HDB Buy 2 Condo? 🤦‍♂️ ("Asset Progression" Explained)

[@joshconsultancy]

🎊*Subscribe and be a part of our financially astute community!* New videos premiering every week 🎊 . Further article on this issue and in it, you'd also see flaws of investing into property and wait for upside www.theastuteparent.com/2019/03/sell-hdb-buy-private-property/

[@jazznzz]

Been trying to help my friends and colleagues see the real risk behind the painted glory of owning 2 condo units. This video will surely help make it clearer. Great video josh

[@joshconsultancy]

Yes Jazz! Welcome to our community and Share this explanation with them. Now with this economic climate, it is really dangerous to over-leverage. Take care and cya more! =)

[@charlenetpx]

So much advertisement are circulating around to sell HDB and buy 2 Condo especially I live in Punggol. Glad you have made this video. Indeed very helpful!

[@joshconsultancy]

Great to hear that charlenetpx. SMASH on the LIKE, the youtube algo will share to more and help them make informed decisions too! =) Cya around more!

[@hummit]

You are a good financial planner. I've subscribed.

[@joshconsultancy]

Thank you edmund cya around more!

[@koojack1281]

Nice sharing Josh, very educational! Not to forget, being an investment property, we need to factor in the cost of "fully-furnished/partial-furnished" in order to get a decent rental income, and that could easily range from $5-10K.

[@joshconsultancy]

Absolutely Jack! Share w friends looking to understand this concept. See you around more k! =)

[@salimsg]

you sound a lot more sincere and honest. Kudos to you.

[@joshconsultancy]

Thanks Salimsg

[@hhspore]

Josh, you are always unveiling the truth. As a property investor, I totally backed you up. Selling one hdb to buy 2 properties is simply not like what some of these "gurus" are telling a lot of people in their 30s who are making a average income from their jobs. I was horrified to hear them talking about how they sold their hdb and end up with not just 2 but 3, 4 and even 5 private properties !! I simply cannot fathom what will happen when any one of the investment factors (rapidly rising interest rates, loss of jobs etc) turn against them. I hope that these are just false ads and not the real situation of these people who appear in the sponsored ads.

[@joshconsultancy]

Yes Hazel, ads exaggerate the benefit and downplay the risk. To make things worse, the most vulnerable are the most susceptible to the pitch. I hope more can see the points raised in this discussion

[@Elizabeth-nb5xn]

Really like your breakdown and explaining the reality. Helpful ! Thank you!

[@joshconsultancy]

Glad it was helpful! Share with a friend k Elizabeth, hopefully the message can help more =)

[@yurihahnjohari846]

Really appreciate your transparency. Something that’s hard to come by these days. Subscribed !

[@joshconsultancy]

👍 cya around more yurihahn

[@yurihahnjohari846]

@@joshconsultancy I will!

[@JJ-iu6sr]

Thanks for the video. I think there is one more worst case scenario which the agent might not talk about, and that's the risk of price depreciation of the property during crisis or market lull. Most people think only the gain, but forget about the downside.

[@joshconsultancy]

Yup agree. Prices for a period can go down. Very true

[@aogoh]

Josh it was very informative on how these property agent try to sell the idea of owning 2 private properties, is madness to begin with.

[@joshconsultancy]

No probs ao goh, share with friends who should see!

[@listeria1234]

New subscriber .good sharing with factual and meticulous thought

[@joshconsultancy]

Thank you listeria and welcome to the family =)

[@YGZ4093]

Not to forget also the 4% buyer stamp duty for more than $1mil property or 3% buyer stamp duty for less than $1mil ppty (actually calculation : 3% or 4% - $15400)

[@joshconsultancy]

Hi Sarah, yes.. totally! Great to cya around and share the video if any of your friends have query on it too. Cya more!

[@fool1124]

also agent fee, lawyer fee, moving cost, minor reno cost, and if there is a building delay (during the pandemic its common) you have to rent another place.

[@nithyanithya]

I am so thankful for these videos that you have put up... as women to is financing by herself... I really appreciate your openness to share

[@joshconsultancy]

You are welcomed. Cya around

[@kovesveta4238]

How will they know its investment property? Cant both be residential ?

[@lijying1984]

Thanks for the sharing Josh!

[@sfs8035]

Love the info. Could you keep your graphics in video on longer pls? And make it bigger.. kinda tough to read :)

[@joshconsultancy]

Hi fadzleigh syed, great to see you around =). Suggestion noted!

[@davidchan6012]

I love the part when the property is left vacant, no tenant, no rental income for a period of time. Be careful folks, take all these considerations mentioned by Josh into account.

[@ElliotngMedia]

Exactly, you will never hit a 100% occupancy rate for your investment. But you can still factor them into your calculations. I usually take a 90% rate on annual basis. This should give you a more realistic IRR for your property.

[@fool1124]

investment properties only have fix expenses, no fix income

[@hhspore]

I totally agree with you . I get really upset with all the purported property gurus who tell very gullible people (most of whom are low white collar workers) to buy 3 to 5 properties for passive income. I wonder where is the conscience of these gurus ? Have they actually have any inkling how they can ruin the lives of these gullible people ?

[@joshconsultancy]

Hi hazel, Investing has risk. The cons should always be mentioned

[@keantan24]

Most housing agents only want to earn the commission from U. They don't care a damn whether U can really afford to service the loan down the road. Once U bought the house and they got their commission, it is YOUR problem already....

[@joshconsultancy]

Hi Kean, ya for property side many are transactional. From my experience, usually those that are less transactional have been in the industry for many years and have an approach that value customers for the long term. Look for them

[@paintingpainters]

Hi! Can you make a video on owning both hdb and a private property at once? I'd like to know more!

[@joshconsultancy]

It's one by one =). I've a video on it already, look for $24,000 passive income on this channel. And welcome =)

[@paintingpainters]

@@joshconsultancy thanks! Will check it out!

[@ExperienceFunKnowledge]

Hi Josh, excellent content and explanation. 2 thumbs up. Could you do a video about owning multiple industrial properties with "little or no money down". Very hot topic since last year and too many young people are still having this dream and doesn't realise the reality and risks involved. Thanks.

[@joshconsultancy]

HI Calvin, welcome to the channel here! Yes Ive a full tutorial on it "WHAT BUYING MULTIPLE PROPERTIES WITH NO MONEY REALLY MEAN..." kzbin.info/www/bejne/nqnMgHZ6q61mias . Smash the like and subs and cya around more =)

[@ExperienceFunKnowledge]

@@joshconsultancy Thanks Josh. I have subscribed and share your channel with my peers and community. Keep up the great work.

[@ExperienceFunKnowledge]

Hi Josh, may I know what is your opinion about Investment Linked Products?

[@joshconsultancy]

@@ExperienceFunKnowledge TheAstuteParent is a website I run for financial planning concepts. www.theastuteparent.com/2018/09/3-major-problems-ilp/

[@ExperienceFunKnowledge]

@@joshconsultancy Thank you very much I sincerely appreciate. Very comprehensive information. 2 thumbs up!

[@ubiquitous888]

There is this notion of FOMO, actively promoted by agents that one must sell BTO upon reaching MOP to enjoy highest appreciation and may even face depreciation if kept for too Long. What I personally observe is individual level of understanding for loan breakdown. I think it’s fair to do a comparison between the potential capital appreciation of a private property VS the interest rates incurred and deducts away principal paid with other fixed expenses like legal, stamp and others. This might be very useful before making a decision to venture into private scene. Cheers

[@joshconsultancy]

H S that comparison may have a lot of factors. Will need multiple assumptions. But ya the FOMO part as a marketing strategy to sell at MOP is true

[@careerme8093]

Thanks for this video. Many only see the sweet benefits painted by realtor. Too many things to look out for. It's a trap to own more properties than one could afford. You have explained it well.

[@joshconsultancy]

Hi Ai, welcome to the community! Thanks! Share with friends who are too seduced by the concept...

[@simonlee2613]

This scheme is very risky for most heartlanders. It may work for the high income couple but it is probably more prudent for one to buy the own stay property first and the spouse can wait and see for the right investment opportunity. And this only works if private condos price still trend upwards, which is still a question mark?

[@joshconsultancy]

Agreed Simon, thats why this detailed breakdown especially to highlight on potential risk. Cya around more ya and SMASH THE SUBS =)

[@nlee7980]

Actually the nail in coffin is not no tenant . It’s when one lose job due to retrenchment or when one is very sick and cannot work….but I can anticipate what the real estate agent will counter . Just need to sell off one property but the fact is , property is still illiquid asset and one May force to sell at a loss too, and may incur more cost in the process of selling such as SSD and agent commission . Double slap in the face.

[@joshconsultancy]

W tenant, property may be cashflow positive. But yes agree losing job is a big issue to long term affordability

[@Zero.DarkStar]

Those investors who sold hdb to buy 2 condos are not actually tenanting out forever to earn tenang fee, most are always buying and selling within 5 years and get 100 - 200k gain if it appreciates.

[@joshconsultancy]

I’ve findings that not all Condos have appreciated. Even freehold and even new launch, here kzbin.info/www/bejne/pIi4pWWBqNGYoNEsi=j-DD4dwxqlrV27_j

[@desmondchee9976]

A sound advice. What does a 1:1 session mean

[@joshconsultancy]

Thanks Desmond. I do financial advisory work. Planning and forecasting are key work. Ive more info here www.theastuteparent.com/josh-tan/

[@vvinson0203]

I want to learn something new which can let me get some side income. Any recommendation. I'm in healthcare sector btw

[@joshconsultancy]

Hi Will check this video on "HOW TO double your income". Hope it helps =) kzbin.info/www/bejne/rZ-oYWCgZ817gac

[@alvlim1504]

Thank you for working out the real figures. Those property advertisements are indeed only half-truths.

[@joshconsultancy]

No probs Alv! share with someone who should see for themselves too

[@superconnie5003]

Very good vid. Now can we hear from the lady that owns 32 properties?

[@seahhendrick3475]

Hi good morning and is there any way i can contact you as i need your advice on my situation.

[@joshconsultancy]

Hi Hendrick, email @ [e-mail]

[@vincentlim1160]

U missed out a few more points from my personal experience 😅 Agent fee and damage that need to factor in as well. That’s y reits that is tax-free can be more hassle free in property investing 😂

[@joshconsultancy]

Lol, agreed Vincent!

[@cfko63]

I dun hv enough in CPF

[@joshconsultancy]

Hi Christopher, build step by step. Work on your income for the long term. Hope it helps

[@CatherineCarol]

Hidden costs not factored in when marketing this idea of sell one buy 2. Property and income taxes not factored in. Vacancy period not factored in. Conservancy charges not factored in and potential rise in interest rates over time. I guess most people subscribe to this marketing strategy is because of FOMO in view of rising housing prices. But I agree one must factor in that your job and health may not always be so steady.

[@joshconsultancy]

Yes exactly

[@lewissim5332]

Hey Josh, those guy who did this probably are starting to realise their plan. Should you do a video on this like for the property The M?

[@joshconsultancy]

I educate on affordability and it stands well in time =)

[@Trixichloe]

Good sharing!

[@joshconsultancy]

Thanks Trixi Chloe. Smash on the like and share the message =)

[@thsim88]

property tax?? never included??

[@joshconsultancy]

Hi Tai hing, which property tax or stamp duty you're referring? ABSD does not apply but owner property tax, investor property tax and normal stamp duties apply. Welcome to the family and cya around =)

[@davidchan6012]

I took a mortgage loan of about half a million, that was many years ago. But I am the only one who was working. So, I don't see how my wife could borrow enough money to buy a private property. In short, what some people say about buying 2 properties just doesn't work. So, one family, two jobs, two mortgage loans... is just too risky for the family and kids. They are innocent, remember that.

[@joshconsultancy]

Yes agree David. Mortgage is not a small amount. If there is enough capital and combined income to afford 2 then it’s ok but It shouldn’t be automatically assumed that a tenant can pick it up. Many EP expats are leaving

[@kennethchia7290]

This is assuming no commission for the property agent too?

[@joshconsultancy]

True. Btw i'm a believer that the buying leg can be DIY

[@81uiop]

No risk no gain. U want to continue stay in hdb forever?

[@joshconsultancy]

The tutorial was to highlight (especially if the income is not suitable) the risk. Cya around 81uiop

[@gttb85]

Please...

[@unclegood]

Good karma to you Josh, this video may be able to save many families from a financial tragedy.

[@joshconsultancy]

Thanks! Share with friends who should hear and understand

[@steventay5834]

Keep your HDB flat lah

[@joshconsultancy]

Its ok to upgrade and invest but must avoid overstretching