THIS HOW MY OLD HOUSE LOOKED - Explaining why I sold my HDB flat in 2023 instead of collecting rent

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I just sold my 3rm HDB flat. It was a bitter sweet moment because it was after all my first home. In addition, it could also fetch in a good rent.
However, there are reasons why I needed to sell it off.
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0:00 Introduction
1:06 Don't sell home
2:01 Why I didn't buy BTO
3:20 Why not rent out?
4:10 Why not keep HDB and sell private
5:49 Rent income
7:15 Sacrifice
8:30 Selling with Ohmyhome
#sellhdb #sellproperty #ohmyhome #property
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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[@vincenttravelsg]

Thank you for the heartfelt sharing. Really love your videos. I remembered previously you mentioned you have some mortgage outstanding. Have you thought of partially redeeming your mortgage with the sales proceed?

[@joshconsultancy]

Oh yes. But I’ve maxed the partial repayment already. Can only do so after july23

[@ocswoodlands]

In life be grateful 👍. Well said

[@joshconsultancy]

Yes and thank you =)

[@jianchao88]

Great sharing !

[@joshconsultancy]

Thank you! Cheers!

[@jennylim1558]

Like your positive thinking, Josh !

[@joshconsultancy]

=) Let's see how it plays out in the years ahead

[@kangjingtan7312]

Thanks for sharing ! Seeing the historical price trend of your HDB house is a gentle reminder to all that property prices in Sg do go through bear markets where prices fall slightly over extended periods. Something which is easily forgotten in today's hot market.

[@joshconsultancy]

YES ABSOLUTELY!

[@andrewufo]

@7:30 you hit nail here. For so many years of falling prices, the property market bounced back thanks to covid 0% rates. How long can the momentum last before we slide down again over next few years of high interest rate. You did well to cash out and take no price risk. Congrats

[@joshconsultancy]

I hope so too :)

[@AhWing89]

your analogy using the chess game enlightened me in some way. Thanks.

[@liciacxy]

I like your perspective and non complaining attitude :D

[@joshconsultancy]

Thank you for affirming it

[@thegreenbaby9365]

Making sense now (noted only one name for your pte, so now can play with your name for the next potential purchase). All the best

[@joshconsultancy]

Thank you. Cya around ya

[@arthuslim]

glad that i’m not alone. and i’m worse off, didn’t own hdb in my life due to my situation (single, only want specific location due to aging parents), straight to private and never look back.

[@user-tn8ev9tk4j]

thank you for your insights. should i get a condo now at all time high? i've havent been through property market cycle before and wondering if condo price may drop a little.

[@joshconsultancy]

For investment, youd need to think twice first and slow down. For home needs then don’t bother the market cycle. Ensure it’s a comfortable mortgage will do - 3-3-5 formula - best answer 👍

[@hummit]

Happy for you that you made your pot of gold! :)

[@joshconsultancy]

The pot was already there. I took the difficult and unconventional step

[@timothysong302]

Thanks Josh for the content. Able to throw another scenario: if the HDB is your actual home and you have the investment/rental home under your wife’s name. Able to share some simple strategies if you need to upgrade for more space in this current environment.

[@joshconsultancy]

No probs :) It may still be the same. The hdb flat will tie both names and unless it is sold, the new condo in your name will still attract ABSD. Cannot sell the hdb home and buy another hdb coz wife owns a condo.

[@hhspore]

Totally agree with your rationale. The viewers who indicated that long run you will get more by renting out your hdb for the next 10 yrs, 20 yrs etc. do not seem to understand the huge opportunity cost of not being able to buy your ideal 2nd property in the future. With the hdb, your hands are simply tied and you will not be able to make any property investment without footing the huge ABSD for multiple properties. I totally get it why you would want to sell your hdb.

[@YokNg]

this is why we need to decouple. 1 each settled.

[@sutharshan.b]

Do you have idea to invest cash from home sale to US equities which are hammering down

[@joshconsultancy]

At this moment im not looking at tech still. Stay tuned will share where Id deploy =)

[@AhWing89]

There maybe more grants now but the price is also a lot more expensive.

[@leeroz5024]

hi josh. i hav a pte condo renting out. sld i use the rental to pay off mthly, in full or keep 1k cash

[@joshconsultancy]

Depends on ur loan. If loans like mine 4-5%, it is a cost worth paying down

[@leeroz5024]

@@joshconsultancythks👍

[@YokNg]

Regarding rental returns, my flat at jalan batu is able to return 13% per annum. I think if you have such returns, rental makes way more sense.

[@joshconsultancy]

happy for u

[@sasukeuchiha-gq7ye]

So true. The older generation dont hv so many grants. Envy the young ones

[@wc2671]

Please look at current resale price first.

[@sasukeuchiha-gq7ye]

Looked already. Resales up 50% while starting pay of fresh grad up by 100%

[@wc2671]

@@sasukeuchiha-gq7ye interesting. Based on HDB resale index. HDB resale index up 50% since 2011. the salary of fresh graduate salary at 2011 is about $3500. So current fresh graduate making $7000 now? No wonder student r expecting a 10k salary now.

[@fool1124]

But they also dont have ABSD for 2nd home. its easier to get into homeownership now but its very hard for real estate investments.

[@jasxteo]

I still prefer your old house because of the space. The condo is really really small...

[@joshconsultancy]

Space is actually much bigger :)

[@kenghweepeh1070]

Hi jos, do you think I should sell my hdb ( at all time high) to buy a private ( at all time high now) to upgrade if I can afford you? Would u do that if you were me?

[@joshconsultancy]

For home needs don’t bother the market cycle. Ensure it’s a comfortable mortgage will do - 3-3-5 formula - best answer 👍

[@caseyneistat2371]

Market doesn't care if u staying in the hse or not. If u buy private at peak, don't make sense at all.

[@hhspore]

My agent gave me the estimated valuation of my flat by SRX. But I am not able to get the ACTUAL HDB valuation as the buyer did not disclose the HDB valuation to my agents (representing me as the seller.) I am a little confused. If the buyer does not disclose the hdb valuation, does that mean that sellers will never know the hdb valuation and also the cov (if any) for their flat. Appreciate if you can share your experience. Thank you so much !

[@joshconsultancy]

That one, the buyer not obliged to share. But the agents can easily talk especially if theres a need to renegotiate

[@bryanho6114]

Hi Josh Totally same situation with u from never bite the BTO cherry n end up sold my HDB N goto condo like u under wife's name. So what's your plan for the proceed u get from HDB sale? 😊

[@joshconsultancy]

Hi shared here -Why I JUST BOUGHT MORE REITS after selling my HDB flat in 2023... kzbin.info/www/bejne/oH-cgnmPgbmoq7M

[@peterthermocline]

Does it cost money to add an "IS" to your headliner?

[@joshconsultancy]

Doesnt haha. But I ran out of word space. And hey it sounds casual =P

[@phng8316]

how much was your purchased previously for this 3 room?

[@joshconsultancy]

373k

[@SWTAN-JEFFREY]

3 room Are selling $480k to $510k .. yr house sold below market price

[@joshconsultancy]

Dont think so for 2023. I know valuation numbers and neighbouring transactions now. Plus I know the market response

[@chilly2171]

How do you deal with the ABSD?

[@joshconsultancy]

I paid ABSD in 2017

[@bkoh1771]

Perhaps you are mistaken on the HDB rules. While 2 persons are required to form a family neuclus, one name can be used as an owner (like you) and the other (ur wife) as an essential occupier to avoid ABSD if the essential occupier goes to buy a private after fulfilling 5 yrs MOP. Your wife could have saved the 7% ABSD for private property in 2017 if you structured your HDB purchase in 2011 like that. As an essential occupier in the HDB, your wife had to be comfortable with having no legal rights to the house and you cannot use her income for the loan application as well.

[@joshconsultancy]

I think I understood the rules. That can be chosen at purchase. Once it’s fixed as joint ownership, it cannot be modified to owner occupier. Hope it clarifies

[@bkoh1771]

@Josh Tan - TheAstuteParent Yeah, once you become HDB co-owners, you cannot change for HDB because of loans, grants, etc. In 2016, you could have bought another HDB after fulfilling the MOP and registering as essential occupier then 2021/2022 get private property without paying 12%/15% ABSD. Just food for thought. If you did that would you have sold of the HDB?

[@wujiarong3331]

@@joshconsultancy you are totally right. As of now, once you registered the owners, you cannot change the ownership for HDB at all.

[@BeOutstanding]

He intends to buy another private property after selling hdb (both names).

[@joshconsultancy]

Yes I do in the long term. Be constructive. Cya around

[@lowkh76]

Why choose to sell and not just rent out ?

[@joshconsultancy]

Ah? Addressed in one of the chapters

[@lishr4536]

how were you able to buy HDB and another home? you paid ABSD?

[@lishr4536]

watched on and saw you had to pay 7%. not so bad when you see how high it is now !

[@joshconsultancy]

That was in 2017. At 17% it is a v unappealing investment proposition

[@Penaming]

dont bother with 2nd property lah, just keep the money to deposit for your 2 son's future 5rm BTO in mature estate so you can stay with them and rent out your private property.

[@joshconsultancy]

staying w them doesn't seem like my plan ha

[@kengleetan63]

Must have bang head on wall, selling off the HDB...rental yield from 2022... 3 room -18.5% to 26.5%...4 room yield - 18% to 21.0 %...wrong move bro.

[@joshconsultancy]

That yield number is maybe for someone who purchased before 1995 (AFC)

[@michellezhu5230]

Why do you sell?

[@joshconsultancy]

Ah? Addressed in one of the chapters

[@michellezhu5230]

@@joshconsultancy , oh I see

[@BomBomm12345]

imagine whacking your proceeds say 400k into Tesla at $105 and selling at $200 4 weeks later in Jan lolll

[@joshconsultancy]

haha ... conversely what if I whack now at $200 and 4 weeks later its back to $105?

[@ak2313]

Africa is wonderful la! Maybe you meant North Korea. Lol

[@joshconsultancy]

lol. North Korea is also wonderful

[@TheHumbleChartist]

[@tintan1688]

Hey Josh! Listen to me (uncle at 55 years old) you live too humbly, all investor's mind set to place aside money for investment. Money not spent is not living life. Listen again, THINGS YOU USE DAILY is definitely WORTH SPENDING. Especially SPENDIND ON LOVE ONE. Oic you have a private property, ok great; hope the daily use staff in the house are well renovated for daily use. Buying or selling property will need to be on the "right timing". I bought my five rooms during Leeman brothers financial recession crisis in year 2007 and just sold off recently. I look forward to how your park or hedge those new OA funds of yours.

[@joshconsultancy]

Hi, thanks thanks. Yes will be sharing on it in the next few episodes.