Advice

We Have $400k In Cash And Stay In A Condo While Renting Out Our HDB: What Options Are There To Avoid ABSD While Upgrading To A Larger Home?

  • November 11, 2022
  • 12 min read
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Julie Angel Chan
Julie Angel Chan
1 year ago

Interestingly and coincidentally I am also 55.
I have been lining overseas for 6 years, with past 3 years straight before returning to Spore on 9 October last month for only half a year.
If I would to decide, I would certainly keep the condo if it is a Freehold property and sell the HDB flat.
I also like to suggest to invest in another overseas property to spread the eggs and not just leave in one basket.
With 2 Overseas properties I have now, a penthouse studio unit with seaview and a 4-storey house of 400sqm, they let me embrace and live a more exciting lifestyle, residing 6 months overseas yearly and still receive passive income.
This can be the second option, if they would to decide to get a property in Singapore and not overseas. My advice to them, is to buy another 2-bedroom condo preferably freehold to be able to leave it for future generations like their daughter (in the above case). By the way, I am a single widow with no children.
Holding 2 condos are more beneficial in my opinion because their daughter can move to the new condo and they can lease out one room.
Well, the first option of an overseas property investment is still the most ideal suggestion due to lower costs of living as compared with Singapore’s and lower purchase costs too.
All the best! Thank you. Warm Regards. Angel Julie

Stacked Homes
Admin
1 year ago

Thanks for sharing your thoughts with all of us Angel Julie, that was really insightful! Overseas investment is certainly an attractive proposition considering the lower cost, but it can be quite daunting considering the lack of oversight, the hassle of managing a property abroad and also the FX risk. We have done a few articles on this before though, considering the interest in overseas property investments given the cooling measures here. Take care!

Anzo Tay
Anzo Tay
1 year ago

Can they not sell the HDB, transfer the existing condo to one person’s name through conveyancing then buy another condo to avoid ABSD?

Stacked Homes
Admin
1 year ago
Reply to  Anzo Tay

Hi Anzo, thanks for sharing your thoughts! This is definitely possible, however, we considered the lower cost (<$1m) of a relatively new 2-bedroom condo that can generate very decent yields. This would serve well during retirement (given the new age and decent rental income), as well as free up more cash compared to tying it up in a $1.1m condo.

caseyaff
caseyaff
1 year ago

The answer is very straightforward. DON”T DO ANYTHING. I am serious. At age of almost retirement and considering both are employees , they are already in a good position with one 2room condo and one HDB. only sell off both property if they intend to buy freehold landed terrace, which, at that age, and small family, is not advisable (FH landed is good store of future value, but small and older persons will have trouble with maintenance, climbing stairs etc,). If you buy in today’s market there is no more capital appreciation, prices have run up too high. Do not sell two, it takes a whole life to collect those two properties. I repeat: do not sell. you will regret it! Sometimes in life, just accept what you have, be happy and contented. TO remain still is sometimes the best thing to do.

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