I was thinking about this while on the plane.. hope fellow readers can enlighten me
Now that I am eligible for to buy a resale hdb (ok yes, that’s a dead giveaway on my age)
And my budget is around 300k for a 3BR (so comes with 1 master BR + 1 common BR)
Maybe some minor reno to touch up, say +10k?
20% downpay = 62k (cash + cpf)
Monthly mortgage will be paid by cash, since I have no cpf.
my plan is to rent it out. (sublet the master BR, since I don’t intend to live there. I cannot rent out the whole unit either, since I have not fulfilled the 5 year MOP)
assuming, I can rent the master room for 1k/mth. ( location; non-matured estate in the west. ~500m to MRT))
Rent = 12,000
Expenses = 1600
- Utilities – 600/year
- 1month commission to agent – 1000
Yield = 12,000 – 1600 / 310,000 = 3.3%.
Is it better to take a HBD loan or bank loan?
Are my calculations too simplistic?
Anything else I missed out?
Or, is it better to leave the funds in CPF? Or just move it from OA to SA acct to get 4% guaranteed?
If let’s say, I do settle down in the future, does buying a resale hdb (while on single status) put me in a disadvantage or whatsoever?
Any other comments?