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HDB ..... an asset?

Scb11980

By Scb11980,
in Lite & EZ

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Jrage

Jrage

1st Gear

what i am saying is

 

if HDB according is an asset

 

an asset should be also be used to make more money

 

but since it cannot be used as a collateral for borrowing money from a bank

 

apart from providing a roof over one's head

where is the asset

 

in reality it is a liability because thought you stay in

but every month

money going out

and nothing coming in

 

Every house (HDB , condo, landed) with a mortgage also need to pay every mth ..so it does not make a hdb less a liability then a condo or other pty? I hope you realized when you re-mortgage.. you are just taking "future money" it's not really money coming in...

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Kangadrool

Kangadrool

Supersonic

For most people, it's a liability 'cos we service the loans of inflated price for god knows number of years + pay monthly service and conservancy charge + property tax based on inflated values.

 

Can only consider as asset only when it's generating passive income for you.

 

No doubt you cannot use it as a collateral. However, the creditors can "force" you to sell your HDB flat to repay your debts. The news appeared sometime back about illegal money lenders forcing their debtors to sell their flats. If legal money lenders, sometimes, you'll be "forced" to sell for your "well-being".

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Speedgod69

Speedgod69

Neutral Newbie

Yea, the government will reclaim the flat and they are free to build another new block of hdb.

 

But there hasn't been any case where ppl stay the full 99yrs. Just pray for govt to buy back your hdb soon and allocate you to a new one with good location

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Jrage

Jrage

1st Gear

For most people, it's a liability 'cos we service the loans of inflated price for god knows number of years + pay monthly service and conservancy charge + property tax based on inflated values.

 

Can only consider as asset only when it's generating passive income for you.

 

No doubt you cannot use it as a collateral. However, the creditors can "force" you to sell your HDB flat to repay your debts. The news appeared sometime back about illegal money lenders forcing their debtors to sell their flats. If legal money lenders, sometimes, you'll be "forced" to sell for your "well-being".

 

So funny.. first of all , most ppl bought their house before the 2009 boom.. So.. most of us are not paying the high price for hdb.

 

Everyone mth we pay mthly servicen + conservancy charge + pty tax is alot less than if we had to rent to have a shelter over our head. So owning hdb at a reasonable price actually help us to "save" $$

 

Liability is only when do not need it as part of daily living and bought it at the wrong price.. and yield negative returns.. Actually most hdb are not an liablities.. if it's for own-stay. Unlike a car, you dont need a car..where else you need a house to stay.

 

Creditors force you to sell your hdb flat is your own doing..cos' you "over-levarage"

Creditor can force you to sell anything including yourself if you dun have $$.. so your kidneys / lungs are also your liablity, just because they can be sold?? very shrewd reasoning.

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Jamesc

Jamesc

Hypersonic

Any home is an expense.

 

Unfortunately a necessary expense.

 

The only time a home is an asset is when you don't live in it.

 

So a second home would be an asset.

 

:D

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Dumb

Dumb

4th Gear

what i am saying is

 

if HDB according is an asset

 

an asset should be also be used to make more money

 

but since it cannot be used as a collateral for borrowing money from a bank

 

apart from providing a roof over one's head

where is the asset

 

in reality it is a liability because thought you stay in

but every month

money going out

and nothing coming in

 

HDB is an asset. Only you can't mortgage it to a bank or sell it to anybody you like. If it is not an asset, a GCB is also not an asset as it can't be freely sold to foreigners.

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Kangadrool

Kangadrool

Supersonic
(edited)

As long as it does not generate passive income for you, and you need to continuously pay $$$ to service it, it's considered a liability whether or not it's an expense you can't do without.

Edited by Kangadrool
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Jrage

Jrage

1st Gear

As long as it does not generate passive income for you, and you need to continuously pay $$$ to service it, it's considered a liability whether or not it's an expense you can't do without.

 

ha haha .. like that .. being alive is a major liability.. i guess depends on how to def liability then.

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Jrage

Jrage

1st Gear
(edited)

Any home is an expense.

 

Unfortunately a necessary expense.

 

The only time a home is an asset is when you don't live in it.

 

So a second home would be an asset.

 

:D

it's a asset when you have use for it.. Housing you to make more $$ meh..

 

E.g. a factory in a company is a assets.. whether or not it's has mortgage. Its an asset because that where the company operates from.. and "generate" more income.

And could be sold if it's on longer in use. IF you no longer need the hdb, of course you can sell it..

Edited by Jrage
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Jamesc

Jamesc

Hypersonic

it's a asset when you have use for it.. Housing you to make more $$ meh..

 

E.g. a factory in a company is a assets.. whether or not it's has mortgage. Its an asset because that where the company operates from.. and "generate" more income.

And could be sold if it's on longer in use. IF you no longer need the hdb, of course you can sell it..

Thats right.

 

One of my friends did that, sold his HDB in 2008

and moved in with his in-laws, expecting the price of property

to fall and buying back another flat at a lower price.

 

Unfortunately property prices keeps going up and he is still

staying with his in-laws.

 

:D

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Sk65

Sk65

1st Gear

As long as it does not generate passive income for you, and you need to continuously pay $$$ to service it, it's considered a liability whether or not it's an expense you can't do without.

 

 

asset vs liability belongs to the BS

 

exp and income belongs else where.

 

 

u mix all up in 1 sentence very blur one leh...

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Sk65

Sk65

1st Gear

ha haha .. like that .. being alive is a major liability.. i guess depends on how to def liability then.

 

if this is a financial discussion,

 

the defination is already done up.

 

google IFRS + liability.

 

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Without_a_car

Without_a_car

Clutched

So funny.. first of all , most ppl bought their house before the 2009 boom.. So.. most of us are not paying the high price for hdb.

Everyone mth we pay mthly servicen + conservancy charge + pty tax is alot less than if we had to rent to have a shelter over our head. So owning hdb at a reasonable price actually help us to "save" $$

 

Liability is only when do not need it as part of daily living and bought it at the wrong price.. and yield negative returns.. Actually most hdb are not an liablities.. if it's for own-stay. Unlike a car, you dont need a car..where else you need a house to stay.

 

Creditors force you to sell your hdb flat is your own doing..cos' you "over-levarage"

Creditor can force you to sell anything including yourself if you dun have $$.. so your kidneys / lungs are also your liablity, just because they can be sold?? very shrewd reasoning.

 

what about those bought in 2009 and after?

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Kangadrool

Kangadrool

Supersonic
(edited)

what about those bought in 2009 and after?

 

They are called "bubbles". [laugh] [laugh] [laugh]

 

The reason why we are shoring up immigration and GDP is mainly due potential bubbles bursting effect as witnessed in many developed economies. But, it's just postponing the bubbles bursting effect only and when it burst, it's gonna be worse than ugly.

Edited by Kangadrool
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Jrage

Jrage

1st Gear
(edited)

what about those bought in 2009 and after?

before 2009.. it's affordable.. a hdb -em is only 400k and FH condo 700k. Interest rate is normal, ard ~2%. So instalm vs income is quite reasonable, not much over leverging ard. Most ppl buy according to what they can "afford" .. with 2-3 yrs buffer at int rate of 3-4%.

 

After 2009, ppl started to buy based on speculation. Interest rate become very low.. and 1mil become "affordable" to ppl with income < 8k per mth. Some are paying quite abit above their mth contribution to CPF.

Edited by Jrage
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Matchy

Matchy

Neutral Newbie

i think it is more like a home than a asset...

 

an asset is something u can sell and make money....

 

but in this case, if u sell ur HDB, where u going stay?

 

unless u upgrade...but it cost more money also....downgrade also not cheap...

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