Will you sell your current property to cash out?

[Wind30]

People,

 

Looking at current property prices, will you cash out on your ONLY property to downgrade??

 

Let's say if one downgrade the property to a small leasehold 99yr condo, one can probably free up a lot of cash (1-2mil?)

 

The point is what to do with the cash. Buy overseas property? London? Singapore is no1 foreign buying of London properties... Australia?

 

I am seriously thinking about this route with the current property prices... Jurong hitting 1700 psf....

 

Is it a good idea? My previous neighbour sold his place together with me in 2009 and he went rental while I upgraded... needless to say, he is screwed...

Edited July 14, 2013 by Wind30

[Throttle2]

I know of a few people who did recently.

 

I myself sold one just 2 weeks ago (not my primary residence though)

 

My basic principle is dont play with your primary residence.

But, really.....

Where is the upside?

The Govt is throwing such a bloody big signal and yet people dont see it.

 

I respect those who do, at least they put their money where their mouth is.

Thumbs up!

Edited July 14, 2013 by Throttle2

[Sosaria]

If it's your ONLY property, better not, unless you're thinking of totally uprooting yourself and settling in some other country, and that also, in the cheaper suburban or rural areas... then only can you make a decent profit.

 

Else it'd just be sell high, and buy high.

 

A relative did the same, selling his flat of >20 yrs for a tidy sum, then in just a matter of few months passing, realize that what he made from the sale can only afford a much, much smaller place with the flats of current design! Worse, he balked at this fact, and refused to make a decision, waited some more...

 

Now LL have to opt for those 30-yr lease flats for the elderly (he qualifies), also tiny space, but at least have enough left over for old age expenses...

[Staff69]

No money to buy..just busybody and learning

[Yeshe]

I know of a few people who did recently.

 

I myself sold one just 2 weeks ago (not my primary residence though)

 

My basic principle is dont play with your primary residence.

But, really.....

Where is the upside?

The Govt is throwing such a bloody big signal and yet people dont see it.

I respect those who do, at least they put their money where their watches is.

Thumbs up!

 

[Throttle2]

 

 

Oooiii, change my quote!

 

[Hosaybo]

I guess you probably can...... Provided you can accept the downgrade. For hdb owner, please drop the idea as not much to downgrade to. The agent fees, reno etc, not much to earn lah. If condo in city, downgrade to one in sub urban....maybe still ok lah. Easy if no kids and school issue. If landed, maybe can downgrade to condo. Got to get use to less space.

 

Put it that way, sell high buy high. To get a difference in the process means you are giving up something.if acceptale to you and your family, by all means.

Edited July 14, 2013 by Hosaybo

[Anshng]

People,

 

Looking at current property prices, will you cash out on your ONLY property to downgrade??

 

Let's say if one downgrade the property to a small leasehold 99yr condo, one can probably free up a lot of cash (1-2mil?)

 

The point is what to do with the cash. Buy overseas property? London? Singapore is no1 foreign buying of London properties... Australia?

 

I am seriously thinking about this route with the current property prices... Jurong hitting 1700 psf....

 

Is it a good idea? My previous neighbour sold his place together with me in 2009 and he went rental while I upgraded... needless to say, he is screwed...

 

 

Well it really depends a lot of what is your current property and are you ok to move to a new place which may not necessary be a worse off place. As long as you buy and sell at the same time, it is ok. I believed those who pay 200K COV to buy million dollar HDB property are those downgrading. Imagine selling a $2M property and moving to $1M property. There might be a "downgrade" of property but you have $1M extra cash to upgrade your lifestyle or even retire if you know how to invest. Below is a link to an interesting read about why downgrading is good when property prices boom

 

http://www.growwealth.sg/property-insights...heupgradingtrap

 

Some safer investments include telco and reit. Assuming they give 5% yield. $1M investment is 50K dividend tax free

[Hydrocarbon]

Well it really depends a lot of what is your current property and are you ok to move to a new place which may not necessary be a worse off place. As long as you buy and sell at the same time, it is ok. I believed those who pay 200K COV to buy million dollar HDB property are those downgrading. Imagine selling a $2M property and moving to $1M property. There might be a "downgrade" of property but you have $1M extra cash to upgrade your lifestyle or even retire if you know how to invest. Below is a link to an interesting read about why downgrading is good when property prices boom

 

http://www.growwealth.sg/property-insights...heupgradingtrap

 

Some safer investments include telco and reit. Assuming they give 5% yield. $1M investment is 50K dividend tax free

 

Thanks for sharing the example. It illustrates quite simply, how "downgrading" the home, can actually "upgrade" the lifestyle.

 

But to a large % of Singaporeans, face might matter more than their actual wealth, so, upgrading their home and cars are the way to go for them.

[Porker]

 

It's "where their watches ARE"

[Chucky2007]

I know of a few people who did recently.

 

I myself sold one just 2 weeks ago (not my primary residence though)

 

My basic principle is dont play with your primary residence.

But, really.....

Where is the upside?

The Govt is throwing such a bloody big signal and yet people dont see it.

 

I respect those who do, at least they put their money where their mouth is.

Thumbs up!

Your property that you sold is getting decent rental yield?

[Nav14]

People,

 

Looking at current property prices, will you cash out on your ONLY property to downgrade??

 

Let's say if one downgrade the property to a small leasehold 99yr condo, one can probably free up a lot of cash (1-2mil?)

 

The point is what to do with the cash. Buy overseas property? London? Singapore is no1 foreign buying of London properties... Australia?

 

I am seriously thinking about this route with the current property prices... Jurong hitting 1700 psf....

 

Is it a good idea? My previous neighbour sold his place together with me in 2009 and he went rental while I upgraded... needless to say, he is screwed...

 

 

If it is a landed, then do not sell. Freehold landed is a gold mine as there is hardly any new supply and the gap between landed and condo will get wider.

[Mockngbrd]

Better not, wait ppl here see u no up

[Throttle2]

Your property that you sold is getting decent rental yield?

 

Yes, decent rental yield for me. About 4%.

 

But dont ever fall into the trap of staying put simply becos of a good yield.

Rental is never for good, tenants come and go, and if you get a bad one, it becomes a nightmare.

When you wait until it is time to sell, it is usually too late becos everyone else is selling.

 

For me, its simple and quite disciplined.

Investment Environment not to my liking, and target price hit, i sell.

 

I may not be right all the time but at least i will live for another day.

 

No easy being the sole breadwinner

 

[Hydrocarbon]

For me, its simple and quite disciplined.

Investment Environment not to my liking, and target price hit, i sell.

 

QFT.

 

I agree! But seems quite hard to sell something when the prices always seem to be rising..

[Little_prince]

QFT.

 

I agree! But seems quite hard to sell something when the prices always seem to be rising..

quoted for truth.

[Soya]

if one only has 1 roof over their head, better dun play the property speculating game.

 

[Galantspeedz]

trying to sell but market seems abit quiet