1 00:00:00,009 --> 00:00:03,210 Speaker 1: Hey, welcome to the Money Talks podcast. It's Me Andrea Heng. 2 00:00:03,329 --> 00:00:06,138 Speaker 1: We're on a season break now, but I thought, hey, 3 00:00:06,150 --> 00:00:09,829 Speaker 1: why don't we bring you some of our more popular episodes. 4 00:00:09,840 --> 00:00:13,310 Speaker 1: You might have missed this special series called This or that, 5 00:00:13,319 --> 00:00:16,360 Speaker 1: which I love so much by the way, where I 6 00:00:16,370 --> 00:00:18,770 Speaker 1: get my guests to weigh the pros and cons of 7 00:00:18,780 --> 00:00:22,719 Speaker 1: two options. Now, property is always a hot topic here 8 00:00:22,729 --> 00:00:26,430 Speaker 1: in Singapore and I too had to ask myself once, 9 00:00:26,610 --> 00:00:29,069 Speaker 1: do I want to wait and buy a brand new 10 00:00:29,159 --> 00:00:33,020 Speaker 1: BT O flat or just get a resale? My guest 11 00:00:33,029 --> 00:00:36,400 Speaker 1: for this episode was Jo Anne Tay. She's a content 12 00:00:36,409 --> 00:00:39,700 Speaker 1: creator on Instagram and Tik Tok under the handle house 13 00:00:39,709 --> 00:00:44,009 Speaker 1: hunt with J That's Joo. She shed some light on 14 00:00:44,020 --> 00:00:48,040 Speaker 1: what we should take into consideration before deciding to BT 15 00:00:48,049 --> 00:00:51,490 Speaker 1: O or not. If you haven't already go to Spotify 16 00:00:51,500 --> 00:00:55,500 Speaker 1: Apple or youtube music to follow us. And while you're there, 17 00:00:55,509 --> 00:00:58,220 Speaker 1: please leave us a comment. Enjoy this episode. 18 00:00:58,659 --> 00:01:00,959 Speaker 1: You're listening to AC N A podcast. 19 00:01:09,199 --> 00:01:12,540 Speaker 1: Welcome back to Money Talks. I'm your host, Andrea Heng. 20 00:01:12,949 --> 00:01:17,199 Speaker 1: Now on this series. This or that my guest weighs 21 00:01:17,209 --> 00:01:20,379 Speaker 1: the pros and cons of two options. If you've missed 22 00:01:20,389 --> 00:01:23,150 Speaker 1: the last episode where we discussed, if you should own 23 00:01:23,160 --> 00:01:26,379 Speaker 1: or lease a car in Singapore, do give it a listen. 24 00:01:26,650 --> 00:01:30,150 Speaker 1: Now on this episode, we're looking at public housing or 25 00:01:30,160 --> 00:01:33,080 Speaker 1: H DB flats. Should I buy a brand new BT 26 00:01:33,089 --> 00:01:36,559 Speaker 1: O flat or skip the wait and pay more for 27 00:01:36,569 --> 00:01:39,879 Speaker 1: a resale flat. The longest waiting time for a new 28 00:01:39,889 --> 00:01:44,059 Speaker 1: BT O flat that I've heard of is six years, 29 00:01:44,069 --> 00:01:47,709 Speaker 1: six years, think about that. Ok. My own sibling gave 30 00:01:47,720 --> 00:01:51,120 Speaker 1: up after two years and went straight to the resale market. 31 00:01:51,129 --> 00:01:51,870 Speaker 1: Of course, 32 00:01:51,963 --> 00:01:55,183 Speaker 1: a much higher price. Many new home buyers say the 33 00:01:55,194 --> 00:01:58,533 Speaker 1: long wait time and the limited selection of BT O 34 00:01:58,543 --> 00:02:01,944 Speaker 1: units are the key factors for turning to the resale 35 00:02:01,954 --> 00:02:05,463 Speaker 1: market only to be hit by record prices there with 36 00:02:05,473 --> 00:02:08,923 Speaker 1: more BT O flats coming up and resale prices appearing 37 00:02:08,934 --> 00:02:12,283 Speaker 1: to hit a ceiling at least for now. What I 38 00:02:12,294 --> 00:02:15,413 Speaker 1: want to know is should home buyers choose a BT 39 00:02:15,423 --> 00:02:17,184 Speaker 1: O or a resale 40 00:02:17,276 --> 00:02:20,056 Speaker 1: flat? And to help me with this question, I have 41 00:02:20,067 --> 00:02:23,957 Speaker 1: real estate agent, Joan Tay Joanne is also a content 42 00:02:23,968 --> 00:02:27,738 Speaker 1: creator on Instagram and tiktok under the handle house hunt 43 00:02:27,748 --> 00:02:30,407 Speaker 1: with you. Welcome to Money Talks, Joan. Hi, 44 00:02:30,417 --> 00:02:32,137 Speaker 2: Andrea. Nice to meet you here. 45 00:02:32,147 --> 00:02:36,048 Speaker 1: Likewise. Ok. So Joan, how often do you as a 46 00:02:36,056 --> 00:02:39,397 Speaker 1: real estate agent get home buyers who say they can't 47 00:02:39,407 --> 00:02:42,498 Speaker 1: get a BT O flat? Hence, they need a resale flat. 48 00:02:42,591 --> 00:02:44,442 Speaker 1: How frequently is that occurring? 49 00:02:44,462 --> 00:02:47,261 Speaker 2: Just about every other week? I'll have someone come to 50 00:02:47,272 --> 00:02:51,421 Speaker 2: me with this distressed situation. Yeah. Saying that they have 51 00:02:51,431 --> 00:02:53,542 Speaker 2: been going through the BT O exercise for many, many, 52 00:02:53,552 --> 00:02:57,251 Speaker 2: many times. And of course to, nobody's surprise they have 53 00:02:57,261 --> 00:03:00,251 Speaker 2: given up on that dream and have to turn to 54 00:03:00,261 --> 00:03:01,671 Speaker 2: the resale flat. Unfortunately. 55 00:03:01,681 --> 00:03:03,572 Speaker 1: What's the longest wait time you've ever heard? 56 00:03:03,582 --> 00:03:06,361 Speaker 2: I had someone who tried 10 times in the past 57 00:03:06,371 --> 00:03:07,531 Speaker 2: three years, 58 00:03:07,925 --> 00:03:08,755 Speaker 1: 10 times, 59 00:03:08,766 --> 00:03:09,565 Speaker 2: still trying, 60 00:03:10,406 --> 00:03:14,626 Speaker 1: still trying. Ok, 10 times and going. Ok. So is 61 00:03:14,636 --> 00:03:17,656 Speaker 1: there a typical profile for the resale flat buyers who 62 00:03:17,666 --> 00:03:21,046 Speaker 1: can't afford to wait? What are some of the reasons 63 00:03:21,055 --> 00:03:22,966 Speaker 1: for needing a home? So urgently, 64 00:03:22,975 --> 00:03:25,234 Speaker 2: most of them would have been already married, they would 65 00:03:25,246 --> 00:03:28,535 Speaker 2: have some sort of family nucleus going, which explains why 66 00:03:28,546 --> 00:03:30,114 Speaker 2: they need a space on their own. They need a 67 00:03:30,126 --> 00:03:33,126 Speaker 2: flat or home to move into more immediately than 68 00:03:33,529 --> 00:03:36,750 Speaker 2: someone that's younger. Still starting out on their career and 69 00:03:36,759 --> 00:03:38,949 Speaker 2: things like that. It does matter at which stage of 70 00:03:38,960 --> 00:03:42,570 Speaker 2: your life are you actually considering the purchase? So most 71 00:03:42,580 --> 00:03:44,509 Speaker 2: of them who are turning into a resale flat are 72 00:03:44,520 --> 00:03:47,669 Speaker 2: often in their 30 something, the younger ones who have 73 00:03:47,679 --> 00:03:50,389 Speaker 2: a bit more runway in terms of their age, 74 00:03:50,919 --> 00:03:53,789 Speaker 1: they can stay with mommy and daddy a little bit longer. Ok. 75 00:03:53,800 --> 00:03:56,500 Speaker 1: That's a good plan. It is a good plan. Save 76 00:03:56,509 --> 00:03:59,889 Speaker 1: on that mortgage. Let's talk about the resale flat prices 77 00:03:59,899 --> 00:04:00,649 Speaker 1: that we're seeing 78 00:04:00,949 --> 00:04:06,289 Speaker 1: and they've increased relentlessly. Despite those rising interest rates, I 79 00:04:06,300 --> 00:04:08,929 Speaker 1: bought my own flat at almost a million. 80 00:04:09,320 --> 00:04:13,720 Speaker 1: Although it's in a rather prime area. So what's driving 81 00:04:13,729 --> 00:04:17,049 Speaker 1: this demand, what's making those prices stay up? I 82 00:04:17,059 --> 00:04:19,640 Speaker 2: think it's the lack of immediate supply supply has been 83 00:04:19,649 --> 00:04:23,130 Speaker 2: disrupted because COVID happened which nobody would have expected. 84 00:04:23,140 --> 00:04:24,089 Speaker 1: Nobody asked for 85 00:04:24,100 --> 00:04:26,589 Speaker 2: it. Yes, it's good for those people who already have 86 00:04:26,600 --> 00:04:29,070 Speaker 2: the H DB because that's possibly the only time whereby 87 00:04:29,079 --> 00:04:32,279 Speaker 2: you actually see your prices going up. Rationally speaking, it 88 00:04:32,290 --> 00:04:34,349 Speaker 2: should not be, it should be going down according to 89 00:04:34,359 --> 00:04:36,769 Speaker 2: the lease that you have left on your property. 90 00:04:37,070 --> 00:04:39,868 Speaker 2: And because of this disruption, we also do notice that 91 00:04:39,880 --> 00:04:43,250 Speaker 2: there's a change in lifestyle as well. Previously, we've seen 92 00:04:43,260 --> 00:04:46,109 Speaker 2: a lot of people living in a multigeneration home whereby 93 00:04:46,119 --> 00:04:48,040 Speaker 2: you know yourselves, you have your parents and you have 94 00:04:48,049 --> 00:04:49,929 Speaker 2: your kids that are living with you. We are all 95 00:04:49,940 --> 00:04:53,290 Speaker 2: taking care of each other after COVID for some apparent reason, 96 00:04:53,299 --> 00:04:55,720 Speaker 2: maybe we can't stand each other as much. 97 00:04:55,980 --> 00:04:59,459 Speaker 1: What did they, what do they say? Proximity breeds resentment 98 00:04:59,470 --> 00:05:00,549 Speaker 1: or something like that or 99 00:05:00,760 --> 00:05:03,690 Speaker 2: rather true because we are seeing households now 100 00:05:03,765 --> 00:05:06,613 Speaker 2: actually moving out. They don't mind staying close to each 101 00:05:06,625 --> 00:05:10,784 Speaker 2: other but not trying not to be in too much 102 00:05:10,795 --> 00:05:16,265 Speaker 2: contact ever since COVID that basically tested how close our relationships. 103 00:05:17,113 --> 00:05:18,674 Speaker 2: That's the ultimate stress 104 00:05:18,684 --> 00:05:23,904 Speaker 1: test almost 24 hours, seven days a week in the 105 00:05:23,915 --> 00:05:26,885 Speaker 1: same space and an H DB flat. I mean, if 106 00:05:26,894 --> 00:05:29,113 Speaker 1: you're housing just a couple of, it's just the two 107 00:05:29,125 --> 00:05:30,344 Speaker 1: of you in one flat, 108 00:05:30,600 --> 00:05:33,290 Speaker 1: that's fine. That's already like, ok, I'll get on your nerves. 109 00:05:33,299 --> 00:05:35,019 Speaker 1: You get on mine and then we'll be fine. 110 00:05:35,269 --> 00:05:39,089 Speaker 1: But if there are multigenerational families out there living in 111 00:05:39,100 --> 00:05:41,609 Speaker 1: an H DB flat, that's got to create a lot 112 00:05:41,619 --> 00:05:43,488 Speaker 1: of stress points for anybody. 113 00:05:43,500 --> 00:05:44,929 Speaker 2: Yeah. That's right. And I think the change in the 114 00:05:44,940 --> 00:05:47,570 Speaker 2: lifestyle was much quicker than we imagined. And you know, 115 00:05:47,579 --> 00:05:50,178 Speaker 2: from one household, we used to have like three generations 116 00:05:50,190 --> 00:05:52,649 Speaker 2: living in it. Now one household is going out there 117 00:05:52,809 --> 00:05:56,190 Speaker 2: to buy 23 different homes. Yeah. So that is what's 118 00:05:56,200 --> 00:05:59,928 Speaker 2: actually causing the stress in terms of what we need 119 00:05:59,940 --> 00:06:02,890 Speaker 2: immediately from the market. Yeah. And BT O may not 120 00:06:02,899 --> 00:06:03,290 Speaker 2: be the 121 00:06:03,388 --> 00:06:07,798 Speaker 2: the most sound choice when it comes to moving in immediately. 122 00:06:07,808 --> 00:06:10,847 Speaker 2: You do have to wait a significantly long time and 123 00:06:10,858 --> 00:06:13,048 Speaker 2: having to stay with your family. If that's actually an 124 00:06:13,058 --> 00:06:15,988 Speaker 2: issue that has come up before then, of course, you 125 00:06:15,997 --> 00:06:17,608 Speaker 2: will have to turn to the resale market. 126 00:06:17,997 --> 00:06:20,287 Speaker 1: Ok. We're going to get into the pluses and the 127 00:06:20,298 --> 00:06:23,447 Speaker 1: minuses of the BT O in just a bit. Now, 128 00:06:23,458 --> 00:06:28,916 Speaker 1: the government did implement several measures to increase the attractiveness 129 00:06:28,947 --> 00:06:31,416 Speaker 1: and the availability of BT O flats, 130 00:06:31,505 --> 00:06:34,135 Speaker 1: right? And all the construction has been ramping up. I'm 131 00:06:34,145 --> 00:06:37,246 Speaker 1: seeing a lot more H DB flats coming online from 132 00:06:37,255 --> 00:06:40,846 Speaker 1: increasing supply to giving out more generous grants. Those are 133 00:06:40,855 --> 00:06:44,015 Speaker 1: among the things that they're introducing to make BT O 134 00:06:44,026 --> 00:06:48,996 Speaker 1: is more attractive. But are these things enough to move 135 00:06:49,005 --> 00:06:52,164 Speaker 1: some of that resale demand to the BT O market? 136 00:06:52,175 --> 00:06:52,425 Speaker 1: These 137 00:06:52,436 --> 00:06:54,786 Speaker 2: two groups, the understanding that I have that they are 138 00:06:54,795 --> 00:06:56,446 Speaker 2: going out there to buy BT O and resale are 139 00:06:56,455 --> 00:06:59,526 Speaker 2: very different in terms of what they are looking for. 140 00:06:59,854 --> 00:07:02,484 Speaker 2: Most of them who do not need, the immediate housing 141 00:07:02,493 --> 00:07:06,324 Speaker 2: would turn to BT O because they are significantly more affordable. 142 00:07:06,343 --> 00:07:08,022 Speaker 2: I wouldn't use the word cheaper anymore. It is no 143 00:07:08,033 --> 00:07:12,563 Speaker 2: longer cheap. That has, we've all come to a consensus 144 00:07:12,574 --> 00:07:14,523 Speaker 2: on that. When it comes to BT O, we do 145 00:07:14,533 --> 00:07:16,283 Speaker 2: know that they are offered at a discount from the 146 00:07:16,294 --> 00:07:19,023 Speaker 2: market and they are often at lower prices that what 147 00:07:19,033 --> 00:07:21,553 Speaker 2: the already flat would come with. And of course, the 148 00:07:21,563 --> 00:07:23,843 Speaker 2: ready flat in terms of resale will come with lower 149 00:07:23,854 --> 00:07:27,204 Speaker 2: lease remaining. For example, it goes back to why you 150 00:07:27,213 --> 00:07:27,544 Speaker 2: need the, 151 00:07:28,022 --> 00:07:30,261 Speaker 2: let's say you're going into a resale, you do have 152 00:07:30,272 --> 00:07:33,962 Speaker 2: to deal with a whole bunch of different issues like 153 00:07:34,092 --> 00:07:36,502 Speaker 2: around it versus going into a BT O. And there's 154 00:07:36,511 --> 00:07:37,671 Speaker 1: renovation to think about 155 00:07:37,682 --> 00:07:39,782 Speaker 2: as well as a lot more than that. Actually, what 156 00:07:39,791 --> 00:07:41,761 Speaker 2: people don't understand is that when you go into the 157 00:07:41,772 --> 00:07:44,701 Speaker 2: resale market right now, especially if you're in your very 158 00:07:44,712 --> 00:07:47,861 Speaker 2: young twenties or thirties, you have a young family, for example, 159 00:07:47,971 --> 00:07:50,552 Speaker 2: the cost of, it does not just come from the 160 00:07:50,562 --> 00:07:53,992 Speaker 2: flat itself. You do have to account for renovation, for example. 161 00:07:54,221 --> 00:07:55,631 Speaker 2: And one of the things that we cannot 162 00:07:56,200 --> 00:07:59,720 Speaker 2: is the COV, which is your cash over value, which 163 00:07:59,730 --> 00:08:01,989 Speaker 2: a lot of people forget. And recently we do have 164 00:08:02,000 --> 00:08:05,679 Speaker 2: someone paying about 100/1000 COV. On a certain flat, there 165 00:08:05,690 --> 00:08:05,850 Speaker 2: is a 166 00:08:05,859 --> 00:08:10,589 Speaker 1: 100 K COV in this market. Wow. I never thought 167 00:08:10,600 --> 00:08:14,140 Speaker 1: I would hear that kind of COV amount anymore ever 168 00:08:14,149 --> 00:08:14,880 Speaker 1: since the early two 169 00:08:14,890 --> 00:08:16,859 Speaker 2: 1000. I'm glad I'm not the one representing the 170 00:08:16,869 --> 00:08:19,670 Speaker 1: person. I guess it boils down to what you really 171 00:08:19,679 --> 00:08:21,880 Speaker 1: want the unit for, what you really want the house for. 172 00:08:21,890 --> 00:08:23,880 Speaker 1: And I guess if you can afford to wait, but 173 00:08:24,540 --> 00:08:28,700 Speaker 1: how long is affordable in terms of that long wait. Right. 174 00:08:28,709 --> 00:08:31,959 Speaker 1: Because even if you're a newly wed, you don't really 175 00:08:31,970 --> 00:08:34,130 Speaker 1: want to stay at your in-laws place for too long 176 00:08:34,140 --> 00:08:36,320 Speaker 1: before you jump ship, right? 177 00:08:36,690 --> 00:08:39,380 Speaker 2: For BT O. It's really on affordability if you're just 178 00:08:39,390 --> 00:08:42,640 Speaker 2: starting out in your early twenties, you know, and you're 179 00:08:42,650 --> 00:08:44,710 Speaker 2: so certain that your partner is going to be with 180 00:08:44,719 --> 00:08:47,570 Speaker 2: you all the way through. That's very important 181 00:08:47,679 --> 00:08:49,580 Speaker 2: because that's one of the criteria of owning a, a 182 00:08:49,590 --> 00:08:51,569 Speaker 2: BT O, right? You have to get married or at 183 00:08:51,580 --> 00:08:54,830 Speaker 2: least a fiance fiance scheme. Yeah. Yeah. So then if 184 00:08:54,840 --> 00:08:56,989 Speaker 2: you're so confident of that, then I feel like yes, 185 00:08:57,000 --> 00:08:59,159 Speaker 2: you do have the runway to possibly wait it out. 186 00:08:59,309 --> 00:09:01,489 Speaker 2: You might be just starting out in your career and 187 00:09:01,500 --> 00:09:03,650 Speaker 2: things like that, things may take some time to actually 188 00:09:03,659 --> 00:09:06,289 Speaker 2: shift and then eventually you settle into a new home 189 00:09:06,299 --> 00:09:08,710 Speaker 2: and then I then think that's perfect timing and 190 00:09:08,719 --> 00:09:10,979 Speaker 1: that waiting period allows you the time 191 00:09:11,270 --> 00:09:14,880 Speaker 1: to save up for good furniture, proper renovation. So you're 192 00:09:14,890 --> 00:09:16,049 Speaker 1: not rushing into it. 193 00:09:16,059 --> 00:09:18,189 Speaker 2: You do know that there's light at the end of 194 00:09:18,200 --> 00:09:20,559 Speaker 2: the tunnel, I guess, like, I feel like a million 195 00:09:20,570 --> 00:09:21,380 Speaker 2: weight is four point 196 00:09:21,390 --> 00:09:23,449 Speaker 1: four. Maybe not to the ones who had to go 197 00:09:23,460 --> 00:09:26,059 Speaker 1: through COVID. That light at the end of the tunnel 198 00:09:26,070 --> 00:09:29,169 Speaker 1: seem very far away. But I guess in today's context, 199 00:09:29,179 --> 00:09:29,510 Speaker 1: it's a little bit 200 00:09:29,565 --> 00:09:33,814 Speaker 1: bit different. So generally BT O flats are not cheaper, 201 00:09:33,835 --> 00:09:37,625 Speaker 1: they're more affordable than resale flats, but the gap does 202 00:09:37,635 --> 00:09:40,544 Speaker 1: seem to be narrowing. So let me give you a scenario. 203 00:09:40,724 --> 00:09:44,505 Speaker 1: Take the February BT O launch a four room brand 204 00:09:44,515 --> 00:09:49,825 Speaker 1: new flat at Farer Park Fields. I read costs up 205 00:09:49,835 --> 00:09:53,474 Speaker 1: to $630,000. 206 00:09:53,950 --> 00:09:58,159 Speaker 1: Now, that's comparable to a four room resale flat at 207 00:09:58,169 --> 00:10:01,859 Speaker 1: Fairer Park Gardens. So not very far away in the 208 00:10:01,869 --> 00:10:08,080 Speaker 1: same vicinity that resale flat is going for $613,000. It 209 00:10:08,090 --> 00:10:11,919 Speaker 1: is 45 years old. So the question is, should a 210 00:10:11,929 --> 00:10:15,640 Speaker 1: prospective home buyer be looking at a BT O flat 211 00:10:15,960 --> 00:10:19,010 Speaker 1: or a resale flat in this scenario? OK. It's 212 00:10:19,020 --> 00:10:20,949 Speaker 2: a bit of a predicament because I think 213 00:10:21,096 --> 00:10:23,755 Speaker 2: both products are quite different. But the one thing that 214 00:10:23,765 --> 00:10:25,736 Speaker 2: we have to take into consideration is of course, the 215 00:10:25,745 --> 00:10:27,995 Speaker 2: balance lease that we're looking at when we look at 216 00:10:28,005 --> 00:10:31,116 Speaker 2: the resale flat, one of the biggest challenge that I 217 00:10:31,125 --> 00:10:34,306 Speaker 2: can't seem to figure out now is going to a 218 00:10:34,315 --> 00:10:38,915 Speaker 2: resale flat at its peak at the moment, knowing that rationally, 219 00:10:38,926 --> 00:10:41,285 Speaker 2: this should not be a price of a resale flat 220 00:10:41,296 --> 00:10:43,244 Speaker 2: if a newly mop flat later on is going to 221 00:10:43,255 --> 00:10:46,216 Speaker 2: be costing just as much. Right. Right. 222 00:10:46,226 --> 00:10:48,156 Speaker 1: And so by peak, you mean peak price, 223 00:10:48,351 --> 00:10:51,721 Speaker 2: correct? Yeah, that's right. So if we think about this 224 00:10:51,731 --> 00:10:53,752 Speaker 2: five years down the road or 10 years down the road, 225 00:10:53,761 --> 00:10:56,721 Speaker 2: when this particular BT O then becomes available on the market, 226 00:10:56,752 --> 00:11:00,341 Speaker 2: it should be commanding more given that the resale flat 227 00:11:00,351 --> 00:11:03,562 Speaker 2: has a lesser balance lease. So it's kind of like 228 00:11:03,572 --> 00:11:07,601 Speaker 2: a future pricing versus what you're buying of today's resale market. 229 00:11:07,611 --> 00:11:10,271 Speaker 2: In terms of comparison wise, it really depends on how 230 00:11:10,280 --> 00:11:13,952 Speaker 2: much are you willing to pay for something to be ready? 231 00:11:13,961 --> 00:11:15,262 Speaker 2: And in front of you, 232 00:11:15,520 --> 00:11:19,539 Speaker 1: I guess, I guess that's the premium. Yes, it's the price. 233 00:11:19,549 --> 00:11:22,819 Speaker 1: It's literally the price you pay for what you want. 234 00:11:23,000 --> 00:11:27,159 Speaker 1: And if you want something now ie now meaning as 235 00:11:27,169 --> 00:11:31,099 Speaker 1: for as short a time as you can afford versus ok, 236 00:11:31,109 --> 00:11:33,200 Speaker 1: I'll wait a while, I'll pay the same amount, I'll 237 00:11:33,210 --> 00:11:35,218 Speaker 1: wait a while longer. I get a brand new flat 238 00:11:35,229 --> 00:11:39,619 Speaker 1: or an mop flat. It's younger, it has a longer runway. 239 00:11:39,630 --> 00:11:39,900 Speaker 1: I can 240 00:11:40,065 --> 00:11:45,325 Speaker 1: stay there longer. What becomes the considerations for a buyer 241 00:11:45,335 --> 00:11:47,776 Speaker 1: in that situation to say, hey, how do I weigh 242 00:11:47,785 --> 00:11:47,986 Speaker 1: this 243 00:11:47,995 --> 00:11:49,966 Speaker 2: out? All right. I think first of all, you have 244 00:11:49,976 --> 00:11:51,905 Speaker 2: to look at your age at what age are you 245 00:11:51,916 --> 00:11:54,625 Speaker 2: entering this flat? And if you're still young, I think 246 00:11:54,635 --> 00:11:56,575 Speaker 2: BT O is the way to go. But if you're 247 00:11:56,585 --> 00:11:59,676 Speaker 2: already trending towards 30 something going to 40 where you 248 00:11:59,684 --> 00:12:02,835 Speaker 2: are at the most income productive stage of your life, 249 00:12:02,856 --> 00:12:04,526 Speaker 2: then it could be a BT O 250 00:12:04,611 --> 00:12:08,322 Speaker 2: for you. I like that. Yeah. So, but when you 251 00:12:08,331 --> 00:12:10,002 Speaker 2: go into a resale flat at the moment, there are 252 00:12:10,011 --> 00:12:12,910 Speaker 2: some considerations which is that now that prices have peaked. 253 00:12:12,921 --> 00:12:15,372 Speaker 2: It is likely that once the supply has caught up 254 00:12:15,381 --> 00:12:17,830 Speaker 2: into the market, the prices of your flat may start 255 00:12:17,841 --> 00:12:20,551 Speaker 2: to come down. If you do decide to then move 256 00:12:20,562 --> 00:12:22,682 Speaker 2: on to another property, you might end up with a 257 00:12:22,692 --> 00:12:24,911 Speaker 2: negative sale, which is, I think a lot of people, 258 00:12:24,921 --> 00:12:27,421 Speaker 2: they have not put this into much thought or consideration 259 00:12:27,432 --> 00:12:29,031 Speaker 2: before going to a resale flat. Now, 260 00:12:29,530 --> 00:12:32,030 Speaker 1: I completely agree with you on that because when I 261 00:12:32,039 --> 00:12:35,829 Speaker 1: made the decision to spend $800,000 on my very old 262 00:12:35,840 --> 00:12:36,830 Speaker 1: H DB flat, 263 00:12:37,330 --> 00:12:39,530 Speaker 1: I knew that this was the flat that I was 264 00:12:39,539 --> 00:12:41,919 Speaker 1: going to retire in. I'm not going to move anymore. 265 00:12:42,119 --> 00:12:45,429 Speaker 1: That was the only reason that would justify that price 266 00:12:45,440 --> 00:12:48,488 Speaker 1: tag that willingness rather to pay that price tag. If 267 00:12:48,500 --> 00:12:50,760 Speaker 1: like you said, if I was younger or if I 268 00:12:50,770 --> 00:12:53,320 Speaker 1: had a family or kids, and I knew that there 269 00:12:53,330 --> 00:12:57,039 Speaker 1: was a possibility of moving to another unit later on. 270 00:12:57,289 --> 00:12:59,299 Speaker 1: I'm short changing myself. That's 271 00:12:59,479 --> 00:12:59,840 Speaker 2: right. We don't 272 00:13:00,025 --> 00:13:02,375 Speaker 2: the same way in terms of how we amass our wealth. 273 00:13:02,424 --> 00:13:04,885 Speaker 2: If you do go into a resale flat, when your 274 00:13:04,895 --> 00:13:08,164 Speaker 2: income is actually peaking in your career and things like that, 275 00:13:08,174 --> 00:13:10,395 Speaker 2: the challenge later on would be that when you have 276 00:13:10,405 --> 00:13:12,854 Speaker 2: the capacity to earn, you don't have the capacity to 277 00:13:12,864 --> 00:13:15,603 Speaker 2: take on a longer loan tenure. Then that makes the 278 00:13:15,614 --> 00:13:18,455 Speaker 2: difference when you're considering a jump in your lifestyle and 279 00:13:18,465 --> 00:13:20,215 Speaker 2: things like that. Later on a lot of us say 280 00:13:20,224 --> 00:13:21,875 Speaker 2: that this is going to be our last home. It 281 00:13:21,885 --> 00:13:22,724 Speaker 2: doesn't matter, 282 00:13:23,429 --> 00:13:25,809 Speaker 2: never say never right. Yeah, but you know, it's always 283 00:13:25,820 --> 00:13:28,679 Speaker 2: good to have an option, you know, remaining open for 284 00:13:28,690 --> 00:13:30,989 Speaker 2: you at the end of the day. Be it upon mop. 285 00:13:31,000 --> 00:13:32,330 Speaker 2: You can then look back and say, hey, did I 286 00:13:32,340 --> 00:13:35,039 Speaker 2: make a right decision when I entered this flat? Do 287 00:13:35,049 --> 00:13:37,119 Speaker 2: I have enough cash? If I wanted to do something 288 00:13:37,190 --> 00:13:39,520 Speaker 2: I needed an extra room? Do I need facilities? These 289 00:13:39,530 --> 00:13:40,989 Speaker 2: are things that you can consider later 290 00:13:41,000 --> 00:13:44,020 Speaker 1: on. Things in life happen. Life just throws things at 291 00:13:44,030 --> 00:13:47,809 Speaker 1: you that you don't, for example, we don't know another COVID. 292 00:13:47,820 --> 00:13:50,409 Speaker 1: Yeah or you know, someone falls ill one of you 293 00:13:50,750 --> 00:13:54,789 Speaker 1: ill, physically disabled for life and you need more space 294 00:13:54,799 --> 00:13:57,349 Speaker 1: to maneuver around. For example, you need a bigger flat 295 00:13:57,359 --> 00:13:59,960 Speaker 1: for that, for example. So yeah, I mean, there are 296 00:13:59,969 --> 00:14:02,650 Speaker 1: things that there are curveballs that life throws at you 297 00:14:02,659 --> 00:14:05,190 Speaker 1: that you really cannot plan for. So would you say 298 00:14:05,200 --> 00:14:09,650 Speaker 1: then that some level of forward planning was would be recommended? 299 00:14:09,919 --> 00:14:12,809 Speaker 2: Yeah, so I always have this idea of this project 300 00:14:12,820 --> 00:14:15,390 Speaker 2: Kampong Spirit. I always feel like going back to a 301 00:14:15,400 --> 00:14:17,760 Speaker 2: H DB flat later on will make a lot more 302 00:14:17,830 --> 00:14:20,739 Speaker 2: sense as an individual. So we start off maybe with 303 00:14:20,750 --> 00:14:23,179 Speaker 2: a BT. And then after that, you have a first 304 00:14:23,190 --> 00:14:25,650 Speaker 2: pot of goal because obviously you bought it as so 305 00:14:25,659 --> 00:14:28,650 Speaker 2: called a discount. We don't know how much, but we 306 00:14:28,659 --> 00:14:31,099 Speaker 2: know for sure that prices move up upon mop of 307 00:14:31,109 --> 00:14:33,729 Speaker 2: a BT usually will get some proceeds that can help 308 00:14:33,739 --> 00:14:36,150 Speaker 2: you in your next purchase. Be it whether you move 309 00:14:36,159 --> 00:14:38,969 Speaker 2: into a EC, whether you move into private, that's something 310 00:14:38,979 --> 00:14:41,320 Speaker 2: else to discuss at a point in time, how you're doing, 311 00:14:41,330 --> 00:14:43,369 Speaker 2: go ahead a mess, your wealth for the next few years. 312 00:14:43,380 --> 00:14:45,090 Speaker 2: Do what you like, come back to the, 313 00:14:45,169 --> 00:14:47,409 Speaker 2: the whole resale flat that we're talking about today. The 314 00:14:47,419 --> 00:14:50,070 Speaker 2: 45 years old resale flat, 20 years down the road 315 00:14:50,080 --> 00:14:52,469 Speaker 2: when you're ready to retire, that lease would have been 316 00:14:52,479 --> 00:14:55,489 Speaker 2: left with what 25 years do you then think it's 317 00:14:55,500 --> 00:14:57,979 Speaker 2: a better idea to then sell off what you have, 318 00:14:57,989 --> 00:15:00,590 Speaker 2: go back to H DB. Retire and then be able 319 00:15:00,599 --> 00:15:03,979 Speaker 2: to enjoy what you have made over the lifespan of yours, 320 00:15:03,989 --> 00:15:06,549 Speaker 2: working so hard and then retire in this H DB 321 00:15:06,609 --> 00:15:10,500 Speaker 2: without any financial obligations. So, I think that's the end 322 00:15:10,510 --> 00:15:12,229 Speaker 2: goal for what, like project composed. 323 00:15:12,510 --> 00:15:14,659 Speaker 2: It's meant to be, you know, like it's ok to 324 00:15:14,669 --> 00:15:16,570 Speaker 2: be uncomfortable and then comfortable later. 325 00:15:16,580 --> 00:15:19,330 Speaker 1: Yeah, I call it short term pain for long term gain. 326 00:15:19,460 --> 00:15:21,859 Speaker 2: Yeah. Yeah. Don't go for instant gratification. If you lay 327 00:15:21,869 --> 00:15:23,679 Speaker 2: out this plan and then you look at your options 328 00:15:23,690 --> 00:15:26,190 Speaker 2: at the moment, even for myself, that will be my angle. 329 00:15:26,200 --> 00:15:28,250 Speaker 2: I don't mind retiring in H DB and then like, 330 00:15:28,260 --> 00:15:31,010 Speaker 2: oh for sure. Yeah, that's a good space. Knock down 331 00:15:31,020 --> 00:15:33,289 Speaker 2: the room, one big room doesn't 332 00:15:33,340 --> 00:15:35,510 Speaker 1: matter. Me and my husband anyway. 333 00:15:35,719 --> 00:15:38,090 Speaker 2: That's all. And then maybe all my neighbors who I 334 00:15:38,099 --> 00:15:39,219 Speaker 2: sold this plan to. 335 00:15:40,369 --> 00:15:42,869 Speaker 1: Yeah, that's, that's quite a genius plan. I have to say, 336 00:15:42,880 --> 00:15:44,989 Speaker 1: like I said, right, this is the house for me. 337 00:15:45,000 --> 00:15:47,609 Speaker 1: I'm done. I don't want to move anymore. And if 338 00:15:47,619 --> 00:15:49,659 Speaker 1: you have that in mind, then I think you would 339 00:15:49,669 --> 00:15:53,219 Speaker 1: make the best financial decision for your future, for your future. 340 00:15:53,229 --> 00:15:54,789 Speaker 1: I think that's the most important thing to note. 341 00:15:58,289 --> 00:16:01,460 Speaker 1: Hello, everyone. My name is Christina and I'm Adrian and 342 00:16:01,469 --> 00:16:03,869 Speaker 1: we're the host of a podcast called Work It, if 343 00:16:03,880 --> 00:16:05,849 Speaker 1: you never heard of it. Well, it's a good time 344 00:16:05,859 --> 00:16:08,510 Speaker 1: to tap in, in the last 20 episodes, we've discussed 345 00:16:08,520 --> 00:16:11,820 Speaker 1: topics like how to negotiate for a salary increase or 346 00:16:11,830 --> 00:16:14,440 Speaker 1: how to get along with younger colleagues who have different 347 00:16:14,450 --> 00:16:15,349 Speaker 1: values from you. 348 00:16:15,640 --> 00:16:19,380 Speaker 1: Incidentally is our top performing episode. If what consumes your 349 00:16:19,390 --> 00:16:23,099 Speaker 1: life and you want some perspective on issues like management stress, 350 00:16:23,109 --> 00:16:26,739 Speaker 1: even office romance. This podcast should be on your list. 351 00:16:26,820 --> 00:16:29,929 Speaker 1: A new episode drops every Monday. Catch us on the 352 00:16:29,940 --> 00:16:32,840 Speaker 1: CN A app or wherever you get your podcast. 353 00:16:36,640 --> 00:16:40,900 Speaker 1: Ok. So let's make things more even say a couple 354 00:16:40,909 --> 00:16:45,179 Speaker 1: wants to move out immediately because reasons 355 00:16:46,200 --> 00:16:50,419 Speaker 1: does it make financial sense then to do BT O 356 00:16:50,989 --> 00:16:55,190 Speaker 1: plus rent while waiting? So presumably the renting will be 357 00:16:55,200 --> 00:17:00,140 Speaker 1: during the waiting period or B buy a resale flat, 358 00:17:00,270 --> 00:17:01,460 Speaker 1: move in immediately. 359 00:17:01,469 --> 00:17:03,530 Speaker 2: I would do C or just leave off my parents 360 00:17:03,539 --> 00:17:03,719 Speaker 2: for 361 00:17:05,160 --> 00:17:07,079 Speaker 2: if I could. But for 362 00:17:07,089 --> 00:17:09,969 Speaker 1: how long though, I mean, you're married, you're newly married. 363 00:17:10,439 --> 00:17:12,900 Speaker 1: Not every episode of living with the in laws is 364 00:17:12,910 --> 00:17:14,609 Speaker 1: a cheerful one. I mean, you're going to get in 365 00:17:14,619 --> 00:17:15,060 Speaker 1: each others 366 00:17:15,069 --> 00:17:17,609 Speaker 2: way. Every time we do a consultation, there's always one 367 00:17:17,619 --> 00:17:19,280 Speaker 2: party that doesn't want to do that 368 00:17:19,479 --> 00:17:21,030 Speaker 1: like, oh, no, no, no. But can we buy a house? 369 00:17:21,140 --> 00:17:24,639 Speaker 1: So, so what's the best combo for a newly wed 370 00:17:24,910 --> 00:17:29,160 Speaker 1: itching or really just eager to move out? Yeah, 371 00:17:29,170 --> 00:17:32,069 Speaker 2: I think most important consideration is whether you have enough 372 00:17:32,079 --> 00:17:35,869 Speaker 2: cash to actually move into resale because what we fail 373 00:17:35,880 --> 00:17:37,040 Speaker 2: to plan is that 374 00:17:37,260 --> 00:17:39,619 Speaker 2: when we go into a resale flat. There are a 375 00:17:39,630 --> 00:17:43,130 Speaker 2: lot of costs involved in acquiring the flat. So COV 376 00:17:43,140 --> 00:17:45,329 Speaker 2: is one thing that we are all expecting if you 377 00:17:45,339 --> 00:17:47,930 Speaker 2: go into a four room. Now, five room now even 378 00:17:47,939 --> 00:17:49,819 Speaker 2: a four room, which is one of the most highly 379 00:17:49,829 --> 00:17:53,010 Speaker 2: contented space at the moment. Given the last cooling measures, 380 00:17:53,209 --> 00:17:56,369 Speaker 2: we have more four rooms hitting $1 million 381 00:17:56,670 --> 00:18:00,160 Speaker 2: than before. It then depends how much cash you have 382 00:18:00,170 --> 00:18:02,760 Speaker 2: in terms of the cov the cash over valuation that 383 00:18:02,819 --> 00:18:05,349 Speaker 2: you are about to pay for. And you do have 384 00:18:05,359 --> 00:18:08,369 Speaker 2: to note that because it is a bigger space, older space, 385 00:18:08,380 --> 00:18:11,169 Speaker 2: you have to account for renovation, which which could easily 386 00:18:11,180 --> 00:18:14,560 Speaker 2: cost about 80 grand, 100 grand to do up something 387 00:18:14,569 --> 00:18:15,400 Speaker 2: nice in a four 388 00:18:15,410 --> 00:18:16,239 Speaker 1: bedroom. And if, 389 00:18:16,324 --> 00:18:18,635 Speaker 1: if you buy a ready made or ready move in 390 00:18:18,645 --> 00:18:21,925 Speaker 1: condition flat and the renovations are nice and you're not fussy, 391 00:18:22,084 --> 00:18:23,185 Speaker 1: it's gonna come at a 392 00:18:23,194 --> 00:18:25,614 Speaker 2: premium. Yeah, that's right. So if I were to consider, 393 00:18:25,625 --> 00:18:27,784 Speaker 2: you know, this 120 to 100 and 50 K that 394 00:18:27,795 --> 00:18:30,925 Speaker 2: you're going to spend on above what you are buying already, 395 00:18:30,935 --> 00:18:33,935 Speaker 2: then does this translate to a better than go and 396 00:18:33,944 --> 00:18:35,905 Speaker 2: rent out for two or three years? But 397 00:18:36,319 --> 00:18:40,520 Speaker 2: given that today's rental is also at its peak, it 398 00:18:40,530 --> 00:18:43,630 Speaker 2: then becomes very challenging because the average wait time for 399 00:18:43,640 --> 00:18:46,349 Speaker 2: BT O is about 4.4 years, you're not going to 400 00:18:46,359 --> 00:18:49,969 Speaker 2: spend $2000 anymore unless you're ok to do room rental. 401 00:18:49,979 --> 00:18:52,010 Speaker 2: For example, I would do that with my parents and 402 00:18:52,020 --> 00:18:53,869 Speaker 2: then just live in a room and lock myself in 403 00:18:53,880 --> 00:18:56,469 Speaker 2: for the rest of the day option. C Yeah, but 404 00:18:56,479 --> 00:18:58,900 Speaker 2: then again, if you're going out there to properly rent 405 00:18:58,910 --> 00:19:01,270 Speaker 2: even A H DB four room flat, for example, they 406 00:19:01,280 --> 00:19:04,948 Speaker 2: are already hitting about four K in non mature estate, 407 00:19:05,063 --> 00:19:08,144 Speaker 2: non mature estate as we have some in Punggol, Seng Kang, 408 00:19:08,154 --> 00:19:10,384 Speaker 2: like the four rooms and five rooms already hitting about 409 00:19:10,394 --> 00:19:12,763 Speaker 2: five K to six K in terms of rent. So 410 00:19:12,773 --> 00:19:16,223 Speaker 2: you times that across a span of maybe 12 months, 411 00:19:16,234 --> 00:19:17,004 Speaker 2: four years, 412 00:19:17,013 --> 00:19:19,284 Speaker 1: that's a lot of bleeding. 413 00:19:19,303 --> 00:19:22,203 Speaker 2: Yes, correct. And that's pure financial loss because someone else 414 00:19:22,213 --> 00:19:23,082 Speaker 2: is going to benefit 415 00:19:23,093 --> 00:19:25,303 Speaker 1: from this. So you would say option C stay with 416 00:19:25,313 --> 00:19:25,904 Speaker 1: your parents, your 417 00:19:25,913 --> 00:19:27,883 Speaker 2: parents or if I have to, then yes, going to 418 00:19:27,894 --> 00:19:30,144 Speaker 2: the resale market would be my next best option because 419 00:19:30,154 --> 00:19:32,042 Speaker 2: like I said, it's whether you're willing to spend that 420 00:19:32,053 --> 00:19:33,764 Speaker 2: money upfront and then 421 00:19:33,878 --> 00:19:36,147 Speaker 2: at the place you want to live or are you 422 00:19:36,157 --> 00:19:39,297 Speaker 2: then willing to wait out things a bit? And then 423 00:19:39,307 --> 00:19:41,118 Speaker 2: of course, if you do have to go with option 424 00:19:41,128 --> 00:19:43,998 Speaker 2: B in this case of a resale flat, do consider 425 00:19:44,008 --> 00:19:46,868 Speaker 2: something that is newly mop. I was just 426 00:19:46,878 --> 00:19:49,297 Speaker 1: about to say something that's younger, then at least you 427 00:19:49,307 --> 00:19:51,936 Speaker 1: can turn it around later on if you decide to 428 00:19:51,946 --> 00:19:52,718 Speaker 1: move to another 429 00:19:52,728 --> 00:19:57,046 Speaker 2: place. So trading off the mature estate housing for something 430 00:19:57,057 --> 00:19:59,157 Speaker 2: else that might have a bit of growth later, might 431 00:19:59,167 --> 00:20:02,328 Speaker 2: be your best way to protect whatever wealth you have 432 00:20:02,338 --> 00:20:02,578 Speaker 2: left 433 00:20:02,692 --> 00:20:04,151 Speaker 2: after, you know, giving it 434 00:20:04,871 --> 00:20:07,911 Speaker 1: a That's true. No, that's a good strategy honestly. Because again, 435 00:20:07,921 --> 00:20:10,591 Speaker 1: short term pain for long term gain, if you're young 436 00:20:10,692 --> 00:20:14,302 Speaker 1: and you're newlyweds, you really need to think about your 437 00:20:14,311 --> 00:20:17,631 Speaker 1: future and where that money where that dollar is going 438 00:20:17,641 --> 00:20:18,661 Speaker 1: to take you. Right. 439 00:20:18,671 --> 00:20:22,271 Speaker 2: Yeah. And in that particular segment whereby you're still young 440 00:20:22,281 --> 00:20:24,561 Speaker 2: and this is your first home. That's where a lot 441 00:20:24,571 --> 00:20:27,432 Speaker 2: of people actually make mistakes because they don't actually have 442 00:20:27,442 --> 00:20:31,031 Speaker 2: people advising them what to do on their BT O flats. 443 00:20:31,505 --> 00:20:33,936 Speaker 2: There is no agent serving that market, unfortunately, because there's 444 00:20:33,946 --> 00:20:35,765 Speaker 2: no money to be made by the agents. Right? Not 445 00:20:35,776 --> 00:20:38,576 Speaker 2: until five years later, a lot of people often trend 446 00:20:38,586 --> 00:20:41,696 Speaker 2: towards BT O. Right. Yeah. But actually going into a 447 00:20:41,705 --> 00:20:44,525 Speaker 2: resale market with a newly mop flat 448 00:20:44,676 --> 00:20:47,526 Speaker 1: and mop is a minimum occupation period. Am I right? 449 00:20:47,536 --> 00:20:51,086 Speaker 2: Correct. So when someone actually just fulfilled the minimum occupation 450 00:20:51,095 --> 00:20:53,994 Speaker 2: period and then buying off these flats with a brand 451 00:20:54,005 --> 00:20:58,375 Speaker 2: new sort of like almost 90 over years lease does 452 00:20:58,385 --> 00:21:00,206 Speaker 2: sound like a better decision 453 00:21:00,520 --> 00:21:03,439 Speaker 2: than having to wait for a BT O flat for 454 00:21:03,449 --> 00:21:06,959 Speaker 2: the next 4.4 years or six years in some, in 455 00:21:06,969 --> 00:21:08,688 Speaker 2: some estates that we know four 456 00:21:08,699 --> 00:21:11,319 Speaker 1: years, it may seem short to some. But when you 457 00:21:11,329 --> 00:21:13,599 Speaker 1: compare it to the growth of a child from baby 458 00:21:13,609 --> 00:21:16,280 Speaker 1: to a child. I mean, that's, that's huge growth. But 459 00:21:16,290 --> 00:21:20,319 Speaker 1: say there are some young people, be it single or 460 00:21:20,329 --> 00:21:21,060 Speaker 1: married 461 00:21:21,489 --> 00:21:27,219 Speaker 1: or engaged. They still, for some reason they need to rent. 462 00:21:27,339 --> 00:21:31,198 Speaker 1: What is your advice? What should they look out for 463 00:21:31,209 --> 00:21:33,329 Speaker 1: and how should they manage that financially? 464 00:21:33,520 --> 00:21:36,859 Speaker 2: So say for example, you are just two very young 465 00:21:36,869 --> 00:21:40,010 Speaker 2: couple without kids, you're ok to travel, then go out 466 00:21:40,020 --> 00:21:43,310 Speaker 2: somewhere maybe close to the new home that you're about 467 00:21:43,319 --> 00:21:46,439 Speaker 2: to buy. Experience the neighborhood, live there for a while 468 00:21:46,449 --> 00:21:49,030 Speaker 2: and get to know things around how to get around. 469 00:21:49,079 --> 00:21:49,339 Speaker 2: I think 470 00:21:49,422 --> 00:21:52,272 Speaker 2: that is a good and sound decision to make if 471 00:21:52,282 --> 00:21:55,402 Speaker 2: connectivity is an issue for you, some of the clients 472 00:21:55,412 --> 00:21:58,463 Speaker 2: that I know about a majority of them are actually 473 00:21:58,473 --> 00:22:03,243 Speaker 2: moving for schools reasons. So if that is the case, 474 00:22:03,253 --> 00:22:05,762 Speaker 2: then you really have to go out there and rent 475 00:22:05,772 --> 00:22:09,243 Speaker 2: something within the vicinity of the schools that the kids 476 00:22:09,253 --> 00:22:12,192 Speaker 2: are going to. So that's actually the other spectrum of 477 00:22:12,203 --> 00:22:15,353 Speaker 2: buyers in the market now who are renting because of that. 478 00:22:16,172 --> 00:22:17,052 Speaker 1: Yes, I know 479 00:22:17,355 --> 00:22:19,326 Speaker 1: the number of people doing that. Now before we let 480 00:22:19,336 --> 00:22:22,306 Speaker 1: you go, wanted to get your advice to home buyers. 481 00:22:22,446 --> 00:22:25,025 Speaker 1: Given the current market, 482 00:22:25,666 --> 00:22:28,676 Speaker 2: the current market is a very, very weird one because 483 00:22:28,686 --> 00:22:31,576 Speaker 2: it's no longer rational. It's a crazy market. So it's, 484 00:22:31,586 --> 00:22:34,025 Speaker 2: it's hard to be rational about it because there's so 485 00:22:34,036 --> 00:22:37,375 Speaker 2: much emotions going in when you're buying your home. The 486 00:22:37,385 --> 00:22:40,336 Speaker 2: best advice that I can give to anyone buying a 487 00:22:40,345 --> 00:22:43,166 Speaker 2: home is to imagine who is going to buy this 488 00:22:43,176 --> 00:22:45,176 Speaker 2: flat from you later on. 489 00:22:45,530 --> 00:22:48,760 Speaker 2: Because that would be your exit strategy. If you can't 490 00:22:48,770 --> 00:22:52,260 Speaker 2: imagine someone else who could live in there, then don't 491 00:22:52,270 --> 00:22:52,589 Speaker 2: buy 492 00:22:52,599 --> 00:22:55,879 Speaker 1: it. I could not agree more with you, Joanne. Like 493 00:22:55,890 --> 00:22:59,750 Speaker 1: that is spot on sound advice from Joanne Tay there. 494 00:22:59,760 --> 00:23:02,579 Speaker 1: If you're in the current market and a great end 495 00:23:02,589 --> 00:23:06,109 Speaker 1: to our conversation. Home Suite H DB, 496 00:23:06,762 --> 00:23:09,891 Speaker 1: it's become a question of the ability and willingness to 497 00:23:09,902 --> 00:23:14,493 Speaker 1: wait versus paying top dollar for the right flat. And 498 00:23:14,503 --> 00:23:18,512 Speaker 1: as construction delays fade, post pandemic and housing supply gets 499 00:23:18,522 --> 00:23:22,302 Speaker 1: back in line with demand. Hopefully home buyers will have 500 00:23:22,311 --> 00:23:25,571 Speaker 1: a wider selection of options for their housing needs. Thanks 501 00:23:25,583 --> 00:23:26,743 Speaker 1: Joanne for helping us 502 00:23:27,005 --> 00:23:30,125 Speaker 1: the options on this or that. And thanks to you, 503 00:23:30,135 --> 00:23:33,015 Speaker 1: our listener. If you've enjoyed this episode of Money Talks, 504 00:23:33,026 --> 00:23:35,936 Speaker 1: there's more content for you to enjoy. Simply follow us 505 00:23:35,946 --> 00:23:39,475 Speaker 1: on Apple podcasts or Spotify, give us five stars or 506 00:23:39,484 --> 00:23:43,205 Speaker 1: leave a review. The team behind Money Talks is Joanne Chan, 507 00:23:43,316 --> 00:23:47,436 Speaker 1: Jacqueline Chan, Christina Robert Sa Wind and I'm Andrea Hing.