WEBVTT - Best of: Should I get a BTO or a resale flat? 0:00:00.009 --> 0:00:03.210 Hey, welcome to the Money Talks podcast. It's Me Andrea Heng. 0:00:03.329 --> 0:00:06.138 We're on a season break now, but I thought, hey, 0:00:06.150 --> 0:00:09.829 why don't we bring you some of our more popular episodes. 0:00:09.840 --> 0:00:13.310 You might have missed this special series called This or that, 0:00:13.319 --> 0:00:16.360 which I love so much by the way, where I 0:00:16.370 --> 0:00:18.770 get my guests to weigh the pros and cons of 0:00:18.780 --> 0:00:22.719 two options. Now, property is always a hot topic here 0:00:22.729 --> 0:00:26.430 in Singapore and I too had to ask myself once, 0:00:26.610 --> 0:00:29.069 do I want to wait and buy a brand new 0:00:29.159 --> 0:00:33.020 BT O flat or just get a resale? My guest 0:00:33.029 --> 0:00:36.400 for this episode was Jo Anne Tay. She's a content 0:00:36.409 --> 0:00:39.700 creator on Instagram and Tik Tok under the handle house 0:00:39.709 --> 0:00:44.009 hunt with J That's Joo. She shed some light on 0:00:44.020 --> 0:00:48.040 what we should take into consideration before deciding to BT 0:00:48.049 --> 0:00:51.490 O or not. If you haven't already go to Spotify 0:00:51.500 --> 0:00:55.500 Apple or youtube music to follow us. And while you're there, 0:00:55.509 --> 0:00:58.220 please leave us a comment. Enjoy this episode. 0:00:58.659 --> 0:01:00.959 You're listening to AC N A podcast. 0:01:09.199 --> 0:01:12.540 Welcome back to Money Talks. I'm your host, Andrea Heng. 0:01:12.949 --> 0:01:17.199 Now on this series. This or that my guest weighs 0:01:17.209 --> 0:01:20.379 the pros and cons of two options. If you've missed 0:01:20.389 --> 0:01:23.150 the last episode where we discussed, if you should own 0:01:23.160 --> 0:01:26.379 or lease a car in Singapore, do give it a listen. 0:01:26.650 --> 0:01:30.150 Now on this episode, we're looking at public housing or 0:01:30.160 --> 0:01:33.080 H DB flats. Should I buy a brand new BT 0:01:33.089 --> 0:01:36.559 O flat or skip the wait and pay more for 0:01:36.569 --> 0:01:39.879 a resale flat. The longest waiting time for a new 0:01:39.889 --> 0:01:44.059 BT O flat that I've heard of is six years, 0:01:44.069 --> 0:01:47.709 six years, think about that. Ok. My own sibling gave 0:01:47.720 --> 0:01:51.120 up after two years and went straight to the resale market. 0:01:51.129 --> 0:01:51.870 Of course, 0:01:51.963 --> 0:01:55.183 a much higher price. Many new home buyers say the 0:01:55.194 --> 0:01:58.533 long wait time and the limited selection of BT O 0:01:58.543 --> 0:02:01.944 units are the key factors for turning to the resale 0:02:01.954 --> 0:02:05.463 market only to be hit by record prices there with 0:02:05.473 --> 0:02:08.923 more BT O flats coming up and resale prices appearing 0:02:08.934 --> 0:02:12.283 to hit a ceiling at least for now. What I 0:02:12.294 --> 0:02:15.413 want to know is should home buyers choose a BT 0:02:15.423 --> 0:02:17.184 O or a resale 0:02:17.276 --> 0:02:20.056 flat? And to help me with this question, I have 0:02:20.067 --> 0:02:23.957 real estate agent, Joan Tay Joanne is also a content 0:02:23.968 --> 0:02:27.738 creator on Instagram and tiktok under the handle house hunt 0:02:27.748 --> 0:02:30.407 with you. Welcome to Money Talks, Joan. Hi, 0:02:30.417 --> 0:02:32.137 Andrea. Nice to meet you here. 0:02:32.147 --> 0:02:36.048 Likewise. Ok. So Joan, how often do you as a 0:02:36.056 --> 0:02:39.397 real estate agent get home buyers who say they can't 0:02:39.407 --> 0:02:42.498 get a BT O flat? Hence, they need a resale flat. 0:02:42.591 --> 0:02:44.442 How frequently is that occurring? 0:02:44.462 --> 0:02:47.261 Just about every other week? I'll have someone come to 0:02:47.272 --> 0:02:51.421 me with this distressed situation. Yeah. Saying that they have 0:02:51.431 --> 0:02:53.542 been going through the BT O exercise for many, many, 0:02:53.552 --> 0:02:57.251 many times. And of course to, nobody's surprise they have 0:02:57.261 --> 0:03:00.251 given up on that dream and have to turn to 0:03:00.261 --> 0:03:01.671 the resale flat. Unfortunately. 0:03:01.681 --> 0:03:03.572 What's the longest wait time you've ever heard? 0:03:03.582 --> 0:03:06.361 I had someone who tried 10 times in the past 0:03:06.371 --> 0:03:07.531 three years, 0:03:07.925 --> 0:03:08.755 10 times, 0:03:08.766 --> 0:03:09.565 still trying, 0:03:10.406 --> 0:03:14.626 still trying. Ok, 10 times and going. Ok. So is 0:03:14.636 --> 0:03:17.656 there a typical profile for the resale flat buyers who 0:03:17.666 --> 0:03:21.046 can't afford to wait? What are some of the reasons 0:03:21.055 --> 0:03:22.966 for needing a home? So urgently, 0:03:22.975 --> 0:03:25.234 most of them would have been already married, they would 0:03:25.246 --> 0:03:28.535 have some sort of family nucleus going, which explains why 0:03:28.546 --> 0:03:30.114 they need a space on their own. They need a 0:03:30.126 --> 0:03:33.126 flat or home to move into more immediately than 0:03:33.529 --> 0:03:36.750 someone that's younger. Still starting out on their career and 0:03:36.759 --> 0:03:38.949 things like that. It does matter at which stage of 0:03:38.960 --> 0:03:42.570 your life are you actually considering the purchase? So most 0:03:42.580 --> 0:03:44.509 of them who are turning into a resale flat are 0:03:44.520 --> 0:03:47.669 often in their 30 something, the younger ones who have 0:03:47.679 --> 0:03:50.389 a bit more runway in terms of their age, 0:03:50.919 --> 0:03:53.789 they can stay with mommy and daddy a little bit longer. Ok. 0:03:53.800 --> 0:03:56.500 That's a good plan. It is a good plan. Save 0:03:56.509 --> 0:03:59.889 on that mortgage. Let's talk about the resale flat prices 0:03:59.899 --> 0:04:00.649 that we're seeing 0:04:00.949 --> 0:04:06.289 and they've increased relentlessly. Despite those rising interest rates, I 0:04:06.300 --> 0:04:08.929 bought my own flat at almost a million. 0:04:09.320 --> 0:04:13.720 Although it's in a rather prime area. So what's driving 0:04:13.729 --> 0:04:17.049 this demand, what's making those prices stay up? I 0:04:17.059 --> 0:04:19.640 think it's the lack of immediate supply supply has been 0:04:19.649 --> 0:04:23.130 disrupted because COVID happened which nobody would have expected. 0:04:23.140 --> 0:04:24.089 Nobody asked for 0:04:24.100 --> 0:04:26.589 it. Yes, it's good for those people who already have 0:04:26.600 --> 0:04:29.070 the H DB because that's possibly the only time whereby 0:04:29.079 --> 0:04:32.279 you actually see your prices going up. Rationally speaking, it 0:04:32.290 --> 0:04:34.349 should not be, it should be going down according to 0:04:34.359 --> 0:04:36.769 the lease that you have left on your property. 0:04:37.070 --> 0:04:39.868 And because of this disruption, we also do notice that 0:04:39.880 --> 0:04:43.250 there's a change in lifestyle as well. Previously, we've seen 0:04:43.260 --> 0:04:46.109 a lot of people living in a multigeneration home whereby 0:04:46.119 --> 0:04:48.040 you know yourselves, you have your parents and you have 0:04:48.049 --> 0:04:49.929 your kids that are living with you. We are all 0:04:49.940 --> 0:04:53.290 taking care of each other after COVID for some apparent reason, 0:04:53.299 --> 0:04:55.720 maybe we can't stand each other as much. 0:04:55.980 --> 0:04:59.459 What did they, what do they say? Proximity breeds resentment 0:04:59.470 --> 0:05:00.549 or something like that or 0:05:00.760 --> 0:05:03.690 rather true because we are seeing households now 0:05:03.765 --> 0:05:06.613 actually moving out. They don't mind staying close to each 0:05:06.625 --> 0:05:10.784 other but not trying not to be in too much 0:05:10.795 --> 0:05:16.265 contact ever since COVID that basically tested how close our relationships. 0:05:17.113 --> 0:05:18.674 That's the ultimate stress 0:05:18.684 --> 0:05:23.904 test almost 24 hours, seven days a week in the 0:05:23.915 --> 0:05:26.885 same space and an H DB flat. I mean, if 0:05:26.894 --> 0:05:29.113 you're housing just a couple of, it's just the two 0:05:29.125 --> 0:05:30.344 of you in one flat, 0:05:30.600 --> 0:05:33.290 that's fine. That's already like, ok, I'll get on your nerves. 0:05:33.299 --> 0:05:35.019 You get on mine and then we'll be fine. 0:05:35.269 --> 0:05:39.089 But if there are multigenerational families out there living in 0:05:39.100 --> 0:05:41.609 an H DB flat, that's got to create a lot 0:05:41.619 --> 0:05:43.488 of stress points for anybody. 0:05:43.500 --> 0:05:44.929 Yeah. That's right. And I think the change in the 0:05:44.940 --> 0:05:47.570 lifestyle was much quicker than we imagined. And you know, 0:05:47.579 --> 0:05:50.178 from one household, we used to have like three generations 0:05:50.190 --> 0:05:52.649 living in it. Now one household is going out there 0:05:52.809 --> 0:05:56.190 to buy 23 different homes. Yeah. So that is what's 0:05:56.200 --> 0:05:59.928 actually causing the stress in terms of what we need 0:05:59.940 --> 0:06:02.890 immediately from the market. Yeah. And BT O may not 0:06:02.899 --> 0:06:03.290 be the 0:06:03.388 --> 0:06:07.798 the most sound choice when it comes to moving in immediately. 0:06:07.808 --> 0:06:10.847 You do have to wait a significantly long time and 0:06:10.858 --> 0:06:13.048 having to stay with your family. If that's actually an 0:06:13.058 --> 0:06:15.988 issue that has come up before then, of course, you 0:06:15.997 --> 0:06:17.608 will have to turn to the resale market. 0:06:17.997 --> 0:06:20.287 Ok. We're going to get into the pluses and the 0:06:20.298 --> 0:06:23.447 minuses of the BT O in just a bit. Now, 0:06:23.458 --> 0:06:28.916 the government did implement several measures to increase the attractiveness 0:06:28.947 --> 0:06:31.416 and the availability of BT O flats, 0:06:31.505 --> 0:06:34.135 right? And all the construction has been ramping up. I'm 0:06:34.145 --> 0:06:37.246 seeing a lot more H DB flats coming online from 0:06:37.255 --> 0:06:40.846 increasing supply to giving out more generous grants. Those are 0:06:40.855 --> 0:06:44.015 among the things that they're introducing to make BT O 0:06:44.026 --> 0:06:48.996 is more attractive. But are these things enough to move 0:06:49.005 --> 0:06:52.164 some of that resale demand to the BT O market? 0:06:52.175 --> 0:06:52.425 These 0:06:52.436 --> 0:06:54.786 two groups, the understanding that I have that they are 0:06:54.795 --> 0:06:56.446 going out there to buy BT O and resale are 0:06:56.455 --> 0:06:59.526 very different in terms of what they are looking for. 0:06:59.854 --> 0:07:02.484 Most of them who do not need, the immediate housing 0:07:02.493 --> 0:07:06.324 would turn to BT O because they are significantly more affordable. 0:07:06.343 --> 0:07:08.022 I wouldn't use the word cheaper anymore. It is no 0:07:08.033 --> 0:07:12.563 longer cheap. That has, we've all come to a consensus 0:07:12.574 --> 0:07:14.523 on that. When it comes to BT O, we do 0:07:14.533 --> 0:07:16.283 know that they are offered at a discount from the 0:07:16.294 --> 0:07:19.023 market and they are often at lower prices that what 0:07:19.033 --> 0:07:21.553 the already flat would come with. And of course, the 0:07:21.563 --> 0:07:23.843 ready flat in terms of resale will come with lower 0:07:23.854 --> 0:07:27.204 lease remaining. For example, it goes back to why you 0:07:27.213 --> 0:07:27.544 need the, 0:07:28.022 --> 0:07:30.261 let's say you're going into a resale, you do have 0:07:30.272 --> 0:07:33.962 to deal with a whole bunch of different issues like 0:07:34.092 --> 0:07:36.502 around it versus going into a BT O. And there's 0:07:36.511 --> 0:07:37.671 renovation to think about 0:07:37.682 --> 0:07:39.782 as well as a lot more than that. Actually, what 0:07:39.791 --> 0:07:41.761 people don't understand is that when you go into the 0:07:41.772 --> 0:07:44.701 resale market right now, especially if you're in your very 0:07:44.712 --> 0:07:47.861 young twenties or thirties, you have a young family, for example, 0:07:47.971 --> 0:07:50.552 the cost of, it does not just come from the 0:07:50.562 --> 0:07:53.992 flat itself. You do have to account for renovation, for example. 0:07:54.221 --> 0:07:55.631 And one of the things that we cannot 0:07:56.200 --> 0:07:59.720 is the COV, which is your cash over value, which 0:07:59.730 --> 0:08:01.989 a lot of people forget. And recently we do have 0:08:02.000 --> 0:08:05.679 someone paying about 100/1000 COV. On a certain flat, there 0:08:05.690 --> 0:08:05.850 is a 0:08:05.859 --> 0:08:10.589 100 K COV in this market. Wow. I never thought 0:08:10.600 --> 0:08:14.140 I would hear that kind of COV amount anymore ever 0:08:14.149 --> 0:08:14.880 since the early two 0:08:14.890 --> 0:08:16.859 1000. I'm glad I'm not the one representing the 0:08:16.869 --> 0:08:19.670 person. I guess it boils down to what you really 0:08:19.679 --> 0:08:21.880 want the unit for, what you really want the house for. 0:08:21.890 --> 0:08:23.880 And I guess if you can afford to wait, but 0:08:24.540 --> 0:08:28.700 how long is affordable in terms of that long wait. Right. 0:08:28.709 --> 0:08:31.959 Because even if you're a newly wed, you don't really 0:08:31.970 --> 0:08:34.130 want to stay at your in-laws place for too long 0:08:34.140 --> 0:08:36.320 before you jump ship, right? 0:08:36.690 --> 0:08:39.380 For BT O. It's really on affordability if you're just 0:08:39.390 --> 0:08:42.640 starting out in your early twenties, you know, and you're 0:08:42.650 --> 0:08:44.710 so certain that your partner is going to be with 0:08:44.719 --> 0:08:47.570 you all the way through. That's very important 0:08:47.679 --> 0:08:49.580 because that's one of the criteria of owning a, a 0:08:49.590 --> 0:08:51.569 BT O, right? You have to get married or at 0:08:51.580 --> 0:08:54.830 least a fiance fiance scheme. Yeah. Yeah. So then if 0:08:54.840 --> 0:08:56.989 you're so confident of that, then I feel like yes, 0:08:57.000 --> 0:08:59.159 you do have the runway to possibly wait it out. 0:08:59.309 --> 0:09:01.489 You might be just starting out in your career and 0:09:01.500 --> 0:09:03.650 things like that, things may take some time to actually 0:09:03.659 --> 0:09:06.289 shift and then eventually you settle into a new home 0:09:06.299 --> 0:09:08.710 and then I then think that's perfect timing and 0:09:08.719 --> 0:09:10.979 that waiting period allows you the time 0:09:11.270 --> 0:09:14.880 to save up for good furniture, proper renovation. So you're 0:09:14.890 --> 0:09:16.049 not rushing into it. 0:09:16.059 --> 0:09:18.189 You do know that there's light at the end of 0:09:18.200 --> 0:09:20.559 the tunnel, I guess, like, I feel like a million 0:09:20.570 --> 0:09:21.380 weight is four point 0:09:21.390 --> 0:09:23.449 four. Maybe not to the ones who had to go 0:09:23.460 --> 0:09:26.059 through COVID. That light at the end of the tunnel 0:09:26.070 --> 0:09:29.169 seem very far away. But I guess in today's context, 0:09:29.179 --> 0:09:29.510 it's a little bit 0:09:29.565 --> 0:09:33.814 bit different. So generally BT O flats are not cheaper, 0:09:33.835 --> 0:09:37.625 they're more affordable than resale flats, but the gap does 0:09:37.635 --> 0:09:40.544 seem to be narrowing. So let me give you a scenario. 0:09:40.724 --> 0:09:44.505 Take the February BT O launch a four room brand 0:09:44.515 --> 0:09:49.825 new flat at Farer Park Fields. I read costs up 0:09:49.835 --> 0:09:53.474 to $630,000. 0:09:53.950 --> 0:09:58.159 Now, that's comparable to a four room resale flat at 0:09:58.169 --> 0:10:01.859 Fairer Park Gardens. So not very far away in the 0:10:01.869 --> 0:10:08.080 same vicinity that resale flat is going for $613,000. It 0:10:08.090 --> 0:10:11.919 is 45 years old. So the question is, should a 0:10:11.929 --> 0:10:15.640 prospective home buyer be looking at a BT O flat 0:10:15.960 --> 0:10:19.010 or a resale flat in this scenario? OK. It's 0:10:19.020 --> 0:10:20.949 a bit of a predicament because I think 0:10:21.096 --> 0:10:23.755 both products are quite different. But the one thing that 0:10:23.765 --> 0:10:25.736 we have to take into consideration is of course, the 0:10:25.745 --> 0:10:27.995 balance lease that we're looking at when we look at 0:10:28.005 --> 0:10:31.116 the resale flat, one of the biggest challenge that I 0:10:31.125 --> 0:10:34.306 can't seem to figure out now is going to a 0:10:34.315 --> 0:10:38.915 resale flat at its peak at the moment, knowing that rationally, 0:10:38.926 --> 0:10:41.285 this should not be a price of a resale flat 0:10:41.296 --> 0:10:43.244 if a newly mop flat later on is going to 0:10:43.255 --> 0:10:46.216 be costing just as much. Right. Right. 0:10:46.226 --> 0:10:48.156 And so by peak, you mean peak price, 0:10:48.351 --> 0:10:51.721 correct? Yeah, that's right. So if we think about this 0:10:51.731 --> 0:10:53.752 five years down the road or 10 years down the road, 0:10:53.761 --> 0:10:56.721 when this particular BT O then becomes available on the market, 0:10:56.752 --> 0:11:00.341 it should be commanding more given that the resale flat 0:11:00.351 --> 0:11:03.562 has a lesser balance lease. So it's kind of like 0:11:03.572 --> 0:11:07.601 a future pricing versus what you're buying of today's resale market. 0:11:07.611 --> 0:11:10.271 In terms of comparison wise, it really depends on how 0:11:10.280 --> 0:11:13.952 much are you willing to pay for something to be ready? 0:11:13.961 --> 0:11:15.262 And in front of you, 0:11:15.520 --> 0:11:19.539 I guess, I guess that's the premium. Yes, it's the price. 0:11:19.549 --> 0:11:22.819 It's literally the price you pay for what you want. 0:11:23.000 --> 0:11:27.159 And if you want something now ie now meaning as 0:11:27.169 --> 0:11:31.099 for as short a time as you can afford versus ok, 0:11:31.109 --> 0:11:33.200 I'll wait a while, I'll pay the same amount, I'll 0:11:33.210 --> 0:11:35.218 wait a while longer. I get a brand new flat 0:11:35.229 --> 0:11:39.619 or an mop flat. It's younger, it has a longer runway. 0:11:39.630 --> 0:11:39.900 I can 0:11:40.065 --> 0:11:45.325 stay there longer. What becomes the considerations for a buyer 0:11:45.335 --> 0:11:47.776 in that situation to say, hey, how do I weigh 0:11:47.785 --> 0:11:47.986 this 0:11:47.995 --> 0:11:49.966 out? All right. I think first of all, you have 0:11:49.976 --> 0:11:51.905 to look at your age at what age are you 0:11:51.916 --> 0:11:54.625 entering this flat? And if you're still young, I think 0:11:54.635 --> 0:11:56.575 BT O is the way to go. But if you're 0:11:56.585 --> 0:11:59.676 already trending towards 30 something going to 40 where you 0:11:59.684 --> 0:12:02.835 are at the most income productive stage of your life, 0:12:02.856 --> 0:12:04.526 then it could be a BT O 0:12:04.611 --> 0:12:08.322 for you. I like that. Yeah. So, but when you 0:12:08.331 --> 0:12:10.002 go into a resale flat at the moment, there are 0:12:10.011 --> 0:12:12.910 some considerations which is that now that prices have peaked. 0:12:12.921 --> 0:12:15.372 It is likely that once the supply has caught up 0:12:15.381 --> 0:12:17.830 into the market, the prices of your flat may start 0:12:17.841 --> 0:12:20.551 to come down. If you do decide to then move 0:12:20.562 --> 0:12:22.682 on to another property, you might end up with a 0:12:22.692 --> 0:12:24.911 negative sale, which is, I think a lot of people, 0:12:24.921 --> 0:12:27.421 they have not put this into much thought or consideration 0:12:27.432 --> 0:12:29.031 before going to a resale flat. Now, 0:12:29.530 --> 0:12:32.030 I completely agree with you on that because when I 0:12:32.039 --> 0:12:35.829 made the decision to spend $800,000 on my very old 0:12:35.840 --> 0:12:36.830 H DB flat, 0:12:37.330 --> 0:12:39.530 I knew that this was the flat that I was 0:12:39.539 --> 0:12:41.919 going to retire in. I'm not going to move anymore. 0:12:42.119 --> 0:12:45.429 That was the only reason that would justify that price 0:12:45.440 --> 0:12:48.488 tag that willingness rather to pay that price tag. If 0:12:48.500 --> 0:12:50.760 like you said, if I was younger or if I 0:12:50.770 --> 0:12:53.320 had a family or kids, and I knew that there 0:12:53.330 --> 0:12:57.039 was a possibility of moving to another unit later on. 0:12:57.289 --> 0:12:59.299 I'm short changing myself. That's 0:12:59.479 --> 0:12:59.840 right. We don't 0:13:00.025 --> 0:13:02.375 the same way in terms of how we amass our wealth. 0:13:02.424 --> 0:13:04.885 If you do go into a resale flat, when your 0:13:04.895 --> 0:13:08.164 income is actually peaking in your career and things like that, 0:13:08.174 --> 0:13:10.395 the challenge later on would be that when you have 0:13:10.405 --> 0:13:12.854 the capacity to earn, you don't have the capacity to 0:13:12.864 --> 0:13:15.603 take on a longer loan tenure. Then that makes the 0:13:15.614 --> 0:13:18.455 difference when you're considering a jump in your lifestyle and 0:13:18.465 --> 0:13:20.215 things like that. Later on a lot of us say 0:13:20.224 --> 0:13:21.875 that this is going to be our last home. It 0:13:21.885 --> 0:13:22.724 doesn't matter, 0:13:23.429 --> 0:13:25.809 never say never right. Yeah, but you know, it's always 0:13:25.820 --> 0:13:28.679 good to have an option, you know, remaining open for 0:13:28.690 --> 0:13:30.989 you at the end of the day. Be it upon mop. 0:13:31.000 --> 0:13:32.330 You can then look back and say, hey, did I 0:13:32.340 --> 0:13:35.039 make a right decision when I entered this flat? Do 0:13:35.049 --> 0:13:37.119 I have enough cash? If I wanted to do something 0:13:37.190 --> 0:13:39.520 I needed an extra room? Do I need facilities? These 0:13:39.530 --> 0:13:40.989 are things that you can consider later 0:13:41.000 --> 0:13:44.020 on. Things in life happen. Life just throws things at 0:13:44.030 --> 0:13:47.809 you that you don't, for example, we don't know another COVID. 0:13:47.820 --> 0:13:50.409 Yeah or you know, someone falls ill one of you 0:13:50.750 --> 0:13:54.789 ill, physically disabled for life and you need more space 0:13:54.799 --> 0:13:57.349 to maneuver around. For example, you need a bigger flat 0:13:57.359 --> 0:13:59.960 for that, for example. So yeah, I mean, there are 0:13:59.969 --> 0:14:02.650 things that there are curveballs that life throws at you 0:14:02.659 --> 0:14:05.190 that you really cannot plan for. So would you say 0:14:05.200 --> 0:14:09.650 then that some level of forward planning was would be recommended? 0:14:09.919 --> 0:14:12.809 Yeah, so I always have this idea of this project 0:14:12.820 --> 0:14:15.390 Kampong Spirit. I always feel like going back to a 0:14:15.400 --> 0:14:17.760 H DB flat later on will make a lot more 0:14:17.830 --> 0:14:20.739 sense as an individual. So we start off maybe with 0:14:20.750 --> 0:14:23.179 a BT. And then after that, you have a first 0:14:23.190 --> 0:14:25.650 pot of goal because obviously you bought it as so 0:14:25.659 --> 0:14:28.650 called a discount. We don't know how much, but we 0:14:28.659 --> 0:14:31.099 know for sure that prices move up upon mop of 0:14:31.109 --> 0:14:33.729 a BT usually will get some proceeds that can help 0:14:33.739 --> 0:14:36.150 you in your next purchase. Be it whether you move 0:14:36.159 --> 0:14:38.969 into a EC, whether you move into private, that's something 0:14:38.979 --> 0:14:41.320 else to discuss at a point in time, how you're doing, 0:14:41.330 --> 0:14:43.369 go ahead a mess, your wealth for the next few years. 0:14:43.380 --> 0:14:45.090 Do what you like, come back to the, 0:14:45.169 --> 0:14:47.409 the whole resale flat that we're talking about today. The 0:14:47.419 --> 0:14:50.070 45 years old resale flat, 20 years down the road 0:14:50.080 --> 0:14:52.469 when you're ready to retire, that lease would have been 0:14:52.479 --> 0:14:55.489 left with what 25 years do you then think it's 0:14:55.500 --> 0:14:57.979 a better idea to then sell off what you have, 0:14:57.989 --> 0:15:00.590 go back to H DB. Retire and then be able 0:15:00.599 --> 0:15:03.979 to enjoy what you have made over the lifespan of yours, 0:15:03.989 --> 0:15:06.549 working so hard and then retire in this H DB 0:15:06.609 --> 0:15:10.500 without any financial obligations. So, I think that's the end 0:15:10.510 --> 0:15:12.229 goal for what, like project composed. 0:15:12.510 --> 0:15:14.659 It's meant to be, you know, like it's ok to 0:15:14.669 --> 0:15:16.570 be uncomfortable and then comfortable later. 0:15:16.580 --> 0:15:19.330 Yeah, I call it short term pain for long term gain. 0:15:19.460 --> 0:15:21.859 Yeah. Yeah. Don't go for instant gratification. If you lay 0:15:21.869 --> 0:15:23.679 out this plan and then you look at your options 0:15:23.690 --> 0:15:26.190 at the moment, even for myself, that will be my angle. 0:15:26.200 --> 0:15:28.250 I don't mind retiring in H DB and then like, 0:15:28.260 --> 0:15:31.010 oh for sure. Yeah, that's a good space. Knock down 0:15:31.020 --> 0:15:33.289 the room, one big room doesn't 0:15:33.340 --> 0:15:35.510 matter. Me and my husband anyway. 0:15:35.719 --> 0:15:38.090 That's all. And then maybe all my neighbors who I 0:15:38.099 --> 0:15:39.219 sold this plan to. 0:15:40.369 --> 0:15:42.869 Yeah, that's, that's quite a genius plan. I have to say, 0:15:42.880 --> 0:15:44.989 like I said, right, this is the house for me. 0:15:45.000 --> 0:15:47.609 I'm done. I don't want to move anymore. And if 0:15:47.619 --> 0:15:49.659 you have that in mind, then I think you would 0:15:49.669 --> 0:15:53.219 make the best financial decision for your future, for your future. 0:15:53.229 --> 0:15:54.789 I think that's the most important thing to note. 0:15:58.289 --> 0:16:01.460 Hello, everyone. My name is Christina and I'm Adrian and 0:16:01.469 --> 0:16:03.869 we're the host of a podcast called Work It, if 0:16:03.880 --> 0:16:05.849 you never heard of it. Well, it's a good time 0:16:05.859 --> 0:16:08.510 to tap in, in the last 20 episodes, we've discussed 0:16:08.520 --> 0:16:11.820 topics like how to negotiate for a salary increase or 0:16:11.830 --> 0:16:14.440 how to get along with younger colleagues who have different 0:16:14.450 --> 0:16:15.349 values from you. 0:16:15.640 --> 0:16:19.380 Incidentally is our top performing episode. If what consumes your 0:16:19.390 --> 0:16:23.099 life and you want some perspective on issues like management stress, 0:16:23.109 --> 0:16:26.739 even office romance. This podcast should be on your list. 0:16:26.820 --> 0:16:29.929 A new episode drops every Monday. Catch us on the 0:16:29.940 --> 0:16:32.840 CN A app or wherever you get your podcast. 0:16:36.640 --> 0:16:40.900 Ok. So let's make things more even say a couple 0:16:40.909 --> 0:16:45.179 wants to move out immediately because reasons 0:16:46.200 --> 0:16:50.419 does it make financial sense then to do BT O 0:16:50.989 --> 0:16:55.190 plus rent while waiting? So presumably the renting will be 0:16:55.200 --> 0:17:00.140 during the waiting period or B buy a resale flat, 0:17:00.270 --> 0:17:01.460 move in immediately. 0:17:01.469 --> 0:17:03.530 I would do C or just leave off my parents 0:17:03.539 --> 0:17:03.719 for 0:17:05.160 --> 0:17:07.079 if I could. But for 0:17:07.089 --> 0:17:09.969 how long though, I mean, you're married, you're newly married. 0:17:10.439 --> 0:17:12.900 Not every episode of living with the in laws is 0:17:12.910 --> 0:17:14.609 a cheerful one. I mean, you're going to get in 0:17:14.619 --> 0:17:15.060 each others 0:17:15.069 --> 0:17:17.609 way. Every time we do a consultation, there's always one 0:17:17.619 --> 0:17:19.280 party that doesn't want to do that 0:17:19.479 --> 0:17:21.030 like, oh, no, no, no. But can we buy a house? 0:17:21.140 --> 0:17:24.639 So, so what's the best combo for a newly wed 0:17:24.910 --> 0:17:29.160 itching or really just eager to move out? Yeah, 0:17:29.170 --> 0:17:32.069 I think most important consideration is whether you have enough 0:17:32.079 --> 0:17:35.869 cash to actually move into resale because what we fail 0:17:35.880 --> 0:17:37.040 to plan is that 0:17:37.260 --> 0:17:39.619 when we go into a resale flat. There are a 0:17:39.630 --> 0:17:43.130 lot of costs involved in acquiring the flat. So COV 0:17:43.140 --> 0:17:45.329 is one thing that we are all expecting if you 0:17:45.339 --> 0:17:47.930 go into a four room. Now, five room now even 0:17:47.939 --> 0:17:49.819 a four room, which is one of the most highly 0:17:49.829 --> 0:17:53.010 contented space at the moment. Given the last cooling measures, 0:17:53.209 --> 0:17:56.369 we have more four rooms hitting $1 million 0:17:56.670 --> 0:18:00.160 than before. It then depends how much cash you have 0:18:00.170 --> 0:18:02.760 in terms of the cov the cash over valuation that 0:18:02.819 --> 0:18:05.349 you are about to pay for. And you do have 0:18:05.359 --> 0:18:08.369 to note that because it is a bigger space, older space, 0:18:08.380 --> 0:18:11.169 you have to account for renovation, which which could easily 0:18:11.180 --> 0:18:14.560 cost about 80 grand, 100 grand to do up something 0:18:14.569 --> 0:18:15.400 nice in a four 0:18:15.410 --> 0:18:16.239 bedroom. And if, 0:18:16.324 --> 0:18:18.635 if you buy a ready made or ready move in 0:18:18.645 --> 0:18:21.925 condition flat and the renovations are nice and you're not fussy, 0:18:22.084 --> 0:18:23.185 it's gonna come at a 0:18:23.194 --> 0:18:25.614 premium. Yeah, that's right. So if I were to consider, 0:18:25.625 --> 0:18:27.784 you know, this 120 to 100 and 50 K that 0:18:27.795 --> 0:18:30.925 you're going to spend on above what you are buying already, 0:18:30.935 --> 0:18:33.935 then does this translate to a better than go and 0:18:33.944 --> 0:18:35.905 rent out for two or three years? But 0:18:36.319 --> 0:18:40.520 given that today's rental is also at its peak, it 0:18:40.530 --> 0:18:43.630 then becomes very challenging because the average wait time for 0:18:43.640 --> 0:18:46.349 BT O is about 4.4 years, you're not going to 0:18:46.359 --> 0:18:49.969 spend $2000 anymore unless you're ok to do room rental. 0:18:49.979 --> 0:18:52.010