HDB Flat vs Private Condo | Which is a Better Investment?

HDB Flat vs Private Condo | Which is a Better Investment?
📘 Blog: https://www.propertyden.sg/hdb-vs-pri...
☎️ Dennis@ 98285808 for Any Queries
=========
HDB versus condo. Which is a better Investment? Which one is more suitable for you? What is the difference between SERS & enbloc?

HDB flat is an ideal home for owner occupation? It has a functional design with little wasted spaces. And most importantly, the prices of HDB flats are more affordable than private condo. However, a resale or older HDB flat is not ideal for long term capital preservation or appreciation.

Why ? The government’s policy on public housing is that it is strictly for the buyer’s own occupation and not speculation. In 2017, Minister Mr. Lawrence Wong warned that not all old HDB flats will be eligible for SERS (Selective En bloc Redevelopment Scheme) or “en bloc” in short. It has been reported that the percentage of en bloc HDB flats was only about 4%.

Strictly by statistics, you really should not count on your HDB flat being shortlisted for this scheme. Almost 80% of Singaporeans live in HDB flats. The government could never possibly afford to let all old HDB flats be eligible for SERS. That is why HDB owners are worried that their old flats will be a depreciating asset.

Once the age of a 99 years lease-hold property crosses 40 years, its value depreciates faster. There are limits on CPF usage and also the amount that you could loan when buying an old leasehold property. Age affects all property prices.

The key difference between a private condo & HDB flat is that the private property can be put on a collective sale (en bloc) for developers to purchase. The developer can then buy this private condo for redevelopment.

Then again, nothing is guaranteed. There is a recent case of the government taking back the land of a private residence is Geylang Lorong 3 after the lease of 60 years expired. We can come to a conclusion that a private property stands a higher chance of a collective sale (en bloc).

That is why, whenever possible, I will urge my buyers to go for a condo instead of a HDB as private properties tend to give you maximum capital preservation and appreciation.

========================

#HDBvscondo #enbloc #propertyden #HDBorCondo #SERS #private condo

Disclaimer:
All information & opinions provided in the video are for educational purposes only. It is not intended to be any form of investment advice