Lately, there has been ongoing discussion on whether owning a HDB flat is a liability. Perhaps, when the lease runs out and the prices start to depreciate, the HDB flat could indeed become a liability one day!
However, let us discuss the plus points of owning a HDB flat:
It offers an affordable housing option for the majority of Singaporeans
It serves as a stepping stone for upgraders to upgrade to a private property by selling their HDB flat.
It allows elderly HDB owners to monetize their flat for retirement.
It protects you from the creditors even if you are declared a bankrupt! HDB flats where at least one of the owners is a Singapore Citizen & makes CPF contributions are protected from creditors.
It offers high rental yield! Some HDB flats can command a 7% to 8% rental yield as compared to a private condo which typically fetches 2% to 2.5%.
It is subsidized by the government, ranging from housing grants, utility rebates, upgrading incentives to GST vouchers.
Plus you can keep your HDB flat and buy a private property for investment! Nevertheless, ABSD is payable!
So let us ponder for a while before we brand our humble HDB flat as a liability!
By the way, I also know friends that continue to stay in their HDB flats and yet own multiple private properties for investment!
Give me a call if you still have concern on your HDB flat or any upgrading plans.
