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:
1. It offers an affordable housing option for the majority of Singaporeans
2. It serves as a stepping stone for upgraders to upgrade to a private property by selling their HDB flat
3. It allows elderly HDB owners to monetize their flat for retirement.
4. 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.
5. 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%.
6. It is subsidized by the government, ranging from housing grants, utility rebates, upgrading incentives to GST vouchers.
7. 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.
