Sell or keep my HDB flat?

[ThinkEnglish]

As the agents like to say, "There’s no unit that can’t be rented out. It all depends on the price." Have you considered lowering the rent?

[vinegar]

Hw long hv ur agents help to look fr tenants?

[starlight1968sg]

Han Seo

Am in a similar situation except my hdb is rented out cheaply.
I decided to hold onto my hdb for the time being

[doodbug]

My HDB flat is also being rented out cheaply and I am not sure whether there will be tenants after this current contract which expires in Apr. One possibility would be to sell the flat and buy a small condo with minimal to no loan to rent out.

[Cloud Cloud]

Han Seo:

Hi folks,

I am in a dilemma and would appreciate some advice here. My spouse and I are currently living in a condo and we have a 5 room HDB flat (fully paid and long passed the minimum occupation period). Our original plan is to rent out the HDB flat for rental income. However, due to the nationality quota set by HDB, we managed to rent out our flat for 1 year only. After my last tenant moved out in May this year, the flat has been vacant as I could only rent to Malaysians and Singaporeans due to the nationality quota for my block (yes, my block has many units rented out to foreigners). I have engaged 2 agents to help me look for tenants and they were unsuccessful so far.

We have enough savings currently to leave the flat vacant for the next 2-3 years. However, I wonder if it is still worth keeping the flat for rental with HDB strict regulations in whole flat rental. Moreover, I have to go down once a month to clean the flat and check for leaks (my WC leaked in September and the water bill shot up to $200 plus for that month!). We have no children and will not be leaving the flat to the next generation.

Initially, my spouse was certain he wanted to keep the HDB flat just in case he wished to move back (we have great neighbours there) but now, he is enjoying the facilities in our condo and he has somewhat changed his mind. We have discussed this for some time now and find it hard to reach a decision.

Are there any considerations we have left out? Thanks!

Unless you need help to finance your condo or have other considerations. Better to keep hdb. What is your asking? Try $100 or $200 lower than the rest. But potential tenants may negotiate lower. Still better than vacant right?

I am thinking of selling my hdb and condo because size and locations are not ideal. If not, will prefer to keep hdb because the yield is relatively higher.

[Nebbermind]

The quota only applies to rental of whole flat, ya?

[starlight1968sg]

doodbug:

My HDB flat is also being rented out cheaply and I am not sure whether there will be tenants after this current contract which expires in Apr. One possibility would be to sell the flat and buy a small condo with minimal to no loan to rent out.

I doubt selling my BB 5 rm hdb can buy a real small condo w/o topping up

[doodbug]

Nebbermind:

The quota only applies to rental of whole flat, ya?

I am cutting and pasting the following from the HDB website; this is for subletting entire flat:

You will have to consider the Non-Citizen Quota for Subletting of Flat if any subtenant renting your flat is a non-Malaysian non-citizen (Singapore Permanent Resident or foreigner). The quota is to help maintain a good ethnic mix in HDB estates. Malaysians are not subject to this quota in view of their close cultural and historical similarities with Singaporeans.

The quota is set at 8% at the neighbourhood level and 11% at the block level, and applicable if any subtenant renting the whole flat is a non-Malaysian non-citizen (Singapore Permanent Resident or foreigner) . If the quota is reached, only Singaporeans and Malaysians can rent a flat in that neighbourhood/ block. Note that this quota does not apply to the subletting of bedrooms.

You may use our e-Service to check if your flat can be sublet to non-Malaysian non-citizens. The e-Service can also be accessed via the HDB Map Services.

[doodbug]

starlight1968sg:

doodbug:

My HDB flat is also being rented out cheaply and I am not sure whether there will be tenants after this current contract which expires in Apr. One possibility would be to sell the flat and buy a small condo with minimal to no loan to rent out.

I doubt selling my BB 5 rm hdb can buy a real small condo w/o topping up

My HDB flat is currently rented out to foreigners; if I am restricted to Singaporeans and Malaysians, I think it will be very difficult for me to find tenants. Should that occur, I may try to swop it for a small condo (with some top up). A flat not generating income and not appreciating, even if fully paid up, does not appeal to me, as there is opportunity costs in holding on to the asset.