Is Your 99 Years Leasehold Property HDB Flat An Investment???
Hmm ...
Simple and quick answer is ...
Your 99 years leasehold property HDB flat is you lottery TOTO ticket.
If you are damn lucky you strike ToTo Jackpot as sole winner and becomes millionaire or multi-millionaire.
If you are not so lucky like Uncle8888; it is like tio ToTo Group 2!
Group 1 and Group 2 is hell of difference!
:-(
All HDB flat owners have their winning ticket; but if they forgot to claim their winning ticket by 99 years; it will expire worthless.
Buying HDB BTO is like buying in-the-money European-style call options that can only be exercised 5 years later.
ReplyDeleteResale HDB? That's like slightly out-of-the-money Euro-style call options! LOL!
Frankly for own residential property --- I view as combination of consumption & savings.
Consumption because you need to spend to have shelter anyway.
Savings because for most of your lifetime, you can still get a good savings rate of return after minusing off base expenses, if you sell.
The very good property "savings rate" of 10%p.a. if you bought in the 1970s & early-80s is a reflection of high inflation then. You would have done better buying local stocks & companies. ;)
Good one!
Delete