The end of the MOP means you can sell off your flat. Most people are not looking forward to disposing of it, but intend to make a profit out of the investment. At this property ownership stage, you might be wondering whether to upgrade or downgrade your flat. Some wonder if they will get more return if they stick more to the flat and sell it later. Generally, it the question of what to do next. Well, here are the choices you have.
Review the family size and finances to see if it essential to upgrade/downgrade the flat
For most of Singaporeans, giving their family comfort is a high priority. 5 years down the line, it’s most likely that your family has changed in size and structure. You might have increased in size or downgrade if children have left the next to their own homes. Another reason to increase is if your parents might have moved in with you.
If you need to increase the size of your flat, focus on getting a resale flat as they are more spacious. See flat like Marionettes, executive condos, etc. If you want to downgrade, 2-room HDB flat is economical.
Move closer to your parents and get a $20,000 grant in the next resale
If you have aged parents and you move closer to them, the government will reward you with a $20,000 proximity Housing Grant (PHG). This should be less than 2 km from where your parents live. Parents can also get a resale grant of the same amount if they move closer to their children.
Upgrade to executive condo without the resale levy
If you want to upgrade your lifestyle and have enough money not to take a mortgage, then consider purchasing an executive condominium (EC). Apart from the better facilities that come with condos, you will enjoy full renovation before you move in.
Get an investment property
One of the common Singaporean dreams is to own an investment property. Houses are always in high demand in the country with most people looking for a place to rent, especially foreigners. Since your HDB has MOP, you are free to purchase another HDB and rent the old one to Singaporeans, and after 10 years you can rent it out to foreigners.
Stay in your HDB and enjoy the capital appreciation
If you bought a new BTO, it is highly likely what you have already enjoyed capital appreciation. This is why you can choose to stay put and let the capital get even higher than sell it the future or choose the other above option. The best move, however, is to sell and move to a new one with a higher capital appreciation.
Real estate is a massive investment in Singapore. Sometimes, even making the above decision is difficult unless you are sure things will work as planned. This is why there exist consultancy firm in this niche to help you make a personalized arrangement. For example, you can get help in calculating the value of your house and advise on why you should follow a particular choice after your HDB has MOP.