—-The Susan discussion

• Say my #2-1173 unit has NGRY=5%. If I can find a 7% NGRY jumbo unit, then it’s worthwhile to upgrade. I get S$1k/month additional  rental income
  • How about 6.5% NGRY? Not so worthwhile.
• The jumbo unit would slowly lose value, but I don’t care so much.
• my kids don’t need this inheritance
• 🙂 Within 5Y MOP, you still can rent out entire unit if your family is overseas.

—- personal preferences

• #1 factor — location determines rental demand and appreciation
• location also determines my and wife’s commute, shopping convenience, schools etc. not to be taken lightly
• If built more than 40 years ago (below 60Y lease remaining), then resale price will be affected (discounted), but if location is good it would be great for me.
• Carving out a room in the living room with a window is probably allowed. Need window
• prefer units with two entrances.
• prefer corner units. Otherwise, typical size is 130+ in sqm like 68 sqm x 2

—- end game, assuming zero inflation:

Rental yield is likely higher than a regular HDB unit. I think we still can sell for some residual value. This high-income poor-appreciation asset is exactly what I need now.

May also get en-bloc, but the likelihood is 4%

—- financing

Mortgage can’t exceed 75%.

I have used cpfOA =151k

My current cpfOA = 17k only; 29k for wife.