Resale flat in Sengkang or BTO flat in Bidadari?

Dear AK, 

I have been reading your blog for quite sometime and have since taken a thought about financial prudence before any purchase.  

I am in a dilemma to get a BTO or resale flat. 






Currently i have got a queue number to select for the recent Bidadari Bto however i have to wait for 4 years to get the flat. 

My spouse do not have a house here and my parents place do not have enough space for us to live in therefore we have to rent. 

By waiting (3rm flat rental planning for kids) my rental will probably work out to be $65,000 (for the entire waiting period).

The Bidadari BTO 4rm will probably cost about $490,000. (A new 99yr flat, near my parents place)

A resale flat in Hougang/Sengkang 4rm perhaps $350,000. (A 30yr old flat)

Now the question is if it is financially prudent to give up my BTO and get a resale flat instead. 

Bidadari BTO is an attractive location and maybe a good future investment (when?) the property goes up. 

However when i look at it financially it might not be that attractive. 

Although it is close to my parents home and a fabulous location.

Can you talk to yourself on this matter?

Your Sincerely,

V

Hi V,

$490K for a 99 year lease or $350K for a 69 year lease? 

The choice is clear. 

Throw in the rental cost of $65K (while waiting for the BTO to be built) in the meantime, it gets a bit murky. 






I would think of it as your 99 year leasehold flat costing $555K instead. 

Does this help? 

Sounds pretty pricey, doesn't it?

Personally, I am very wary of buying very old (99 years) leasehold properties for many reasons but from the perspective of cost, the resale Sengkang flat is rather pricey too. 

$350K for 69 years of remaining lease, top it up to 99 years and you will see a price tag of $502K. 






Based on this alone and nothing else, I would get the BTO flat in Bidadari. 

Better location in more ways than one and for really only a 10% premium. :)

Best wishes,
AK

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