A netizen pointed out to those people thinking that buying a BTO is a profit says that “they are dreaming”.
However, some netizens argued that some might move overseas or rent a home but most people won’t do this.
Here is what he says:
Alot of people say buy BTO then sell can profit 200 – 400K or even more. But that is one of the dumbest ways to make money.
Lets say you buy the BTO at 100K, you sell it for 500k minus CPF repayment and other fees maybe you profit 390K (This is a high estimate, it’s probably much lesser than this).
But what happens after that?
You upgrade to a condominium then continue paying debts again for another 20-30 years? That don’t sound good.
You downgrade to a smaller flat and earn practically next to nothing? Going in a big circle to earn that small amount of money. Not to mention a smaller living space.
You buy a same size HDB that cost already the same amount and lose money from fees and etc.
You go for 2nd BTO and become homeless or pay rent until its your turn? Wait another 5-6 years you probably pay over 200k in rental (5 years) and your BTO cost you over 100K.
Come on lah, these people are dreaming
So whats the point?
People say BTO will profit macham don’t need another home to stay. If you moving overseas and have no intention coming back then you will probably profit for real since homes from our neighboring countries are much cheaper.
If your someone relying on BTO profits to buy a condominium then your probably not earning enough meaning you will enter another debt till an even older age.
If your intending to rent with your BTO profit’s, it is not feasible as well. Your profit will run out in about 10 years if you rent a 4 room flat. If you include inflation, fees and tax, it’s even lesser.