Sold My 1st HDB At Loss & Lessons Learned

I bought my HDB at $500k, sold it at $438k, $60k+ loss after 6 years. 

Few lessons learned:

1. Potential loss from resales HDB transaction if you buy at wrong timing

I bought my first HDB through resales market 6 years ago, when property market was hot and before government announces last cooling measure. At that time, the HDB I bought was valued at $480k and I paid $20k COV for it.

After 6 years, HDB valuation dropped from $480k to $420k (info from buyer) and I sold it at $438k.

It makes me feel liking buying stocks. If you buy at high price (Peak), you might potentially making loss when you want to sell it. 

2. Do your own research

The agent I engaged charge a fixed commission fee which less than 1% of selling price. This is much lower than usual agent commission 2% of selling price. However, it came with a price in term of services.

A lot of noises from my agent to influence me accept an offer price so that he can close the deal instead of going back to buyers to negotiate for higher price.  I manage to reduce my loss by $10k+ by not 100% listen to what agent said.

You shall do your analysis in term demand & supply of resales HDB in your area instead of 100% rely on agent. Otherwise, you might at risk to sell your unit at your agent expected price, not yours.

3. Get a BTO if possible

I manage to get my 2nd HDB through sales of balance flats. However, I do not qualify for any government grant due to income level & HDB located ar mature area.

I have applied for bank loan after move in my new BTO. Guess what, bank valuation for my new unit is $100k higher than my purchase value.

If someone tell you buy a HDB will make profits. This is probably true if you get a BTO, not resales HDB.