Liquidate or not???

[etan]

...seeking your views as at the crossroad of a decision...whether t o sell off my hdb unit or not?

bkgrd info:
...54 y.o...3 local univ(2013) kids + 1 poly/jc (next yr)...
...stay pte apt...250k 15 yr-loan...using cpf for mthly repayment...aim to retire at 62 as the 3 kids would be abt 3/4 years in their job already...
...5-R hdb, rental 2.5k...
...zero stocks/shares...have been lurking in forum(s) but no spare cash to invest in shares...

1) thinking of selling the hdb @ 680k/700k...but once sold, no more chance of hdb, unless eventually sell pte apt...
2) then investing 280k/300k in dividend stocks @ 6% to get 1.4k/1.5k p.m...
3) not clearing 250k loan as low interest, also apt has mortgage insurance cover...
4) remainder 400k....not sure how best to use it??? what would you do?

instead of selling the hdb is to keep it & use it for rental income...
...i feel that housing has gone up too much & very little upside left...if i continue to keep the hdb, i am heavy in property & no asset diversification at all...this is the reason why i am keen to sell off the hdb...and to allocate some funds into stocks...

like to hear your views....

My take:

1. Unless you really need a big sum of money anytime soon, if not, why not stay status quo. Afterall, the big expenses (meaning children’s education) are over, maybe only 1 more to go. This is not a problem, as the 3 elder children will be able to chip in if there is any need to.
2. The other main expense outstanding is the monthly condo loan.
3. Actually, rental from flat can go towards payment of housing loan. But if condo loan is paid using cpf, all the more you should be happy, collecting the cash and keeping it in your pockets.
4. Since you are aware that once you sell off your HDB, it is unlikely that you will be able to buy back in future, unless HDB tweak its ruling.
5. The flat can be used for some kind of temporary housing for your children while waiting for their new flat/condo to be ready.
6. Rental collected can also be used to fund your retirement needs.
7. To jump directly into stocks without investing in knowledge is actually very risky, if you had read my case. But of course, your situation may be different. Suggest you start off with a very very small capital first if you really want to venture into it, to get a feel.
8. Yes, it’s better to keep the spacious condo, extra space is always a luxury.
9. I fully agree with you on the en bloc potential which may come one day; you will get a windfall. By then, you could probably downgrade to a smaller unit.
10. May I ask if you dun mind: you mentioned family member of ‘5’, 4 kids plus yourself. What about your spouse?
11. Unless you have other specific reasons for needing the cash, if not, just hold on as long as you can. Bricks turn into cash is easy, cash turn into bricks is a lot harder. Ahaha!
12. You mentioned you will work until 62, but when we are older, we are at the mercy of employers!
13. It appears that financially, you are well taken care of at this moment.

Well, make an informed decision…becos we are not you, we can’t fully understand your needs at this stage, or why you need a change…