How to own a property when my household income is net $4600

[Poonie]

Hi Financial Guru

If gov’t is listening to the grouses of the public prices of brand new hdb will drop. Do you think those still holding hdb should sell at its all time high to cash out and buy a condo now before condo prices go up further. Condo prices might go up further if govt change policy and forbid PRs to buy hdbs resulting in higher demand for condos? What is your opinion on these? Not sure if my analysis is correct.

[financial_guru]

Poonie:

Hi Financial Guru

If gov't is listening to the grouses of the public prices of brand new hdb will drop. Do you think those still holding hdb should sell at its all time high to cash out and buy a condo now before condo prices go up further. Condo prices might go up further if govt change policy and forbid PRs to buy hdbs resulting in higher demand for condos? What is your opinion on these? Not sure if my analysis is correct.

The govt knows they have to engineer a soft landing in the public housing market which is too hot right now.
Personally I don't think they will take the drastic step of disallowing PRs to buy HDB. That will totally collapse the resale market!
PRs will still be allowed to buy HDB flats on resale market.
What I think will happen is:
1) They will relook at the BTO process and application for new HDB flats and increase the supply for the new flats to keep prices affordable.
2) Increase CPF housing grant for 1st time buyers, may link amt of housing grant to inflation?

[heyhoe]

Hi Financial Guru,


I am with UOB for 15 years loan and on fixed rate for the 1st, 3 years. By next month, my fixed rate will end. Thus, does this mean I won’t be able to refinance if the amount falls below $100K? Please advise.

If not, it will be difficult to refinance, isn’t it? What other option do I have?

Appreciate your advice. Thanks!

[Poonie]

financial_guru:

Poonie:

Hi Financial Guru

If gov't is listening to the grouses of the public prices of brand new hdb will drop. Do you think those still holding hdb should sell at its all time high to cash out and buy a condo now before condo prices go up further. Condo prices might go up further if govt change policy and forbid PRs to buy hdbs resulting in higher demand for condos? What is your opinion on these? Not sure if my analysis is correct.

The govt knows they have to engineer a soft landing in the public housing market which is too hot right now.
Personally I don't think they will take the drastic step of disallowing PRs to buy HDB. That will totally collapse the resale market!
PRs will still be allowed to buy HDB flats on resale market.
What I think will happen is:
1) They will relook at the BTO process and application for new HDB flats and increase the supply for the new flats to keep prices affordable.
2) Increase CPF housing grant for 1st time buyers, may link amt of housing grant to inflation?

Financial Guru
Thanks. We have a hdb in a prime location which we are very reluctant to sell. Thinking of buying a condo. Do you think I should keep it for rental and move back when we are old or should we sell it whilst it is at its highest price? Do you think the policy changes will affect pte pties or will the focus be on hdb prices?

[Leander]

Hi,

I am with UOB for 10 years loan and on fixed rate for the 1st 2 years. By next month my fixed rate will end. Thus, does this mean, I won’t be able to refinance if the amount falls below $100K? Please advise.Thanks advance

[Harleston]

I have also similar amount of income and want to own a residential property. I am looking for home loan which is under my financial means so that I can pay the loan amount easily.

[dreamrat]

Harleston, will u be buying EC or condo?


Right now, we are considering to sell our HDB and buy EC instead of Condo as Condo seems out of our reach, unless our income increases significantly. Owning two properties seems not feasible at current market pricing.

[jojo]

which loan package is good?

[dankhim]

Hi dreamrat,

if 5 years ago, I would say EC. Because it's much lower than condo. But these days EC are not cheap.
Good thing about EC is u may still get $30 to 40K grant(now may be insignificant due to high price) and it's become private condo after 10 years.
You should consider which one near to your children's school and your working area.
regards

dreamrat:

Harleston, will u be buying EC or condo?

Right now, we are considering to sell our HDB and buy EC instead of Condo as Condo seems out of our reach, unless our income increases significantly. Owning two properties seems not feasible at current market pricing.

[dankhim]

jojo:

Hi Financial Guru,


More questions for you:)

Which is better investment if both ppty is 99 y lease? brand new or 20 y o ppty.
Friends told me brand new unit it might not the layout we see in the showflat plus we have to pay a premium price. As for old unit we can have a feel whether we are comfortable plus the facing of the unit. :xedfingers:
What is your thoughts?

Hi Jojo,
For investment, if for renting, 99 y lease better than freehold because of higher yield. When u rent out, the rental will not so much determine whether it's freehold.
Brand new has advantage if you are super rich as you can pay to choose your ideal unit. The better the facing, the higher the price. You may sometime ask yourself you want to pay that extra premium to stay at a better facing. Anyway you have the choice. The layout will be the same as stated in the floor plan but the design in showroom can be misleading. But the empty layout can turn to your dream home that you want it to be. I agree with the view from condo may turn out diff from the day you buy, but that can minimise from the experience u had. Try to get more advice before u decide on the unit loh.

As for resale, you may not get the most ideal home unless the one you want decided to shift out. That may take years.