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

[leesf]

Edureach:

leesf:

We are a first-timer want to invest in a condo. A 3 bedroom unit costs about $1.1m and will only be completed 4 years later. We still have about $80k HDB loan. Any advice is this a worth buy. What are the factors that need to be considered?

Most important factor is never follow the crowd. Next is the question of your outstanding loan of 80k. Following next, do you need to take up a loan with duration of 25 yrs or even 30 yrs? If answer is yes, then your dream condo is out of your reach. Lastly, are you confident of selling it at more than 2.5 million after 30 yrs?

[quote][/quote]Hi Edureach,

Thanks for your reply. We don't intend to stay in the condo but thought of renting out after completion and the rental will be used to pay off the loan. Hopefully, if the property goes up in 5 years time, then we sell it off. Of course the condo has to be worth at least $1m then its worthwhile to sell. What's your thoughts?

[WeiHan]

Buying a condo now is not worth it.


1. The price now is at a high level of this cycle. Nobody knows. It can stay this high or even go slightly higher. The interest rate is at record low. It is unlikely to go further down and the only way is up. Once the rate goes up, expect to have a negative impact on the property market.

2. The rental yield for most property is only 3-4%. It is even lower than inflation rate which is 4-5% currently. Certainly, we cannot call this "making the money work for us".

[Laurenwkids]

Thanks Mdm Lau and Mad Scientist for your advice.

[Edureach]

leesf:

Edureach:

[quote=\"leesf\"]We are a first-timer want to invest in a condo. A 3 bedroom unit costs about $1.1m and will only be completed 4 years later. We still have about $80k HDB loan. Any advice is this a worth buy. What are the factors that need to be considered?

Most important factor is never follow the crowd. Next is the question of your outstanding loan of 80k. Following next, do you need to take up a loan with duration of 25 yrs or even 30 yrs? If answer is yes, then your dream condo is out of your reach. Lastly, are you confident of selling it at more than 2.5 million after 30 yrs?

[quote][/quote]Hi Edureach,

Thanks for your reply. We don't intend to stay in the condo but thought of renting out after completion and the rental will be used to pay off the loan. Hopefully, if the property goes up in 5 years time, then we sell it off. Of course the condo has to be worth at least $1m then its worthwhile to sell. What's your thoughts?[/quote].


Reading btw the lines in response to your earlier message, its no go for you. Just be patience and you should get a much better deal in the near future.

Alternatively, u may consider to park your money in equities when the market has stabilised after this severe downturn. In this instance, have to do a lot of homework, get yourself educated and don't chiong just because the market may look like a real bargain at that point of time. Stock picking skills, macroeconomics and understanding of human psychology coupled with financial discipline are must to invest sucessfully.

[leesf]

Hi Edureach,


Thanks for your reply. Will consider the options again.

[Mdm Lau LP]

Investing in property requires some careful considerations. Just as there are good and bad stocks in the stock market, there are also good and bad properties in the property market at any one point in time. One must be able to identify which are the good properties for investment through careful studying of the project price/psf trend, surrounding developments, nearby projects prices, etc.

[babystickyfingers]

dicky:

No, what was meant is that you must satisfy your HDB MOP before rent out. If MOP is not up yet, you must live in your HDB even if you had a pte pty. Maybe this is the special case you are refering to....

yes you are right

[dreamrat]

micollh:

net $4500 is eligible for condo ? i thought there is a minimum total income for HDB/Condo ? no ?


I would feel with the combine of 4,500, it's quite challenging to pay ur HDB loans dun say condo(min 3k and above mthly)

Is there are min income for Condo?
$4600 is the amount remained after CPF deduction.
It is just a matter of affortability. But I do realise that there are alot of richer ppl around me...since the median income is $5000*.8=$4000 per adult... even with degree, increment can nvr catch up with inflation.

Assuming we can save $2000 per month in joint acc (+ year end bonus), I can pay off the HDB loan at the end of the fifth year with cash. So, it is not that challenging.

[micollh]

dreamrat:

micollh:

net $4500 is eligible for condo ? i thought there is a minimum total income for HDB/Condo ? no ?


I would feel with the combine of 4,500, it's quite challenging to pay ur HDB loans dun say condo(min 3k and above mthly)

Is there are min income for Condo?
$4600 is the amount remained after CPF deduction.
It is just a matter of affortability. But I do realise that there are alot of richer ppl around me...since the median income is $5000*.8=$4000 per adult... even with degree, increment can nvr catch up with inflation.

Assuming we can save $2000 per month in joint acc (+ year end bonus), I can pay off the HDB loan at the end of the fifth year with cash. So, it is not that challenging.

Good luck !

[TonyThomasMum]

Just want to ask. I have fully paid up HDB and i co bought an Condo at 1.26Mil. with siblings for my parents to stay. currently BUC. My stake is 40% and we took a 80% loan. I am thinking to get another unit for my own family … Could anyone advise how my credit limit will be assessed by the bank? Will i be able to get 60% of the loan?