First post (after reading for 1-2 years)
-Holding HDB EA D14 with outstanding Mortgage of 200k at 1.4k / mth but currently rented out for 2.5k/mth. Est valuation ~630k
-Bought in 2010 FH PC D19 and own stay, ~$3.6k/mth for 1m mortgage. Last transacted in same estate end 2011 at $200psf higher than my purchase.
Was Dual Income No Kid (DINK) ~ 12+k / mth
Now Single income two kids (SITK) ~ 8+ k / mth due to wife taking care of kids
Foresee cash flow problem due to Single income, insufficient CPF reserve for mortgage payment, heavier expenses for increased household expenditure.
Asking Guru here for sound advice:
1. Am I over leveraged on loan?
Rental income from HDB is approxi $1k and instalment including maintenance and tax for PC is approxi $4k. With income of $8.5k, disposable income is $8.5 + $1k - $4k = $5.5k. Only some savings of approxi $1k for a family of four with other financial commitment at current low interest rates.
2. If have to sell one, which is more advisable under current climate?
Not really need to sell.
3. Any other means beside selling, borrowing from personal contacts? I foresee if able to tide through another 2 years, the cash flow would not be so tight.
Just swap to living and address to HDB and rent out the condo, until your income increases to $10k pm, then swap back. I think your cash flow will improve significantly by about $1-2k.
Your advice much appreciated.