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Thread: First property - EC or BTO 5RM?

  1. #31
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    Quote Originally Posted by Tripp
    Isn't it risky for a young couple earning 7K combined per mth getting a $1M EC?
    It is very risky indeed, especially when we do not know what will happen in the near future. Yes, your salary may increase as your career progresses, but on the other hand, there are too many 'what-ifs': retrenchment, health issues, spouse has to stop work to look after the kids etc. It is better to live within your means.

  2. #32
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    There is a word says, "No risk, no gain". there is always a risk..it depends how you manage it.

  3. #33
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    bro, combined income $7k ... of course HDB la!

    limbei got $300k ,also don't dare touch condo!
    I took the road less traveled by, and that has made all the difference.” - Robert Frost quotes (American poet, 1874-1963)

  4. #34
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    get govt grant buy 2 bedder ec

  5. #35
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    Quote Originally Posted by roly8
    bro, combined income $7k ... of course HDB la!

    limbei got $300k ,also don't dare touch condo!
    300K should be good enuff to buy a good 2+S in suburb with good rental yield

  6. #36
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    Quote Originally Posted by roly8
    bro, combined income $7k ... of course HDB la!

    limbei got $300k ,also don't dare touch condo!
    wah.. people 7k/mth, even if eat air also can only save 84k/mth incl CPF. your 300k... wah biang. you money laundering?

  7. #37
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    Quote Originally Posted by Shanhz
    wah.. people 7k/mth, even if eat air also can only save 84k/mth incl CPF. your 300k... wah biang. you money laundering?
    ..................


    me is do own business
    so, income can up & down lor
    I took the road less traveled by, and that has made all the difference.” - Robert Frost quotes (American poet, 1874-1963)

  8. #38
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    BTO in e west, best is if u r working n have parents staying in e west.

  9. #39
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    I actually think your first property should be the biggest and the best you can afford.

    Reason being:

    1. you are still young, your earnings will increase many fold in the near future (unlike when you're older, and have reached the peak of your earnings, that is when you should buy smaller). Loan installments that seem big proportion of your earnings now will seem small in the coming years as your earnings grow.

    2. being young, you have little commitments. Kids, elderly parents, cars, high insurance costs, topping up pension, medical expenses, expensive shopping and holiday habits, keeping up with the jones', etc... all those will eat away your earnings in your later years... so, with little commitment, you can afford to spend more on property.

    3. with inflation and rising house prices, you are unlikely to be able to get this big and this good at this price ever again. unless market really moves in your favour, which of course has happened, but like i said, unlikely.

    Just my

  10. #40
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    I agree that location is most impt than ec or bto. Make sure u maximize yr first timer advantage and I think u do get a grant for either one. I personally think citylife has good potential and if a 3br at 11xx sf is likely to be <$900k is quite worthwhile. If that is too high and a 2br at 7xxsqf is good enough for u, it will likely be below 700k.

    This is likely to be one of the better ec location u will get due to proximity near the town central, malls and mrt. I suspect nx yr gls will have some plots release near citylife as they have quite a few plots earmarked for high rise residential.

  11. #41
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    Quote Originally Posted by CondoSeeker2012
    Thanks for replying! Can I ask why please?
    HDB is a citizen entitlement. Always get it. In e event one cannot pay e monthly installment, how many cases have we heard HDB repossessing the unit?

    Very few. The last publicized case, hdb took 10years before repossessing the unit.

    And if you have fully repaid the hdb. Even if you are declare bankrupt for whatever reason. The banks and creditors cannot go after your hdb, you still have a roof to stay.

    And if you are going to invest, go for dual key EC units. Stay one to fulfill the MOP, rent out the other unit for cash floe.

  12. #42
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    I would suggest go for HDB first, assuming you are still in yr 20s. Place more focus and effort on your family and career building first and don't stress yrself unnecessarily with heavy mortgage loans. Once you are more established in your career, you can then confidently chiong for PCs.

  13. #43
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    Both EC and BTO are ok as you enjoy 10-15% discount off the market selling prices... so you get to enjoy both the subsidies. EC implied subsidy will defintely be higher as its applied on S$1m instead of $500k. And dont assume that if you get HDB, you can buy a PC to stay and rent out HDB in future.. rules may change so dont bet on it

    From the subsidy standpoint, EC is defintely better


    HOWEVER, u mentioned your combined income is S$7k... this will change my recommendation to you to get a BTO instead...

  14. #44
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    To the TS, my vote is for EC.

  15. #45
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    Quote Originally Posted by Rein

    HOWEVER, u mentioned your combined income is S$7k... this will change my recommendation to you to get a BTO instead...
    Yup, wise words!

    Btw if his combined income is $7k per month and gets the 1 mil EC, will the bank lend him 800K, assuming he takes the max LTV?

  16. #46
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    If intention is for this to be the one and only property for you, buy EC.

    If not, hoot BTO.
    树大必有枯枝,人多必有白痴。
    树无皮必死无疑,人不要脸天下无敌!

  17. #47
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    Quote Originally Posted by hyenergix
    BTO in e west, best is if u r working n have parents staying in e west.
    if got , i might consider la..
    I took the road less traveled by, and that has made all the difference.” - Robert Frost quotes (American poet, 1874-1963)

  18. #48
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    Quote Originally Posted by Cyberknight

    And if you have fully repaid the hdb. Even if you are declare bankrupt for whatever reason. The banks and creditors cannot go after your hdb, you still have a roof to stay.
    bro, is this true? anywhere on HDB website is it stated?

  19. #49
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    Quote Originally Posted by buttercarp
    Yup, wise words!

    Btw if his combined income is $7k per month and gets the 1 mil EC, will the bank lend him 800K, assuming he takes the max LTV?
    last i checked, bank DSR is max 50% for 80% LTV.

  20. #50
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    Quote Originally Posted by Shanhz
    last i checked, bank DSR is max 50% for 80% LTV.
    http://www.standardchartered.com.sg/...ossary/sub/en/
    Debt Service Ratio (DSR)

    Debt Service Ratio is the ratio of debt over take home income, expressed in percentage. The lower the ratio, the healthier is your finances. Depending on the type of property, employment and income level, the loan will be rejected if the DSR is too high. The DSR recommended by the CPF Board is 35%.



    Can you tell me how to calculate, please ?
    Take home income is per month or per annum?
    TIA.

  21. #51
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    For 1mil ppty at 80% LTV, loan=800k. Assuming loan 30 years:

    Interest rate | Instalment
    1% | $2573
    2% | $2957
    4% | $3819

    I personally think using DSR of gross income is more accurate than take home income, coz the diff goes to CPF which can be used to pay for the house.

    50% DSR of 7k income = $3500
    35% DSR of 7k income = $2450

    from here it is obvious that if we flex for 4% interest rate, they have burst even the bank's aggressive DSR. so the loan will not go thru unless higher downpayment.

    anyway for a couple with 2 kids, $3500 left for daily expenses is quite tight. assuming no car somemore. very tough lah.

    unless they have high future income potential

  22. #52
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    Quote Originally Posted by buttercarp
    Can you tell me how to calculate, please ?
    Take home income is per month or per annum?
    TIA.
    a) Aggregate all monthly installments in cash i.e. car loans, housing loan nett of CPF contributions, reno loan, study loan, term loans etc

    b) Take home income is nett of CPF contributions (includes rental income, dividend and other sources)


    Take a) and divide it by b) and you get the DSR.
    树大必有枯枝,人多必有白痴。
    树无皮必死无疑,人不要脸天下无敌!

  23. #53
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    Quote Originally Posted by CondoSeeker2012
    Parents will never agree. Want us to stand on own two feet and be down to earth.

    Agree with them also, want to do it ourselves. Precious lessons to be learnt will be missed if we take shortcuts I feel. Just my 2 cents, no offence to others who have done so here. Different folks different strokes. =)
    no info on how much money u have for down payment?

  24. #54
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    actually the age-range of the couple also quite impt in determine the risk profile and future income upside.

  25. #55
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    Quote Originally Posted by Shanhz
    For 1mil ppty at 80% LTV, loan=800k. Assuming loan 30 years:

    Interest rate | Instalment
    1% | $2573
    2% | $2957
    4% | $3819

    I personally think using DSR of gross income is more accurate than take home income, coz the diff goes to CPF which can be used to pay for the house.

    50% DSR of 7k income = $3500
    35% DSR of 7k income = $2450

    from here it is obvious that if we flex for 4% interest rate, they have burst even the bank's aggressive DSR. so the loan will not go thru unless higher downpayment.

    anyway for a couple with 2 kids, $3500 left for daily expenses is quite tight. assuming no car somemore. very tough lah.

    unless they have high future income potential
    TS "1) Buying to invest, staying with parents"... so might have a condo or parent's hdb for rental...

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