Total cash outlay : $317,600
Yearly extra money forked out - $46,796 minus $33,600 = $13,196
Over 30 years - $395,880
House fully paid in 30 years. Total capital out lay = $317,600+$395,880 = $713,480
Net Rental collection/year (after 30 years when house fully paid) = $21,340
Is this calculation correct????
btw, how much do you think the property price will be in 30 years time???? Please share... I want to hear your opinion.
Last edited by chestnut; 15-06-17 at 18:22.
?????
I blur???? In those days, houses were expensive..... it looks cheap now because of inflation.....
look at historical earnings of those days compared with today. You need to compare Apple to Apple..... when I bought my Anchorage in 1995 for under 900k, people all say I crazy, why buy so high????? Today, I also look at it and say it is cheap.... but inflation caught up.
Btw, the property u mention at 1mil, how much do you think it will be in 30 years time???? I would love to hear your view. Is my calculation correct as well???? Or there needs to be changes????
Last edited by jwong71; 15-06-17 at 19:51.
10 years ago 600 psf.
http://www.skyscrapercity.com/showth...=358211&page=2
Don't know where is DKSG.
Only the not experienced one will cheong showflat as if that is the only condo in Singapore ... when buying a condo for investment, always remember the 4 key factors :
1) Buy - are u buying at higher prices than others, if so ... that it is a bad buy ... imagine everyone buy at $625 psf, you buy at $762 psf ... everyone dont mind sell at $725 psf ... but u will lose money at that rate ... so u must wait for all these people to sell first then u can sell ... doesnt make sense right ?
2) Hold - Must have ability to hold, meaning, rental more than monthly instalment .. taking into consideration sensitivity analysis of interest rates ... easy to get tenants, etc etc
3) Finance - Get good rates ... interest is the highest cost on the P&L ... so make sure u do well in this ...
4) Sell - Sell at the correct timing and use the correct methodolody at arriving at the sell decision ...
Just my 2 cents opinion.
http://www.skyscrapercity.com/showth...=358211&page=5
1 YEAR 400 PSF
Anyone can give me your opinion :
I want to buy one unit in Kallang as investment. Riverine price is now $1.5-1.6k psf; Citylights/Southbank are both at $1.0-1.1k psf. Which one has more room to rise? It seems that Citylights has more room - it may rise to $1.5k psf easily after TOP. But it may be difficult for Riverine to rise to $2.0k psf in 2008.
How about Southbank? Is it better than the other two projects?
http://www.skyscrapercity.com/showth...=358211&page=9
another prediction of to be doubled by 2030
https://finance.yahoo.com/m/b65993e8...icts-blue.html
The crackdown on outflows of money from China has spooked some buyers. While Chinese citizens are allowed an annual foreign exchange quota of US$50,000, the government said in Dec that all buyers of foreign exchange must sign a pledge that they wont use their quotas for offshore property investment. Violators would be added to a watch list, denied access to foreign currency for three years and be subject to a money-laundering investigation.
The restriction threatens to take the wind out of residential property sales in cities around the world where prices have been driven in the past few years by buyers from China. Few projects are likely to be affected as much as the Chinese-financed developments in Johor, some of which had relied on mainland customers for as much as 90 per cent of sales.
https://sg.finance.yahoo.com/news/sa...234540919.html
Buying a home is one of the biggest and most important financial decisions we have to make in our lives. In addition to paying for a home that is within the top five to 10 most expensive real estate markets in the world, we will very likely have to take up a home loan that will stretch for the next 20 to 30 years of our lives.
This is why we need to be very mindful when it comes to working out our sums to ensure affordability in the long term when it comes to choosing a home we should buy. Of course, as people progress in their career and have a higher earning power, many may consider upgrading to homes in posher areas, with bigger floorspace or near better amenities. This usually also comes with a hefty price tag that requires careful planning.
To make it easier for you, we crunched the numbers to provide an approximate salary you and your spouse should be earning before you consider buying a certain type of property in Singapore. This, of course, is primarily focused on your ability to keep up with your mortgage payments.
Read Also: What Happens To Your Money After You Sell Your Flat In Singapore
How Much Do I Need To Earn To Be Able To Pay My Monthly Mortgage?
First of all, well get some of the assumptions out of the way to facilitate our calculations in this segment.
Our Assumptions:
Down payment: 10% of property price (HDB homes) 20% of property price (private homes)
Loan tenure: 25 years
Interest rate: 2.6% (HDB homes); 1.5% (private homes)
We assume that buyers do not get any government grants for Housing & Development Board (HDB) flats.
We assume that private property owners do not have any other loans to service.
For simplicity, we assume both husband and wife earns the same salary.
We also have to take into account MSR (Mortgage Service Ratio) for HDB flats, stipulating that owners are only allowed to pay back a maximum of 30% of their gross total income. For private property owners, they have to comply to the TDSR (Total Debt Servicing Ratio), where they can only pay back up to 60% of their gross total income. For TDSR, this includes all other loans such as personal, car or even student loans.
In the table below, we look at common property types, both HDB and private, to calculate the salary you need to be earning to be able to afford these homes.
Source: HDB; URA; Business Times
*Outside Central Region (OCR); Rest of Central Region (RCR); Core Central Region (CCR)
Just to explain how we arrived at the average housing price, we used public sources on HDB for the median resale prices of HDB flats in the first quarter of 2017, on URA for resale prices of executive condominiums, condominiums, terrace houses, semi-detached houses and bungalows, and used a figure quoted on Business Times for average selling prices of GCBs (good class bungalows) for 2016.
Firstly, for HDB flats, these are resale prices and do not include any government grants couples may be eligible for. To get a better understanding of buying from the government, with grants, you can refer to this article.
From this, we can also see that someone buying a condominium outside central regions may only need to earn $3,667 each while another couple buying an EC (executive condominium) will have to be earning close to $5,562 each. As in all assumption, there may be anomalies, for this to actually be the case, the couple buying the condominium in question cannot have any other loans, to be able to allocate all 60% of their gross total income towards only their home loan. This is unlikely to be the case.
Another thing to note is that these calculations do not include other costs that are usually associated with buying a home including repairs, renovations or furniture. This is also limited by a 25-year mortgage those who are older may not be able to qualify for such long loans that exceed the retirement age of 65 and those younger can extend this to up to 30 years.
Dont Put All Your Money Into Your Home
It is a dangerous game to overextend yourself to afford a pricier home. The government has done its part by introducing the MSR and TDSR. On your part, you should not take on the maximum amount of debt you can just because you are allowed to do it.
My Basic is SGD 2756 like that how to buy.
Look like I can only buy a 3 room HDB.
Further, by locking your money in your home, you may be unable to invest your money for your future or enjoy life going on holidays, splurging on indulgences or buying new gadgets. Instead you will likely be living a stressful lifestyle where going out of work or getting sick may spell financial disaster for your family.
I don't agree with this statement.
Why the writer wants to make people lost hope in the property when he knows there are ways to better one financial through property investment.
I always remember when reading articles, know who is the writer.
After a few articles from the writer, you will know what he wants you to know from what he writes and not what you should know.
Selamat Hari Raya Everyone.
May the Huat be with you...
Bump after 100 Pumps.
Heard ECs increasing prices island wide.
PC next in line? (or already happening as Land Prices go over the roof)
All property developers, have a budget to build their landbank. There is no such thing that they can afford to buy non-stop.
One thing very interesting to note that the local big boys like CDL, FEO and CapitiaLand are not in the market or in a very small scale.
Most of the big buyers are from China.
Now, if you are a developer, knowing the supply of enbloc is getting much more, you will definitely become much more choosy. Easily, >50 estates are working hard for enbloc now. How many of these can be sealed and at what price is yet to be seen.
So, if this round of market heating up is not sustainable, then what is next to be happened? IMO, the prices of 99 LH without enbloc potential, or fail enbloc exercises, will head south at an accelerated pace especially those >40 yo, difficulties in getting loans and CPF withdrawal.
Recent new sales have been strong, with much much higher psf and smaller built in, a game of quantum. This is a result of pent-up demand and buyers worry of missing the boats. But I doubt, it is really due to true economy growth. Most of these, are small one-two bedders for "investment".
Let see...what is next 6 months later....
maybe capitaland will want to en-bloc normanton park just like it did for the current interlace. it has no more landbank in sg except that 99 year leasehold landed at victoria park.
they did bid for woodleigh but thankfully beaten by sph.
If I am not wrong, MasterPlan14 will have a tunnel cutting through parts of the hilly region behind Normanton Park, therefore creating a through road for South Buona Vista Road to directly link to PIE/Queensway area.
When announced, this should give upside to the South Buona Vista area properties. That area is gonna get a connectivity boost.