PC is "cheaper" than HDB

[richwang]

Imagine you are a newly wed couple looking for your love nest.
First you try the BTO, 3-5 years waiting time is too long to keep love fresh.

Then you look at the Resale HDB. Let's say it's valuation is S$500K. As HDB has changed their rules from 10% down payment to 20% down payment, so you need to pay S$500K x 20% = S$ 100k.
Now the headache COV, let's say S$50K. So you need S$150K in total. That's not easy for a newly wed couple.

You take a stroll to a PC just TOP. Alas, they only require 20% down payment, and you can now afford a S$ 750K PC.

For every dollar of COV, you can leverage 5 dollars for PC.

In this sense, PC is "cheaper" than HDB.

Thanks,
Richard

[flagship74]

Imagine you are a newly wed couple looking for your love nest.
First you try the BTO, 3-5 years waiting time is too long to keep love fresh.

Then you look at the Resale HDB. Let's say it's valuation is S$500K. As HDB has changed their rules from 10% down payment to 20% down payment, so you need to pay S$500K x 20% = S$ 100k.
Now the headache COV, let's say S$50K. So you need S$150K in total. That's not easy for a newly wed couple.

You take a stroll to a PC just TOP. Alas, they only require 20% down payment, and you can now afford a S$ 750K PC.

For every dollar of COV, you can leverage 5 dollars for PC.

In this sense, PC is "cheaper" than HDB.

Thanks,
Richard

how abt monthly instal dude?:tsk-tsk:

[richwang]

For newly wed, they have 30++ years to serve the loan. Monthly installment is less a problem comparing with initial down payment.

Thanks,
Richard

[richwang]

Quick solutions:

1) Allow banks to provide bridging loan for COV;
2) Reduce down payment for 1st timer of re-sale HDB to 10% (or even 5%);

Thanks,
Richard

[kane]

even if they can take a 35 year loan. if their debt service ratio isn't enough, it can be very dangerous to just buy a $1m condo.

these days, based on the size of a 4 or 5 room flat, the equivalent in a condo is about $1m.

[richwang]

newly wed don't count rooms, they just count unit.

you will be surprised some value 1 bedder PC with swimming pool over 4-room HDB.

I agree with you it is miscalculation.

Thanks,
Richard

[azeoprop]

Thats why "compact" 3 bedders are so popular now. 829sqft 3 bedders only around 730-800k.

e.g.
The nautical 829sqft 3br 730k
Boathouse residence 893sqft 3br 760k
Riversound residence parc rosewood 3br from 780k

:beats-me-man:

[radha08]

how abt monthly instal dude?:tsk-tsk:

typical singaporean think how much to come out initially they dont worry about installment running cost same goes with cars all want big car with zero downpayment...how you think courts superstore can survive so well and make tonnes of $$$:D

[hyenergix]

Thats why "compact" 3 bedders are so popular now. 829sqft 3 bedders only around 730-800k.

e.g.
The nautical 829sqft 3br 730k
Boathouse residence 893sqft 3br 760k
Riversound residence parc rosewood 3br from 780k

:beats-me-man:

3 br < $800k is actually very tempting. Add another $100k for a car (due to the location) and that's an upgrade in lifestyle. If the kids have already shifted out, this offers better value than plonking down $1.x million for a condo near the MRT.

[phantom_opera]

Slave for life after commit to pc for the newly weds, high flyers ok, if family income growing below par or unemployed will sweat

[ysyap]

how abt monthly instal dude?:tsk-tsk:With today's interest rate, bank loan will look more tempting than HDB loan. If couples are short-sighted, they will surely take bank loan to buy that PC...:p

The more realistic picture should be this that a $500k HDB can get you a 5 room flat in a ok ok location while a $750k 3 bedder PC lands you in the remote places of the country and have to snatch and queue up to compete with others eyeing these units...:p

[radha08]

Slave for life after commit to pc for the newly weds, high flyers ok, if family income growing below par or unemployed will sweat

sweat nbermind as long as dont swim...in br:eek: