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Thread: Advice on purchase

  1. #1
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    Default Advice on purchase

    Hi all,

    My household income is around 7kSGD and I am hoping to get a unit in Mt Sinai area. Is there any good and affordable unit in that area?

    I still have to service 500kSGD loan from my current condo.

    My cash is not much, around 50kSGD.

    Should I take the risk to go for one unit in Mt Sinai area?

    TIA.

  2. #2
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    Quote Originally Posted by yowetan
    Hi all,

    My household income is around 7kSGD and I am hoping to get a unit in Mt Sinai area. Is there any good and affordable unit in that area?

    I still have to service 500kSGD loan from my current condo.

    My cash is not much, around 50kSGD.

    Should I take the risk to go for one unit in Mt Sinai area?

    TIA.
    I think need to save up some more first.

    Can borrow only 60% from bank...

  3. #3
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    Quote Originally Posted by yowetan
    Hi all,

    My household income is around 7kSGD and I am hoping to get a unit in Mt Sinai area. Is there any good and affordable unit in that area?

    I still have to service 500kSGD loan from my current condo.

    My cash is not much, around 50kSGD.

    Should I take the risk to go for one unit in Mt Sinai area?

    TIA.
    U nid at least 500k cash on hand....50k cash cant even buy u a hdb

    Ur current condo appreciated alot? Let say double in price can consider equity loan

  4. #4
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    The most u can get is a $150k house with ur $50k cash. In sg, no normal house costs this cheap.

  5. #5
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    My current unit is a 2 bedder and was bought at 700KSGD. The recent transaction is estimated to be 850KSGD. Thus, an appreciation of 100-150KSGD.

    I am fortunate for I work in a bank and I am able to get 90% loan from workplace.

    The 7KSGD household income is inclusive of my wife and myself. We are in our thirties.

  6. #6
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    Quote Originally Posted by yowetan
    My current unit is a 2 bedder and was bought at 700KSGD. The recent transaction is estimated to be 850KSGD. Thus, an appreciation of 100-150KSGD.

    I am fortunate for I work in a bank and I am able to get 90% loan from workplace.

    The 7KSGD household income is inclusive of my wife and myself. We are in our thirties.
    Bro, keep ur 50k cash for rainy days

  7. #7
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    Quote Originally Posted by devilplate
    Bro, keep ur 50k cash for rainy days
    Hi devilplate, thanks for the advice...I really like Mt Sinai and it is near to Henry Park primary where I wish to enrol my child.

    Should I let go of my current unit so as to make up the sum for Mt Sinai instead?

  8. #8
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    Quote Originally Posted by yowetan
    Hi all,

    My household income is around 7kSGD and I am hoping to get a unit in Mt Sinai area. Is there any good and affordable unit in that area?

    I still have to service 500kSGD loan from my current condo.

    My cash is not much, around 50kSGD.

    Should I take the risk to go for one unit in Mt Sinai area?

    TIA.
    Bro did u post this qn on another thread? I rem someone ask the same qn as u.....

    Buying at this time I think need at least 150k cash after u make a DP for mount Sinai condo as safety net fund in case market turns. Raw is war !

  9. #9
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    Quote Originally Posted by yowetan
    Hi devilplate, thanks for the advice...I really like Mt Sinai and it is near to Henry Park primary where I wish to enrol my child.

    Should I let go of my current unit so as to make up the sum for Mt Sinai instead?
    Perhaps u should look at some HDB flats within 1km Henry Park primary school instead like Ghim Moh

    See a Q&A from a agent in Property Guru website...

    http://www.propertyguru.com.sg/quest...-park-pri-sch-

    If small family, can consider 99 years condo like Cavendish Park condo, within 1km of URA data, 2 bedder 926sqft sold @$1196psf...in Jul 2011.

  10. #10
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    Quote Originally Posted by yowetan
    My current unit is a 2 bedder and was bought at 700KSGD. The recent transaction is estimated to be 850KSGD. Thus, an appreciation of 100-150KSGD.

    I am fortunate for I work in a bank and I am able to get 90% loan from workplace.

    The 7KSGD household income is inclusive of my wife and myself. We are in our thirties.
    Assuming the property is $1mil.

    10% from you, 90% from loan.

    you have $50k cash. Do both of u have combine cpf fund of $50k, after deducting 50% of Minimum Sum?

    And based on loan amount of $900k, loan duration of 35yrs, interest rate of 2% pa, ur estimated monthly repayment is $3k.

    With a household income of 7k, I think your debt is too high.

  11. #11
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    Quote Originally Posted by DaytonaSS
    Bro did u post this qn on another thread? I rem someone ask the same qn as u.....

    Buying at this time I think need at least 150k cash after u make a DP for mount Sinai condo as safety net fund in case market turns. Raw is war !
    Yes, I did raise this query in one of meyerise thread. I do not think I will have the cash amount you mentioned to weather a twist.

    I am considering to let go of my current unit so I can move on to secure Mt Sinai if possible. With that, I am hoping to learn from some bro and sis here if there is any good units there at an affordable price?

  12. #12
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    Quote Originally Posted by victorchoo
    Assuming the property is $1mil.

    10% from you, 90% from loan.

    you have $50k cash. Do both of u have combine cpf fund of $50k, after deducting 50% of Minimum Sum?

    And based on loan amount of $900k, loan duration of 35yrs, interest rate of 2% pa, ur estimated monthly repayment is $3k.

    With a household income of 7k, I think your debt is too high.
    Hi victorchoo, thanks for the analysis of my financial commitment. Nope, I do not have any CPF left. Beside the 50KSGD I have, I am intending to borrow another 30-50KSGD from my in-law.

    I am unsure if there is any good development in Mt Sinai and cost only 1 mil or less.

  13. #13
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    There are lots of things in life u like but need not have or can't afford to have.

    Even u work in a bank, I think u lack of banking knowledge.

    Currently u have a loan, the bank will not lend u 90% for second loan, even ur a staff. I think at the max u can loan up to 70% LTV for second mortgage, and still subject to debt servicing ratio of 50% for both loans. For some banks, bonus may not be taken into account for debt servicing computation.

    Check up what is debt servicing ratio first.

    Next, u need to cost in stamp duty, for a $1m property, the stamp duty is $24,600. Then u hv the renovation cost.

    Stay within a 1 km does not g'tee a place in the school of choice. Henry Park is very popular.

    $7,000 pm of household income for a couple in their 30s...must really plan carefully..

  14. #14
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    Inflation and medication cost will eat you alive if you are not careful. Just be happy with what you have. Other neighbourhood schools can be as good as Henry Park or even better, it depends more on the child and parents

  15. #15
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    I heard from a friend who son is going to Henry Park next year, 1km no guarantee you get a place. What if u go through all the trouble, even to the extend of becoming a parent volunteer of the school, end up due to back luck, balloting, but your child didn't get a place, then what?

    Given that u need to borrow and stretch your finances to the limits, I would suggest u live within your means, save a bit more before embarking on upgrading...

    Unless, u are civil servant, rest of private sector, there 's no sure iron rice bowl employment amidst global uncertainty and possible recession depending on how the Eurozone debt crisi and depressed US economy pend out...

    Good luck to u, hope u can find what u want...if u still decide to pursue ..

  16. #16
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    Why all these doom and gloom? Yowetan wants to trade up from $850k condo to $1M, current loan outstanding $500k. An additional $150k loan is about 500-600 more per month. He can afford with a $7000 income, unless there are other major commitment. Probably the biggest obstacle is finding a good mt Sinai unit for $1M or less.

  17. #17
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    i agree with most advice here. i came from henry park once upon a time...didn't know it's still this popular..

    that area is expensive, and given today's market...it's better to keep options open and not overstretch. there are many other good primary schools worth considering. and a family of 3 needs reasonable space. if it were me, i would go for a less expensive area, but with good schools, so that i can buy a bigger place that can comfortably accommodate the growth of my family

  18. #18
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    Hi yowetan,
    I don't want to sound like a wet blanket but I think with your present financial status, you should take the advice of the above forummers and not invest in a 2nd property.
    Frankly speaking, if I were you, I would stay in a BTO HDB, I would not even think of DBSS or EC. Perhaps I am not a risk taker although my husband and I have recession proof jobs.
    In your case, since you are in the banking sector, your job may not be that recession proof.
    I believe that one should buy a house that is at most 5 times one's annual income.

  19. #19
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    Quote Originally Posted by yowetan
    Yes, I did raise this query in one of meyerise thread. I do not think I will have the cash amount you mentioned to weather a twist.

    I am considering to let go of my current unit so I can move on to secure Mt Sinai if possible. With that, I am hoping to learn from some bro and sis here if there is any good units there at an affordable price?
    General rule is the housing instalment shouldn't take up more than 30% of income. A 2nd loan is probably out of that range for now. Relocating seems a better option in your case if u r doing it for your child.

    My close friend sold his house recently at pandan valley to someone whom moved to let his child study at henry park also.

  20. #20
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    Quote Originally Posted by buttercarp
    Hi yowetan,
    I don't want to sound like a wet blanket but I think with your present financial status, you should take the advice of the above forummers and not invest in a 2nd property.
    Frankly speaking, if I were you, I would stay in a BTO HDB, I would not even think of DBSS or EC. Perhaps I am not a risk taker although my husband and I have recession proof jobs.
    In your case, since you are in the banking sector, your job may not be that recession proof.
    I believe that one should buy a house that is at most 5 times one's annual income.
    If annual is 300k, then can buy 1.5 million house?

  21. #21
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    Quote Originally Posted by Condorich
    If annual is 300k, then can buy 1.5 million house?
    $300k can get u a nice $3-$4m penthouse ....... Provided u have $$ for e downpayment...

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    Quote Originally Posted by Condorich
    If annual is 300k, then can buy 1.5 million house?
    Can, why not if you don't have other outstanding loan.
    Should be able to repay loan comfortably.

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    Quote Originally Posted by Cyberknight
    $300k can get u a nice $3-$4m penthouse ....... Provided u have $$ for e downpayment...
    Hahahaha.....i can't breathe with this amount if i earn that salary.
    I'd rather be carefree and not be bogged down with so much loan!

  24. #24
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    Quote Originally Posted by buttercarp
    Hahahaha.....i can't breathe with this amount if i earn that salary.
    I'd rather be carefree and not be bogged down with so much loan!
    Buy it, borrow from bank at 1.2%, rent out at 3% 4% yield. Stay at hdb. Cash loses its value due to inflation.

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    Quote Originally Posted by Cyberknight
    Buy it, borrow from bank at 1.2%, rent out at 3% 4% yield. Stay at hdb. Cash loses its value due to inflation.
    How to buy HDB and own pte property now?
    If I were to spend so much and pay through my nose for the penthouse, I'd rather stay in it and enjoy it rather than let it out!

  26. #26
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    Quote Originally Posted by buttercarp
    How to buy HDB and own pte property now?
    If I were to spend so much and pay through my nose for the penthouse, I'd rather stay in it and enjoy it rather than let it out!
    Yessss

    Stay big hse and rent out mm to ang mor

    Feng shui lun liu chuan

  27. #27
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    1> Rent out yr current condo, then rent a place to stay near Henry park Pri.
    2> sell yr condo, rent for 30 months near sch, buy a EC after 30 mths.
    3> sell yr condo, buy HDB resale near sch.
    4> sell yr condo, buy another condo near sch.
    Just some suggestions u might wanna think about!

  28. #28
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    Quote Originally Posted by yowetan
    Hi victorchoo, thanks for the analysis of my financial commitment. Nope, I do not have any CPF left. Beside the 50KSGD I have, I am intending to borrow another 30-50KSGD from my in-law.

    I am unsure if there is any good development in Mt Sinai and cost only 1 mil or less.
    Bro yowetan, watch your gearing as I think you should not go beyond 30% from household income. For your case, it's max $2100. Also do take note that you family will be at risk as interest rate will goes up sooner or later.

    Take forumer's advises, try not to reach beyond your means... To be honest, I've seen quite a few friends like you fallen... Painful not only to you but to your family as well.

    I wish you good luck.
    Daft, Dafter, Dafterest!!!!

  29. #29
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    Paint the worst scenario in yr mind for yr plans, if can weather it go ahead if can't then better forget it!
    Looking at yr financial position, IMO u will be in a very high risk high stress position.

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    Quote Originally Posted by GForce
    1> Rent out yr current condo, then rent a place to stay near Henry park Pri.
    2> sell yr condo, rent for 30 months near sch, buy a EC after 30 mths.
    3> sell yr condo, buy HDB resale near sch.
    4> sell yr condo, buy another condo near sch.
    Just some suggestions u might wanna think about!
    Wow, wise suggestions!
    In fact the suggestions given by the above bros are all very wise and constructive. I believe most are middle aged and are level headed ?

    Yowetan, if I were you, I would go for Option 3.

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