Page 1 of 8 12345678 LastLast
Results 1 to 10 of 71

Thread: To buy now OR Not... - dilemma..

  1. #1
    Newbie

    User Info Menu

    Default To buy now OR Not... - dilemma..

    Hi all Gurus,

    I have a real headache here and it is driving me sleepless recently... Would sincerely appreciate some sound advise from all the pros here...

    Background :
    - I am Singaporean and is now staying in a rented HDB house, monthly rental at SGD2700, because of some past mistake make which I do not want to mention here for simplicity purpose.

    - Our total savings(including all CPF) is only about SGD250K...not much actually..

    - We have a family condo TOP in yr2014 meant for permanent staying, and it's monthly repayment to the developer will soon to be near SGD3000 in 7-8 months time later. Now is near one thousand only in monthly repayment.


    Intention :
    We would hope to buy one more condo(2 bedder - less than SGD1m) for mainly 3 reasons below.

    1. Can soon(3 months later) offset the current monthly HDB rental cost of SGD2700 while waiting for the family condo to TOP in yr2014.

    2. Can 'breathe' a little financially once we are require to pay the SGD3000 monthly repayment for the family condo 7-8 months later, because can then use the rental from additional purchase condo to offset the HDB rental SGD2700 liao.

    3. Can use this additional condo for retirement purpose later(collecting rental) once we are able to pull it through altogether.



    Dilemma :

    1) Should we really buy another condo, given the current gloomy market and with such limited financial status of SGD250k ? Are we over our head, and should not think of buying at all ??

    2) If buy now, the house prices are still much on the highside, comparing YTY..

    3) If dont buy now, every month is just incurring SGD2700 in real cost with no return, ie, helping people paying their house only.

    4) If we choose to wait for property prices to drop, will only incur more monthly rental cost only..To date, already paid 7 months rental(SGD18,900)....very heart ache. Additionally, property price may not drop at all....no one will know..

    While I am trying to stay positive, i.e., the drop in property price is more than I pay for total retal to date...then it will be breakeven. But the question is WHEN will be that time ?? Or will it come at all ??


    Really apology for such a long story above, and thanks for your patience in reading it to this point..

    Please advise what should I do now ?? dilemma....

  2. #2
    Junior

    User Info Menu

    Default

    Hi I think it is not possible to buy a 2nd condo which need 40% downpayment which works out to 400k.

  3. #3
    Newbie

    User Info Menu

    Default

    I can loan from bank at 80% for some reason...

  4. #4
    Newbie

    User Info Menu

    Default

    Wat reason bro?

  5. #5
    Newbie

    User Info Menu

    Default

    Quote Originally Posted by terence
    Wat reason bro?
    Probably the loan for the family condo is taken by either the husband or wife and thus the other person is 'freed' to take another loan.

  6. #6
    Senior

    User Info Menu

    Default

    Quote Originally Posted by Petertan123
    I can loan from bank at 80% for some reason...
    How's not the time to lever 80%.

  7. #7
    Newbie

    User Info Menu

    Default

    Given you can loan 80%, and throw in all the 250K inclusive of stamp duty, which means you are in a very dangerous position. Just continue to rent. Just treat it as bad planning in the beginning. Money wasted on renting now is your amulet actually.

  8. #8
    Newbie

    User Info Menu

    Default

    You are absolutely right.. The family condo is under my wife name..

    I know I am in a very dangerous position if I chiong, but if not chiong also die by paying for the past costly mistake, which is real dollar and cents outgoing every month...

  9. #9
    Newbie

    User Info Menu

    Default

    1. You can consider trying to rent for a cheaper HDB flat...at least not so heartache till 2014.

    2. If you really want to get another condo, try to look for those slightly 'undervalue' and you must also weigh your ability to repay the mortgage loan for BOTH the condo, base on your family income (salary, stocks, business, etc). Also factor in the scenario of ZERO rental income + 1 person job loss. If you can stomach all these w/o sleepless nights....then u can consider.

    3. No one will know the market movement for sure...but if you will have greater chances of success if you have holding power. Else....I think you might have more than just sleepless night.

    Cheers.

  10. #10
    Newbie

    User Info Menu

    Default

    Quote Originally Posted by Petertan123
    You are absolutely right.. The family condo is under my wife name..

    I know I am in a very dangerous position if I chiong, but if not chiong also die by paying for the past costly mistake, which is real dollar and cents outgoing every month...


    My opinion: Right now chiong is very dangerous especially if you do not have the ammo to ride through the ups and downs. If you don't chiong, you *will not* die...as the money can be small (2.7k x 24=64.8k) when compared to a fall/downturn.
    Personally I don't think the correction (in term of PPI) will not be more than 20% so assuming the resale EC or PC u r getting now is 1200sf*750psf=900k vs a fall of 20% which means 180k, the 65k rental you are paying could be 'peanuts'.

    Again, it depends on how deep your pocket is (you need to understand your finance position) but don't put ur family into unnecessary risk.

Page 1 of 8 12345678 LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •