advise for newbies

[onglai]

hi all,

i need some advise from the bros here.

i am 40+, living in hdb, outstanding loan about 100k,

i am thinking of buying a private property to rent out (ec and new launches are out). i will continue to live in my hdb. max budget is 1.2m, loan tenure not more then 20years (to be fully paid before 65 years old)

i can clear my hdb loan so that i can take 80% or,
i keep existing hdb loan and take 50% loan for 2nd property.

what will u do if u were to be me? which area will u look at, wat size, will u buy now, or wait for the cooling measure to take effect etc..

i am a total noob on house hunting... need advise on how to kickstart property hunting..

thanks in advance.

[Lemonlaw]

hi all,

i need some advise from the bros here.

i am 40+, living in hdb, outstanding loan about 100k,

i am thinking of buying a private property to rent out (ec and new launches are out). i will continue to live in my hdb. max budget is 1.2m, loan tenure not more then 20years (to be fully paid before 65 years old)

i can clear my hdb loan so that i can take 80% or,
i keep existing hdb loan and take 50% loan for 2nd property.

what will u do if u were to be me? which area will u look at, wat size, will u buy now, or wait for the cooling measure to take effect etc..

i am a total noob on house hunting... need advise on how to kickstart property hunting..

thanks in advance.

What's your cash in hand?
What's is your combine income?
Any liability apart from the hdb loan?

[roly8]

you can take only up to 60% loan since you are 40+ year old.. (based one of the CM)

i think..

[onglai]

What's your cash in hand?
What's is your combine income?
Any liability apart from the hdb loan?

After I clear my hdb loan. I can still fork out about 500k. No other loan leow.
Single income about 8k

[yowetan]

Hi...I would say go for it, and try to get Mt Sinai area where it is accessible to all place(s) and appealing to foreigners.

[onglai]

Hi...I would say go for it, and try to get Mt Sinai area where it is accessible to all place(s) and appealing to foreigners.

Seldom been to that part of sg, whole life centred ard hougang.
But budget 1.2mil nia, think hard to get a unit there ba

[yowetan]

Seldom been to that part of sg, whole life centred ard hougang.
But budget 1.2mil nia, think hard to get a unit there ba

Hi...You can consider Kovan area, though Mt Sinai is definitely a better one.

You can get a small unit in Mt Sinai.

[Cupcakes]

Thought now with or without loan, 2nd property LTV will be 50% or 30%? Think I got cheated by the agent

[onglai]

Thought now with or without loan, 2nd property LTV will be 50% or 30%? Think I got cheated by the agent

There is no change to the existing LTV limit for individual borrowers who have no outstanding housing loans2.

Above statement from mnd website. So I presume once I clear my hdb loan, I shd be able to loan up to 80% flor the second house

[cbsh38584]

Seldom been to that part of sg, whole life centred ard hougang.
But budget 1.2mil nia, think hard to get a unit there ba

You are a marginal buyer. Why must U invest in property at this time with the latest cooling measure ? Your job security is not Perpertual. U will be in trouble if a major illness strike. Do U need to take care of your aging parent medical fee ? Did U have a comprehensive insurance plan to take care of any major critical illness , Supremehealth insurance etc etc

If gov plan to increase the SG population 6.5m to 6.9m. Why dont U look at Dividend stocks that will benefit from the increase in population ?

Telco , healthcare stock etc. They pay you 5 to 7% dividend every year.
Just be patience to wait for the stock mkt to correct. It will 100% come.
M'sia Telcom pays > 8% every year.

http://www.investmentmoats.com/Divid...ndScreener.php

rdgs,
Vic

[waterviewer88]

you can take only up to 60% loan since you are 40+ year old.. (based one of the CM)

i think..

No such ruling...you can take up to 80% if you have no loan outstanding and loan period does not exceed 30 yrs or before you reach 65. Only thing is you have to pay ABSD of 7% for 2nd property.

[Cupcakes]

There is no change to the existing LTV limit for individual borrowers who have no outstanding housing loans2.

Above statement from mnd website. So I presume once I clear my hdb loan, I shd be able to loan up to 80% flor the second house

fine. At least I don't pay extra absd n 25% up front.

[buttercarp]

http://www.investmentmoats.com/Divid...ndScreener.php

rdgs,
Vic

Hi Vic, I love that guy's website and have been following closely for the past month!
He is really passionate about investing and blogging about it.
I wished I had learnt about it earlier.

[cbsh38584]

Hi Vic, I love that guy's website and have been following closely for the past month!
He is really passionate about investing and blogging about it.
I wished I had learnt about it earlier.

6.5m to 6.9m population means more biz for telco companies. Just be very very patience, correction will come.


rdgs,
Vic

[Simi]

hi all,

i need some advise from the bros here.

i am 40+, living in hdb, outstanding loan about 100k,

i am thinking of buying a private property to rent out (ec and new launches are out). i will continue to live in my hdb. max budget is 1.2m, loan tenure not more then 20years (to be fully paid before 65 years old)

i can clear my hdb loan so that i can take 80% or,
i keep existing hdb loan and take 50% loan for 2nd property.

what will u do if u were to be me? which area will u look at, wat size, will u buy now, or wait for the cooling measure to take effect etc..

i am a total noob on house hunting... need advise on how to kickstart property hunting..

thanks in advance.

Hi onglai

your 2nd property is for investment and a hedge on inflation

To kickstart
Start browsing through propertyguru on rental pricing on specific area

I am a West guy
so for a S$1.2M budget you can get a 2 bedrooms 999/freehold or
a 3 bedrooms 99LH condo

Rental income should be around 3.5k or lucky enough even 4k for these condo

Rental income should be able to service your monthly loan instalment assuming if you take a S$600 to S$700k bank loan


Annual Property tax for renting out a S$1.2m property should be around 3k. Monthly Maintaineance fee varies from condo to condo

But if I will you,
will go for newly launch condo as I prefer to buy from developer

or you can wait for 2014/2015 where many condo will be TOP ings

Its your choice as some do not mind buying from owner


just my 2c worth

[CondoInterested]

You can make a good decision by yourself if you put both calculations on spreadsheet to see which route will able to last you longer with most money still with you.

If you choose to fully pay up your HDB loan of about 100k, it's first a 100k gone. LTV 80% you will have to pay higher monthly if both route have same number of repayment period. Let's assume if you are out of job, how long your funds from CPF and cash can last.

If you choose not to fully pay HDB loan, 100k is with you to slowly pay both your hdb and pc. LTV 50 or 30%, your should be paying less monthly for pc if same length of payment period as above. Let's again assume you.are out of job, how long can your funds from CPF and cash can last.

The longer the funds can last, the better, gives you better time space to look for new job or even new tenant (if not rented out), less stress.

[Allthepies]

hi all,

i need some advise from the bros here.

i am 40+, living in hdb, outstanding loan about 100k,

i am thinking of buying a private property to rent out (ec and new launches are out). i will continue to live in my hdb. max budget is 1.2m, loan tenure not more then 20years (to be fully paid before 65 years old)

i can clear my hdb loan so that i can take 80% or,
i keep existing hdb loan and take 50% loan for 2nd property.

what will u do if u were to be me? which area will u look at, wat size, will u buy now, or wait for the cooling measure to take effect etc..

i am a total noob on house hunting... need advise on how to kickstart property hunting..

thanks in advance.

The decision whether to clear your HDB loan is very straight forward, whichever option requires you to folk up the least cash, go for tat option.

Now the rest of the questions are more tricky. You need to project whether in the next 1 or 2 years, the housing market will correct. If your projection is yes, then hold your purchase until correction comes. If you think that correction will come only after a longer timeframe like 5 years, then you may want to consider buying now, as price increase and loss of rental income may be more than the price correction.

As to where to buy, look at confirm growth area.

Wish you good luck and success in owning your 2nd property!

[DC33_2008]

One person household income to invest in large and illiquid asset like property is usually more risky whether you are earning 8k or 20k/mth unless you have reserved of more than a year of your salary given the current volatile market. Unless your job is recession proof such as your are in non-contract civil service, minister, non-contract teacher, faculty in university with tenure, etc. (Must qualify that they must not do silly things like the prof, principals, chief, etc.)

[DKSG]

One person household income to invest in large and illiquid asset like property is usually more risky whether you are earning 8k or 20k/mth unless you have reserved of more than a year of your salary given the current volatile market. Unless your job is recession proof such as your are in non-contract civil service, minister, non-contract teacher, faculty in university with tenure, etc. (Must qualify that they must not do silly things like the prof, principals, chief, etc.)

I always assume people here all got 1-2 years of reserves to start with before thinking of investing. Other than very very new newbies in their twenties, most people should have that reserves.

Newbies' reserves is their parents ... haha! Who will have to support them if they get retrenched.

DKSG

[sherlock]

If TS can clear his HDB loan and still have 500k to spare, I dont see why he cannot afford a PC for investment though this might not be the right time

[onglai]

Thanks for input from everyone here.

Ya I have already set aside more then 1 year of reserve in case of retrenchment. Insurance all these last time already bot a lot when I have my children. Stocks I have abit but after Lehman scared leow. Dare not to put too much in it. I guess property is more straight forward. At least house dun disppear overnight. Hehe. In a way it's like a force savings.

What is confirm growth area? U mean those new to future mrt?

Property website the price they put for rental or sale, are they real? I heard those advertised price for property is anyhow shout one?

[onglai]

By the way. I am not saying I am going to buy immediately. Just want to gather more info and seek some opinions and start looking out the market, in case suddenly opportunity strike and I am not ready to react.

[cbsh38584]

Thanks for input from everyone here.

Ya I have already set aside more then 1 year of reserve in case of retrenchment. Insurance all these last time already bot a lot when I have my children. Stocks I have abit but after Lehman scared leow. Dare not to put too much in it. I guess property is more straight forward. At least house dun disppear overnight. Hehe. In a way it's like a force savings.

What is confirm growth area? U mean those new to future mrt?

Property website the price they put for rental or sale, are they real? I heard those advertised price for property is anyhow shout one?

Property investment is a serious long commitment. You have to do a stress test on your financial capablities whether U can go through any potential crisis that may strike.

Like Major illness or accident from any family members, retrenchment, taking care of your OLD age parent high medical fees, another Lehman crisis happen again , rise in interest rate & cannot rent out your condo etc.

SG gov says that they are targetting 6.5m to 6.9m population. They will ensure that EXCESS HDB will to be built to prevent a political mistakes again by under build in the last few years. Release more land to stabilise the property price. So the upside is now not much for the next 5-10 yrs due to the extra 7% stamp fee.

Dont buy affordable condo that has a bad location for rental because U will be fighting again many S'porean & other foreign investors who hv the same thinking like U. To buy & rent out.





Unit trust like Schrode Asian growth fund & Prudential SG manage fund etc have a ave return of 6-8% yearly. It has gone through ONCE IN A CENTURY AISA financial crisis 97/98, 2000 DOT COM BURST , SEP11 in 2001, SAR in 2003 , IRAQ war & US financial crisis in 08/09. It still give U a return of 6-8% yearly if you are emotionally steady & strong in holding your investment just like property.

If U hv experience in investing stocks. You just need to be TRAINED to be EMOTIONALLY steady & STRONG. Be very very patience & Buy when there is extreme FEAR. My friend bought 10,000 share LVS (Las Vegas sand) @ US$2 amt to US$20k in 2009. Now it is worth US$520k within 4 years & still holding.

OSIM was 0.06 in 2009. If U buy 10000 lots @0.06 amt to 60k. It is worth 1.8m after 4 years. Dont worry if we miss it. opportunities will come again. Everybody will hv the chance to strike at least 5 times jackpot in your life time in stock mkt. First U NEED TO BE TRAINED TO BE EMOTIONALLY STEADY & STRONG. YOUR CASH 500k can fully made used when the CRISIS come again & it will come.

rdgs,
Vic

[buttercarp]

6.5m to 6.9m population means more biz for telco companies. Just be very very patience, correction will come.


rdgs,
Vic

Hi Vic, I tried to pm you but your mailbox is full.
Why do you say a correction will come when the population is increasing?
Thanks.

OSIM was 0.06 in 2009. If U buy 10000 lots @0.06 amt to 60k. It is worth 1.8m after 4 years. Dont worry if we miss it. opportunities will come again. Everybody will hv the chance to strike at least 5 times jackpot in your life time in stock mkt. First U NEED TO BE TRAINED TO BE EMOTIONALLY STEADY & STRONG. YOUR CASH 500k can fully made used when the CRISIS come again & it will come.

rdgs,
Vic

It should be 0.06 X 10000 000 = 600K ?
It is not something for the faint hearted.

[cbsh38584]

Hi Vic, I tried to pm you but your mailbox is full.
Why do you say a correction will come when the population is increasing?
Thanks.




It should be 0.06 X 10000 000 = 600K ?
It is not something for the faint hearted.

Sorry typo error. It should be 1000 lots , not 10,000 lots.
1000 [email protected] = $60k.

Stock mkt correction are a natural part of the stock mkt cycle. Every year they will be 1 to 2 correction in the stock mkt. Every few years, there will be a major crash in the stock mkt. Be different against the herd using simple investment principles. EXTREME FEAR INDEX. This require PATIENCE.

[Allthepies]

What is confirm growth area? U mean those new to future mrt?

you have to do your own homework, only then will you buy with no regrets.

[cbsh38584]

Hi Vic, I tried to pm you but your mailbox is full.
Why do you say a correction will come when the population is increasing?
Thanks.




It should be 0.06 X 10000 000 = 600K ?
It is not something for the faint hearted.

If it is 10,[email protected]= 600k.
Today is worth 18 million. U can really retire in a luxury life with your family.

rdgs,
Vic

[buttercarp]

Sorry typo error. It should be 1000 lots , not 10,000 lots.
1000 [email protected] = $60k.

Stock mkt correction are a natural part of the stock mkt cycle. Every year they will be 1 to 2 correction in the stock mkt. Every few years, there will be a major crash in the stock mkt. Be different against the herd using simple investment principles. EXTREME FEAR INDEX. This require PATIENCE.

Thanks vic.
Wow... $60k to 1.8 mil in just 4 years.
But in 2009, was there a possibility of the company going bust?

[howgozit]

After I clear my hdb loan. I can still fork out about 500k. No other loan leow.
Single income about 8k

With $500k in hand and no debt TS is not a marginal buyer.

You wouldn't be that far off a couple of years ago, a pity you took till now to decide to invest.

Anyway looking forward.... l think things are going to taper and then plataeu before seeking direction. I believe you can wait another 6mths to a year before you decide... things are not going to change much.... if anything the upside is limited.

Good luck.

Gong Xi Fa Cai

[chiaberry]

Thanks vic.
Wow... $60k to 1.8 mil in just 4 years.
But in 2009, was there a possibility of the company going bust?

I think that would have been considered a high risk purchase at the time. Needs iron balls to wait out the recovery and iron balls to hold even though it went up so high and resisting temptation to cash out earlier.