Newbie
Economy is bad which I read from Hwz. My wife and I still hopeful to get 2nd property and be a landlord so we could upgrade and rent out our flat. What is the real situation out there now? Will there be rental demand? or we are in bad shape now?
Our household income has reduced to 5k+. My wife just got retrenched earlier this month. Should we go ahead with another small property? Flat still has outstanding loan of 400k and we have saving of around 300k+.
Newbie
Originally Posted by Joffrey
I am not a guru in property. My opinion is that if you wish to get a 2nd property, you should clear off your first loan so that you can get 80% loan for your 2nd property. Do also consider the 7% ABSD on your 2nd property. Good luck!
Ultimate Underdog
It's a good time to buy only for those with sufficient buffers.
Your situation quite precarious unless your Wife and yourself can buy and live in a MM unit with mortgage fully covered by projected rent from HDB.
Rental rates quite soft now and you should be a little defensive with single income.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Junior
If your goal to preserve wealth, you should buy now. If your goal to create wealth you should hold.
Newbie
don't get yourself into shit
Senior
Not enough info.
Age of you and your wife.
What is your first property
How many cherry taken.
How much did you pay for the first property.
More info more accurate advise, less info good luck to you with the advise.
Newbie
Er.....what is the difference between the 2?
Thought they should be interlinked
Maybe say buy to stay or buy for investment
Newbie
I am 40 and my wife is 38.
Our current property is HDB 4 room flat, bought resales.
We paid around 480k for the flat in Jurong East.
We have two kids 2 and 4 years old.
Junior
Base on the info you have provided. Initially, I cant believe you may still want to consider buying a 2nd ppty when your wife has just been retrenched.
Now, It make me "BOIL" when you said that you have 2 kids.
Senior
Relax, more info more accurate advise, less info can only say good luck to the advise given.
Senior
Base on the above, my personal view is go for BTO than Private.
Can also go for new EC.
Senior
preserve wealth means buy for rental income
create wealth means capital appreciation (when everyone is fearful)
Senior
Please remember to have only one owner to the HDB or EC property and the other as occupier so as to have reduced Stamp Duty for the next purchase.
Junior
Preserving wealth is when u have cash equivalent of more than 50% of the property u want to buy.
Creating wealth is when u have less than 30% in cash of the property u want to buy.
Preserving weath is defensive strategy, whereas creating wealth is aggressive strategy.
Ultimate Underdog
With 2 kids MM is quite out of equation.
If I were in your shoes will not do anything or try to gun for the most valued and biggest BTO that I could afford. Preferably sales of balance flats that are about to complete. Jurong east 4rm is a very good long term proposition too if stay put.
Cannot hoard status hoard the space first. Be patient and wait for future opportunities.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Junior
Buying or upgrading is NOT A GAME OF CARD for a married man especially with 2 young kids. This is your whole family life at stake.
Your parent & both of you have worked & saved 20 yrs + to have a decent living in HDB.
As long as you are the MAN IN CHARGE, you need to ensure your family financial health did not deteriorate. You need to be very prudent
and not to get your whole amily in deep shit. Nobody is going to KNOCK IT DOWN what you have achieved unless you yourself.
From what you have provided. You use less cash & more CPF for your housing purchased. So u end up with more liquid cash avail.
Now with more liquid cash avail, like most of them. U will either want to have more holiday or buy car or upgrading to EC or CONDO etc.
They have forgotten about the future retirement. CPF is one of the best scheme avail for your retirement.Now if your CASH investment turn
bad or did not perform . You will not see the problem now. But when u reach 50s, you will know it & will regret it.
Senior
He is right and I also agree, CPF is for retirement. I only use it to buy HDB for a loan of 200,000 I need to pay back CPF about 300,000
Global recession is coming....
"CPF is one of the best scheme avail for your retirement."??? ha ha ha!
Only "best" for financial idiots, that is what I can say.......
Ultimate Underdog
300,000 is based on principal CPF sum plus accrued interest (based on 2.5%).
How much can you exchange the HDB for now?
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Junior
Is the $300k including CPF? How much in your ordinary CPF account?
Senior
Long time no see my CPF, time for me get a update.
Global recession is coming....
Singapore is going in recession soon, and with it will crash Singapore OCR private property prices because they are still at historical HIGH (while exerting some additional downside to CCR which has already crashed)............
So you wanna buy now?
Please go ahead, but be warned and take heed!
10 years from now, please look back and see what we have said/warned!
Ultimate Underdog
Dunno if it's a coincidence that Joffrey and Yowe sounds so similar. Their stance also quite the same, the innocent lemmings kind...
Just read with a pinch of salt like you said. Relax.
Singapore is going in recession soon, and with it will crash Singapore OCR private property prices because they are still at historical HIGH (while exerting some additional downside to CCR which has already crashed)............
So you wanna buy now?
Please go ahead, but be warned and take heed!
10 years from now, please look back and see what we have said/warned!
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
Junior
CPF should not be used for property purchase, period. Then we can start talking about "best scheme for retirement ever".
Global recession is coming....
I don't see how CPF should not be used for property purchase, since property is a good investment for long-term inflation hedge, if they buy the right one at the right price.
Anyway, for retirement, it is all the more important that people use their CPF to invest, be it in property, stocks, etc.
They should just invest over a long term (instead of keeping them as cash in CPF), and they should have more high-return investment choices! (rather than just being restricted to 30% in stocks and must be stocks listed on the Singapore mickey mouse exchange, or 100% in unit trusts when they can just get milked by high expenses for CPF-OA!)
Worse still, CPF-SA can only invest in those Unit Trusts again! (so that these people can be milked with high expenses charged by Unit Trust Managers???)
Or alternative, people should be compensated with higher interest for their CPF money (because of compulsory lock-in of their money and few good investment choice because of too many restrictions!).
The problem is that: Most people are financial idiots, and they don't know how to invest!
Firstly, they use CPF money anyhow buy stocks, get burnt!
Then they use CPF money to buy unit trusts or ILPs, they got milked (by the high expenses)!
Then they use CPF money to buy OCR private properties, like now at the HISTORICAL PEAK price!
Like that sure lose money right? If they don't, they must be super lucky!
But luck usually will never be with anybody all the time!
Senior
Did not know I so low pay.
Ordinary Account (OA) $128,289.61
Special Account (SA) $113,035.74
Medisave Account (MA) $49,796.17
$1,020.00. (*OA: $413.62 *SA: $317.01 *MA: $289.37)
$189,820.72 Net Amount Used
$ 70,680.29 Accrued Interest
$260,501.01 Total
Date Of Application 25 Oct 1993
Date Of Purchase 01 Nov 1995
Purchase Price $225,600
Loan Commencement Date Nov 1995
Loan Expiry Date Oct 2020
Interest Rate (p.a.) * 2.60% (Concessionary)
Monthly Instalment $923.00
I pay $600
Wife pays $263
If you pay off your mortgage of $41,168.80, your interest savings will be $2,174.80.
3 years 11 months
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