How much monthly income you will then consider buy condo?
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There are pros and cons to renting vs buying. But the key pro over renting is that at the end of paying for the rent for 20,30 yrs, u dun own anything. but of cos, u have the flexibility of moving wherever and whenever u want.
And of cos, if the market is picking up, u will not get to enjoy any capital upside. and if the market is going down, at least u wont have a negative equity issue. it's a trade-off thing.
but definitely the market is looking better, u probably won't enmesh in the same kind of negative equity situation like in post-97.
i always believe in living within ur means and be happy. if u r buying for ur own stay, by all means, buy it when u r young and can enjoy the facilities, or u want ur family to enjoy the facilities. having so much cash but having to compromise on ur living standards/dreams, also defeats the purpose! -
I agree with sweetie05's point on living within your means and enjoying the facilities when you are young and NOW.
But I want to caution potential buyers that purchasing a pte property or even hdb should be viewed as a "consumption" and not "investment". -
I don't want to put my cash in a liability (note: own apartment is not an asset but a liability). I can use the cash for a better investment vehicle.
monthly installment is not flexible. even i'm out of job, i still have to fork out money for installment. ( many people could not pay installment after they were retrenched) I want to work/enjoy within my means.
Now i can afford it, i will want to stay in a nice place with swimming pool & tennis court which I can make a good use of it. Sometimes, I can even swim at evening and i'm the only one in the pool. (which I cannot do it if stay in HDB)
If i got retrenched, I will let go and move to a HDB.
I'm not the person who actually spends a lot of money e.g buying car in singapore etc. So, i think my opinion after considering pros and cons.
BTW, i stay with my girlfriend. so, not so 'single' anymore.
Note: the total price is a monthly rent for SGD1300. -
Owning an apartment will be an asset if your property value > outstanding loan amount. I am sure you are using cash to pay for your rent, so how can you say that by renting you will have more 'cash' for investment?Originally posted by Glen999:I don't want to put my cash in a liability (note: own apartment is not an asset but a liability). I can use the cash for a better investment vehicle.
monthly installment is not flexible. even i'm out of job, i still have to fork out money for installment. ( many people could not pay installment after they were retrenched) I want to work/enjoy within my means.
Now i can afford it, i will want to stay in a nice place with swimming pool & tennis court which I can make a good use of it. Sometimes, I can even swim at evening and i'm the only one in the pool. (which I cannot do it if stay in HDB)
If i got retrenched, I will let go and move to a HDB.
I'm not the person who actually spends a lot of money e.g buying car in singapore etc. So, i think my opinion after considering pros and cons.
BTW, i stay with my girlfriend. so, not so 'single' anymore.
Note: the total price is a monthly rent for SGD1300.
The reason you are not spending alot of money is because every month you have already spent $1300 paying rental.
You might think that you are being smart to spend just $1300 per month to enjoy the condo facilities. Have you ever do your own income statement to check your cash flow and balance sheet? Try do an income projection and see how much cash and fixed asset you will have in 10 years time if you continue to pay rental every month.
sooner or later, you will still need to buy your own property, so the earlier you do that the earlier you can be debt free. Since you are not married and want to maintain the "condo" lifestyle, I would suggest that you consider applying an EC with your parent and take advantage of the government grant. -
$100000
1500 a month for car, 5k for condo?i not so sure, coz i duno about housing stuff -
Originally posted by dragg:i can only afford a condo..........m.
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if i buy a condo, i may have to pay more than $2k per month. I could save my money and use it for investment.Originally posted by Gazelle:Owning an apartment will be an asset if your property value > outstanding loan amount. I am sure you are using cash to pay for your rent, so how can you say that by renting you will have more 'cash' for investment?
The reason you are not spending alot of money is because every month you have already spent $1300 paying rental.
You might think that you are being smart to spend just $1300 per month to enjoy the condo facilities. Have you ever do your own income statement to check your cash flow and balance sheet? Try do an income projection and see how much cash and fixed asset you will have in 10 years time if you continue to pay rental every month.
sooner or later, you will still need to buy your own property, so the earlier you do that the earlier you can be debt free. Since you are not married and want to maintain the "condo" lifestyle, I would suggest that you consider applying an EC with your parent and take advantage of the government grant.
as my pay > rent, so, i still have positive cash flow.
if my pay drops, my rent will drop (coz i move to smaller unit).
i don't understand why i should stay in EC because i have positive cash flow currently. please enlighten me on this.
i'm living within my own means. -
if you are paying 5k a month for installment, u can be staying at landed property (5k a month -> 60k a year -> 1.8 million for 30 years) .. what for condo, unless very highend one.Originally posted by dark_snowboy:$100000
1500 a month for car, 5k for condo?i not so sure, coz i duno about housing stuff -
you don't understand? too bad then.... maybe you will in 30 - 40 years time wen you realised you don't own any asset despite paying $1300 a month (or more due to inflation) for so many years.Originally posted by Glen999:if i buy a condo, i may have to pay more than $2k per month. I could save my money and use it for investment.
as my pay > rent, so, i still have positive cash flow.
if my pay drops, my rent will drop (coz i move to smaller unit).
i don't understand why i should stay in EC because i have positive cash flow currently. please enlighten me on this.
i'm living within my own means.
but then again, you may be doing well coz your investment may have balloon. good luck any how! -
i don't treat my house as an asset.Originally posted by rivereast:you don't understand? too bad then.... maybe you will in 30 - 40 years time wen you realised you don't own any asset despite paying $1300 a month (or more due to inflation) for so many years.
but then again, you may be doing well coz your investment may have balloon. good luck any how!
Eventhough you have one milllion worth of bungalow, it's still not an asset because you don't want to sell it and you want to stay.
For example,
Person A: he own a house $1 million + $10,000 cash. (he doesn't want to move out)
Person B: he own a HDB $200,000 + $810,000 cash. (he doesn't want to move out)
although both have the same asset in $ but i think person B can have better life (e.g. travelling, shopping, makan etc). And his cash can be reinvested. -
If you get a lower end condo for around 450K and below, with 20% down payment, and 30 years loan, your monthly repayment should be around $1.3 to 1.4K per month.Originally posted by Glen999:if i buy a condo, i may have to pay more than $2k per month. I could save my money and use it for investment.
as my pay > rent, so, i still have positive cash flow.
if my pay drops, my rent will drop (coz i move to smaller unit).
i don't understand why i should stay in EC because i have positive cash flow currently. please enlighten me on this.
i'm living within my own means.
Even if you save $1 every month you will still be consider as having positive cash flow. The point here is that you must learn how to cut down on your expenditure (servicing your mortgage is consider as 50% expenditure), and maximise your income.
I would like to repeat that sooner or later you will have to get your own place and if you can do it earlier it will help save you alot of money from rental. -
You MUST have been badly mistaken then! Can't help laughing while reading your statement!Originally posted by cal79vin:If I'm not mistaken, to qualify for a loan to purchase a condominium, the combine income have to be $8000 and above, since his wife is not working, there is still a shortfall. Unless he is paying full cash lor.....
There's no ruling about have to earn >$8K to qualify to buy a condo. There is a rulling about combine income not exceeding $8K to buy HDB but to have >$8K rulilng to order to buy a condo is hilarious! -
Glen, the $1 million property is an asset that appreciate over time and usually the growth will be more than enough to cover inflation and definite better than keep cash in the bank.Originally posted by Glen999:i don't treat my house as an asset.
Eventhough you have one milllion worth of bungalow, it's still not an asset because you don't want to sell it and you want to stay.
For example,
Person A: he own a house $1 million + $10,000 cash. (he doesn't want to move out)
Person B: he own a HDB $200,000 + $810,000 cash. (he doesn't want to move out)
although both have the same asset in $ but i think person B can have better life (e.g. travelling, shopping, makan etc). And his cash can be reinvested.
Your property is an ASSET, I repeat it is an ASSET!!. Assuming that you are abuot to retire and you need cash for your retirement. What you can do is sell your 1m property and downgrade to a smaller private apartment which cost around 600K. And there you go, you have 400K for retirement and a full paid 600K apartment.
Honestly speaking, I think it is kind of dumb to keep 810K in the bank and live in a 200K HDB. I think you might be better of to do the reverse and live in a 810K freehold property and have 200K in the bank.
On the other hand, do you have reason to believe that you will be like Person B if you continue to pay rental for the rest of your life? Why dont you use 810K and divide by your month saving, and then tell us how many years or century you will need to accumulate 810K in cash. -
hi!
Life is more than just getting a condo....
If you can afford a condo then good for you, but if you can and prefer to stay in hdb, that's even better! Why?
Consider the fact that you will have much less commitments, lesser in debt and more freedom to choose how you want to lead your life.
Will it not be good if you can have the option to stop work for a period of time and take a break to tour another country for six months? Do you have the power and option to do what you please and not be bogged down by housing commitment? Not forgetting the whole list of other commitment that you may have.
Choose life!
Choose freedom!
Choose options!
Choose plenty!
Get a good well balance life....then buy your condo, if you must
mokko
http://search.freefind.com/find.html?id=21051830&m=0&p=0 -
Absolutely!! Our aim in life should always be debt free!! the earlier the better.Originally posted by mokko:hi!
Life is more than just getting a condo....
If you can afford a condo then good for you, but if you can and prefer to stay in hdb, that's even better! Why?
Consider the fact that you will have much less commitments, lesser in debt and more freedom to choose how you want to lead your life.
Will it not be good if you can have the option to stop work for a period of time and take a break to tour another country for six months? Do you have the power and option to do what you please and not be bogged down by housing commitment? Not forgetting the whole list of other commitment that you may have.
Choose life!
Choose freedom!
Choose options!
Choose plenty!
Get a good well balance life....then buy your condo, if you must
mokko
http://search.freefind.com/find.html?id=21051830&m=0&p=0