How do I know whether if I am able to afford a BTO 2-Flexi Rm or 4 Rm HDB Resale for Single?

Determining whether you can afford a BTO 2-Flexi Room or a 4-Room HDB resale flat as a single individual involves several financial considerations. Here are some steps to help you make an informed decision:

1. Assess Your Budget: Calculate your current and expected monthly expenses, including housing costs (mortgage or rent), utilities, transportation, insurance, groceries, and leisure activities. Ensure your expenses leave room for savings and emergencies.
2. CPF Utilization: Understand how much of your CPF savings you can use for your housing purchase. CPF can be used for the downpayment, monthly mortgage payments, and other housing-related costs. In your case, with $72.3K in CPF OA, you can use this amount for housing-related expenses.
3. Mortgage Loan Eligibility: Visit a bank or financial institution to determine your eligibility for a housing loan. Your loan eligibility depends on your income, financial commitments, and credit history. Given your monthly salary of $3.2K, your loan eligibility will be assessed based on these factors.
4. Downpayment: Different housing options require different downpayment percentages. BTO flats typically require a smaller downpayment compared to resale flats. Ensure you have enough liquid cash to cover the downpayment, including legal fees, stamp duties, and other related costs.
5. Monthly Mortgage Payments: Use online mortgage calculators to estimate your monthly mortgage payments for both BTO and resale flat options. Ensure that these payments fit comfortably within your budget.
6. Emergency Fund: Maintain an emergency fund of at least three to six months' worth of living expenses. This fund will provide a financial safety net in case of unexpected events or emergencies.
7. Long-Term Financial Goals: Consider how your housing choice aligns with your long-term financial goals. Assess how it may affect your ability to save for retirement, investments, or other financial aspirations.
8. Future Income Growth: Evaluate your potential for income growth over the years. A higher income can provide more financial flexibility and ease the burden of housing expenses.
9. Professional Advice: Consult a financial advisor or a housing expert who can provide personalized guidance based on your financial situation and goals. They can help you weigh the pros and cons of each housing option.

Remember that purchasing a home is a significant financial commitment. It's essential to strike a balance between housing affordability and maintaining a healthy overall financial profile. Carefully assess your current financial situation, future financial prospects, and long-term goals to make an informed decision about the type of housing that suits your needs and budget.

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I am currently a Financial Advisor as well, so feel free to reach out to me on IG (@ngooooied) if you have any further questions！

Hi there! Check out this calculator, where you just need to put in a few details (such as the ones you already provided abt CPF!), and you can see how much you can afford. The cool thing is, you can even compare properties with different prices :)

If those are your numbers and your salary remains relatively constant, suggest you go for 2 room bto. If you are looking at resale, try not to buy anything more than 400k

The payment schedule is different for both, BTO is definitely affordable than resale