Should a fresh graduate couple proceed to apply for a BTO despite being in student debt?

I am a believer in well planning in advance.

1) Upon reading your question, actually the first thing that strikes out to me is the relationship. I assume both of you are certain wanting to share your life with each other and not simply because it is the “norm” stage. Pardon me as I am not trying to be offensive but this is important. There are cases of young couples having to folk out a lot penalty $ when they forgo their successful BTO supposing, plus might be ‘blacklisted’ and wait longer next time.

2) Next, at this early stage of career, are you certain both of you like the jobs you are in and can stay for at least 2 years in same company? Oftentimes this is the stage of “finding” yourself in your job and tendency to job hop. The concern here is on your income stability.

3) If you are absolutely certain on items 1 & 2, then I suggest to do a proper financial calculation. List down all the liabilities each of you own like school loan, credit cards. Fixed expenses like food, transport, insurance premiums. Discretionary lifestyle like fine dining, travelling. Total assets if any like CPF OA and any cash savings. It is understandable if you do not have enough cpf and cash for the deposit. However I think BTO using HDB loan is only 5% using CPF which is $20k supposing $400k BTO and you since you will be eligible for deferred scheme I don’t think you need to worry about this deposit. For 2 adults, need only 1 year work to accumulate this $20k in OA.

4) After doing item 3, set out a savings goal like each person save 20% (not sure how much if comfortable) of nett take home pay after paying of your liabilities. You should each open a separate bank account and automate this savings like the SAYE. Also do talk about your lifestyle choices if anything should be cut out like less movies, less travelling etc. This saving goal is not just for your BTO but should be Long term practice due to wedding, home renovation, future kids, emergency back up savings, investments, retirement. Try to increase the rate % as your income increases and debts decreases.

5) Continue to pay off your study school loans concurrently while you save up

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If you are able to rationally discuss and take action on the 5 items above, then I think you are ready to apply for BTO. Applying for BTO doesn’t mean you will get it. I know many who applied like 5 times never get it as depends on your luck too. A BTO is definitely a savings in itself since much cheaper than resale especially since you will get lots of grants from government.

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Good luck and don’t worry so much. One can only plan ahead and take actions based on information and sources available at point in time. You are both university educated and both working, it is just a matter of time (couple years) for your debts to be over

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How about no.

BTO is heavily subsidised and It is great to apply first with assumption that you and your Significant Other is in a "VERY" stable position.

My other pointers are covered by other answers.

1) Stable Relationship

2) Ability to secure a stable job with monthly pay or start up that you confident of earning decent pay.

3) With fall-back support from families if needed.

If you have all 3 stars align, go for it. #3 is optional, but happy to have some affirmation.

PS: BTO , the ROI is one of the highest you can get. I saw many people sell after 5-10 years, yielding 50% ROI for 5-10 years. Upgrade to Private after, if that is one of your plan.

Yes. (I am assuming you two are in love and ready to be married)

1) BTO is impossible to lose money

BTO are subsidised heavily. I have never heard of a BTO, after meeting the MOP of 5 years, that sold below the original price.

Just based on that, its impossible to lose money.

Currently some of the BTO flats in Tiong Bahru, Kallang just met their MOP 5 years and the price is doubled of the BTO price.

2) If you choose a suitable size, all or most of your payment is via your CPF (money you can't touch via other means anyway)

3) What about renovation, furniture or stuff like that?

If you want to save, don't renovate (or do light touch up only)

Go for lite or Zen look, go for as little furnitures as possible. Go facebook group and google for Freegan Singapore or downloand OLIO app for freebies.

I have so many friends who done their family up with not much money. The priority in their life is not to save money, its to start their family ASAP when they still have little savings in life.

Go figure.