Should we all aim to own a condo? or we should just enjoy hdb and life?

The first thing you should consider is your numbers and finances.

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You need to calculate if you can afford a $1 million private property.

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If this is your first residential private property in Singapore, you can only get a maximum loan margin of 75%.

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Here is the breakdown of the cash outlay based on a $1 million property.

• First will be the 5% Booking fee or Option Fee in cash: $50,000
• Next, the remaining 20% which can be payable either cash or CPF: $200,000
• You need to add in your Buyer’s Stamp Duty: $24,600
• Add in your Legal & Misc costs: $3,000

Your total amount of cash outlay or CPF: $277,600

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Supposedly you are getting a 30-year, Principal plus Interest loan at a 1.5% interest rate, your monthly installment will be at $2,588+.

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The questions you must ask yourself are:

1. Do you have $280,000 in cash/CPF? If yes, is this your entire treasure chest?
2. With your current take-home income, what is the proportion of cash that you would need to repay the bank at the monthly installment of $2,588+?

These are the questions that you need to ponder with.

Well, everyone has different dreams and sometimes the practical aspect of us will clash with the dreams or hobbies that we have that will usually be irrational. I personally love collecting watches and it's really not a rational decision.

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That said, please allocation your funds wisely and don't over leverage on loans and stretch yourself too tight just so that you can pursue your condo dream.

If you enjoy more by staying in condo, and more importantly you can afford one, go ahead. But if your quality of life suffer because you have a huge loan to service, then think again. It is all about the lifestyle choice.

Always down to income and preference really.