What are your opinions regarding housing upgrade, as a young couple with combined income of 10K?

Tbh,

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A combined income of $10k with a saving of $4k means your expenditure is $6k.

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Holding on to a 5 rm flat is a Good Investment when your expenditure is already quite high.

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A Saving of $4k is a good start and you should cherish the good you already possessed to increase your savings and clear your debt if any.

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Rather then thinking of doing an upgrade, you should focus on getting another property you might be staying in or a income generating asset.

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Before you commit into such a huge investment, you should focus on your family planning and protection which is the true essential, esp with the cooling measures and a purchase into a 2rm condo or EC is actually a downgrade.

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Only when your essential are covers with enough cashflow, you should just make the best of what you have now and focus on increasing both income rather then increase the debt levels with some profit from selling and buying which will incurred expenses like lawyer fee.

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Hope my reply helps.

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https://seedly.sg/profile/a-kenichi-xi

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Thank you.

Wow. Congratulations for being able to Upgrade :)

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Some analysis / costing below:

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(1) OA:

Combine income 10k, assuming both below 35 and assume salary 6k and 4k so CPF employer and employee is 37% Where 23% will allocate to OA means $510.60 and $340.40. So total monthly goes to OA is $851.

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Combine savings 4k monthly and means OA since not much can keep In CPF as retirement earn 2.5+ interest or transfer to SA for 4%+ interest.

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(2) Choices of Properties available:

Stayed 5rm HDB, MOP 5 Years already passed in Jul 2018 so means can sell anytime.

Monthly combine income 10k means can still choose either EC (combine income < 14k) or Private properties

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(3) Price:

• EC: 3 bedroom about 800 to 950k
• Condo: 1 to 1.6 mil (non central condo)

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(4) EC Cost Estimation

Example by Seedly: https://blog.seedly.sg/property-cheat-sheet-bto...

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** For the above example, as you're 2nd timer and from 5rm upgrade to EC, thus will not have the 30k housing grant. So after all the above deductions, payment, still have to service $541,300.

Since EC can only borrow from bank, assume borrow for 25 years at 1.8%, monthly repayment will be about $2,422 which is quite comfortable for 4k savings to cover. Just that you need to sell current 5 rm HDB and be able to come out with cash /CPF of about 200k + 85k for the upfront payment.

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Property Guru homeloan calculator: https://www.propertyguru.com.sg/mortgage/calcul...

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(5) For Condo cost of say 1.1 mil of a 3 room unit, it's gonna be even more.

See: https://propertynet.sg/cash-need-to-purchase-bu...

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Summary:

(A) Total Cash & CPF required for the downpayment (Including stamp duties and other fees) is $252,400

(B) Minimum Cash required for the downpayment (Including stamp duties and other fees) is $55,300

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So the choices is yours, read up more at:

(5) More on EC vs Private Condo:

https://www.99.co/blog/singapore/bto-executive-...

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