facebookYoung Couple (below 30yo), combined income $10K , cash savings $120K, no car or other loan. Planning to buy a 2BR condo for $1.1M, any thoughts? - Seedly

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Anonymous

01 Aug 2021

Property

Young Couple (below 30yo), combined income $10K , cash savings $120K, no car or other loan. Planning to buy a 2BR condo for $1.1M, any thoughts?

Planning to buy a 2BR condo for $1.1M

Discussion (6)

What are your thoughts?

Lim Boon Tat

Lim Boon Tat

02 Aug 2021

Level 10·Mathematics at Cambridge University

I would say go for it! But let's run some numbers first. Nowadays, it looks like you can only borrow 75% for first property (assuming bank matches your buying price), which means you need to pay 275,000. In addition (assuming you're singaporean), the stamp duty is 28,600. So you need to pay 275,000 + 28,600 = 303,600 of which 55,000 must be in cash. so you need roughly 183,600 from your CPF / parents. If you're renting out for the first few years, then i wouldn't worry about mortgage too much, 95% of the time, rental income will pay for the mortgage + condo monthly maintenance (in any case, you can always buy a resale condo with existing tenancy so that it makes sense right from the beginning). Some "friction" in terms of commission for agent when it comes to rental (i think 1 month for 24 months lease), minor repairs along the way, and some upgrades when you move in again (maybe you want to change the tv).

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I guess you need to save a bit more before getting the condo. Probably 200k would be safe as you will need decent cashflow for other usage as well.

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