Dith Woo - Seedly
 
Dith Woo

Dith Woo's profile is not filled up yet.

Dith Woo

About

Dith Woo's profile is not filled up yet.

Credentials

Dith Woo's credentials are not filled up yet.

Dith Woo

  • Answers (2)
  • Questions (0)
  • Reviews (0)

EC Condominium

CPF

Savings

Salary

Property

Dith Woo
Dith Woo
Level 3. Wonderkid
Updated on 05 Aug 2019
There are a lot of other factors that would help other Seedly members answer your question. For example, what are your ages, your marital status with your partner, are you a first-timer or second-timer, do you own other properties, what are your motivations for buying an EC (amenities, investment, bragging rights, etc), are you eligible for a bank loan, what is the size of the unit you are looking at, how long do you intend to stay in the EC before selling, are both of you Singapore Citizens, what’s the status of your Total Debt Servicing Ratio (TDSR) / Mortgage Servicing Ratio (MSR), and so on… I’m going to base my answer on the recent EC that was launched in Punggol, Piermont Grand, which has an average price of $1,080 psf (pricier than the usual, but seems to be the only EC launch this year). This means that a three-bedroom unit starts from $888,000. Unlike that of a HDB flat (just 10% down payment), you need to make a down payment of at least 25% for the EC. This works up to $222,000, which almost nearly wipes out your $250k combined cash and cpf savings. Don’t forget other costs like stamp duty, legal fees, etc. You could be eligible for some grants, which may help a bit. Those who opt for an EC are also not eligible for the HDB loan, so you will need to find a bank loan and likely refinance it every few years for the best interest rate. Say you get one at 2% interest – for your remaining $666,000 over 30 years, you will need to repay $2,462 every month. That slightly exceeds 30% of your combined income, so you might not be eligible for the MSR… uh oh. But I took the liberty to reverse engineer the loan repayments… so if you take a loan of $649,125 (means more cash outlay for the down payment), the repayment amount is $2.4k exactly, or 30% of your combined gross monthly income, which is the MSR cap. If you can tough this out for 10 years, you could gain from selling your now private property in the open market… but you might need the savings for setting up your family, renovation, children’s education, etc. A lot can happen in a decade. If possible, perhaps consider getting a HDB flat first as your income is well within the income ceiling. Then after the 5-year MOP, sell the flat and use the money to upgrade? Or you can wait for cheaper EC launches. Either way, all the best!

Credit Card

Savings

Bank Account

DBS

Dith Woo
Dith Woo
Level 3. Wonderkid
Updated on 31 Jul 2019
Unfortunately, the $30k annual income requirement is set by the Monetary Authority of Singapore and banks have to be compliant or risk being fined or worse. This is pretty serious stuff; you can read more on the MAS website here: https://www.mas.gov.sg/regulation/explainers/Issuing-Credit-Cards There are a few things you can do, though. 1. One as you mentioned, is to put cash in a fixed deposit account, thus making it a secured loan (credit cards are categorised as unsecured loans). Why not consider this? The minimum sum you need to put in is $10k – this is not your full $30k sum. Furthermore, the FD should be able to beat the % you are getting with your 0.05% bank. You should be able to get more than 0.05% after holding the FD for at least three months with DBS: https://www.dbs.com.sg/personal/rates-online/singapore-dollar-fixed-deposits.page https://www.dbs.com.sg/personal/deposits/fixed-deposits/s-dollar-fixed-deposit But do check in with DBS for all their updated T&C as well, as you will need to hold the FD for a minimum period to earn the interest. Additionally, you will need to hold the FD for as long as you want to keep the credit card – at least until your annual salary reaches the $30k minimum cap. However, I can also understand why you want to keep the $30k in what I assume is your DBS Multiplier account. You might be gunning for the higher tier of interest for the bank account, but if your spending every month is less than $2k, it frankly isn’t very significant IMO. I’m not very sure how much your spending is every month, but hitting the $2k range on a $30k annual salary sounds painful (at least to me). 2. Another way if you die-die want a credit card is to get a supplementary card from someone who already owns one. But seeing that your objective is to take advantage of the multiplier effect, this really defeats the purpose as you are not the principal cardholder. Okay, next! 3. Do you have other sources of income? According to the MAS website, non-employment income such as rental income can count as your annual income. Maybe you have a side hustle or you are renting out a room in your flat… Since you are really close to the $30k mark (just $500 shy), the gap should easily be filled after renting out a room for just a few months. 4. Ask for more salary (or a promotion). Another way is to ask your boss to pay you more… or perhaps find a job that pays a bit better. Do note if you get a new job, there is more paperwork to fill up if you have been working there for fewer than three months. 5. Are you secretly asset-rich? According to the MAS website, if you have total net personal assets of at least S$2 million or total net financial assets of at least S$1 million, you are also eligible to apply for a credit card. Hope this answer helps and good luck!
Level 3. Wonderkid
20PointsGoal 40
20 POINTS TO LEVEL UP
Browse Rewards