Asked by Anonymous
Asked on 14 May 2019
Hey there. When purchasing a private property, age isn’t a consideration. Some of the considerations can be (not in any order of importance)
What is the purpose of the purchase? (As an investment, a place to stay or both)
If you currently own a HDB, will you be selling it away for your private property?
Cashflow. Ensuring that your cashflow is still healthy even after paying off the monthly mortgage. Try to keep to a cap of 30% of your income for mortgage.
There are some other areas to consider depending on your current environment and purpose. But these 3 will be a good start.
It is not so much a question of age, but of your financial situation.
For example, if the home loan repayments - inclusive of your other debt obligations - are only around 40 per cent of your monthly income, that's one potential indicator of readiness.
The other factors would be the stability of your income sources, whether you have sufficient protection (in the form of emergency cash savings, insurance, etc.), and whether you're psychologically ready for the commitment - you could be going on an annual holiday, on the expense you're committing to a private (rather than public) property.
If the financial situation is right, one could potentially buy at 20. If the financial situation is wrong, they may not be ready to buy even at 45. As with many things in life like retirement, accrued wealth and savings is a more important indicator than age.