For a first time home owner, as a couple if we could afford a private condo (2 bedder) in OCR region. Would you suggest for us to go for private or to stay in a HDB? - Seedly
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Anonymous

Asked 3w ago

For a first time home owner, as a couple if we could afford a private condo (2 bedder) in OCR region. Would you suggest for us to go for private or to stay in a HDB?

Would a private 2 bedroom condo or HDB be better for a first time home owner? Thanks!

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We suggest cleaving to the traditional 3-3-5 rule which is also endorsed by CPF.

  • The total price of the property should not exceed five times your combined annual income

  • The total monthly costs should not exceed 30 per cent of your monthly income (note that officially, you could qualify for a loan even at twice this level. The Total Debt Servicing Ratio - or TDSR - caps your home loan repayments, plus other debts, to 60 per cent of your monthly income). But just because you can reach 60 per cent doens't mean you should.

  • Have 30 per cent of the asking price ready, and ensure it's not wiping out all your savings when you pay it.

As an aside:

If you want to offload the condo later, you will incur Sellers Stamp Duty (SSD) if you sell within the first three years of your purchase. So do be sure you're comfortable during that time (e.g if there's going to be a major change to your financial situation within that time and you need to sell, it could really hurt). Consider the financial situation in the near future as well.

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Thank You!
Can you clarify
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It depends on the income you guys are having now.

It also depends on your objective of getting the condo instead of the hdb.

So need more info to give a good suggestion. ​​​

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Jas

2w ago

Thank you for your reply. The objective of the home(HDB/Condo) is for own stay. If we were to get a condo, the objective would also be for own stay. In terms of income, we have crossed the 16K combined income level already. We would be able to afford either a condo/HDB in the OCR region. Feel free to share your thoughts.
Caleb Seah Hua Xiang
Caleb Seah Hua Xiang

2w ago

16k means you are not eligible for grant and also bto and ec already. So if you prefer size without payiny such a huge premium, can go for hdb. For 16k, if buy pte, can loan up 2.1m, which is quite a lot of choice for ocr. So for pte it's also feasible to get 3br in ocr within this budget. The next question is, what's your view on property progression for you and your spouse? If you guys are going to buy two and rent out one eventually, then maybe have to plan pte all the way. Such that you buy one pte under one name, and buy another under 2nd name. In this way, you're not restricted by hdb rules of 5 yrs mop. But if you think the home is just a roof over your head and don't see property as one of your investment assets, then go for hdb and invest the rest in other investment vehicle which you feel it's beneficial. Need more clarification, whatsapp me at 91085690. Caleb
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