How much salary should you be earning to afford a condominium in Singapore? - Seedly

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Asked by Anonymous

Asked on 15 Oct 2018

How much salary should you be earning to afford a condominium in Singapore?

We have just gotten our BTO and will be staying for at least 5 years. But wonder what it takes to upgrade to a condo after this 5 years? So me and my wife can work towards that together.

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Kai Xin
Kai Xin
Level 3. Wonderkid
Updated on 07 Jun 2019

Advice is don't use too much CPF for your currrent BTO. Use cash as much as possible, take it as forced savings for your new condo. At the end of 5 years, you will pay less accured interest and the lump sum comes back to you as cash to be deployed for your new condo

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Leong Wen Fong
Leong Wen Fong

16 Oct 2018

Can you use CPF for condo as well?
Kai Xin
Kai Xin

16 Oct 2018

Yes definitely. In the long run, you will find that cash deployed for private residential holds great benefits

I currently have sellers staying in their 4 room HDB, selling around $4xxk their income is around $8k/month. They are able to upgrade to a $1.2xxmil condominium.

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On average, BTO owners get to pocket $100-150K in cash proceeds after the sale. This helps in the 25% downpayment for the purchase of the condo.

If the household income is about $8k monthly and above, you would be able to upgrade quite comfortably. Assuming 35 years old and $4k income per person (5 years later), you and your spouse can loan up to $1 mil (no other outstanding loans) with the current 75% LTV. Hope this clarifies!

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Kenneth Lou
Question Poster

18 Oct 2018

Cool thank you for your opinion. will reach out when potentially moving with a clearer plan.
Nicholas Woon
Nicholas Woon

18 Oct 2018

Sure! :)
Nicholas Chan
Nicholas Chan
Level 5. Genius
Updated on 07 Jun 2019

A condo can range from a 1 bedroom to 5 bedrooms. Perhaps u can share more details of your current bto & how much space you need.

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Kenneth Lou
Question Poster

16 Oct 2018

I currently have a 4 room BTO in Sengkang... and plan to move to a 3 to 4 room condo also in this area. Thanks!