Asked by Anonymous
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.
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
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!
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.