How old are you?
Figures are monthly
A simple calculation to determine your budget for your home loan-
Salary x 0.23 = Loan amount so you do not have to use cash (A)
Per $100k Loan from HDB @ 2.6% (25 Years) = $454 (B)
Take A / B x $100,000 = Max Loan you can take using CPF OA as your loan payment (C)
Finally, take (C) / 0.95 = Max value of the home you can get without additional cash monthly mortgage payments.
5% Cash/CPF OA
Set aside 2% of the purchase price for agent fees and etc
50K for renovation if needed
If you are close to 30, just save the money and set it aside for liquidity needs. There is just no magical investment that will reduce your upcoming liabilities significantly without first having a huge capital outlay.
03 May 2020
Fyi, I am 27 y/o
Hey there! Good foresight to invest to grow your money for a house! You will probably have to use the Dollar Cost Averaging strategy (which will be a good, long term strategy which will be apt since you will probably get your flat in the next 5-10 years). You can start with Roboadvisors eg. Stashaway. They are a great platform for beginners. Consider doing DCA on an ETF! Certain ETFs are great eg. Vanguard S&P500. Roboadvisors are a great way to start eg. Stashaway. The other alternative (if you are really too busy/lazy to read up) is to get an ILP and do DCA. Take note of the costs that comes with every investment.
Financial planning is an integral part of life. You can find me at this platform to find out more.
What to Invest
It depends on your risk appetite, as well as investment horizon (we need your cu...
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