Asked on 09 Nov 2018
I have a monthly pay of 2.8k, and have been working for a little more than a year
Y'all engaged yet? Haha.
Buying a house is no easy decision. It's a decision you both have to be 100% about.
Yes the grants are good, but if you don't go through with it, then you'll lose your deposit and have a strike against your name.
I only applied after 5 years with my partner, our incomes were still low at that time, so we got 80k in grants.
But we did it because we were sure. Not because of the cheaper house.
I am 23 years old studying and working at the same time, while my spouse is working full time. I have been together with her for 5 years, through my NS life, and all thick and thin.
We own our own flat.
Ask yourself this question, are you certain your partner is the one?
If so, it is not a bad idea to leverage on the fact that you can obtain a higher HDB grant because your partner is still studying, therefore you'll obtain a higher HDB grant.
Do note that there is an accrued interest on the HDB grant which is 2.6% yearly. There is a requirement for you to deposit that amount back into your CPF if you choose to sell your flat.
Hope you and your partner own a flat soon~
I am 23 years old as well and I recently applied for BTO. My fiance (has been working for 2.5 years) and I are not eligible for both ahg and shg grant. We would be eligible for grant if we applied when I was still a student/not yet working but I wanted to have more time to ensure that he is the one I want to be for the rest of my life. I have personally heard of many couples rushing into BTO because of the waiting time and grant. Some of them broke up in the end and forfeited the house.
It cost them 5 digits :( (see below link)
If you are sure that he is the one for you, discuss this matter with him and decide as a couple!
Don't feel pressured to apply for BTO just because your peeps are all doing so. Most important do you feel that he's the right one to settle down with? If yes, then I feel that money will not be the main factor, as long as you overstrech and buy a super expensive house.
It depends on why you want to BTO.
If you are very certain that your partner is the one you want to spend the rest of your life with, then please go ahead as it will cut short your waiting time! Then again, you can always get SBF which is very fast tracked nowadays if you are lucky enough to get a queue number at your desired estate.
If you are applying the BTO just because of peer pressure/FOMO, then truly no rush. I have seen couples who broke up after BTO/downpayment and it is ugly cause you really can't get back your money.
If you are applying just cause of the lure of grant, THINK TWICE. Grants are not free money at all - housing is more affordable w grants, but it comes with T&Cs. Better research first before you make the decision! :)
Unpopular opinion ahead:
I regretted not BTOing earlier because for the life of me, somehow the govt didn't want to give us a good queue number for about 8 times or so...yes you might be this unlucky,
As long as you are doubly sure he/she is the one, you can try to apply BTO earlier even if you're not engaged, as BTO is one hell of a bloody long wait...More importantly, you should be watering your relationship to make it blossom, so you don't have to worry about forfeiting the BTO. Touchwood nonetheless and all the best!
Buying a house is a huge affair. Before your jump into these decisions, please make sure that both of you have think carefully. The student grant may be attractive, but if you end up breaking up, you may have to pay for a lot of costs.
I feel that it is okay. As a general rule, the lesser the combined income, the lower the loan amount but the higher the housing grants. So both of you need to work out something (eg buying in non-mature estates) that is comfortable to the both of you.
I think you need to decide this as a couple. Decide if it is feasible in terms of money, and if you guys are ready for the next stage of your relationship.
A few things to think about.
a) how long till your partner graduate and find a job? 2 (income) is better than 1 (income).
b) govt grants are good and all, but when you sell the flat, whether to upgrade or downgrade, you need to pay back the grant. Not sure if it is with interest.
c) what would your partner want, along with the flat, e.g. wedding dinner, children after married for one year, etc. Can you afford those then, along with the house without going into too much debt?
To be honest, wait a few years, after your proposal to her for marriage at least. Just a personal experience to have seen situations turns sour, bto becomes a big liability for both parties (affecting future purchase for marriage). Both of you are still young, it really does no harm to wait at least until your partner starts working.
pros and cons
main pro is can get max govt subsidies
cons is hard to get loan and apply smaller flat due to lower combined income