Anonymous

18 Apr 2019

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Is it advisable to get 3-rooms first, and after 5 years MOP, upgrade to bigger apartment?

(3-room vs 4-room) We want good location and minimum 4-room HDB BTO at Boon Keng in view of having children in future, but currently can only afford 3 rooms BTO comfortably. Is it advisable to get 3-rooms first, and after 5 years MOP, upgrade to bigger apartment?

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Josh Tan Jian Liang

12 Feb 2019

Co-founder https://theastuteparent.com at Promiseland Independent Pte Ltd

I think Hariz has given a good rule of thumb for home affordability. It can help you stay financially prudent. :)

Ive this video description to share with you on “should i buy a $750k HDB”

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Hariz Arthur Maloy

12 Feb 2019

Independent Financial Advisor at Promiseland Independent

This is exactly what I'm doing. I'm not planning to have a baby in the 3 room flat. So just husband and wife. Also, this allows us to only pay a $500 mortgage via cash, frees up cashflow for investing.

After 5 years, hopefully straight to condo or landed.

Rule of thumb to follow for home affordability is: Your home should never cost more than 7 X the combined annual income of the family. Preferably 5 X is sufficient. So if household income is 100k, a 500k house is perfect, but never buy more than 700k.

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Yong Kah Hwee

12 Feb 2019

This is a question of wants VS needs. Sure, you can get the 4-room flat, but at the expense of what?...

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