Asked by Anonymous

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?

0
0
Answer this question
Add
Add
Select
Clear
Add
Write your answer

Answers (3)

Sort by:
Most Upvote
  • Most Recent
  • Most Upvote
  • Hariz Arthur Maloy
    Hariz Arthur Maloy, Independent Financial Advisor at Promiseland Independent
    Top Contributor

    Top Contributor (Apr)

    Level 7. Grand Master
    Answered on 12 Feb 2019

    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.

    Comments (0)
    2
    0
  • Josh Tan Jian Liang
    Josh Tan Jian Liang
    Level 3. Wonderkid
    Answered on 12 Feb 2019

    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”

    Comments (0)
    0
    0
  • Yong Kah Hwee
    Yong Kah Hwee
    Level 6. Master
    Answered on 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? Do you have to compromise on your daily expenses, scrimping everyday, etc? With children, you may even need to scrimp even more, and therefore not be able to spend as much as you want on your future children.

    Comments (0)
    0
    0