Asked by Anonymous
We do not have much savings, + / - about 15k and servicing a car loan too.
If you can find a good SBF, and you don't wanna wait, I'll choose that.
Renting is also an expense, extending your lease just to get BTO also might not make the best financial sense especially if it can go immediately towards paying down your mortgage.
Need more info to advise.
Income, CPF OA.
Extending your lease can be seen as money down the drain, good to put it towards paying instalments for a flat.
1) BTO - will need to wait 3-4 years or more (if you don’t get it the first try, unless you are not too fussed about the location). The paying for rent during this peroid doesnt sound worth it.
2) SOB - can get a flat earlier but similar to BTO, usually for the areas with lower demand/ opt for 3 room instead of the more popular 4 room flats. In the meantime, you can extend the lease (see if can do a 6month extension?) since there is uncertainty about any upcoming SOB. the current trend seems to be twice a year (I’m not entirely sure, heard from friends).
3) resale - resale prices can be high, lower for locations that are not too popular/units that may have shorter lease/low floor etc. you might have to spend more on renovation though especially if the house is old. Since the both of you have less cash on hand, sounds better to get a brand new house (opt in for flooring/door) and just bring over your current furniture.
My personal opinion is for 2nd option, however this doesn’t mean option 3 is out. You have to shop around the areas you like, the size you are comfortable with. During your selections, you might want to eliminate any homes that aren’t in move in conditions to reduce renovation costs. Who knows, you might actually find a resale flat at a bargain. Factor in the extension of lease to the price of a SOB (in the location of your interest) and compare it to the resale flat to make your decision.
All the best!