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A roof above your head or more?

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Property

EC Condominium

Condominium

Family

Hello, Based on the facts stated here, I would not recommend you upgrading to a condo. Based on a rough estimate of a central condo and your monthly income. Some details required: Have you achieved your Minimum Occupation Period for your EC? Have you paid off your EC? If not, what are the current details with regards to your EC What size and location of the condo are you looking at? How about your current cash liquidity? Even with insufficient cash flow a centralised condo is possible with other sources of capital to supplement your income. Do get back to me so I can answer this clearer!

Property

Retirement

Career

Savings

Lifestyle

Hi anon, I'm going to give some general pointers here. 1) Don't worry about where you are now. Seek to grow your human capital. The fastest way to accelerate your financial standing is to rapidly grow your income, especially in the first 5-10 years where you can really scale your salary. With more salary, you will have more firepower to invest for your needs 2) Grow your knowledge. You still have time on your side. With knowledge comes the ability to understand what asset classes/investments may or may not suit you. Speak with an independent financial advisor who can provide you with the means to access the asset classes to understand more. 3) Tidy up your personal finance. Review your coverage now that you have started working, plug any gaps you may have, and start to build your emergency fund. Again, an independent advisor will be able to help you in this area. 4) Work on finding the job/role that you really love. You will be the average of the 5 people you hang around with, and that's very true from my experience, so find a mentor at work if you can. It doesn't have to be your manager. 5) Trust in the power of time and compounding. This is with respect to your goal to buy a property. CPF OA can compound rapidly when given enough time, and you may be surprised to see how it grows once a decent amount of time has passed. This ties in to 1) whereby the more you earn, the more you contribute to CPF, the faster you compound. 6) Spend your time wisely. We all have 24 hours. Spending just 30 minutes lesser on social media a day will translate to an extra week worth of time each year. You can use that time to do plenty of things. Pick up skills early (e.g. driving). Learn a third language. Travel and open your mind. Attend courses and upgrade yourself. The possibilities are endless. 7) Lay out your overall plan. Although it may not seem like much now, defining short/mid/long term plan will ensure you hold yourself accountable and can help you maintain focus to be on track. These plans can be in areas like retiring, buying property, etc. There's plenty of stuff that I might have done differently, such as not undertaking certain investment decisions. But I take it as a form of 'school fee'. Good luck!

Property

HDB BTO

Lifestyle

It really depends on the type of income you want as well as other factors like the current property market and your future plans. Looking for a lump sum where you can immediately use for other forms of investments? Sell your flat would perhaps be the better option. Looking for consistent cash flow from your property AND you wish to have a home if you ever move back to Singapore? Perhaps renting it out would be a better option. Either way, I have with me property experts that can help you with selling/renting of flats. DM me if you have any questions!

CPF

Property

Retirement

Supplementary Retirement Scheme (SRS)

Depends on your need for liquidity. RSTU is irreversible while SRS though a bit painful, it is still liquid with a penalty. If tax is your concern and you're comfortable with investing your SRS and earning a higher return than Special Account, go with SRS. If you think 4% guaranteed is a great deal and you really don't need the liquidity, go for RSTU.

Retirement

Property

CPF

Loans

Takingstock @
Takingstock @
Level 5. Genius
Updated 1w ago
I have to agree with Hariz on his answer. Add on points (given I am paying down a 25 yr loan myself): 1) A 30-year loan is horrendous in terms of interest. Ask for the statement that shows you the total interest paid over 30 years assuming rates don't change. I am gonna put my guess that its gonna be about 30++% of the condo purchase price. When I started before ABSD was implemented, the interest was below 1% after it shot to 3%, I found myself having some difficulty. And it might stay that way through the 30 years. As a further add on, if you bring it down to 25 yrs or less, how do you look on your debt servicing ratio? If the property loan ongoing payment at the current rate of 2.2+% is above 35% of your combined income, the condo is probably too expensive for you. 2) If you don't have an annual budget, make one. If you do, then after forking out the cash portion of the loan, are you able to save 10% of the take-home pay? Do you also have some emergency funds left after the downpayment? 3) Have you asked what is the total stamp duty and other fees required for the property? Do you have money for that? 4) What's the annual condo maintenance fee? If you also still have the agent's contact, ask what is the annual property tax estimate. 5) How many bedrooms are there? If its 1+ to 2, the demand and appreciation potential might not be there. If it's 3 or more, that's probably decent for resale demand. 6) is it 99-year leasehold? After 30 years, you would have 69 years left. Have you heard of Bala's leasehold depreciation table? After 30 years, the resale value might be 80% compared to an equivalent freehold property. All of these are property-related questions, not including the other financial aspects. Hope you have time to go through and answer them before signing the papers.

Loans

Property

You can consider a Reverse Mortgage or an Equity Term Loan on your existing home.

Lifestyle

CPF

Family

Property

HDB BTO

Resale HDB

If you have owned or disposed of a non-HDB property within the past 30 months, you won't be able to apply for a new BTO. Do take a look here: https://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/hdb-flat This implies that after disposing of your condo, you will need to rent for 2.5 years before being eligible to apply for a new BTO. Also, as time passes, your combined salary will likely increase and might be beyond the BTO income ceiling, disqualifying you from getting a BTO. However, barring these conditions, if you meet all eligibility criteria, you will ballot for a BTO just like any other first-timer.

Property

Investments

Interest Rates

You did the calculations already. Seems pretty accurate, I didn't really scrutinize it. But I'm sure you can find a better loan than 2.88% p.a. That's way too high. Try again with a conservative 2.1% p.a mortgage rate. But even then, such a high quantum for a non guaranteed 15% markup over 3 years? What's the point? And as you can see you're right, after levies and fees to the agent to help sell the property, it makes barely any sense. There are 3-year endowment plans giving 2.3+% p.a guaranteed for 3 years.

Property

Bought mine this year and in the market. can share more if you pm me. But, in summary, this year there are plenty of new launches in the market and prices for the last 2 years have been quite steady or even with slight price increments or discounts depending on the development. luxury developments are moving a bit better recently due to more foreigners coming in due to their local political pressures compelling them to seek alternative safeguards outside their home country. locals have more to choose from this year, with many still on the sidelines apparently due to the uncertainty of trade wars, recessions etc. But would expect lesser supply in the next few years as Developers plan to complete selling the current stocks, and from the lesser en-bloc and gls activities this year compared to the years before the last cooling measures in 2018.

Stocks Discussion

Investments

Property

Bank Account

My understanding is that 134,089,000 units were issued as part of a placement exercise late in 2018. Also, the REIT managers may have taken some of their fees in units. When calculating EPS, the REIT would not include these units since their impact on the calculation is not for the full year EPS, as they were only issued late in the year.
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