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Old 08-11-2018, 04:36 PM
tchen003 tchen003 is offline
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Quote:
Originally Posted by Unregistered View Post
Ask yourself these questions:

1. Are you in a secure job, ie do you see career longevity in your current job?
2. Will you be able handle a financial emergency? Such as expensive medical emergency? This requires at least 6 months of salary on standby all the time.
3. If you own 2 properties and have to handle two housing loans or even just one big loan, will you be able to hack the monthly mortgage payment if there is no rental income for an extended period of time say 2 to 6 months?
4. Will you be ale to handle the mortgage payment on a single salary should your wife decides to take a break to look after your kids?


I am putting out these questions because I have walked the path before, and survived! My wife and I have 2 properties after 10 years of our marriage till today - different properties but always 2. One to stay, one to earn rental.

By the way, we dare go into this because we are both civil servants and already worked 35 years!
That's really useful advice from the experienced. Thanks!!!

I will talk about numbers based on estimation:

Year 2024, I cash out 220k SGD from my 900k SGD small condo. This loan is 30 year tenure at interest rate 2% pa. Therefore, monthly mortgage is 739 SGD.

Year 2024, we buy a 3rm condo in OCR at 1.5 million price under my wife name. [email protected]%=375k. [email protected] ONLY (assume wife Singaporean, no property under her name) = 44600, miscellaneous fee (legal, etc) =10k. Total estimate 430k SGD. Loan 1.125million for 30 year tenure at interest rate 2%pa. Therefore monthly mortage is 4158 SGD.

Total monthly mortage = 739+4158=4897 SGD or 5000 SGD to be safe. The small condo can rent out at 2000 SGD per month.
Our monthly salary should be above 12k SGD/per month in year 2024.

So back to your questions:

Q1: I work as IT support in banks. It's a relative more stable job compare to traders or dealers. However I havent finalized my career path yet.

Q2:I have ISP, Rider, ECI (multiple) to support me in case of illness. However I dun have emergency fund now.

Q3: Given my family monthly income at at least 12k per month with 5k monthly mortage, I think it's a bit challenging and need careful planning.

Q4: If wife stay at home. Very challenging for me given that my salary need go to kid, parent, mortage, family and probably myself. Unless I can earn 12k per month in 2024
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