Valid points but already well thought out. When I was about to buy my condo, I was still within income limits of EC.
I'm in banking but not in the high risk functions like IB or sales/trading. Well it does not mean I won't get retrench, but it means that being young, I won't have too much a difficulty getting another job. Being young, it is also less likely I will get retrenched. They usually cut the fat around middle-senior management level.
If it comes to it, I'm sitting on a 10-15% paper gain on the condo. We are still staying with my parents at the moment (waiting for TOP) so its not like we are losing roof over our heads. Also, it is an investment, because I may / or may not move in when TOP. I could sell it and book gains on TOP, then buy another property in less pricey location like Punggol/Pasir Ris which is still cheap (for now).
The continental car is 2 year old already, I agree it is a luxury purchase. But the worse of the depreciatio is already over. It is a 6-year loan, and I have enough cash to pay it off.
The other expenses can be trimmed if necessary.
The only thing that I will need to adjust is if we have our first kid. I will probably cut back on expenses (e.g. sell off my country club or reduce number of holidays)
Quote:
Originally Posted by luwb
Judging by what u wrote,
Your monthly expenses are too high.
Roof over yr head is not an investment. It is a necessity.
You are driving expensive car and staying in Condo at such a young age. Both of you still in the mist of building a family.
Combine income = $12,000
Saving / mth = $2,400-$3000
Assuming both of u are highly discipline in your saving, we are talking about $25,000-$30,000/ yr.
In 10 years time, u would have accumulated $300,000, mathematically speaking. Taking into inflation, yr net worth is around $180,000. By then, u and yr wife is in the late 30s.....
Given the prevailing market situation, it is highly possible for one to lose their job easily.... What happen when one of u, especially u, lose yr job.
Does it sound good to u?
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