Be careful. There are many old, ignorant, optimistic fools who like to dish out stupid advice. Those fools have enjoyed a property boom, which has now ended. Prices will fall drastically due to the huge oversupply coming. The more costly your condo, the more you will lose. If you buy a $2m condo, if price falls by 50%, you will lose $1m. But if you buy a $1m condo, you will only lose $500k. The best is to buy a cheap condo, fully paid up. Even if prices crash, there is no bank to chase after you. Worse, if you lose your job. You can't finance your condo's loan and you have to force sell your condo as the banks are chasing after you. Also don't buy any investment condo as you risk losing your capital.
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Originally Posted by Unregistered
Can we comfortably afford a $2m condo?
Wife and I, both 40, have $1m in cash, $300k in stocks and a half-paid HDB EA which we may keep (we are aware of the ABSD, but it's another topic).
Jobs are semi-stable. Both of us made a combined $500k this year, but we got higher than usual payouts this year. I would say its safer to assume a $300k income.
Or should we lower our condo budget to $1.5m?
Thanks in advance. |