Thanks for taking the time to write your comments.
I think our combined income of $120k pa is high enough to service a loan of $600k comfortably, even though rates may go up to 3%. If I lose my job, then that's a different matter altogether and I may need to downgrade to a 3 room
HDB flat. But, like I said, our jobs are stable, trust me. We will only lose our job if we are paralysed.
About your point of depreciation, by the same logic, my 15 years old flat will also depreciate over time. Now it is worth $600k, in 20 years time it could then be worth $300k and eventually zero after all the lease is up. As for the condo, even though the value may go down from $1.2m to $1m, at least I would have enjoyed luxury condo living for 25 years. I will find a condo just next to an
MRT station so that its value will remain strong even after many years as there will always be a chance that the condo will go for en bloc and I will definitely get more than $1.2m.
Quote:
Originally Posted by Unregistered
To be honest your plan puts you from an area with a safety net to one without, and also makes no financial sense what so ever. Plainly cause
1. Your income of 120K is not high but not exceedingly, if one of you loses your job you will likely struggle with the monthly repayment + MCST + Prop tax etc which is about 3K to 3.5K per month. Assuming 600K 25 years @ 2.5% (And yes interest rates have gone higher before)
2. You want to buy a 99 year leasehold (err leasehold depreciates over time) for 1.2 Million and sell it 25 years later for 1.6M. How did you arrive at this figure? I have a freehold condo worth 1.1 M now West of SG, by that logic in 25 years it should be worth 2.5 Million and a small Condo in orchard would be 10 Million etc. No offence the figures you proposes are kind of washy and no one predicts 25 years in the future. (even the SG govt does dare not to commit)
Imagine if you sell your HDB now at CUV (Cash under valuation) buy a 1.2 M condo, market slumps (now worh 900K) and 25 years later worth 1 Million (Though I suspect less). How would that impact your future plans?
I am long term property investor and I can say your "forced savings plans" and future valuation figures are non too realistic. I would advise you to speak to your friends who are investment savvy in property. |