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Old 01-04-2014, 10:40 AM
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Now is a good time to upgrade. Just remember that you are buying to stay in your condo and not to speculate like property investors. You just buy and stay in it, do not be so concerned with the value. As long as you can pay your mortgage, you will be fine.

It is a good time to upgrade because your HDB flat price is already high now and will not go any higher. If you don't sell now, prices may go down and you will get less for downpayment. By selling at $600k, you are locking in your profit and use the $600k for downpayment of the condo.

If your condo costs you $1.2m and your loan is only $600k, you are actually very safe since your loan to value (LTV) ratio is only 50%. Banks actually lend 80% LTV for first property and if you meet the TDSR framework, which you do.

Go ahead, enjoy the luxury condo living lifestyle. Now is the chance for you to upgrade not only your lifestyle but your social status. Your $120k pa income is actually big if you do not drive, do not gamble, do not smoke, do not drink, do not womanize and do not sodomize.
These activities will lead to divorces, monetary losses, diseases (STDs, AIDS, heart and liver diseases, etc).

Originally Posted by Unregistered View Post
Hi gurus,

We need your advice regarding our plan to upgrade. My wife and I are both 40. We have a combined monthly income of $10k a month or $120k pa. We now live in a 5 room HDB flat which is fully paid up and valued at $600k.

We are thinking of selling our flat at $600k and use the cash for downpayment for a $1.2m condo. We then take a 25 years loan of $600k.

Since we both take public transport to work, we don't spend much on transport, so we feel we can afford the monthly payments of about $2400 (24% of our monthly income). We will use our CPF and cash for the monthly payments.

Is this advisable? Thank you.
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