I am glad you took to speaking to others on proper property advise, 400K loan spread out over 15 years works out about 2.5K per month @ 2%. With MCST and prop tax maybe 3.5K. You might to consider shortening you loan to 10 years but 55 to be debt free is still decent.
Over leveraging on a non income asset (your home) is definitely not something you want to do so that's a good approach too.
I still stand by my views on Jurong area, but if you can clear the loan by 55 and enjoy the next 20 years there good for you.
To sell and buy is no easy task, negotiate with the developer on the price and more. Its a buyers market now but not really. I am waiting for post 2016 before any more commitments.
Good luck
Quote:
Originally Posted by Unregistered
Thanks everyone for your views, both positive and negative. I have discussed my plans with my close friends and family members, who are more knowledgable on property. I have considered all views from them as well as comments from fellow posters here and decided to buy a 2 room condo (this is big enough as we are a very small family) which costs just $1m, so that my loan will be only $400k and we aim to pay it off within 15 years (i.e. when I reach 55). Actually we qualify to take a much bigger loan but decided not to.
We have narrowed our choice to either Caspian or Lakefront Residences as they are very near the Lakeside MRT station. We can easily go to work by MRT and continue to save on transport cost. We look forward to luxury condo living. We plan to exercise more often in the gym, swimming in the pool and jogging around the Jurong Lake. Healthy living. The condo will also be just nice as our retirement home. When the Jurong Lake District is fully developed, we are confident that the price will rise much higher than $1m. |