You are doing fine,
IMHO.
Your MSR is 0.25 which is below the recommended 0.3.
Your TDSR is 0.35 which is below the recommended 0.6.
You are not over leveraged at all.
You still manage to save $30k pa, which means over 17 years (until age of 65), you would have saved an additional $510k.
By the time you retire, you would have cleared your mortgage.
What you need to do is to save up for your
CPF Life. You can choose the option that gives you a monthly payout of $1750 when you're 65. You and wife can then get a total of $3500 pm from
CPF Life. If your children gives you $1000 pm, your passive income will be $4500 pm.
You can retire in your condo if you wish to. Or if you want more cash, you can sell your 3 bedroom condo and then buy a one bedroom condo at 65. You don't need to downgrade to a
HDB flat.
Quote:
Originally Posted by Unregistered
Working professionals, 48 & 40 yo, husband degree holder, wife diploma holder.
Combined annual income $120k pa.
Sold our fully paid flat for $600k and bought a 3 bedroom resale condo for $1m.
Took a loan of $500k for the condo, paying close to $30k pa in mortgage payments.
Bought a new car, serving a loan of $1k pm ($12k pa).
Other expenses include food, car expenses, children, parents, insurance, etc.
Saves $30k pa. Current total net worth (include net value of condo) $900k.
How are we doing?
Can we afford to retire in our condo or do we have to downgrade to a 3 room flat when we retire? Any gurus here can advise? Thanks.
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