Quote:
Originally Posted by Unregistered
Married couple, 39 & 34 years old. Spouse is currently not working. Two young kids, one more on the way end of this year.
- Annual income ~$210K pa.
- Annual expenses ~$60K pa.
- Holidays $10,000 pa
- Mortgage paid up
- Car paid up (left 5+ years)
- Life Insurance paid up
- Medical Insurance covered by company
Net worth
- Equity on apartment $720K
- Cash and CPF savings $630K
- Total net worth $1.35m
Have been thinking of a condo purchase at 2.2mil to cater for growing family. 1st apartment is in spouse's name, so this one will be in mine. Once we move, we expect to rent out the first apartment for 3.3K pm.
Would we be over-leveraged? We appreciate good, sound advice. Thanks! |
Do you expect your income to grow over the next 20 years? And that your spouse will go back to the workforce?
If you do, you may not be over-leveraged. If not - and you can't count on the 3.3k rental income - then the key thing to worry about is the monthly cashflow.
Assume you put down 440k as downpayment, your 1.76 mil loan will work out to about $7,400 a month (or 88.8k a year) on a 30 year loan, assuming 3% interest rate.
Might be better to trade in your existing flat for the 2.2 mil one, if you need to move.