Quote:
Originally Posted by Unregistered
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.
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Well yes I do expect my income to grow albeit at a slower trajectory, and presumably my spouse will rejoin the workforce after our 3rd child is born (unless we strike TOTO before then! :P). Her expected income would be around 50-60K pa though.
We have considered selling and upgrading, but the market is down right now. Moreover our current place should be easy to rent out as it is near
MRT and in the central area. Our thinking is that if in the event we lose our income streams, we could still come back and stay in the smaller apartment, and sell or rent out the bigger one (assuming rent can cover mortgage).
Quote:
Originally Posted by Unregistered
You're playing a dangerous game. Definitely overleveraged and high risks. Better for you to sell your hdb flat and use the proceeds to pay for downpayment of a $1.2m condo so your loan will only be $500k. If you lose your job, you won't be do worried. Don't be too confident of your high salary as it may not last long. |
I have gotten advice that "because I am getting older, it would be increasingly difficult to qualify for house loans. So I should try to take as large a loan as possible (with the caveat of not being over-leveraged) while still young." Is there any truth in that advice? Thanks for your advice, it is sound but it seems a bit too risk-adversed?