How much are you earning per annum?

[Dean]

Originally Posted by Unregistered

I earn $50k pa, my wife $45k pa. We are both 46 years old.
Luckily our 3 room flat is fully paid and because it is in the central region, it is worth $500k.
We hope to sell the flat at $700k when we retire at 75 years old. We can then buy a new HDB studio unit for $70k. We can then use the balance of money for our retirement.

Am I missing something? Does HDB studio units go for $70k? Further more in 30 year's time when you retire? I'd reckon at that time, a normal, 3-rm flat may cost 1M. (Bear in mind - 30 years down the road).

Originally Posted by Unregistered

IRAS reported that in 2012, there are 4,222 taxpayers who earned more than S$1M each. And another 12,921 earned between S$500K to $1M. As of 2012, the population of Singapore is 5.312 million people. Therefore, only 0.0032% of the population earns above S$500K. There you go, this is a good perspective when we compare salaries.

I only earn $50k pa. Am I considered poor?

Originally Posted by Dean

Am I missing something? Does HDB studio units go for $70k? Further more in 30 year's time when you retire? I'd reckon at that time, a normal, 3-rm flat may cost 1M. (Bear in mind - 30 years down the road).

Yes HDB studio is selling for $70k, 30 years lease. They should keep it at $70k even after 30 years but perhaps with condition that if the tenant dies before the lease is up, the unit goes back to HDB and beneficiaries cannot claim. In 30 years, my 3 room HDB will hopefully be worth $1m, so that I have $900k to retire with.

HDB flat is your best investment. When the market crash by 50%, you can buy the current $1m Queenstown HDB flat at only $500k. And then in 30 years time, that flat will be worth $2m. So your flat will appreciate by 4x over 30 years. That's the best investment!

So let's wait for the BIG CRASH !!!!!!!

Welcome the BIG OVERSUPPLY !!!!!!!!

Originally Posted by Unregistered

I earn $4k pm, my wife earns $5k pm. We have sold our flat and plan to buy a resale condo. Got profit of about $200k. My agent tells me now is a good time to upgrade. I can use the profit and my cash savings as downpayment for a condo. With the new cooling measures, we will look for a 2 bed room condo which cost less than $1m. We are looking at condos which have just TOP so that we can move immediately. Any suggestions? Must look beautiful and near MRT station. We don't drive.

Agent will always tell you it's a good time to sell/buy. Otherwise, where is their commission going to come from?

Frankly speaking, now is a good time to sell, not buy. So it benefits those with more than 1 property.

Never ever play with the only property that you have. Should anything happens, like bank calls for margin, either one of you lost the job etc, the condo is going to be a burden to you. 1k every month in cash to service the loan now seemed comfortable, but in the event of unforeseen circumstances, 1k will be a lot.

My wife and I earns about 200 - 250k and we are living in a 4 room flat.

It's a pity that you still live in public housing. It is about time you upgrade your social standing. Sell away your flat, you can get at least $500k and you use this as downpayment. You can then get a 2 bedder for $1.1m (brand new recently TOP) condo. Take a loan of only $600k. You should be able to easily finance your loan given your combined $250k income.
Make sure the condo is near an MRT station (10-15 min walking distance).

Originally Posted by Unregistered

Agent will always tell you it's a good time to sell/buy. Otherwise, where is their commission going to come from?

Frankly speaking, now is a good time to sell, not buy. So it benefits those with more than 1 property.

Never ever play with the only property that you have. Should anything happens, like bank calls for margin, either one of you lost the job etc, the condo is going to be a burden to you. 1k every month in cash to service the loan now seemed comfortable, but in the event of unforeseen circumstances, 1k will be a lot.

My wife and I earns about 200 - 250k and we are living in a 4 room flat.

Originally Posted by Unregistered

IRAS reported that in 2012, there are 4,222 taxpayers who earned more than S$1M each. And another 12,921 earned between S$500K to $1M. As of 2012, the population of Singapore is 5.312 million people. Therefore, only 0.0032% of the population earns above S$500K. There you go, this is a good perspective when we compare salaries.

This is not quite the appropriate analysis since there are infants, children and retired included. The same IRAS statistics shows that the total number of tax payers is just 1,307,273.

So actually 1.3% of taxpayers earn over $500K, certainly enough to participate in this forum

Originally Posted by Unregistered

It's a pity that you still live in public housing. It is about time you upgrade your social standing. Sell away your flat, you can get at least $500k and you use this as downpayment. You can then get a 2 bedder for $1.1m (brand new recently TOP) condo. Take a loan of only $600k. You should be able to easily finance your loan given your combined $250k income.
Make sure the condo is near an MRT station (10-15 min walking distance).

Why should I upgrade to a condo and keep myself in the rat race?

I'm comfortable in my HDB 4 room which is fully paid for. I can quit anytime and go for a 3 months holiday without worrying about not having money to pay for the house.

Anyway, I am saving up to buy a 2nd property during the downturn without selling my current HDB to tap on passive income as well as capital gains.

Never, ever play with the only roof above your head. You'll never know what's going to come next.

May I know how old are you and what's your current net worth?

Originally Posted by Unregistered

Why should I upgrade to a condo and keep myself in the rat race?

I'm comfortable in my HDB 4 room which is fully paid for. I can quit anytime and go for a 3 months holiday without worrying about not having money to pay for the house.

Anyway, I am saving up to buy a 2nd property during the downturn without selling my current HDB to tap on passive income as well as capital gains.

Never, ever play with the only roof above your head. You'll never know what's going to come next.

Originally Posted by Unregistered

I only earn $50k pa. Am I considered poor?

Yes, you are poor. You may want to seek financial assistance.

I earn $200k pa while my spouse earns $180k pa. We donate to charities.