How much are you earning per annum?

Welcome,

Its your choice at the end of the day, taking a loan on a non performing asset till you're 65 seems like a risky move. Personally I would hate to have a obligation hanging on me pass 50 that would keep me bonded to my job.

But of course all of us would like to move to the next stage of desires, be it cars condo's landed property what have you. If I may I would suggest you minimize the loan term to 15 or even better 10 years. Why so? Simply because this is not an investment property and from your profile I don't reckon you your savings will go into another property investment. Best you pay everything off asap before you hit 55 and lead another 10 years of stress free living. It would mean some lifestyle cutbacks but better now then when you're pushing 60 plus.

As for your choice of property if you are selecting a leasehold new condo near an existing MRT track its likely future gains have already been factored by the developers margins. In fact I could go on dissecting your choices and selected area (which I feel is over-hyped) but its pointless since you already decided and seem quite firm on it. Good luck with your sale.

Originally Posted by Unregistered

Thanks for taking the time to write your comments.

I think our combined income of $120k pa is high enough to service a loan of $600k comfortably, even though rates may go up to 3%. If I lose my job, then that's a different matter altogether and I may need to downgrade to a 3 room HDB flat. But, like I said, our jobs are stable, trust me. We will only lose our job if we are paralysed.

About your point of depreciation, by the same logic, my 15 years old flat will also depreciate over time. Now it is worth $600k, in 20 years time it could then be worth $300k and eventually zero after all the lease is up. As for the condo, even though the value may go down from $1.2m to $1m, at least I would have enjoyed luxury condo living for 25 years. I will find a condo just next to an MRT station so that its value will remain strong even after many years as there will always be a chance that the condo will go for en bloc and I will definitely get more than $1.2m.

Dissecting and analyzing? It is what I would call paralysis by analysis.

Yes, buying a property is a huge commitment for most of us salaried people, but in Singapore where land is scarce and especially when you are buying for own stay, it would be alright. Just make sure you can handle the loan and that you are in it for the long haul.

The poster rightly pointed out that it is indeed a form of forced savings. Many generation of homeowners before him, have reaped the financial benefits of home ownership.

Condo living brings your quality of life up a few notches. Before, I was contented staying in my cosy HDB exec flat, but after I made my move to a condo, whoa, there is no looking back. It was a case of "You don't know what you don't know".

Another thing is life is very unpredictable. You can plan all you want, but fate has a habit of springing nasty surprises. You must have read many stories of people delaying gratification because they wanted to save enough? Well, their delayed gratification became permanent delays.

Originally Posted by Unregistered

Welcome,

Its your choice at the end of the day, taking a loan on a non performing asset till you're 65 seems like a risky move. Personally I would hate to have a obligation hanging on me pass 50 that would keep me bonded to my job.

But of course all of us would like to move to the next stage of desires, be it cars condo's landed property what have you. If I may I would suggest you minimize the loan term to 15 or even better 10 years. Why so? Simply because this is not an investment property and from your profile I don't reckon you your savings will go into another property investment. Best you pay everything off asap before you hit 55 and lead another 10 years of stress free living. It would mean some lifestyle cutbacks but better now then when you're pushing 60 plus.

As for your choice of property if you are selecting a leasehold new condo near an existing MRT track its likely future gains have already been factored by the developers margins. In fact I could go on dissecting your choices and selected area (which I feel is over-hyped) but its pointless since you already decided and seem quite firm on it. Good luck with your sale.

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.

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.

1. A room condo is a smaller space than a 5 room HDB flat.
2. You can have good view and Jurong lake and jog around it even if you just live in one of the HDB flat in that area. There is no reason why only Caspian or Lakefront condos enjoy this benefits
3. Swimming in the pool is something quite common if you join a club if you want to pay or if not simply join Safra club. Or if not, just paying ticket to a nearby swimming pool or water resort will do. With condo, you will be paying high maintenance fees and you may even feel stress if you didn't have time to utilise the facilities full to the value in the future. This may turn out to be fun anymore. Same with gym. It is only interesting as a dream. Once you are in it, it is quite expensive experience with no significant value.

Originally Posted by Unregistered

1. A room condo is a smaller space than a 5 room HDB flat.
2. You can have good view and Jurong lake and jog around it even if you just live in one of the HDB flat in that area. There is no reason why only Caspian or Lakefront condos enjoy this benefits
3. Swimming in the pool is something quite common if you join a club if you want to pay or if not simply join Safra club. Or if not, just paying ticket to a nearby swimming pool or water resort will do. With condo, you will be paying high maintenance fees and you may even feel stress if you didn't have time to utilise the facilities full to the value in the future. This may turn out to be fun anymore. Same with gym. It is only interesting as a dream. Once you are in it, it is quite expensive experience with no significant value.

If everyone thinks like you, then no one will buy a condo. A condo gives you convenience, you can just walk down from your unit and enjoy the gym, pool, landscaping, etc. if you use public facilities, you have to walk far and not much privacy. These places are crowded and you never know what kind of pervert characters around. You don't want your children or even yourself to be victims. A condo also provide security, you won't worry about vandals & painting of O$P$ on your flat wall. You won't have salesmen knocking on your door.

Why would some people pay millions for a condo? It is a status symbol. Once you can afford a condo, you have made it. All your hard work from young till now finally pays off.

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.

Actually why are you so eager to minimize your loan amount and repayment period? With the current low interest rates, you should be able to generate better returns from the cash, even in semi-liquid assets such as bonds, pref shares or blue chip company with stable dividends payout. Moreover, these assets are definitely more liquid and will help you to cope with any short term cashflow issues should you need the money (touch wood) when there is temporary loss of income or emergency cash needs, etc.

Originally Posted by Unregistered

If everyone thinks like you, then no one will buy a condo. A condo gives you convenience, you can just walk down from your unit and enjoy the gym, pool, landscaping, etc. if you use public facilities, you have to walk far and not much privacy. These places are crowded and you never know what kind of pervert characters around. You don't want your children or even yourself to be victims. A condo also provide security, you won't worry about vandals & painting of O$P$ on your flat wall. You won't have salesmen knocking on your door.

Why would some people pay millions for a condo? It is a status symbol. Once you can afford a condo, you have made it. All your hard work from young till now finally pays off.

But he needs to sacrifice a bigger HDB space for a smaller condo space for a much higher price. And I don't think people end up utilising alot of the facilities. I went to condos for viewing and most of the time even in the evening, the pools are quite empty.

I didn't say people should avoid condos at all cost. If one can more than comfortably pay for it, then go for it.

Originally Posted by Unregistered

But he needs to sacrifice a bigger HDB space for a smaller condo space for a much higher price. And I don't think people end up utilising alot of the facilities. I went to condos for viewing and most of the time even in the evening, the pools are quite empty.

I didn't say people should avoid condos at all cost. If one can more than comfortably pay for it, then go for it.

He said his family is small, so if it is only 3 persons (husband, wife and child), then a 2 room unit is comfortable as the child has a room of his own. Anyway, don't see your unit as your only living space, the whole condo compund is actually your recreational and living space.

Most people use the condo facilities during weekends or when they are on leave. For me, I am staying in a condo and enjoying the facilities and the status it brings. Family and friends now look up to you as they now recognise that you are now really successful. I bought my condo when I was 38 and am still financing my mortgage by CPF, I don't really feel any burden at all. To me, buying a condo for stay is a long term investment but most important of all, it gives me the affirmation of my higher social status.

Lol nice term, but I do do a lot of analysis before buying. Then again I have 11 properties (residential/commercial) all sitting on a 65% - 85% gain on the original purchase price. Be it as it may I still sticking with my approach to property as it served me well to date. There is a saying: Bulls make money, bears make money, pigs get slaughtered

Its exactly because the gentleman is question is a salaried which is why he should practice more caution, regardless long haul/short haul, own stay or investment like me there are the basic principals of overvalued and undervalued property.

Life in unpredictable, touch wood but if something happen to the sole provider do you want you're loved ones to take on the burden? Its more sensible and practice to assess risk based on what you do know and not speculative measures.

Lets review what we do know or don't know shall we?

- The individual initial proposal was to take on a loan bore by 2 people till they were age 65, 25 years from now. What the risk of one person losing their job or being incapacitated from now till 25 years from now? Risk? 40%

- Markets are currently riding high, purchasing a new property now will factor a degree of overpaying. Especially in a Jurong which a new and hyped up area which is going strong despite all areas going down. if prices in Jurong and River Valley hit the same psf price which would you go for? Chances of prices going higher then current on a leasehold 99 year facility 25 years down the road? 30%
(Unless we allow in another 3 Million foreigners of course)

- Jurong sentiments (://jurong.files.wordpress.com/2008/09/new-a0-boards-8498126_resize.jpg)
"Jurong Lake will be undergoing a makeover next year, as part of the URA master plan to turn the district into a business and leisure destination."

Wtf is a business and leisure districts, who is going to move there? Banks who are top paymasters in rental already have offices in Shenton, Changi Business Park and Tampines, Dhoby Gaut etc and are moving most of their operations to India.

There is a medical building also opening but again who is going to move there? We already Novena Mount E (not fully occupied), UE Medical in Novena (not fully occupied), Mount E , Glen E plus future plans for more novena medical facilities. I don't see doctors in practices packing and moving in droves to Jurong as well. Sounds like another Punggol waterfront idea. So whats your view on Jurong being the next Marina Bay Centre?

Anyway the OP seems to have reassess his situation and taken a safer approach, most of the clowns goading him on seems to have no idea on proper risk analysis. Its no wonder when the market tanks all the whiners come out and start bitching about the government.

Originally Posted by Unregistered

Dissecting and analyzing? It is what I would call paralysis by analysis.

Yes, buying a property is a huge commitment for most of us salaried people, but in Singapore where land is scarce and especially when you are buying for own stay, it would be alright. Just make sure you can handle the loan and that you are in it for the long haul.

The poster rightly pointed out that it is indeed a form of forced savings. Many generation of homeowners before him, have reaped the financial benefits of home ownership.

Condo living brings your quality of life up a few notches. Before, I was contented staying in my cosy HDB exec flat, but after I made my move to a condo, whoa, there is no looking back. It was a case of "You don't know what you don't know".

Another thing is life is very unpredictable. You can plan all you want, but fate has a habit of springing nasty surprises. You must have read many stories of people delaying gratification because they wanted to save enough? Well, their delayed gratification became permanent delays.

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

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.