How much are you earning per annum?

Originally Posted by Unregistered

I make $9k pm, 48 yo.
Wife earns $8k pm, 47 yo.
Due to heavy commitment to support kids and parents (both sides), we save only $2k pm.
We live in a condo worth $1.2m, loan left $300k.
Our other assets include some stocks, CPF and cash.
Our total net worth is $2m.
How are we doing as a couple? Are we considered low performers?
Any suggestions how can we retire?

You and your wife are doing well.

First, you live in a condo and only about 15% of Singaporeans live in a condo or landed, so you are among the top 15% of Singaporeans.

Second, your combined income is $17k pm, whereas the median HH income in Singapore is $7.8k so you are making way above the median.

Third, your net worth is $2m, whereas a typical median couple net worth could be about $600k (HDB flat equity about $350k and $250k in cash and CPF in total).

So, you don't have to worry about retirement.

We are both in our early 40s. $90k pa and $80k pa income.
Upgraded from flat to condo in 2006. Bought condo for only $500k in 2006, now condo is worth $1m. Mortgage left, $200k.
Our total net worth $1.5m.
We consider ourselves as average middle class couple.

Originally Posted by Unregistered

We are both in our early 40s. $90k pa and $80k pa income.
Upgraded from flat to condo in 2006. Bought condo for only $500k in 2006, now condo is worth $1m. Mortgage left, $200k.
Our total net worth $1.5m.
We consider ourselves as average middle class couple.

You are a high powered couple actually. You are among the top 15% of Singaporean households because only the top 15% live in condo or landed. 85% live in public housing.
You are way, way, above average.
Well done!

Hi,

I need advice from the rich uncles here.
I am 39 & wife is 45. We are both working in the private sector.
Our combined salaries are $158k pa.
We currently own and living in a 5 room HDB flat, which is valued at $650k and paid up.
We have two kids and they love swimming.
We are thinking of selling our flat and upgrade to a two bedroom condo worth $1.2m.
We plan to use the flat sale proceeds plus our CPF savings to pay a total downpayment of $800k and loan $400k.
Is this ok? Is this financially prudent?
Pls advise. Thanks.

Most mid tier successful folks I know would rent out their HDBs to generate passive income and buy a private using savings and finance it via salary + rental income.

Using very rough figures lets assume you can fetch 2500 per month rental nett. If you rent out for say 10 years that would give you 300K, 20 years is 600K which is already what you selling it for. I am assuming your lease balance should at least be 50 years? You can discount 20% or 30% from the above figures but you should know where I am coming from.

1.2M loan for 25 years at 2.5% interest is about 4.3K per month, + the MCST and property tax etc lets say 5K total. Some of that can be offset from the rental, if you worried about the future perhaps you can lower the loan term to 15 years?

Question really is how much rental can you get from your HDB and is it in a area with high rental demand (i.e economically resistant)

I suggest this approach since you already paid up your HDB so you can buy private at 20% downpayment. Also if everything turns bad you can always sell the condo and move back to HDB? But if everything does turn out well. you will have a condo to enjoy and some passive income when you're older.

Personally I would never sell a HDB unless I was forced too, the returns are just too damn good

Your choice

Originally Posted by Unregistered

Hi,

I need advice from the rich uncles here.
I am 39 & wife is 45. We are both working in the private sector.
Our combined salaries are $158k pa.
We currently own and living in a 5 room HDB flat, which is valued at $650k and paid up.
We have two kids and they love swimming.
We are thinking of selling our flat and upgrade to a two bedroom condo worth $1.2m.
We plan to use the flat sale proceeds plus our CPF savings to pay a total downpayment of $800k and loan $400k.
Is this ok? Is this financially prudent?
Pls advise. Thanks.

You should not listen to this "advice". It is a dangerous proposition as you will be put in a high stake game. If you don't sell your flat, you may not have much money for downpayment and may have to take loan of 80%. If the property market falls by more than 20% you will be under water. Both your condo and flat value will drop by more than 20% each!!!

Worse, you might not be able to rent out your flat because of oversupply of properties coming and you may not also be able to sell your flat at that point. You will be stuck big time. So, don't listen to stupid "advice".

Originally Posted by Unregistered

Most mid tier successful folks I know would rent out their HDBs to generate passive income and buy a private using savings and finance it via salary + rental income.

Using very rough figures lets assume you can fetch 2500 per month rental nett. If you rent out for say 10 years that would give you 300K, 20 years is 600K which is already what you selling it for. I am assuming your lease balance should at least be 50 years? You can discount 20% or 30% from the above figures but you should know where I am coming from.

1.2M loan for 25 years at 2.5% interest is about 4.3K per month, + the MCST and property tax etc lets say 5K total. Some of that can be offset from the rental, if you worried about the future perhaps you can lower the loan term to 15 years?

Question really is how much rental can you get from your HDB and is it in a area with high rental demand (i.e economically resistant)

I suggest this approach since you already paid up your HDB so you can buy private at 20% downpayment. Also if everything turns bad you can always sell the condo and move back to HDB? But if everything does turn out well. you will have a condo to enjoy and some passive income when you're older.

Personally I would never sell a HDB unless I was forced too, the returns are just too damn good

Your choice

The only thing stupid here is your ranting, you sound like a loser LOL ;/

Originally Posted by Unregistered

You should not listen to this "advice". It is a dangerous proposition as you will be put in a high stake game. If you don't sell your flat, you may not have much money for downpayment and may have to take loan of 80%. If the property market falls by more than 20% you will be under water. Both your condo and flat value will drop by more than 20% each!!!

Worse, you might not be able to rent out your flat because of oversupply of properties coming and you may not also be able to sell your flat at that point. You will be stuck big time. So, don't listen to stupid "advice".

Originally Posted by Unregistered

You should not listen to this "advice". It is a dangerous proposition as you will be put in a high stake game. If you don't sell your flat, you may not have much money for downpayment and may have to take loan of 80%. If the property market falls by more than 20% you will be under water. Both your condo and flat value will drop by more than 20% each!!!

Worse, you might not be able to rent out your flat because of oversupply of properties coming and you may not also be able to sell your flat at that point. You will be stuck big time. So, don't listen to stupid "advice".

Thanks for the note. Yes, I'm aware of the property oversupply situation. That is why I want to sell my flat first before prices fall further. Selling now would enable me to cash out at a high price. I bought it cheap many years ago.

Renting out my flat will not be easy, now it is already difficult and with so many BTOs launching, the oversupply situation will be worse. If I can't rent out my flat, then my mortgage burden for my new condo will be too high.

I actually like his advise.
Most of our fears in life (90% of it) would never appear. If it does appear, you will find a way to counter measure it. Ultimately high risk high return.

Myself, i bought condo and renting my HDB to offset the installment. The only difference is my loan tenure is longer (earning lesser as i'm still in the early 30), hence i can still play a calculated risk game here.

Also why do you want to sell a HDB when the price is dropping and the interest rate is low now?

Originally Posted by Unregistered

Most mid tier successful folks I know would rent out their HDBs to generate passive income and buy a private using savings and finance it via salary + rental income.

Using very rough figures lets assume you can fetch 2500 per month rental nett. If you rent out for say 10 years that would give you 300K, 20 years is 600K which is already what you selling it for. I am assuming your lease balance should at least be 50 years? You can discount 20% or 30% from the above figures but you should know where I am coming from.

1.2M loan for 25 years at 2.5% interest is about 4.3K per month, + the MCST and property tax etc lets say 5K total. Some of that can be offset from the rental, if you worried about the future perhaps you can lower the loan term to 15 years?

Question really is how much rental can you get from your HDB and is it in a area with high rental demand (i.e economically resistant)

I suggest this approach since you already paid up your HDB so you can buy private at 20% downpayment. Also if everything turns bad you can always sell the condo and move back to HDB? But if everything does turn out well. you will have a condo to enjoy and some passive income when you're older.

Personally I would never sell a HDB unless I was forced too, the returns are just too damn good

Your choice

Originally Posted by Unregistered

I actually like his advise.
Most of our fears in life (90% of it) would never appear. If it does appear, you will find a way to counter measure it. Ultimately high risk high return.

Myself, i bought condo and renting my HDB to offset the installment. The only difference is my loan tenure is longer (earning lesser as i'm still in the early 30), hence i can still play a calculated risk game here.

Also why do you want to sell a HDB when the price is dropping and the interest rate is low now?

Errr ... your comments are clearly biased, don't you think so since you are ALREADY doing what he is suggesting? LOL.