I am signing an OTP to buy a 1.5million condo on coming friday.
Taking a 1 million loan. This will be our 2nd property. Holding on to my hdb (700k paid up). Me and wife save about 160k a year in cash and cpf. Hope I am making the right choice. |
The fact that you are sharing this shows that you are not so sure whether you are making the right decision. To be indebted with $1m loan is unthinkable for me. If not careful, you can be in big trouble.
There are many factors to consider: 1. Is this condo a resale condo or new built? Are you going to stay in it or is this an investment property? If you are staying in it, then you plan to rent out your hdb flat. How confident are you to rent out your hdb flat? Is your hdb flat next to an MRT station? 2. If the condo is an investment property, how confident are you to rent it out? Is it a walking distance to an MRT station? or is there a short distance shuttle service from condo to the nearest MRT station? If this is an investment property, why do you choose an expensive property? Why not choose a shoebox unit costing $700k instead which gives you a high rental yield of 3.5%. Big units have very low yields. 3. How safe are your jobs? Is there a possibility that both of you can be retrenched? What if that happens and you don't have tenant? How to service the $1m loan? If you can answer the above questions confidently, then you should be ok. If not, think 10x. Quote:
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s://sg.news.yahoo.com/3-property-investment-mistakes-avoid-2015-145946956.html
Take a look to avoid any rush and get burnt in property investment |
48 year old mid income professional, $110k pa. Saves $40k pa.
Spouse, 44 year old mid income professional, $80k pa. Saves $40k pa. Major expenses: condo, car, children, parents, restaurant dining, food, groceries, overseas holidays, insurance, taxes, etc. Total net worth, including equity on condo, $1.2m. |
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Both my hdb and condo are walking distance to mrt (700m and 500m). 2. This second property will be a gift to my children when they are older. 3. Jobs are safe. Borrowing 1m with 200k cash as buffer in savings. Also prepared to sell HDB if unthinkable happens... |
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But we are only holding to our staying property We do not want to commit now as we are waiting patiently for fire sale. Hopefully by 2017~2018 we can pick up some good bargains |
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