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-   -   How much savings do you have? (https://forums.salary.sg/investments-net-worth/1199-how-much-savings-do-you-have.html)

Unregistered 16-09-2014 12:35 PM

you are overleveraged if you are the only one working to service the condo mortgage. at your age, you should not have any loans. your $1.8m loan is huge compared to your measly $120k pa income. there are people here with income of $700k pa but staying in hdb flat and driving an asian car.

and why do you need to drive a porsche? show off? lack of self confidence? this car is a cash drainer. typically guys with low self esteem or those trying to attract girls drive such cars.

you should sell your condo and downgrade to a 4 room flat and be debt free.

you might never know when you will be retrenched.


Quote:

Originally Posted by Unregistered (Post 56410)
Single,Early 50s Male
Cash:35k
Investments:1.34m
Total income PA:120k
7 yo porsche 911 fully paid
living with parents in 4 room condo worth 2.2m, 1.8m loan left.


Unregistered 16-09-2014 12:37 PM

Quote:

Originally Posted by Unregistered (Post 56436)
Mine is a freehold landed terrace not a condo....freehold landed supply is very limited now unlike condos sprouting up everywhere, so unlikely to drop in value as much as condos in the longterm...

wishful thinking. come back her in 2017 and update us whether your wish comes true.

Unregistered 16-09-2014 12:43 PM

Quote:

Originally Posted by Unregistered (Post 56439)
wishful thinking. come back her in 2017 and update us whether your wish comes true.

3 years is hardly considered longterm...by longterm, I mean at least 10 years...and freehold landed has and always will appreciate better than condos so it is not wishful thinking at all...

Unregistered 16-09-2014 01:10 PM

Quote:

Originally Posted by Unregistered (Post 56440)
3 years is hardly considered longterm...by longterm, I mean at least 10 years...and freehold landed has and always will appreciate better than condos so it is not wishful thinking at all...

good luck. some more you take home equity loan to buy your jb house. is that the smartest thing to do?

Unregistered 16-09-2014 01:19 PM

Quote:

Originally Posted by Unregistered (Post 56441)
good luck. some more you take home equity loan to buy your jb house. is that the smartest thing to do?

It is a hedge against risks of losing our jobs, at least we can survive with passive rental income from our Sg properties and also a way to retire or semi retire early. And if we need a large sum of money for kids overseas uni in future, we can sell the terrace and still have rental income from our 1 bedder condo...

Unregistered 16-09-2014 01:30 PM

Quote:

Originally Posted by Unregistered (Post 56443)
It is a hedge against risks of losing our jobs, at least we can survive with passive rental income from our Sg properties and also a way to retire or semi retire early. And if we need a large sum of money for kids overseas uni in future, we can sell the terrace and still have rental income from our 1 bedder condo...

In fact, we may be able to retire soon once our condo TOP, renting out our terrace for $4300 to $5000 which was what we were offered before and the condo for $2200 to $3000, we can pay off the condo now and have $3000 tp $4500 to retire in Malaysia...

Unregistered 16-09-2014 01:49 PM

Quote:

Originally Posted by Unregistered (Post 56444)
In fact, we may be able to retire soon once our condo TOP, renting out our terrace for $4300 to $5000 which was what we were offered before and the condo for $2200 to $3000, we can pay off the condo now and have $3000 tp $4500 to retire in Malaysia...

How is this possible?
Your total mortgage loan is $567k+$380k+$380k = $1.327m.
If you take 30 years loan with assumption of long term interest of 3%, your monthly mortgage is $5.6k.
Your terrace most likely can be rented out at $4500 pm and your condo at $2500 pm, so total rent is $7k.
After deducting your mortgage, you are only left with $1.4k per month. Don't forget you also have to pay property tax, maintenance fee for the condo and income tax from rental. You just break even. How to retire?

Unregistered 16-09-2014 01:59 PM

Quote:

Originally Posted by Unregistered (Post 56446)
How is this possible?
Your total mortgage loan is $567k+$380k+$380k = $1.327m.
If you take 30 years loan with assumption of long term interest of 3%, your monthly mortgage is $5.6k.
Your terrace most likely can be rented out at $4500 pm and your condo at $2500 pm, so total rent is $7k.
After deducting your mortgage, you are only left with $1.4k per month. Don't forget you also have to pay property tax, maintenance fee for the condo and income tax from rental. You just break even. How to retire?

Right now my terrace mortgage can be $2250 and my JB house is $1200, so only $3450. Condo can be paid off, so left $3500 passive income a mth...but when interest rates rise, I prob have to work parttime...

Unregistered 16-09-2014 02:08 PM

Quote:

Originally Posted by Unregistered (Post 56448)
Right now my terrace mortgage can be $2250 and my JB house is $1200, so only $3450. Condo can be paid off, so left $3500 passive income a mth...but when interest rates rise, I prob have to work parttime...

you have to add about $1000 of other costs as mentioned. so only left with $2500.
when interest rates rise, your mortgage will rise by $1000.
so left with $1500.
you cannot retire, still have to work whether full or part time.

if you sell your terrace, and pay off all loans, maybe you can get higher passive income.
the problem with landed property is that rental yield is low. another problem with having loans, you pay a lot of your income to pay for mortgages.

Unregistered 16-09-2014 02:15 PM

Quote:

Originally Posted by Unregistered (Post 56449)
you have to add about $1000 of other costs as mentioned. so only left with $2500.
when interest rates rise, your mortgage will rise by $1000.
so left with $1500.
you cannot retire, still have to work whether full or part time.

if you sell your terrace, and pay off all loans, maybe you can get higher passive income.
the problem with landed property is that rental yield is low. another problem with having loans, you pay a lot of your income to pay for mortgages.

I don't think thw other costs come to $1000 a mth...condo maintenance only $200, jb house maintence rm130 and property tax is not so high...

I can also work for a few more years and pay off landed instead of condo, then may have more passive income Or sell all sg props and put money in malaysian fixed deposit of 3% pa if really want to retire but kids will have to go local uni then...


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