Whats your net worth

EA fully paid - 600k
CPF combined - 780k
Cash - 200k
Stocks - 80k
SRS - 60k
Dual income 2 kids. No car
Waiting to buy a 4 bedder condo for around 1.4million as my second property.
HH income 260k.
43 & 42 yo

Originally Posted by Unregistered

EA fully paid - 600k
CPF combined - 780k
Cash - 200k
Stocks - 80k
SRS - 60k
Dual income 2 kids. No car
Waiting to buy a 4 bedder condo for around 1.4million as my second property.
HH income 260k.
43 & 42 yo

It would not be advisable for you to buy a second property. You and wife are already in your forties and hence the risk of retrenchment for both of you is very high. If you are thinking of renting out one property to finance the other, forget it. With the bad rental market due to oversupply, you will not be able to rent it out. Do your research.

So imagine a situation of both of you unemployed and you own an empty condo and both your properties' prices are crashing, you might end up homeless and worst case can even be bankrupted. Better keep as much cash in hand. Your cash of $200k is not much at all. You should save at least $1m in cash so that you can feed your family if both of you become jobless. The world economy is in great uncertainty. Better be safe than sorry.

Originally Posted by Unregistered

It would not be advisable for you to buy a second property. You and wife are already in your forties and hence the risk of retrenchment for both of you is very high. If you are thinking of renting out one property to finance the other, forget it. With the bad rental market due to oversupply, you will not be able to rent it out. Do your research.

So imagine a situation of both of you unemployed and you own an empty condo and both your properties' prices are crashing, you might end up homeless and worst case can even be bankrupted. Better keep as much cash in hand. Your cash of $200k is not much at all. You should save at least $1m in cash so that you can feed your family if both of you become jobless. The world economy is in great uncertainty. Better be safe than sorry.

I want to move to the condo and rent out 3 rooms in my HDB. The 2 properties will be the worldly inheritance that we leave to the children.

As for job security, we are both having aluminum rice bowls I.e. Can dent but will not be broken type

Originally Posted by Unregistered

I want to move to the condo and rent out 3 rooms in my HDB. The 2 properties will be the worldly inheritance that we leave to the children.

As for job security, we are both having aluminum rice bowls I.e. Can dent but will not be broken type

Well hope you know what you are doing. If I were you, I would just sell my flat (price has peaked and falling) and buy a condo to live in. I do not want to be over leveraged. There is no such thing as an aluminum, iron, bronze, gold, silver, etc rice bowl. Anything can happen.

Given your HH income and age, you should not take on high risks. You should sell off your flat and use the sales proceeds plus your CPF and cash to pay in full a $1.4m condo. At your age, it is best to be debt free. Then you should build up your cash again for emergencies and invest more into blue chip stocks. Your emergency fund should be about at least 10 years of your expenses. If your HH expenses is $150k pa, then you should have $1.5m in emergency fund.

Originally Posted by Unregistered

EA fully paid - 600k
CPF combined - 780k
Cash - 200k
Stocks - 80k
SRS - 60k
Dual income 2 kids. No car
Waiting to buy a 4 bedder condo for around 1.4million as my second property.
HH income 260k.
43 & 42 yo

I can only say you guys are quite clueless about how to make your money work for you.

When people make it, you can only wonder why.

That's the first point.

The second point is, people seize opportunities in period of uncertainty, you? You retreat into your own shell.

Originally Posted by Unregistered

Given your HH income and age, you should not take on high risks. You should sell off your flat and use the sales proceeds plus your CPF and cash to pay in full a $1.4m condo. At your age, it is best to be debt free. Then you should build up your cash again for emergencies and invest more into blue chip stocks. Your emergency fund should be about at least 10 years of your expenses. If your HH expenses is $150k pa, then you should have $1.5m in emergency fund.

Only fools rush in.

Beware! There are property agents lurking in this forum.

Originally Posted by Unregistered

There is no such thing as an aluminum, iron, bronze, gold, silver, etc rice bowl. Anything can happen.

Rice bowls, how would you classify teachers or SAF officers?

Originally Posted by Unregistered

Rice bowls, how would you classify teachers or SAF officers?

Don't be too sure. We never know. Better be safe than sorry.

Originally Posted by Unregistered

Rice bowls, how would you classify teachers or SAF officers?

Uncertainty may not just be retrenchment. Have you thought of sudden health or death? nobody knows what will happen tomorrow. Sorry, just being pragmatic, no offence.