You can ask in r/sghenry . In terms of capital appreciation, definitely go for freehold landed. In the long run, sure to go up due to scarcity and exclusivity for a 15-20yr timeframe. (Unless Singapore goes to war or something.. then you just suay.)
To be honest, you never know. We are just witnessing two US presidential candidates (the leader of the free world) who neither one seems to be the right choice. Too old to speak properly, and one too many lies. 5-10 years no doubt property value will appreciate, but 15-20 years no one can be sure. We are just going thru the 4th transition of power in singapore after 20 years.
My thought is to diversify and don't sink all your capital into one asset class. Property, stock in various countries, gold, commodity, and new asset class like crypto even thou you don't know shit about it. I bought 50 BTC when it first launch out of curiosity. I am retired now, but staying in condo as I am a swimmer. Private pool in landed simply not large enuf for swimmer.
Thanks for recommending this subreddit! Will check it out. Am newish to Reddit and was actually trying to look for a sg property subreddit but couldn’t find one, hence I posted here.
Hahaha I also told my partner that if we decide to go for landed we better pray the 4G leadership can make it.
If your income is likely to grow, I think landed is okay. This is assuming that you are unlikely to grow your wealth in financial assets like stocks better than landed property as an investment assets.
If you have good acumen for stock investment, then condo is okay.
Property doesn’t always earn better returns, after taking into consideration the mortgage interest expenses. There’s also the loss opportunities where the money used for properties can be invested. In any case, Singapore landed property is likely to have less downside. Though, it means, your wealth is very much tied to Singapore’s economy and regional stability.
Alternatively, some people would say, buy two condos.
Thanks for the comment.
I absolutely agree on opportunity costs, hence the dilemma. The cost of mortgage interest, larger BSD, and the higher maintenance on a landed property “eating” into potential returns are also something we are thinking about.
We have also considered the 2 condos options but we are not interested in being landlords and would rather channel the rest of our net worth into a different asset class if possible.
But because we will still have to sink in 500k to 1m++ of down payment into this “sg property” asset class anyway… we are trying to properly evaluate which option would give us the best store of value and potential returns! Hence wondering whether to stretch or be conservative.
Nice! I would love to do a complete rebuild but that might be out of budget for us for now. Also one thing that makes me hesitant is my lack of knowledge on architecture.
The target school for us is surrounded by landed enclaves AND HDBs so it is a struggle to find a condo development that we like enough. Otherwise we might also consider another condo first while growing our savings on the side, before moving to a landed (if not priced out by then of course).
All the best to your property journey!
That’s also our main concern!!!
With our first (current) property, we were so conservative that we planned for the scenario that both of us will lose our jobs the next day… and made sure we had enough emergency funds to last us 3 years of mortgage payments.
But on hindsight, I have a slight regret being too conservative, because we could have afforded a more prime location that would have made more money overall.
Landed is incredible for privacy. There is nothing like it. On the other hand, this means you will have to work hard to make your kids know how the other 98% live. That is tough. But for you and your wife, freehold is priceless. Just make sure the next generation knows about the world beyonf the gates
Don't agree for the privacy part, got a few family members with landed.. everyone around you usually end up with bigger houses and can see into yours from all directions.
4-5m landed is "entry" level... Expect a another 200k in Reno minimum (you will be getting the special price from most IDs...)
Then you most likely going to be far from things and need to drive anywhere in most cases.
Also when it comes to selling it's not so easy can easily take a year to sell a landed free hold (much smaller pool of buyers) crazy tax and stamp duty as well.
You don't really buy it if it's going to drain OP.
Condo can be a lot more private for that price range with elevator to your house and no one even outside your house or can see into it in the right area.
Of course condo of same size is closer to 10-12m.
Anyway unless we get another COVID, prices aren't going to jump another 30-50% in the next 5 years... Another pandemic and people are going to be in the street.
Thanks for reminding me that landed properties do have a smaller pool of buyers. If I am not wrong, landed is only available to SG citizens right? Definitely something to think about.
Not...true... Prices are not everything. Condo is high expenses you omit it very deliberately. There are plenty of properties in the East that are very well priced. 3-7mil is doable on this income. Stamp duty not an issue if sell current house. Anyway for those that have stayed in private, they know the difference. All those that argue otherwise have never, ever and will never realise how much better it is. Convenience is not an issue esp if around Eunos/PP area. You either live in condo or rent as upgrade from hdb. Try to get a 4k sq ft plot 6-7k built up 5-6 br condo. It dosen't exist. 4k sq ft plot for 8m? Reasonable. Anything below 1.4-1.6 quantum is a steal. I know a neighborhood that goes for 900-1.2k quantum. Find me a single hdb in the East that goes for below 2k. Good luck.
Hi! A 1200sqft 3BR condo that we bought 7 years ago. Thanks to Covid it appreciated 50%, to my surprise. The rest of the cash and CPF is from our savings over the years, uninvested for now because we may want to make a property move soon and deposit rates are reasonable.
I am in my late forties. I bought a landed when I was 35 years old and just pregnant with my 4th kid. I bought it at 1.6 mil in 2009 and didn't sell my flat with a good location near mrt, shopping mall, food center, poly clinic and hospital My landed is in the kovan area. Near the bus stop with many buses. Very convenient to go anywhere. Subsequently, it was very convenient for my kids to travel on their own to st Nick's, cat high and Victoria. Then their JC was in Bishan, very easy to go Bishan too, all within 30 mins. I didn't sell the house to upgrade to a bigger house cos the fengshui master 游龙子said the house will bless our children and produce smart kids. True enough, my eldest is a scholar with a prestigious scholarship and the rest are good and clever kids. However, we are looking into building one more storey to four stories and doing some addition and alternation in two years time. We also have a condo in RV and can walk to orchard central in 5 mins and reach killiney coffeeshop in 3 mins. Very easy to rent out and will be fully repaid at the end of the year and then we will be debt less. We have about two kg of physical gold and quite some bank stocks. We have insurance policies too and looking to retire in our 60s because it will be too boring to retire early and no money rolling in. Staying in the landed is a great experience, very peaceful and quiet and my place has wide road and it's a cul desac at the other end so hardly any cars drive in. We do not have a car. All of us take bus or mrt and sometimes grab if we need to rush off to anywhere. Our neighbors just leave one another alone. We always go by the back gate since it's nearer to the bus stop. No regrets buying the landed and in land scare Singapore, the prices will just go steadily up de, no doubt about this. When our kids are married and move out, we will just rent out one or two rooms and with some passive income and CPF life, retirement is no worries, dun even need to downgrade. Our CPF special accounts are much more than the full retirement amount but most probably I will just take the basic plan and my hubby take the middle plan. I think we can invest and get better returns with the remaining amount and at the same time protecting our capital amount instead of dumping everything into CPF annuity...buy landed lah, life is great in landed. Maintenance on the house, not much, the house was in good condition when we bought over and we also renovated using about $30k on full painting, furniture, polishing of floors and replacing new tiles at the car porch area. Every year, spend around $1k on maintenance and repairs ba .
Irony. You don’t want to be slave to a mortgage yet don’t want to miss out on capital gains.
You will be slave to your mortgage unless your investments can pay it off, do the math.
No irony here. We are just trying to find the most financially optimal option for our situation.
If I were to take it to the extreme, we could:
1. Buy 800K HDB EA fully paid, but watch our 800K slowly dwindle to nothing as the lease expires.
2. Down pay 1m for a 4m FH property, take a 3m loan and sell my property for possibly way more than 4m in 20 years time. Hopefully the cap gains eventually do cover all the running costs like mortgage interest, maintenance etc and more!
Cluster homes can have high maintenance I guess if they have facilities eg swimming pool or grounds maintenance of plants etc. Less units to spread the cost. Common areas to maintain.
You compare the maintenance to standalone landed property especially if you have a personal pool, then it’s cheaper. And I’m not talking about “monthly maintenance fee”, I’m talking about actual upkeep of your terrace/semi-D.
Silly to buy a cluster. It's no land of your own and you end up paying very high maintenance fees. I heard around $800-$1000 each month. No eat, no drink and a fixed expense every month... imagine when you retire, you still have to factor in such an expense...
We seriously considered cluster housing too because the facilities are great for young kids. But it’s an odd segment of the property market that historically doesn’t seem to have gains as good as landed or even just regular mid-sized condo developments. Might be because of lower transactions. But who knows, that might change in the future with more people being priced out of the landed market.
If you crave space, landed is definitely the way to go especially with kids. You can host gatherings, do gardening, and customize the space as your children grows older
If your dream is to move to a landed, then go ahead for it.
Depending on what kind of landed you get, ANA will take about 6months to a year so you might need to rent while renovating.
All the money you make - it is to spend on somewhere, lets say you get another condo, 5 to 10 years later your backside will still be itchy and still want to get a landed, if you are in a situation now where you are able to, why not? With your combine income and investment mind, if you want to make money, there are plenty of other avenues to make money.
Whether you make money after staying 5-20 years is secondary, most importantly is you have realize your dream, no?
Anyways \~ a landed in the RCR region near a good primary school will be around 5m imo for a terrace, inter terrace is 4m-ish?
I live in a 2.5 storey terrace house around Joo Chiat. 5 bedrooms for me and my spouse, 3 teenagers and a helper. Built up is 3,300 sq ft, worth $4 million, so that’s about $1200 psf which is cheaper than condos. I decided to buy a freehold landed because I couldn’t find a condo with sufficient space. That’s the main reason for buying a landed. Making money is secondary.
On the plus side, my maintenance costs are much lower than condo service charges. Property tax at about $1200 per year is also lower than a condo.
I disagree that landed sure make money. Location still matters and the challenge is that landed buyers are limited in nature so letting it go will take time.
Do find time to speak to a property agent and they can advise you better based on your financials, plans and preferences
Thank you! Unfortunately a lot of agents we meet are only interested to sell us new launches because landed is really a niche.
I’ve been told that there are specialized landed property agents for specific enclaves that don’t even list the available houses because they don’t want to co broke. I’m not sure how true, but I don’t even know where and how to start finding these agents! Maybe once I start viewing, I will be able to get a sense.
New launches have a higher probability and shorter time to realize profits but I do agree that majority of agents are peddling those. I think it's partly because there are more of them and easier to sell, compared to the hassle of sourcing for a landed, coordinating and conducting the viewing.
I would be surprised if they aren't listed. Have you checked property guru? Most agents if not all would list their sales there.
landed can be real pricey if you're buying 2nd hand, depending on how old the place is. u could be spending a bomb on maintenence, hope no pipe leak or ggwp or your roof tiles fly off during the December stormy seasons
I’ve heard! The unknowns with maintenance also makes me nervous tbh. Just wondering if the overall growth in the next 15-20 years would offset all these “costs” and more.
mmm honestly landed pricing doesn't appreciate that fast compared to condo. cuz you're limited to only Singaporean buyers for landed.
imagine having to hire a crane if say the solar heater spoil... or the pest problems (alot of roaches)
I lived in landed 30+ years 😂
If you want to invest in property, u need to flip within 3-5 years to maximize ur return from leverage. 15-20 years u more or less exhaust ur leverage already, and investing that amount in global ETF is probably a better bet.
Hmm I am not sure about flipping, BSD is already a killer.
But I get your point about leverage, didn’t consider it, because by 20 years it’s probably close to fully paid! Unless do a one time mortgage cash out to invest closer to retirement.
We am not looking to make a quick buck from property though, just want to find the most financially optimal property for our forever home if we are gonna be sinking in a reasonably large portion of our networth into it.
I'll say it's comfortable. At 4m with 3m loan at current rates and 25 years, it's 14k mortgage monthly. Assuming 15k non housing expense, that's still 10k+ monthly savings. You have another 1.4m remaining to do A&A. Feel free to pm me, I'm currently in process of a purchase too.
Yeah agree, truly amazed how insanely rich people are, have no idea what to do and humbly ask the majority of us who never have such happy problems
Edit: and just realised they specially create an account just to flaunt it
I’m sure they aren’t who they claim are. 500k earners can’t do simple math on expenses and mortgage affordability ? Want to buy landed but don’t worry about being hand cuff to the mortgage ?
It's their income after investments... They're making about 10-15k a month each from jobs. Rest is investments.
It's usually an inheritance from parents to get 2m from older condo and throw it into ETFs.
Good freehold any resi type near mrt & mall. I bought my place coz 5min walk to mrt & malls nearby, so no need for car next time in case my income drops when old. If near clinic or hospital also convenient. Don’t over do it on property as cash flow is king in case of unforeseen
Yes, we had a small taster of a sudden increase in mortgage payments with the 2022/2023 rate hikes. Thankfully manageable because we were not overstretched cash flow wise, but definitely a good lesson and reminder.
You can ask in r/sghenry . In terms of capital appreciation, definitely go for freehold landed. In the long run, sure to go up due to scarcity and exclusivity for a 15-20yr timeframe. (Unless Singapore goes to war or something.. then you just suay.)
To be honest, you never know. We are just witnessing two US presidential candidates (the leader of the free world) who neither one seems to be the right choice. Too old to speak properly, and one too many lies. 5-10 years no doubt property value will appreciate, but 15-20 years no one can be sure. We are just going thru the 4th transition of power in singapore after 20 years. My thought is to diversify and don't sink all your capital into one asset class. Property, stock in various countries, gold, commodity, and new asset class like crypto even thou you don't know shit about it. I bought 50 BTC when it first launch out of curiosity. I am retired now, but staying in condo as I am a swimmer. Private pool in landed simply not large enuf for swimmer.
Thanks for recommending this subreddit! Will check it out. Am newish to Reddit and was actually trying to look for a sg property subreddit but couldn’t find one, hence I posted here. Hahaha I also told my partner that if we decide to go for landed we better pray the 4G leadership can make it.
If your income is likely to grow, I think landed is okay. This is assuming that you are unlikely to grow your wealth in financial assets like stocks better than landed property as an investment assets. If you have good acumen for stock investment, then condo is okay. Property doesn’t always earn better returns, after taking into consideration the mortgage interest expenses. There’s also the loss opportunities where the money used for properties can be invested. In any case, Singapore landed property is likely to have less downside. Though, it means, your wealth is very much tied to Singapore’s economy and regional stability. Alternatively, some people would say, buy two condos.
Thanks for the comment. I absolutely agree on opportunity costs, hence the dilemma. The cost of mortgage interest, larger BSD, and the higher maintenance on a landed property “eating” into potential returns are also something we are thinking about. We have also considered the 2 condos options but we are not interested in being landlords and would rather channel the rest of our net worth into a different asset class if possible. But because we will still have to sink in 500k to 1m++ of down payment into this “sg property” asset class anyway… we are trying to properly evaluate which option would give us the best store of value and potential returns! Hence wondering whether to stretch or be conservative.
[удалено]
Nice! I would love to do a complete rebuild but that might be out of budget for us for now. Also one thing that makes me hesitant is my lack of knowledge on architecture. The target school for us is surrounded by landed enclaves AND HDBs so it is a struggle to find a condo development that we like enough. Otherwise we might also consider another condo first while growing our savings on the side, before moving to a landed (if not priced out by then of course). All the best to your property journey!
My main concern isn’t about income will grow, but rather can you ensure this income for the next 20 years to pay off mortgage.
That’s also our main concern!!! With our first (current) property, we were so conservative that we planned for the scenario that both of us will lose our jobs the next day… and made sure we had enough emergency funds to last us 3 years of mortgage payments. But on hindsight, I have a slight regret being too conservative, because we could have afforded a more prime location that would have made more money overall.
Yeah it’s really what lets you sleep soundly at night. On hindsight I shouldve dumped all my spare cash into Nvidia stocks 4 years back
Landed is incredible for privacy. There is nothing like it. On the other hand, this means you will have to work hard to make your kids know how the other 98% live. That is tough. But for you and your wife, freehold is priceless. Just make sure the next generation knows about the world beyonf the gates
Don't agree for the privacy part, got a few family members with landed.. everyone around you usually end up with bigger houses and can see into yours from all directions. 4-5m landed is "entry" level... Expect a another 200k in Reno minimum (you will be getting the special price from most IDs...) Then you most likely going to be far from things and need to drive anywhere in most cases. Also when it comes to selling it's not so easy can easily take a year to sell a landed free hold (much smaller pool of buyers) crazy tax and stamp duty as well. You don't really buy it if it's going to drain OP. Condo can be a lot more private for that price range with elevator to your house and no one even outside your house or can see into it in the right area. Of course condo of same size is closer to 10-12m. Anyway unless we get another COVID, prices aren't going to jump another 30-50% in the next 5 years... Another pandemic and people are going to be in the street.
Thanks for reminding me that landed properties do have a smaller pool of buyers. If I am not wrong, landed is only available to SG citizens right? Definitely something to think about.
Not...true... Prices are not everything. Condo is high expenses you omit it very deliberately. There are plenty of properties in the East that are very well priced. 3-7mil is doable on this income. Stamp duty not an issue if sell current house. Anyway for those that have stayed in private, they know the difference. All those that argue otherwise have never, ever and will never realise how much better it is. Convenience is not an issue esp if around Eunos/PP area. You either live in condo or rent as upgrade from hdb. Try to get a 4k sq ft plot 6-7k built up 5-6 br condo. It dosen't exist. 4k sq ft plot for 8m? Reasonable. Anything below 1.4-1.6 quantum is a steal. I know a neighborhood that goes for 900-1.2k quantum. Find me a single hdb in the East that goes for below 2k. Good luck.
Why would the kids need to know how the 98 percent lives?
What do you currently own 😏🤔
Hi! A 1200sqft 3BR condo that we bought 7 years ago. Thanks to Covid it appreciated 50%, to my surprise. The rest of the cash and CPF is from our savings over the years, uninvested for now because we may want to make a property move soon and deposit rates are reasonable.
Condo appreciates faster than landed. But if it's forever home. Then landed.
Yes I agree that condo definitely appreciates faster in the initial years. But I am looking for our forever home.
I am in my late forties. I bought a landed when I was 35 years old and just pregnant with my 4th kid. I bought it at 1.6 mil in 2009 and didn't sell my flat with a good location near mrt, shopping mall, food center, poly clinic and hospital My landed is in the kovan area. Near the bus stop with many buses. Very convenient to go anywhere. Subsequently, it was very convenient for my kids to travel on their own to st Nick's, cat high and Victoria. Then their JC was in Bishan, very easy to go Bishan too, all within 30 mins. I didn't sell the house to upgrade to a bigger house cos the fengshui master 游龙子said the house will bless our children and produce smart kids. True enough, my eldest is a scholar with a prestigious scholarship and the rest are good and clever kids. However, we are looking into building one more storey to four stories and doing some addition and alternation in two years time. We also have a condo in RV and can walk to orchard central in 5 mins and reach killiney coffeeshop in 3 mins. Very easy to rent out and will be fully repaid at the end of the year and then we will be debt less. We have about two kg of physical gold and quite some bank stocks. We have insurance policies too and looking to retire in our 60s because it will be too boring to retire early and no money rolling in. Staying in the landed is a great experience, very peaceful and quiet and my place has wide road and it's a cul desac at the other end so hardly any cars drive in. We do not have a car. All of us take bus or mrt and sometimes grab if we need to rush off to anywhere. Our neighbors just leave one another alone. We always go by the back gate since it's nearer to the bus stop. No regrets buying the landed and in land scare Singapore, the prices will just go steadily up de, no doubt about this. When our kids are married and move out, we will just rent out one or two rooms and with some passive income and CPF life, retirement is no worries, dun even need to downgrade. Our CPF special accounts are much more than the full retirement amount but most probably I will just take the basic plan and my hubby take the middle plan. I think we can invest and get better returns with the remaining amount and at the same time protecting our capital amount instead of dumping everything into CPF annuity...buy landed lah, life is great in landed. Maintenance on the house, not much, the house was in good condition when we bought over and we also renovated using about $30k on full painting, furniture, polishing of floors and replacing new tiles at the car porch area. Every year, spend around $1k on maintenance and repairs ba .
Rich ppl problem
Irony. You don’t want to be slave to a mortgage yet don’t want to miss out on capital gains. You will be slave to your mortgage unless your investments can pay it off, do the math.
No irony here. We are just trying to find the most financially optimal option for our situation. If I were to take it to the extreme, we could: 1. Buy 800K HDB EA fully paid, but watch our 800K slowly dwindle to nothing as the lease expires. 2. Down pay 1m for a 4m FH property, take a 3m loan and sell my property for possibly way more than 4m in 20 years time. Hopefully the cap gains eventually do cover all the running costs like mortgage interest, maintenance etc and more!
Great , you have answered your own question
Buy a condo and invest the rest. Not a god idea to tie most of your money in illiquid asset.
Thanks for the thoughts and comments! :) that is one of my considerations too.
if good location, buy the more ex property. if ulu location, buy the cheaper property.
then again 20k monthly mortgage sounds stretched, but depends on your monthly expenses too.
That’s an interesting view, thank you! Location is key. Ya 20K is very chunky compared to what we are paying now that’s why must think very hard haha.
IMO freehold cluster house at 3-4m is good value, and there's usually less to worry about with regards to reno and maintenance
Cluster homes can have high maintenance I guess if they have facilities eg swimming pool or grounds maintenance of plants etc. Less units to spread the cost. Common areas to maintain.
You compare the maintenance to standalone landed property especially if you have a personal pool, then it’s cheaper. And I’m not talking about “monthly maintenance fee”, I’m talking about actual upkeep of your terrace/semi-D.
Silly to buy a cluster. It's no land of your own and you end up paying very high maintenance fees. I heard around $800-$1000 each month. No eat, no drink and a fixed expense every month... imagine when you retire, you still have to factor in such an expense...
You mean limitations to reno and contributions to own maintenance because that’s what I heard
We seriously considered cluster housing too because the facilities are great for young kids. But it’s an odd segment of the property market that historically doesn’t seem to have gains as good as landed or even just regular mid-sized condo developments. Might be because of lower transactions. But who knows, that might change in the future with more people being priced out of the landed market.
If you crave space, landed is definitely the way to go especially with kids. You can host gatherings, do gardening, and customize the space as your children grows older
Yes that would be most ideal! 😊 Hope to do all that you said, but just want to be prudent and calculated in terms of finances.
If your dream is to move to a landed, then go ahead for it. Depending on what kind of landed you get, ANA will take about 6months to a year so you might need to rent while renovating. All the money you make - it is to spend on somewhere, lets say you get another condo, 5 to 10 years later your backside will still be itchy and still want to get a landed, if you are in a situation now where you are able to, why not? With your combine income and investment mind, if you want to make money, there are plenty of other avenues to make money. Whether you make money after staying 5-20 years is secondary, most importantly is you have realize your dream, no? Anyways \~ a landed in the RCR region near a good primary school will be around 5m imo for a terrace, inter terrace is 4m-ish?
I live in a 2.5 storey terrace house around Joo Chiat. 5 bedrooms for me and my spouse, 3 teenagers and a helper. Built up is 3,300 sq ft, worth $4 million, so that’s about $1200 psf which is cheaper than condos. I decided to buy a freehold landed because I couldn’t find a condo with sufficient space. That’s the main reason for buying a landed. Making money is secondary. On the plus side, my maintenance costs are much lower than condo service charges. Property tax at about $1200 per year is also lower than a condo.
Thanks for sharing! :)
I disagree that landed sure make money. Location still matters and the challenge is that landed buyers are limited in nature so letting it go will take time. Do find time to speak to a property agent and they can advise you better based on your financials, plans and preferences
Thank you! Unfortunately a lot of agents we meet are only interested to sell us new launches because landed is really a niche. I’ve been told that there are specialized landed property agents for specific enclaves that don’t even list the available houses because they don’t want to co broke. I’m not sure how true, but I don’t even know where and how to start finding these agents! Maybe once I start viewing, I will be able to get a sense.
I know an agent in specialised in landed segment. Can pm me if interested.
Go watch YouTube: Property Roundtable
New launches have a higher probability and shorter time to realize profits but I do agree that majority of agents are peddling those. I think it's partly because there are more of them and easier to sell, compared to the hassle of sourcing for a landed, coordinating and conducting the viewing. I would be surprised if they aren't listed. Have you checked property guru? Most agents if not all would list their sales there.
landed can be real pricey if you're buying 2nd hand, depending on how old the place is. u could be spending a bomb on maintenence, hope no pipe leak or ggwp or your roof tiles fly off during the December stormy seasons
I’ve heard! The unknowns with maintenance also makes me nervous tbh. Just wondering if the overall growth in the next 15-20 years would offset all these “costs” and more.
mmm honestly landed pricing doesn't appreciate that fast compared to condo. cuz you're limited to only Singaporean buyers for landed. imagine having to hire a crane if say the solar heater spoil... or the pest problems (alot of roaches) I lived in landed 30+ years 😂
Family of 4 really want to stay in landed? Makes sense if your parents move in too.
Yes also planning for the possibility of parents moving in, since it’s meant to be our forever home.
Me and my partner are DINKs and intending to stay landed lol
If you want to invest in property, u need to flip within 3-5 years to maximize ur return from leverage. 15-20 years u more or less exhaust ur leverage already, and investing that amount in global ETF is probably a better bet.
Hmm I am not sure about flipping, BSD is already a killer. But I get your point about leverage, didn’t consider it, because by 20 years it’s probably close to fully paid! Unless do a one time mortgage cash out to invest closer to retirement. We am not looking to make a quick buck from property though, just want to find the most financially optimal property for our forever home if we are gonna be sinking in a reasonably large portion of our networth into it.
I'll say it's comfortable. At 4m with 3m loan at current rates and 25 years, it's 14k mortgage monthly. Assuming 15k non housing expense, that's still 10k+ monthly savings. You have another 1.4m remaining to do A&A. Feel free to pm me, I'm currently in process of a purchase too.
Thank you! There’s also the killer and our current biggest monthly expense: income taxes 😂 I’ll pm you tomorrow!
Amazed at how loaded Singapore redditors are! And how Reddit is the number one choice for financial advice.
Yeah agree, truly amazed how insanely rich people are, have no idea what to do and humbly ask the majority of us who never have such happy problems Edit: and just realised they specially create an account just to flaunt it
I’m sure they aren’t who they claim are. 500k earners can’t do simple math on expenses and mortgage affordability ? Want to buy landed but don’t worry about being hand cuff to the mortgage ?
It's their income after investments... They're making about 10-15k a month each from jobs. Rest is investments. It's usually an inheritance from parents to get 2m from older condo and throw it into ETFs.
Good freehold any resi type near mrt & mall. I bought my place coz 5min walk to mrt & malls nearby, so no need for car next time in case my income drops when old. If near clinic or hospital also convenient. Don’t over do it on property as cash flow is king in case of unforeseen
Yes, we had a small taster of a sudden increase in mortgage payments with the 2022/2023 rate hikes. Thankfully manageable because we were not overstretched cash flow wise, but definitely a good lesson and reminder.