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Buying a condo before 30

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Old 12-09-2018, 06:54 AM   #16
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It's good TS want to own a property at young age. But current situation of TS, I don't encourage TS to jump in it.
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Old 12-09-2018, 11:46 AM   #17
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If TS is not buying a completed project and assuming the condo is under progressive payment, TS can take the opportunity to save up during the progressive payment period before instalment amount hits full loading.

At key collection, there might be a need to pay 6-month maintenance fee upfront (at least for my project). This upfront cost will need to be taken into consideration as it can be quite substantial.
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Old 12-09-2018, 07:24 PM   #18
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Actually, TS may still be able to make it to own one before turning 30. He still has 4+ years to go, just that he needs to save/invest more aggressively.

We do not know his career/salary progression, and have little info on how he is going to save, whether 100%, 75% or lower, and what other commitments he might have that would affect the monthly savings contribution.

Therefore, we can only assume. Taking $4,500 as the average income ($3,600 after CPF deduction) and adding on AWS, with a monthly expense of $900 (75% goes to savings) over 4.5 years, he could have saved close to $150k in cash, and $92k in CPF.

Adding up to what he has now, that might still work, provided property prices do not rise out of proportion by then.

I still have the same question from the start though. Does he just want to own by 30, or move in by 30? That would very much determine whether he should go for new or resale...

Next would be the max amount he can afford by then, taking into consideration of the max loan he could obtain.
good for him
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Old 13-09-2018, 09:29 AM   #19
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Are u sporean? Try not to think of getting a Pte some early.
What if u married and thinking of getting hdb?
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Old 13-09-2018, 02:48 PM   #20
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Are u sporean? Try not to think of getting a Pte some early.
What if u married and thinking of getting hdb?
I tend not to agree on this.

I am sure TS must have good reasons to have his own home, considering that he is so young and yet that is already his lifelong dream.

I was still dreaming when I was 25, not even know what I want to own or achieve...

There can only be 2 scenarios that he can own an HDB, get married or wait till 35 years old. Since he wants a place to call his own before 30, that leaves him with only 1 scenario. I am sure he has already thought over this carefully to decide on going private as the first property, whatever reason it might be.

I see TS would ultimately want to own a private property. I would grab the chance if it is within my means. No one knows if prices will go up or down, but in the long run, property prices might just keep rising. What if there are more cooling measures along the way, and makes private property ownership even more difficult?

A colleague who could afford a 1bedder condo 6-7 years ago, said that he wanted to exercise his entitlement to buy an HDB, knowing that he will remain single and so waiting to turn 35. He will be 35 next year, but said he regretted not buying a condo back then, for investment. There is no turning back now, and since it is so near, he will continue waiting to get a resale HDB, and probably a condo another 5 years later after reaping some profits (if any, no guarantee) from the HDB...
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Old 13-09-2018, 05:08 PM   #21
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I tend not to agree on this.

I am sure TS must have good reasons to have his own home, considering that he is so young and yet that is already his lifelong dream.

I was still dreaming when I was 25, not even know what I want to own or achieve...

There can only be 2 scenarios that he can own an HDB, get married or wait till 35 years old. Since he wants a place to call his own before 30, that leaves him with only 1 scenario. I am sure he has already thought over this carefully to decide on going private as the first property, whatever reason it might be.

I see TS would ultimately want to own a private property. I would grab the chance if it is within my means. No one knows if prices will go up or down, but in the long run, property prices might just keep rising. What if there are more cooling measures along the way, and makes private property ownership even more difficult?

A colleague who could afford a 1bedder condo 6-7 years ago, said that he wanted to exercise his entitlement to buy an HDB, knowing that he will remain single and so waiting to turn 35. He will be 35 next year, but said he regretted not buying a condo back then, for investment. There is no turning back now, and since it is so near, he will continue waiting to get a resale HDB, and probably a condo another 5 years later after reaping some profits (if any, no guarantee) from the HDB...
TS will make the right decision. Good for him
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Old 13-09-2018, 10:01 PM   #22
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What are the disadvantages of buying private before buying a hdb? Are there any restrictions? No grants? Will it affect bto?
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Old 14-09-2018, 07:35 AM   #23
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What are the disadvantages of buying private before buying a hdb? Are there any restrictions? No grants? Will it affect bto?
Mainly BTO. One can only apply for BTO 30 months after disposing the private property.
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Old 14-09-2018, 08:05 AM   #24
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I don’t think it’s impossible... I’m on the same boat. I’m 28. Just bought mine (BUC), and for me, I decided that I want to stay on my own and not buying HDB in the future.
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Old 14-09-2018, 12:06 PM   #25
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i think TS (and a few mid-20s ppl) here is calculating based on his projected earnings in the next few years, not based on his/her current cash/cpf in-hand.

Not saying you can't do that in terms of budgeting (it is a valid way of financial management to include projected earnings) but due to the fact that TS is still quite far off in terms of requirements, using projected earnings to budget is way off-base and risky.
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Old 14-09-2018, 01:45 PM   #26
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i think TS (and a few mid-20s ppl) here is calculating based on his projected earnings in the next few years, not based on his/her current cash/cpf in-hand.
I thought that is the point of this thread, not that he wants to get it now.

It is still achievable. If any changes in the future that might affect the possibility of owning one, he could always abort.

Even I buy based on my projected earnings, not that I already have that much of money. If not, how do banks make money?
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Old 14-09-2018, 02:22 PM   #27
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I thought that is the point of this thread, not that he wants to get it now.

It is still achievable. If any changes in the future that might affect the possibility of owning one, he could always abort.

Even I buy based on my projected earnings, not that I already have that much of money. If not, how do banks make money?
yes, most of us buy based on our projected earnings but that was when we already got a certain amount in cash/investment/cpf..

general rule of thumb (for me anyway) is to have a personal net worth of 50% of the net price of the property before i decide to really put money on it.

so if you want to buy a million dollar property, you (and your partner) better have at least 500k combined net worth.

i just dropped money on a small unit that cost about 800k and i only did it when i reached a personal liquidable net worth of 400k.
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Old 14-09-2018, 04:42 PM   #28
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i just dropped money on a small unit that cost about 800k and i only did it when i reached a personal liquidable net worth of 400k.
Well, that makes sense. I did something similar for 2 units.

However, I was only at 40% (including CPF) for the 2nd unit. I did not wait, and not knowing back then that within 3 months, ABSD for 2nd property would have gone up to 12%...

Anyway, I would still be on track by the time payment is required for the 10% before CPF/Bank loan kicks in. At times, you just have to take the chances and not simply follow by the books.
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Old 15-09-2018, 12:17 AM   #29
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You bought one bedroom condo? What if next time u want to marry and start a family?

I don’t think it’s impossible... I’m on the same boat. I’m 28. Just bought mine (BUC), and for me, I decided that I want to stay on my own and not buying HDB in the future.
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Old 15-09-2018, 02:10 AM   #30
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Ga ga buy if can really afford.
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