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Buying a condo before 30

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Old 07-09-2018, 10:33 PM   #1
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Buying a condo before 30

Hi, I have been reading for a long time but have decided to start a thread now to learn more from everyone here.

I am currently 25 and have been working for close to 3 years. I have slightly more than 20K in cash and about 25K in my OA. I am drawing 4K monthly which is expected to increase in the next few years. I know its not much for now but I will want to kickstart my journey to home ownership.

I am planning to own a 1 bedroom unit before I turn 30. This is for staying and not renting as its my lifelong dream to have my own home. I have done some calculations and it seems feasible.

I would like to seek everyone's advice here regarding my situation and if its an achievable goal. If so, what are things that I need to look out for and prepare?

Thanks all!
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Old 08-09-2018, 02:49 AM   #2
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I think you don't have enough capital for downpayment.

Condo downpayment is 20% or 25% isnt it.
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Old 08-09-2018, 07:51 AM   #3
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What calculations have you done?

20% downpay for 600k one bedder = 120k.
Buyer stamp duty for 600k condo = 12.6k.
Miscellaneous (etc; legal, msd, valuation fee) fees estimated at 5k.

Maybe 3-4 years more of aggressive saving before you are ready financially.

Hi, I have been reading for a long time but have decided to start a thread now to learn more from everyone here.

I am currently 25 and have been working for close to 3 years. I have slightly more than 20K in cash and about 25K in my OA. I am drawing 4K monthly which is expected to increase in the next few years. I know its not much for now but I will want to kickstart my journey to home ownership.

I am planning to own a 1 bedroom unit before I turn 30. This is for staying and not renting as its my lifelong dream to have my own home. I have done some calculations and it seems feasible.

I would like to seek everyone's advice here regarding my situation and if its an achievable goal. If so, what are things that I need to look out for and prepare?

Thanks all!
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Old 09-09-2018, 12:29 AM   #4
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Some info for us, and for you to think over:
i) Do you wish to buy new or resale?
ii) What is the maximum purchase price you can afford (from your calculations)?
iii) When you said own by 30, do you also mean moving in and stay by 30?
iv) Downpayment is 25% (no longer 20% as some mentioned) - 5% Cash and 20% Cash/CPF. (Assuming no change by the time you finally decide to buy)
v) Buyer's Stamp Duty is Purchase Price x 3% Less $5,400 for properties less than $1mil. (Assuming no change by the time you finally decide to buy)

You should share what calculations you have done, and what plans you have on the savings/investments, so that we can see how achievable it can be.
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Old 09-09-2018, 09:47 AM   #5
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As a teacher would say - please show your work. Not only that you afford to buy, but that you can afford the costs of owning the property and living on your own.
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Old 09-09-2018, 10:16 AM   #6
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Now housing loan max is 75%.

U have 45k now, ÷ by 25%.. The max value of condo u can buy is $180k, hardly any choice for u unless those v old 1 bedder..
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Old 10-09-2018, 01:13 PM   #7
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assuming inflation + more cooling measures, would need about 200k savings (OA + Cash) in 4 years time to buy a new launch i guess...
- minimally i think you will need to save up 150k before you start looking (based on current market)
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Old 10-09-2018, 05:00 PM   #8
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I understand how urge or ego to buy a private property for yourselves. but not to 'pour cold water' to you. you will need to grow your capital more first.

even you able to pay for the downpayment and all sorts for stamp duties/lawyer fee etc. monthly installment will make you more difficult to live. unless 100% of your salary goes to saving and don't spend a single cent. furthermore, you intend to stay and not renting out.. sounds like your nickname "kamikaze" in the way you are doing.

wish you good luck
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Old 11-09-2018, 10:59 AM   #9
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Say $600K condo

$30,000 5% Cash
$120,000 20% Cash/CPF
$12,600 Stamp Duty Cash/CPF
$2,500 Legal Cash/CPF

Min
$30K Cash
$135,100 Cash/CPF

Assume interest @2.6% over 30yrs, Loan Amount $450K
Monthly Installment $1,800

Other substantial costs involved.... renovation and furniture. $20K-50K, say.

From above, you will need min $185K in both cash and CPF. Putting aside some emergency fund, you will need more than $200K.........So $20K + 25K is way too little.

Last edited by GenuineSeller; 11-09-2018 at 11:02 AM..
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Old 11-09-2018, 12:22 PM   #10
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I honestly dont know how you did the maths, do enlighten us.
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Old 11-09-2018, 12:52 PM   #11
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I honestly dont know how you did the maths, do enlighten us.
Whose are you referring to?

If GenuineSeller, which is clear enough, then that means you do not know property. Ask on what you do not understand if so.
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Old 11-09-2018, 02:46 PM   #12
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genuineseller is right. to buy a ec/condo you really need to have the cash + cpf to lock in the unit.
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Old 11-09-2018, 03:31 PM   #13
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Dont mean to hi-jack this thread, I am around the mid 20s too, in a similar situation. Only that i have my finances ready to commit for a purchase.

My opinion is that you need AT LEAST, for below 1m property (0.28 x Purchase Price - 5400) ready in either cash or CPF, Around 250k - 300k to be safe for a decent size 1m condo, notwithstanding, having spare expenses for at least 6 - 12 months before you commit a purchase. Additional 3% is for buyer stamp duty. Assuming you're a first time property owner. SO 0.25+0.03

More over the TDSR to apply loan is getting tougher, so ensure you have an income to get the loan of 750k (assuming 1m ppty purchase)

Last edited by bettersaint; 11-09-2018 at 03:33 PM..
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Old 11-09-2018, 03:46 PM   #14
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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.
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Last edited by Pokémon; 11-09-2018 at 03:49 PM..
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Old 11-09-2018, 05:35 PM   #15
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Say $600K condo

$30,000 5% Cash
$120,000 20% Cash/CPF
$12,600 Stamp Duty Cash/CPF
$2,500 Legal Cash/CPF

Min
$30K Cash
$135,100 Cash/CPF

Assume interest @2.6% over 30yrs, Loan Amount $450K
Monthly Installment $1,800

Other substantial costs involved.... renovation and furniture. $20K-50K, say.

From above, you will need min $185K in both cash and CPF. Putting aside some emergency fund, you will need more than $200K.........So $20K + 25K is way too little.
have to factor in maintenance fee as well.. or even sinking fund (depending on age of condo) and you need to buffer at least 20k (cash or cpf) in case you change jobs.

payment for new launch is slightly different though
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