Buying a condo before 30

[Passerboy]

Any idea where this 3BR condo is located roughly, for reference?
So far our capital gain on our 800K condo bought in 2015 is only about 100K+, but we've been collecting steady rent (average $2.7K) with no gaps.
Capital gain on our 2nd 1+1 condo bought in late 2018 is about 80K, also no gaps in rent (average $3.3K).

Just a random check, 2009 southbank and city lights (near lavender MRT) 3 bedroom units were launched below 800k at 5xx-6xxpsf

 

[toolbox03]

Any idea where this 3BR condo is located roughly, for reference?
So far our capital gain on our 800K condo bought in 2015 is only about 100K+, but we've been collecting steady rent (average $2.7K) with no gaps.
Capital gain on our 2nd 1+1 condo bought in late 2018 is about 80K, also no gaps in rent (average $3.3K).

So much risk just to gain $180k

 

[lovechar]

Yeah, rented out both units. We're staying elsewhere small and cosy for low rent in the meantime.
In city fringe (Geylang area).

it's also lucky that you have no kids yet, and your wife is fine with staying in a small rental place for 5 years.
not everyone is willing to make such sacrifices.

 

[minamikaze]

So much risk just to gain $180k

180K on total capital outlay of about 700K is not that bad, I think. This also excludes the passive income from rental since day 1 of purchasing each property.
Any other better suggestions? We are even thinking of getting another property but this may be heading into foolish territory, so any better suggestions on parking our cash would be very welcome

 

[minamikaze]

it's also lucky that you have no kids yet, and your wife is fine with staying in a small rental place for 5 years.
not everyone is willing to make such sacrifices.

Without kids, all we need is frankly a desk, bed, aircon and shower since we don't spend much time at home. Saves time for cleaning also

 

[momoeagle]

180K on total capital outlay of about 700K is not that bad, I think. This also excludes the passive income from rental since day 1 of purchasing each property.
Any other better suggestions? We are even thinking of getting another property but this may be heading into foolish territory, so any better suggestions on parking our cash would be very welcome

Before making any comments, I would first like to congratulate you and your wife for doing very well financially. Much much better than the average couple of your age group.

Now, my views. What are your objectives and goals for wanting to achieve all these financial goals? Do you want to work all the way for the bank to pay off the mortgages for 30 years (28+30 = 58 years old)? Then eventually retire, with no kids, plenty and plenty of cash... to give to who? Give your nephews and nieces if any? Your siblings if any? Or more respectably, give to charity?

And also, comparatively, poor me only bought a 5-rm flat, and while it will likely depreciate over time, current paper gain is $225k over a $325k property with $140k loan still (means outlay was even lower), with more malls/facilities being built beside still. The extra cash are parked in stocks, bonds and fixed deposits/cash, generating more cash too. So $180k gain over $700k outlay is... ok ok la. Not too bad still, with ah gong still giving rebates for HDB dwellers.


Ok now for the most positive/optimistic future:
Help boost the birth rate of Singapore! That's where you could park your cash , in your kids!
-- This is coming from a person who really like kids

 

[momoeagle]

i think young first timers should always get a BTO as first property. don waste the subsidies and grants from SG government for young first timers rather than getting a private condo.

My thoughts too. Make mistakes on a cheaper property, learn from it, then apply to the next one.

 

[drummex]

So much risk just to gain $180k

what risk is there? esp when they are collecting rent too

 

[momoeagle]

what risk is there? esp when they are collecting rent too

the only risk i can think of is multiple factors combined due to a recession

1) Recession, so tenant no cash to renew
2) Owner reduced salary
3) Others also not buying because recession no cash.

The risk is probably negated if the owner has a high paying iron rice bowl.

 

[1993newbie]

And also, comparatively, poor me only bought a 5-rm flat, and while it will likely depreciate over time, current paper gain is $225k over a $325k property with $140k loan still (means outlay was even lower), with more malls/facilities being built beside still. The extra cash are parked in stocks, bonds and fixed deposits/cash, generating more cash too. So $180k gain over $700k outlay is... ok ok la. Not too bad still, with ah gong still giving rebates for HDB dwellers.

How many years Was it from your purchase time to current time that you see the $225k paper gain?

Mr Minamikazi paper gain of $80k for his 1+1 was less than 1.5years. Bought in late 2018.

 

[minamikaze]

Main goal for now is to aim for 5 figure passive income. Then can either continue working if we still like our jobs or just call it quits and enjoy life/travel around.
I guess my situation is good because my job is enjoyable and pays well, very flexible (to the point that I can comfortably hold another well paying side gig) - estimate is that we could pay off the existing 2 condos within 2 years if we want to. No wish to disturb the status quo with a kid, hahaha.

Before making any comments, I would first like to congratulate you and your wife for doing very well financially. Much much better than the average couple of your age group.

Now, my views. What are your objectives and goals for wanting to achieve all these financial goals? Do you want to work all the way for the bank to pay off the mortgages for 30 years (28+30 = 58 years old)? Then eventually retire, with no kids, plenty and plenty of cash... to give to who? Give your nephews and nieces if any? Your siblings if any? Or more respectably, give to charity?

And also, comparatively, poor me only bought a 5-rm flat, and while it will likely depreciate over time, current paper gain is $225k over a $325k property with $140k loan still (means outlay was even lower), with more malls/facilities being built beside still. The extra cash are parked in stocks, bonds and fixed deposits/cash, generating more cash too. So $180k gain over $700k outlay is... ok ok la. Not too bad still, with ah gong still giving rebates for HDB dwellers.


Ok now for the most positive/optimistic future:
Help boost the birth rate of Singapore! That's where you could park your cash , in your kids!
-- This is coming from a person who really like kids

 

[momoeagle]

How many years Was it from your purchase time to current time that you see the $225k paper gain?

Mr Minamikazi paper gain of $80k for his 1+1 was less than 1.5years. Bought in late 2018.

Hmm, about 5 years. Because just MOP. But my upfront was only $120k++, cannot remember. All from CPF.

Remaining cash yielding average 4% to 5% in various other instruments.

 

[momoeagle]

Main goal for now is to aim for 5 figure passive income. Then can either continue working if we still like our jobs or just call it quits and enjoy life/travel around.
I guess my situation is good because my job is enjoyable and pays well, very flexible (to the point that I can comfortably hold another well paying side gig) - estimate is that we could pay off the existing 2 condos within 2 years if we want to. No wish to disturb the status quo with a kid, hahaha.

That's nice. It's a dream that many wants, but not many are able to attain. Happy for you to be so near it at a young age

Personally, I like to look further ahead. What's going to happen to all those savings when you are nearing 80~90... you know what I mean... My guess is you won't be aiming for just passive, but a drawdown rate of maybe 4% p.a. in from age 65 onwards? That will last 25 years.

 

[chopra]

At the end of the day still must return the grant + Accrued interest of it , no?

this post is totally misleading and wrong.

1. u dun return grant
2. accured interest is ur own money which can b used for the next prop purchase after ur current prop sales. and it's ok not to return if it's a negative sales.

 

[1993newbie]

Correct me if I’m wrong, you bought $325k for your 5 room flat, I reckon It’s a new BTO. Paper value of $225k was seen over 8/9 years actually since you selected your flat 8/9 years back. (3/4 years construction time + 5 years MOP)
If you selected balance flat then it’s shorter timeline ba.


Mr minamikaze seen $80k paper gain from his resale 1+1 in less than 1.5 years and
$100k+ on his first prop bought in 2015.

Hmm, about 5 years. Because just MOP. But my upfront was only $120k++, cannot remember. All from CPF.

Remaining cash yielding average 4% to 5% in various other instruments.

 

[momoeagle]

Correct me if I’m wrong, you bought $325k for your 5 room flat, I reckon It’s a new BTO. Paper value of $225k was seen over 8/9 years actually since you selected your flat 8/9 years back. (3/4 years construction time + 5 years MOP)
If you selected balance flat then it’s shorter timeline ba.


Mr minamikaze seen $80k paper gain from his resale 1+1 in less than 1.5 years and
$100k+ on his first prop bought in 2015.

Was BTO.

If you want to include construction time of 3 years, then yes you are right. My bad for mis-reading your question of purchase time to now.

But then again, it was only 10% downpayment for that 3 years, a mere $32k, now that I checked back.

It didn't even occur to me it was paid though. Capital outlay was pretty low.
Just that recently I have been throwing some cash into the payment to reduce the loan quantum.

 

[kaixin18]

Any idea where this 3BR condo is located roughly, for reference?
So far our capital gain on our 800K condo bought in 2015 is only about 100K+, but we've been collecting steady rent (average $2.7K) with no gaps.
Capital gain on our 2nd 1+1 condo bought in late 2018 is about 80K, also no gaps in rent (average $3.3K).

district 17. my friend bought it towards the end of the recession and the developer went bust. Another developer came in and resumed construction but after completion had to slash prices cos cldn't sell the units.

the only risk i can think of is multiple factors combined due to a recession

1) Recession, so tenant no cash to renew
2) Owner reduced salary
3) Others also not buying because recession no cash.

The risk is probably negated if the owner has a high paying iron rice bowl.

1) there will always be a steady stream of foreign clients regardless of recession or not. if you have good agent friends they will tell you so. my friend rented out the house to a then 23 and 22 year old couple from India who worked for big social media company in SG for 2 years. Their combined salary was $30k monthly. They had no children and they brought both their own parents to SG to live with them. A year or more into the contract and they were both posted to UK office. So they had to pay some penalty to my friend.

the same agent then found a korean couple working in a bank in SG to take over the unit with increased rental rate cos recession ended. so getting a good agent is very important.

2) what do you mean? owner reduce the rent or owner's salary is reduced?

if owner reduce rent then that's no problem. if the usual rent is $5 and due to recession they reduce to $3 and the bank mortgage is $2 then the owner still make $1 every month. As long as owner does not pay mortgage from own pocket then its good enough for him.

3) That's untrue. Like it or not there are a small group of people who often make money during recession.

 

[Forever84]

Was BTO.

If you want to include construction time of 3 years, then yes you are right. My bad for mis-reading your question of purchase time to now.

But then again, it was only 10% downpayment for that 3 years, a mere $32k, now that I checked back.

It didn't even occur to me it was paid though. Capital outlay was pretty low.
Just that recently I have been throwing some cash into the payment to reduce the loan quantum.

Now interest rate so low why u pay off loan? You should store cash and invest when rates are low then pay off of it increases

 

[momoeagle]

district 17. my friend bought it towards the end of the recession and the developer went bust. Another developer came in and resumed construction but after completion had to slash prices cos cldn't sell the units.



1) there will always be a steady stream of foreign clients regardless of recession or not. if you have good agent friends they will tell you so. my friend rented out the house to a then 23 and 22 year old couple from India who worked for big social media company in SG for 2 years. Their combined salary was $30k monthly. They had no children and they brought both their own parents to SG to live with them. A year or more into the contract and they were both posted to UK office. So they had to pay some penalty to my friend.

the same agent then found a korean couple working in a bank in SG to take over the unit with increased rental rate cos recession ended. so getting a good agent is very important.

2) what do you mean? owner reduce the rent or owner's salary is reduced?

if owner reduce rent then that's no problem. if the usual rent is $5 and due to recession they reduce to $3 and the bank mortgage is $2 then the owner still make $1 every month. As long as owner does not pay mortgage from own pocket then its good enough for him.

3) That's untrue. Like it or not there are a small group of people who often make money during recession.

Ok your point is there will never be any risks for people buying property. Never ever. Always 100% risk free.

Point taken.

 

[Polar Bear King]

Ok your point is there will never be any risks for people buying property. Never ever. Always 100% risk free.

Point taken.

can I add a point?
buying any 99YL property new launch will sure save money from rental over 99yrs span geh
yar so property Is 100% safe investment so to say