Buying Condo advice

[Perisher]

Hi people,
I'm new to property investment and have been reading the threads here but not many are about condos.

I can comfortably afford $1.8k/mth in loan repayment as I have no other loan debt at all. Assuming my salary is $5.5k.
$1.8k is below 60% of my salary to fulfill the TDSR requirement.
Is that enough for a condo that cost $700k?
I can afford the downpayment of 20% using a combination of $35000 cash and $105000 CPF. Anything to take note here?
Is the following article still accurate?
http://sgyounginvestment.blogspot.sg/2014/02/how-much-money-do-you-need-to-own.html
Should I include the Reno cost and furniture etc...?

I'm looking at 1BR condo for investment purposes.

Is there any condo within my budget to recommend?
I have been looking at High Park Residences but not sure what other condos are recommended.
These are the others, any comments?
Botanique at Bartley
The Santorini
Sims Urban Oasis
North Park Residences
Grandview Suites@geylang(freehold)
One Suites@geylang(freehold)
Pavilion Square@geylang(freehold)
Suites@Topaz(Freehold)
Westwood Residences
Symphony suites
Cardiff Residence
Parc Elegance

I'm single and don't mind holding the condo for 5-8 years if it takes that long to sell at a good price. I have the power to hold double the length if need be but preferably not to as I still wanna buy a HDB in the future.

Is there anything to take note of if I'm buying with a friend?
Feel free to correct anything or if additional information is needed. Thank for any advice.

 

[Perisher]

Hi, you're definitely eligible to buy.
just decide on the right property that's all.

What would you recommend? Should I try for something higher?

 

[sigeena]

If you intend to buy a hdb in the future, how old are you currently?

HDB is available to Singapore Citizens who are singles from 35 years old on.

 

[Paladine_Solamnia]

Hi there,

Have you factored in the miscellaneous $$$ such as Stamp Duty i.e. 3% -$5400, legal fees for your mortgage loan @ about $3K, valuation report of the property @ about $500 which is demanded by the bank.
Your mortgage loan you take is based on less than 2% interest rate ? How about if you raise the interest rate to 4.5% ? Can you afford the monthly mortgage payment now ? MAS says 3.5% though I think on a conservative note, 4.5% interest to see how much is the mortgage loan will be a better gauge. Before deciding and committing to the OTP, check with a bank to get the IPA before you walk into the show-flat. My understanding is that 20% down-payment is no longer an issue these days with a lot of high income earners. It's the aftermath that kills.

On top of that, after your TOP, there are many hidden costs. For instance, the maintenance fee is about $200++ per month but typically you pay it in 3 months block like most condos. Typically, most condos give you well-furnished kitchen which they usually throw in hob and hood, with oven, toilet fittings, etc. Beyond that, you still need to fork out the rest of the basic stuff to keep the apartment fully furnished. Estimated cost might be in the range of $10K to $20K if assuming you don't go for high-end stuff.

Next is you need to ask yourself whether are you staying there or rent out ? If renting out, property tax comes into the picture i.e. Annual Value (AV) / Value of property. Based on my calculations, assuming if AV is $36000 based on $3K rental / mth, you essentially have to fork out about $3K++ per year in annual property tax.

You also need to think about income tax as well since rental income is taxable. My take is that rental is going down-hill. Probably need to put aside at least 6 months to 1 year of out-of-pocket cash as a buffer to sustain in the event nobody rents the property.

 

[Perisher]

Hi there,

Have you factored in the miscellaneous $$$ such as Stamp Duty i.e. 3% -$5400, legal fees for your mortgage loan @ about $3K, valuation report of the property @ about $500 which is demanded by the bank.
Your mortgage loan you take is based on less than 2% interest rate ? How about if you raise the interest rate to 4.5% ? Can you afford the monthly mortgage payment now ? MAS says 3.5% though I think on a conservative note, 4.5% interest to see how much is the mortgage loan will be a better gauge. Before deciding and committing to the OTP, check with a bank to get the IPA before you walk into the show-flat. My understanding is that 20% down-payment is no longer an issue these days with a lot of high income earners. It's the aftermath that kills.

On top of that, after your TOP, there are many hidden costs. For instance, the maintenance fee is about $200++ per month but typically you pay it in 3 months block like most condos. Typically, most condos give you well-furnished kitchen which they usually throw in hob and hood, with oven, toilet fittings, etc. Beyond that, you still need to fork out the rest of the basic stuff to keep the apartment fully furnished. Estimated cost might be in the range of $10K to $20K if assuming you don't go for high-end stuff.

Next is you need to ask yourself whether are you staying there or rent out ? If renting out, property tax comes into the picture i.e. Annual Value (AV) / Value of property. Based on my calculations, assuming if AV is $36000 based on $3K rental / mth, you essentially have to fork out about $3K++ per year in annual property tax.

You also need to think about income tax as well since rental income is taxable. My take is that rental is going down-hill. Probably need to put aside at least 6 months to 1 year of out-of-pocket cash as a buffer to sustain in the event nobody rents the property.

Thank, that's just what I need to know. Will do the math crunch again. You have been very helpful.

 

[Perisher]

If you intend to buy a hdb in the future, how old are you currently?

HDB is available to Singapore Citizens who are singles from 35 years old on.

I'm about 30. Looking to sell about 35-38. If need be, I can hold longer. I do know about being eligible to buy HDB at 35, but that's pretty far away and I have no doubt I can afford it whether I buy private property or not... Just whether I wanna dispose of the private property. Currently staying with parents so it's not a concern to move or not. Thank for replying.

Would you recommend I buy a HDB instead if I'm 35 now?

 

[ecobuyer]

I'm about 30. Looking to sell about 35-38. If need be, I can hold longer. I do know about being eligible to buy HDB at 35, but that's pretty far away and I have no doubt I can afford it whether I buy private property or not... Just whether I wanna dispose of the private property. Currently staying with parents so it's not a concern to move or not. Thank for replying.

Would you recommend I buy a HDB instead if I'm 35 now?

Hdb is more value for money

It is better to buy a hdb and invest the remaining funds

Once u commit to a private condo, u wld not be able to buy a hdb

Personally i wld not go for high park residences especially the smaller units

The 1 room, 1 plus study are squeezed in 1 block with as many as 18 units in one floor

The corridor seems narrow

Could be challenging to rent out given the large number of condos ecs in the area

 

[sigeena]

I'm about 30. Looking to sell about 35-38. If need be, I can hold longer. I do know about being eligible to buy HDB at 35, but that's pretty far away and I have no doubt I can afford it whether I buy private property or not... Just whether I wanna dispose of the private property. Currently staying with parents so it's not a concern to move or not. Thank for replying.

Would you recommend I buy a HDB instead if I'm 35 now?

I'm of the opinion that you should consider buying private only after having bought HDB. A 4rm HDB resale runs for about 400-550k. I got a 4rm resale at 370k. So that gives you an idea of the affordability. If you're aggresively saving currently till 35, you can probably afford and pay everything within the 1st 10 years, based on your monthly instalment of 1.8k

As you also mentioned, you're staying with parents now. Once you get the 4rm, they can also move in and stay with you (if they are 3rm or smaller currently), and rent out their current unit.

You can always buy private after a HDB, provided you meet the 5 years Minimum Occupancy Period (MOP). And you can then use the private as investment, without any time horizon.

If you wish to buy HDB after private, you'll need to sell off your private and meet 30 months cool-down as well. Thus if you currently own a private, and wish to purchase a HDB by 35, you'll need to sell off your private when you're about 32 years old.

 

[Perisher]

I'm of the opinion that you should consider buying private only after having bought HDB. A 4rm HDB resale runs for about 400-550k. I got a 4rm resale at 370k. So that gives you an idea of the affordability. If you're aggresively saving currently till 35, you can probably afford and pay everything within the 1st 10 years, based on your monthly instalment of 1.8k

As you also mentioned, you're staying with parents now. Once you get the 4rm, they can also move in and stay with you (if they are 3rm or smaller currently), and rent out their current unit.

You can always buy private after a HDB, provided you meet the 5 years Minimum Occupancy Period (MOP). And you can then use the private as investment, without any time horizon.

If you wish to buy HDB after private, you'll need to sell off your private and meet 30 months cool-down as well. Thus if you currently own a private, and wish to purchase a HDB by 35, you'll need to sell off your private when you're about 32 years old.

That's very well thought out. Thank a lot. That really make me think twice.

But I would only be able to buy HDB resale in 5 years time and dunno if HDB would remain as 400-550k for a 4rm, perhaps by then 650k is the norm...

 

[twinkleblue]

if you have a private property before and you wanna buy hdb, you can buy it in the resale market. the 30 month is only applicable if you are going for subsidized flats or taking grant or hdb loan.

I personally don't see HDB as a sure win investment, and you need to wait for 5 years MOP to be able to do anything, rent out or sell. 5 years is a long time to wait for you to turn to 35 to buy HDB and "grow" the money.

If you choose the private properties wisely, there will be capital gain at the very least if you can hold on to it for 5-8 years as you mention. If times are good, rent it out and can look to sell with tenancy. Or if you can afford a better lifestyle and move out on your own. Choose something that you can move into if your situation changes (got married or decided to live on your own). By the time you want to buy private property in 5 years, the prices will have gone up another notch.

 

[sigeena]

if you have a private property before and you wanna buy hdb, you can buy it in the resale market. the 30 month is only applicable if you are going for subsidized flats or taking grant or hdb loan.

I don't think this is correct.

If you currently own a private property, you cannot buy HDB, be it BTO or Resale.

I did an eligibility check and it says the following.

Resale Flat

you may buy a resale flat from the open market (without the CPF Housing Grant). Your eligibility will be assessed in detail once you have submitted your actual application.

Note: You will have to dispose of your interest in the private residential property within six months of your resale flat purchase.

 

[scarletwitch]

I don't think this is correct.

If you currently own a private property, you cannot buy HDB, be it BTO or Resale.

I did an eligibility check and it says the following.

he can only buy resale with bank loan if he choose to buy private now and hdb later.

The condition is he must sell the private within six months of his hdb sale completion

 

[The_Davis]

he can only buy resale with bank loan if he choose to buy private now and hdb later.

The condition is he must sell the private within six months of his hdb sale completion

i always thought the 30 months would hold true first?

so which is correct?

 

[Perisher]

i always thought the 30 months would hold true first?

so which is correct?

As far as I understand, the 30mth thing relates to grants or HDB loan? While the 6mth is for people who don't need any grants or HDB loan?

 

[scarletwitch]

i always thought the 30 months would hold true first?

so which is correct?

30 months is only for new flats such as bto, sobf, direct ec from developer.

Or resale with grant / hdb loan

If not how private property owner downgrade?

 

[Perisher]

Thank for all the sharing. Just wondering how you guys pick which property is worthy of at least a deeper look leading up to an investment?

I look at price psf and location. As most condo are not built when one buys it, for the quality I look at developer record. I also look at the rent one is able to get around that area. Anything else I should take particular note in?

Commonwealth tower seems interesting despite it's shoebox size. Any opinion?

 

[xiao_cai7]

Hi people,
I'm new to property investment and have been reading the threads here but not many are about condos.

I can comfortably afford $1.8k/mth in loan repayment as I have no other loan debt at all. Assuming my salary is $5.5k.
$1.8k is below 60% of my salary to fulfill the TDSR requirement.
Is that enough for a condo that cost $700k?
I can afford the downpayment of 20% using a combination of $35000 cash and $105000 CPF. Anything to take note here?
Is the following article still accurate?
http://sgyounginvestment.blogspot.sg/2014/02/how-much-money-do-you-need-to-own.html
Should I include the Reno cost and furniture etc...?

I'm looking at 1BR condo for investment purposes.

Is there any condo within my budget to recommend?
I have been looking at High Park Residences but not sure what other condos are recommended.
These are the others, any comments?
Botanique at Bartley
The Santorini
Sims Urban Oasis
North Park Residences
Grandview Suites@geylang(freehold)
One Suites@geylang(freehold)
Pavilion Square@geylang(freehold)
Suites@Topaz(Freehold)
Westwood Residences
Symphony suites
Cardiff Residence
Parc Elegance

I'm single and don't mind holding the condo for 5-8 years if it takes that long to sell at a good price. I have the power to hold double the length if need be but preferably not to as I still wanna buy a HDB in the future.

Is there anything to take note of if I'm buying with a friend?
Feel free to correct anything or if additional information is needed. Thank for any advice.

I am selling my 1BR condo already completed selling lesser than 700k. PM for more details.

 

[twinkleblue]

Thank for all the sharing. Just wondering how you guys pick which property is worthy of at least a deeper look leading up to an investment?

I look at price psf and location. As most condo are not built when one buys it, for the quality I look at developer record. I also look at the rent one is able to get around that area. Anything else I should take particular note in?

Commonwealth tower seems interesting despite it's shoebox size. Any opinion?

I also look at the URA development plans for the area. e.g. more potential rental around business parks area, express train station will bring more potential to properties in jurong etc

I also tend not to buy units facing the main road or expressway as it's noisier. Most tenants are not home in the day but they will still hiam the noise.

Centralized location is always good when you are aiming for small units. Single expat (your target tenant profile) usually like to stay nearer town. Their budget may not be high enough for Novena, Newton, East Coast so you see more and more going for areas like Potong Pasir, Balestier, Geylang (the odd and large no lorongs), Paya Lebar etc.

 

[Sinkie]

Hi people,
I'm new to property investment and have been reading the threads here but not many are about condos.

I can comfortably afford $1.8k/mth in loan repayment as I have no other loan debt at all. Assuming my salary is $5.5k.
$1.8k is below 60% of my salary to fulfill the TDSR requirement.
Is that enough for a condo that cost $700k?
I can afford the downpayment of 20% using a combination of $35000 cash and $105000 CPF. Anything to take note here?
Is the following article still accurate?
http://sgyounginvestment.blogspot.sg/2014/02/how-much-money-do-you-need-to-own.html
Should I include the Reno cost and furniture etc...?

I'm looking at 1BR condo for investment purposes.

Is there any condo within my budget to recommend?
I have been looking at High Park Residences but not sure what other condos are recommended.
These are the others, any comments?
Botanique at Bartley
The Santorini
Sims Urban Oasis
North Park Residences
Grandview Suites@geylang(freehold)
One Suites@geylang(freehold)
Pavilion Square@geylang(freehold)
Suites@Topaz(Freehold)
Westwood Residences
Symphony suites
Cardiff Residence
Parc Elegance

I'm single and don't mind holding the condo for 5-8 years if it takes that long to sell at a good price. I have the power to hold double the length if need be but preferably not to as I still wanna buy a HDB in the future.

Is there anything to take note of if I'm buying with a friend?
Feel free to correct anything or if additional information is needed. Thank for any advice.

Wah mod perisher so rich!!

 

[froggy81]

if u r buying for investment, u should consider more on resale where u can earn the rental immediately if u can rent it out.

for buc, u need to wait till completion which will be years later.

something to consider.