Getting a condo. Objective advice appreciated

[leo_llw]

The way i get around ABSD is to negotiate for a longer OTP period. If the seller is not in a hurry to sell, negotiate for a 3 -6 month OTP, while u look for a buyer for your current place. As long as Sell OTP exercise earlier than Buy OTP exercise date, then you are good on ABSD.

Icic. I also concerned about space with a growing family. Personally I don't mind HDB (get a jumbo or mansionette) but the misus is a sucker for nice views and condo facilities. ABSD is ok because will be refunded anyway but still it's more than 100k of cash, not withstanding the 20% downpayment another 200k.

Wow you still can go for 2 holidays and ya, children expenses are massive. Looks like a lifestyle compromise is inevitable unless we earn 66k a month. Lol.

 

[Polar Bear King]

$16k
I think the grants he mean are the income grants which he won't get bah.


Personally I would choose to max out the OA to pay, the CPF rules keep flipping and flopping, when I'm eligible in 30-35 years also don't know what new government ruling come out liao

Cash on hand I can use to invest in other tangible things, stocks like Sheng Shiong have not let me down since I started 5 years ago, I know I am prudent by nature so I don't have to worry about CPF for retirement, any CPF withdrawal in future is a bonus.

@MrCoconut
Let me know what you decide in the end for reference haha, currently in same situation such as yourself

Income grant how to get?
Income keep rising wor
Unless you hope to get fired to switch to 1/3 pay job lor....is it really what people want?
If not then income grant is for the poor to start up family not for upgraders

 

[Eraval]

Income grant how to get?
Income keep rising wor
Unless you hope to get fired to switch to 1/3 pay job lor....is it really what people want?
If not then income grant is for the poor to start up family not for upgraders

The link he give lor, below 10k income got 30k grant

So if you couple work 2-3 years buying 2 bedder EC then ok la, get grant liao overall still affordable bah, your pay rise after not a problem also

 

[ralphlauren]

I think $1380 is the max u can use. However you might not get to use up to the max due to some valuation limit and withdraw limit, hence you need to top up the rest with cash. You can find out more info here https://www.areyouready.sg/YourInfoHub/Pages/News-How-much-CPF-can-I-use-for-my-house.aspx

I wish the calculation could have been simpler for me to plan my cash outlay before I commit to the property.

Oh I didn't know there's a cap! So say income is 6k, 37% contribution ie $2220 goes to CPF, of which 23% of it goes to OA ie. $1380. So ideally monthly mortgage from CPF shouldn't be more than $1380 right. Personally I feel shouldn't even be more than $1000 to saveoney inside to earn the 2.5%.

Miserly amount but still pretty good. I understand OA will not be enough for retirement and have to depend on other sources.

 

[Polar Bear King]

The link he give lor, below 10k income got 30k grant

So if you couple work 2-3 years buying 2 bedder EC then ok la, get grant liao overall still affordable bah, your pay rise after not a problem also

But he already got grant to buy his 1st HDB right?
So apply EC next won’t get grant anyway isn’t it?

Check if you are a first-timer applicant
You will be considered a first-timer applicant if you have not received any housing subsidy from HDB, which means that you must not:

Be the owner of a flat bought from HDB
Have sold a flat bought from HDB
Have taken the CPF Housing Grant to buy an EC, Design, Build and Sell Scheme (DBSS) flat or an HDB resale flat, or taken over ownership of such a flat or EC
Have transferred the ownership of a flat bought directly from HDB, or an HDB resale flat bought with a CPF Housing Grant
Have ever taken other forms of housing subsidy, such as Selective En bloc Redevelopment Scheme benefits or privatisation of HUDC estate

 

[d9_lives]

12k now. Preferably I do not wish to max out my CPF monthly OA for the mortgage. So still need at least 1 or 2k top up in cash. Which I think may be quite a stretch. Especially if the loan is till 65, I need to ensure I earn at least 8k by 65 year old to be comfortable.

With 12k combined income you want to buy a condo? Don't do it son.

 

[Polar Bear King]

With 12k combined income you want to buy a condo? Don't do it son.

One icecream girl last year asked me read her ziwi table
Her gross income from 3 jobs total $4k she’s married to a useless husband has 2 kids. She also wants to upgrade to condo wor

 

[d9_lives]

One icecream girl last year asked me read her ziwi table
Her gross income from 3 jobs total $4k she’s married to a useless husband has 2 kids. She also wants to upgrade to condo wor

She's on a suicide mission. Too many liabilities.

 

[Polar Bear King]

She's on a suicide mission. Too many liabilities.

I saved her already
I told her outright that she will never get to live in a condo from her ziwi table as the property box indicate only 4rm HDB at most

 

[shadow84]

Just curious, what is ziwi table?

 

[Clazav]

The TDSR in place has already strength buyers' financial capability. In the past it was 80%, 90%. Most recent buyers are financially strong, they will only sell provided that they earn a substantial amount.

Few years ago I'm also in this situation. About 12k inclusive of OT. In the end still go ahead and bite the bullet and things are working fine. One thing I did was to buy a dual key 3 bedder. We rent out the studio to generate some rental income to help in settling the monthly instalment.

With 12k combined income you want to buy a condo? Don't do it son.

 

[Clazav]

Living in condo is not just about living in comfort or for bragging, for the middle class in general. All are betting, more or less, on the capital appreciation of private property. If there is no capital appreciation, there is no point in buying private. Just buy an expensive car, can help you to brag conveniently since it always stick with you.

Perhaps TS should spend more time deciding which private can give you better capital appreciation, instead of whether to live in private.

Not 35 yet. Hence I am also concerned of taking the maximum tenure of 30 years. This means I have to ensure a good income for a good 30 years.

 

[Clazav]

I think it is always to max out cpf oa. Gov must be planning sth already. Probably the previous change is just a teaser to see the reaction. I don't think there is a need to be concern if you are using your OA to buy property.

What does it mean your monthly contribution hit ceiling? I personally do not think it's wise to max out your CPF because that's your retirement fund afterall.

 

[1993newbie]

Agree. I use 100% OA for my monthly Morgage and save half of my salary. No regrets. I’m only 26. Many more years to go and CPF rule might change by then.

I think it is always to max out cpf oa. Gov must be planning sth already. Probably the previous change is just a teaser to see the reaction. I don't think there is a need to be concern if you are using your OA to buy property.

 

[Clazav]

Yup.. Gov wants you to use your cpf for retirement too. If they allow you to use oa for property, you think it will let it crash? If crash, ppl in deep ****.

Agree. I use 100% OA for my monthly Morgage and save half of my salary. No regrets. I’m only 26. Many more years to go and CPF rule might change by then.

 

[d9_lives]

The TDSR in place has already strength buyers' financial capability. In the past it was 80%, 90%. Most recent buyers are financially strong, they will only sell provided that they earn a substantial amount.

Few years ago I'm also in this situation. About 12k inclusive of OT. In the end still go ahead and bite the bullet and things are working fine. One thing I did was to buy a dual key 3 bedder. We rent out the studio to generate some rental income to help in settling the monthly instalment.

What's your plan if you lose your job or there're fewer FTs to rent your unit?

 

[Polar Bear King]

Just curious, what is ziwi table?

紫微斗數 table
https://forums.hardwarezone.com.sg/eat-drink-man-woman-16/[ama]-i-am-part-4-a-6113662.html

 

[Clazav]

Just have enough saving to endure and quickly find another job, and willing to command lower pay? TDSR is 60% so in this kind of tough situation, if your asking salary is 80% of previous, ideally u still have 20% of your last pay to survive.

What's your plan if you lose your job or there're fewer FTs to rent your unit?

 

[Polar Bear King]

why are sinkies so desperate to gamble har?
monthly salary $4k also want to "dream" about condo living?
why can't we just happily live in HDB lifelong? old liao can downsize to studio flat also
gov sets up everything easy for sinkies already wor

 

[Clazav]

Studio flat very pathetic one. Many people say old liao downgrade condo to hdb, or change from 4 room hdb to 1 room etc. Or even go jb to retire. Say is like very easy because it is still very far from now.

why are sinkies so desperate to gamble har?
monthly salary $4k also want to "dream" about condo living?
why can't we just happily live in HDB lifelong? old liao can downsize to studio flat also
gov sets up everything easy for sinkies already wor