Housing Dilemma

[Sinkie]

We have both put our names on the contract having been headhunted already, so we are not too worried about our future income and jobs. Right now, let's focus on the bto part, thing is, we really want to book the flat asap. We figured from our current low income, the 10% downpayment can be set off by the grant if we get them all, ie. 40K AHG.

We do not really expect a 4 room bto to cost much more than that tbh, unless we are talking about duxton location.

10% downpayment can use grant?

TS, why not both of u work as security guard first for an income and then apply bto first?

 

[kyteo79]

[above emphasis mine]

that's exactly what we want to do too. any good recommendations for this particular strategy?

It's also precisely why we want to go for an EC, as we heard that EC appreciates the most in value on average after 10 years?

Hallo kid ... dun follow the historical data ...

it looks on paper yes it is but do you know how many EC got profits and which never hit profits ?

then might as well say buy ivory heights comfirm end block and u hit 2 million when you buy at maybe say 1.2m cos historical data say all HUDC enblock very good numbers...

you dun see news you read and digest and understand news. news are made to make people think to buy!!

 

[kyteo79]

Same here! I also failed 2 years liao. Sianz.

Anw, TS dun need to think about EC. Banks access loan amount at the point of your purchase for EC, not when u collect keys wan hor... Pls dun fantasise about EC too much, unless u have maybe about 50K cash + 150K CPF now.

enough meh ?

cash you need more cos stamp duties and legal ?

 

[SecretAgent]

10% downpayment can use grant?

TS, why not both of u work as security guard first for an income and then apply bto first?

Oh.. The 10% dp applicable if taking loan from hdb.. 20% dp if from banks.

No.. GRANTS cannot be use for dp.. Only CPF or cold hard cash..

Grants can only use to offset the selling price. Then the rest have to be paid by loans, cpf or $$$..

Sent from ..... using GAGT

 

[handwritten past]

Reading this thread makes me think that the govt should make young adults go for financial planning courses

Your projected income of 9 to 11k per mth, pluck from where one?

 

[vinz]

TS is not really considered a youngster in age sense.

But many youngster are trying to beat the system and get as much grant as they can by applying for BTO (AHG and SHG grant for low income) even when they have yet to finish their education.

Government should seriously look into this.
Wonder how many drop out few years into the building of BTO phrase, and forfeit their deposits etc..

 

[Sinkie]

TS is not really considered a youngster in age sense.

But many youngster are trying to beat the system and get as much grant as they can by applying for BTO (AHG and SHG grant for low income) even when they have yet to finish their education.

Government should seriously look into this.
Wonder how many drop out few years into the building of BTO phrase, and forfeit their deposits etc..

Bto is like a toto lucky draw. A bto is all young peoples first windfall la

 

[handwritten past]

TS is not really considered a youngster in age sense.

But many youngster are trying to beat the system and get as much grant as they can by applying for BTO (AHG and SHG grant for low income) even when they have yet to finish their education.

Government should seriously look into this.
Wonder how many drop out few years into the building of BTO phrase, and forfeit their deposits etc..

I think the govt's message is very clear, pls do proper planning and spend within your means. If cannot afford, hold your bullets first

Besides couples forfeiting deposits is of no loss to the govt, but big losses for the couples, which make ppl think twice

 

[Gixxerfied]

10% downpayment can use grant?

TS, why not both of u work as security guard first for an income and then apply bto first?

Oh.. The 10% dp applicable if taking loan from hdb.. 20% dp if from banks.

No.. GRANTS cannot be use for dp.. Only CPF or cold hard cash..

Grants can only use to offset the selling price. Then the rest have to be paid by loans, cpf or $$$..

Sent from ..... using GAGT

HDB downpayment can use AHG/SHG to pay as it's considered towards capital repayment.

However leftover grant cannot be use to make payment for stamp duties and misc fees..Those must be from earned CPF O/A monies..

Grants once approved would be reimburse into CPf O/A account..

If bank loan then is 20% DP of which 5% must be cash..

 

[SecretAgent]

HDB downpayment can use AHG/SHG to pay as it's considered towards capital repayment.

However leftover grant cannot be use to make payment for stamp duties and misc fees..Those must be from earned CPF O/A monies..

Grants once approved would be reimburse into CPf O/A account..

If bank loan then is 20% DP of which 5% must be cash..

Hur? Ahg/shg can use for down-payment? Say if one gets 60k grant, 10% for a bto 4rm ~400k and 40k dp... Use ahg/shg for down-payment the remaining 20k of the grant goes where? Into nothingness or into owns cpf?

Sent from ..... using GAGT

 

[justforipad]

stamp duty ?
reno
furnitures and wares
GF big shoe wardrobe (if any)

for the other misc expenses like reno, furniture etc, well, its gonna only be an issue about 5-7 years down the road, and we will be going for cheapo stuff since our intention is to buy the bto and dump after MOP. Because after MOP, need to source for good location apartments near to primary schools for our kids ah back up plan for kids is to use one of our parents' unit near nayang pri, but surely we do not want our young kids(at that time) to make return journeys of an hour or two daily just to get to school.

Reading this thread makes me think that the govt should make young adults go for financial planning courses

Your projected income of 9 to 11k per mth, pluck from where one?

From our contract of employment and industry practice of min 2-3 months bonus & 5% pay increment yearly even in this bad economy. Plus we are joining up with really reputable firms so should be fine!

HDB downpayment can use AHG/SHG to pay as it's considered towards capital repayment.

However leftover grant cannot be use to make payment for stamp duties and misc fees..Those must be from earned CPF O/A monies..

Grants once approved would be reimburse into CPf O/A account..

If bank loan then is 20% DP of which 5% must be cash..

Hur? Ahg/shg can use for down-payment? Say if one gets 60k grant, 10% for a bto 4rm ~400k and 40k dp... Use ahg/shg for down-payment the remaining 20k of the grant goes where? Into nothingness or into owns cpf?

Sent from ..... using GAGT

iirc stamp duty and misc fees can only be paid from cash? Leftover grant monies will be used to offset the purchase price?

TS already said they signed contract. Hahha. Should be secured $7 combined.

But frankly, ec isn't quite possible unless u got a deep pocket. I've been working 3 years. Combined income 9k. Bank loan can give me 600k, Plus 3 years worth of cpf, and I still have issues with the downpayment of 20%. The stamp duty and legal fees all add up quite a lot.

For hdb bto grand, you mentioned that you have an income. Is it income taxable? Do u have notice of assessment? Else what r u going to show hdb?

@Chong1111, that's exactly my issue too. 20% downpayment with min 5% cash payment for EC is the biggest issue. Should I go for EC, most likely going only sometime in 2020-2021 with those almost ready for vacant possession. By then should have min 50K in cash (after liquidating my stock holdings) and perhaps 80k each in our CPFs after working for 3 years. However, appears 200k not enough for 20% unless going only for those units under that. Hopefully at that time still can qualify for the 30k EC grants. From 2018 onwards, we will have a take home pay of 7+k combined after taking into account CPF deductions but not income tax.

And yes, my entity has a notice of assessment issued by IRAS. Every year I also got file my tax returns

 

[Gixxerfied]

Hur? Ahg/shg can use for down-payment? Say if one gets 60k grant, 10% for a bto 4rm ~400k and 40k dp... Use ahg/shg for down-payment the remaining 20k of the grant goes where? Into nothingness or into owns cpf?

Sent from ..... using GAGT

Once it's approve right let say for an amount of $60k, it would be credited 50/50 if both applicants is citizen or 100% to citizen if it's a SC/PR combo..Downpayment of let say $40k, left $20k right, this will remain inside your O/A until key collection which is the time they wipe out..

 

[Gixxerfied]

for the other misc expenses like reno, furniture etc, well, its gonna only be an issue about 5-7 years down the road, and we will be going for cheapo stuff since our intention is to buy the bto and dump after MOP. Because after MOP, need to source for good location apartments near to primary schools for our kids ah back up plan for kids is to use one of our parents' unit near nayang pri, but surely we do not want our young kids(at that time) to make return journeys of an hour or two daily just to get to school.



From our contract of employment and industry practice of min 2-3 months bonus & 5% pay increment yearly even in this bad economy. Plus we are joining up with really reputable firms so should be fine!





iirc stamp duty and misc fees can only be paid from cash? Leftover grant monies will be used to offset the purchase price?



@Chong1111, that's exactly my issue too. 20% downpayment with min 5% cash payment for EC is the biggest issue. Should I go for EC, most likely going only sometime in 2020-2021 with those almost ready for vacant possession. By then should have min 50K in cash (after liquidating my stock holdings) and perhaps 80k each in our CPFs after working for 3 years. However, appears 200k not enough for 20% unless going only for those units under that. Hopefully at that time still can qualify for the 30k EC grants. From 2018 onwards, we will have a take home pay of 7+k combined after taking into account CPF deductions but not income tax.

And yes, my entity has a notice of assessment issued by IRAS. Every year I also got file my tax returns

Stamp duties either from earned o/a monies(Employment) or in cash if not enough..Grant can only be use for capital repayment..

Dont talk about downpayment or grant first for EC..Your combined income can take hw much loan?

HDB Max Loan calculator estimate $661.2k for a combined income of $10k..Monthly repayment of $3k for 25 years..

A combined income of $10k only gives u $2300 O/A contribution..

 

[SecretAgent]

Once it's approve right let say for an amount of $60k, it would be credited 50/50 if both applicants is citizen or 100% to citizen if it's a SC/PR combo..Downpayment of let say $40k, left $20k right, this will remain inside your O/A until key collection which is the time they wipe out..

I see.. Ts, take this one as the answer for you. I got enough cpf for dp and my case is different too then.

Sent from ..... using GAGT

 

[haihaiahjie]

TS, even if u 2 earn more than 12K and maxed out the CPF cap, only around $2600 contribution to OA account every month. How u get 80K each in CPF after 3 years of working?



If u got back door to zeng CPF, let us know!

 

[handwritten past]

TS, even if u 2 earn more than 12K and maxed out the CPF cap, only around $2600 contribution to OA account every month. How u get 80K each in CPF after 3 years of working?



If u got back door to zeng CPF, let us know!

I think he took the 16% contributed by the employer into consideration

But TS, do note that HDB only allows you to use 23% of your cpf contribution per mth to pay for your loan, anything excess is use cash

My advice is, dont be too optimistic, plan with some buffer, there are a lot of hidden cost here and there

Obviously, now is not the time, wait until u hv an income then apply for your house

 

[Chong1111]

@Chong1111, that's exactly my issue too. 20% downpayment with min 5% cash payment for EC is the biggest issue. Should I go for EC, most likely going only sometime in 2020-2021 with those almost ready for vacant possession. By then should have min 50K in cash (after liquidating my stock holdings) and perhaps 80k each in our CPFs after working for 3 years. However, appears 200k not enough for 20% unless going only for those units under that. Hopefully at that time still can qualify for the 30k EC grants. From 2018 onwards, we will have a take home pay of 7+k combined after taking into account CPF deductions but not income tax.

And yes, my entity has a notice of assessment issued by IRAS. Every year I also got file my tax returns

Don't meant to be a wet blanket. But I really don't understand how you calculate. U mentioned starting pay is 7k combined. Projected 10k by 2021 right.

Let's assume average 9k is your monthly combined.
CPF OA = 9000*0.23*15months (plus bonus) * 3 years = 93150
How u come up with 80k cpf each??

200k downpayment is enough for a small 3bdr. But to have 200k by then means u need a lot of cold hard cash. My partner and I saved diligently that's why dare to look at ec now.

Plus if u r going for house nearing TOP, you might not get your choice units. The current batch of ec launched this year will TOP 2020. With less land sales for ec, it's hard to say if you will still have any left to buy if u wait that long.
Also it's gg be much more expensive nearer TOP. And if you buying for investment, going to flip after 5 years mop then it's not worth. You buying at higher price than other residents who are selling , won't earn much.

 

[Silvialite]

Combined 9k monthly, excluding bonus here. Can only think of 4br BTO.

 

[Pokémon]

Combined 9k monthly, excluding bonus here. Can only think of 4br BTO.

With your combined income, you can borrow $1m from bank, provided no debt.

Well, the most crucial part is, if you could pay the 20% downpayment of the EC, then it is not too far away.

 

[Silvialite]

With your combined income, you can borrow $1m from bank, provided no debt.

Well, the most crucial part is, if you could pay the 20% downpayment of the EC, then it is not too far away.

Yes, no debt. But like TS, would like to get a subsidised flat first. Not eligible for any grants though coz choosing matured estate and have been working for a couple of years already.