Housing Dilemma

[Dyles]

Like most people here, I'll say having a buffer is important.

We never know what could happen and what if due to unseen circumstances one of you can't work? What if there are other family commitments? If you fail to take these into considerations and **** happens, it will be very tough for the other person to take up the debt alone.

Besides these, other forumers have also highlighted that you may not have enough savings for the 20% DP. I will also advise you not to budget based on "future/predicted" income as it's like playing with fire. If you can afford, you can do so with current income and the rest are buffers. Good to always have spare cash in times of need.

Anyway, these wouldn't apply if you have strong financial backing (ie parents) or had huge amt of savings or assets.

edit: On the contrary, I won't feel that there's less lands for EC as govt can always push and sell if they want. Current issue is that there's too much excess EC supply that the demand cant meet and hence slowdown in pushing out new EC sites.
(Quoting CCK example, before WV, rainforest was last EC IIRC and it's been a 4yr wait. people also assume no land in cck for EC and agents also use it as selling point.. end up all are wrong and 2015-2017 push out 3 EC sites)

 

[powerpack8]

Since you already did your math and committed to buying a house, just go for it. High risk, high return.

Bought an EC at age of 28, wiped out $140k cash and the rest CPF. Currently recharging for the reno and furniture.

 

[eriolmoon2008]

Hardly advisable... u can't get any loan without working for at least 1 year... same for credit card... TS if want to have heavy debt go ahead... rmb after all this all u left is eat grasses and work ur ass off... forget about quality of life like holiday, good food, car.. etc..

 

[justforipad]

Hardly advisable... u can't get any loan without working for at least 1 year... same for credit card... TS if want to have heavy debt go ahead... rmb after all this all u left is eat grasses and work ur ass off... forget about quality of life like holiday, good food, car.. etc..

not really too concerned with obtaining a heavy debt. We strongly believe that debt is good as long as we are able to pay off the installment.

Sticking to my original point, we are really trying to get a 4 room bto in one of the mature estates, so primarily we want to find out how HDB assesses the grants, ie, whether my self-employment can be taken into account for grants disbursement.

As for the loan calculation, I heard from a friend today, similar situation as me and got bidadari a year ago, that the loan is only disbursed when he collects the keys. For now, he is able to use the full grant for the initial 5% downpayment and the remainder 5% downpayment is paid at the time of key collection?

The only cash he has had to pay was for the stamp duty and misc. fees while saving the legal fees as he's also in the legal industry.

As for the loan portion, he didnt mention how HDB assessed his loans.

Can anyone confirm this is doable?

 

[FuzzyMuzzy]

TS looking at what size EC?

 

[Tormented Soul]

TS sounds seriously confident.

I say in that case if you really think your job is metal bowl and confirm chop increment a lot + bonus a lot then you chiong EC lor. Loan will be re-assessed when you taking keys. If loan not enough to cover then you use all your bonuses pay the remaining.

 

[eriolmoon2008]

not really too concerned with obtaining a heavy debt. We strongly believe that debt is good as long as we are able to pay off the installment.

Sticking to my original point, we are really trying to get a 4 room bto in one of the mature estates, so primarily we want to find out how HDB assesses the grants, ie, whether my self-employment can be taken into account for grants disbursement.

As for the loan calculation, I heard from a friend today, similar situation as me and got bidadari a year ago, that the loan is only disbursed when he collects the keys. For now, he is able to use the full grant for the initial 5% downpayment and the remainder 5% downpayment is paid at the time of key collection?

The only cash he has had to pay was for the stamp duty and misc. fees while saving the legal fees as he's also in the legal industry.

As for the loan portion, he didnt mention how HDB assessed his loans.

Can anyone confirm this is doable?

Can one, u just have to smoke ur way.... for self employee.... but sure got alot Q&A from HDB ppl..

The HDB housing loan will be re-assessed again when u sign to collect ur key... so to determine the changes to compensate the amount difference cause due to waiting BTO time... than u decide how much CPF to use...

 

[Nofear40]

Hi, first, thank you in advance for the helpful comments/suggestions that you may provide.

About us


I am 28 years old, and she's 27 years old. We are aiming to get married before she turns 30. In other words, within the next 3 years or so. We are open to staying at one of our parents' place for a year to a year and a half after marriage at most.

Issue 1 - How are we assessed for grants?

We are currently both full time students, save to say, we have no real income nor any savings in our CPF accounts. Any purchase will be largely dependent on grants, if we are eligible in the first place. However, we are not that sure whether we are even eligible for the grants, AHG, SHG and whatnots.

We have never had full time employment, but I've been running a photography sideline but I've never earned more than a few hundred bucks a month. I've been running this sideline through a sole proprietorship that I registered only late last year despite having engaged in the business for a couple of years.

In such circumstances, will we be eligible for any grants say for the upcoming BTO window in may/june? If not, when, if ever, will we be eligible for the grants?

Issue 2 - BTO or EC?

We will be graduating in about june/july 2018. We have secured jobs and our estimated combined income starting in October 2018 will be about $7000 take home pay. Reviewing the pay schemes of our industry, we are projected to secure a combined take home pay of $10,000 by 2021, if not earlier.

In such circumstances, should we go for a BTO, which will take a good 3-4 years to complete at the minimum, or should we go for an EC, where we have to save diligently to afford the DP sometime in 2019/2020?

Issue 3 - Financial payments

How do we secure a HDB/Bank loan, will they assess our income at the point of booking our flat, exercising the OTP or when collecting the keys? Also, when do we need to pay the remainder of the downpayment in cash, where not already offset by any grants that we might receive?

Bearing in mind, of course, that there's other miscellaneous fees that have to be paid in cash such as stamp duty, etc.

Thank you all again, for going through this rather lengthy post. Will appreciate any comments or answers that you might have

May I know which line and industry you are in?
To project a 14% p.a increment in today's economy

 

[iphone1s]

Issue 2 - BTO or EC?

We will be graduating in about june/july 2018. We have secured jobs and our estimated combined income starting in October 2018 will be about $7000 take home pay. Reviewing the pay schemes of our industry, we are projected to secure a combined take home pay of $10,000 by 2021, if not earlier.

Bearing in mind, of course, that there's other miscellaneous fees that have to be paid in cash such as stamp duty, etc

Tambi, I read your post and immediately the answer is there. you can forget about an EC.

I guess kids nowadays like to use 1/2 facts to make decisions. You take your industry and pay increment and also kudos to you to understand that there are conservancy charges incurred along the way.

But yet you are still disillusioned.

Unless, (very sad truths) you don't have parents to feed, no kids to feed, yes, still with your pay check, I don't think its even feasible to even think about EC. Perhaps you still want EC. Can. everyday take 1 slice of luncheon meat (hawker size) and slice it into 2 and share A packet of Maggie noodles with your wife.

Next, you will be asking, should I get a Audi or a Accord?

For goodness sake. I read what the senior posts here makes more sense. I think you have to think 10 times or a billion times if needed before you want to make such a commitment. EC is no joke. Why live like pauper in a castle? it will more likely be a dungeon for you when the devil could be yourself.

P.S. You have yet to include the quarrels over money in a EC with a combine pay of $7,000 and luncheon meat Maggie noodles for dinner. End up divorce and come back one big round just to ballot for BTO 2 room.

Why? Haiis.. kids nowadays...

 

[iphone1s]

not really too concerned with obtaining a heavy debt. We strongly believe that debt is good as long as we are able to pay off the installment.

Sticking to my original point, we are really trying to get a 4 room bto in one of the mature estates, so primarily we want to find out how HDB assesses the grants, ie, whether my self-employment can be taken into account for grants disbursement.

As for the loan calculation, I heard from a friend today, similar situation as me and got bidadari a year ago, that the loan is only disbursed when he collects the keys. For now, he is able to use the full grant for the initial 5% downpayment and the remainder 5% downpayment is paid at the time of key collection?

The only cash he has had to pay was for the stamp duty and misc. fees while saving the legal fees as he's also in the legal industry.

As for the loan portion, he didnt mention how HDB assessed his loans.

Can anyone confirm this is doable?

Tambi, how many times have you ballot? Do you understand the balloting system well?

How sure are you to get the unit and the desired area you want at the first time? If the balloting system is cruel to you (it had happened to some here), 3 years still never get a number. How? Have you got that plan B?

 

[iphone1s]

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 also want to zeng my cpf, put many ,000,000,000 behind.

 

[iphone1s]

[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?

Tambi, u take public housing like maciam your penny stocks. You keep emphasizing you want to get grant.

What are all these about? Business. Definition of business - To make a healthy profit over the sales of a service or an item.

When you buy the flat with all the grants. u zhun zhun 5 years later want to dispose of the unit. Firstly, u need to cough out the interest PAYABLE to yourself. I would feel anal if I need to pay interest to myself though. And you want to get cheap furniture just to live frugaly. With your initial thought of getting a EC, to me, you are lavish. Also, you mention you want to get married before 30. Wait. I am a dumb old man. Will your age stop for you?

And when your wife is pregnant, get some 3rd hand milk bottles and a cranky old cheap baby colt. Because your family don't deserve the best? only after 5 years later, you get a EC in a good location, then you will start have a life?

I guess this is putting the cart before the horse.

Reading this thread makes me jin gek sim. T_T.

I go read laksa boy better.

 

[haihaiahjie]

not really too concerned with obtaining a heavy debt. We strongly believe that debt is good as long as we are able to pay off the installment.

Sticking to my original point, we are really trying to get a 4 room bto in one of the mature estates, so primarily we want to find out how HDB assesses the grants, ie, whether my self-employment can be taken into account for grants disbursement.

As for the loan calculation, I heard from a friend today, similar situation as me and got bidadari a year ago, that the loan is only disbursed when he collects the keys. For now, he is able to use the full grant for the initial 5% downpayment and the remainder 5% downpayment is paid at the time of key collection?

The only cash he has had to pay was for the stamp duty and misc. fees while saving the legal fees as he's also in the legal industry.

As for the loan portion, he didnt mention how HDB assessed his loans.

Can anyone confirm this is doable?

Every case is different, though your case is probably really difficult to get grant. But u go ballot and try loh. At most HDB reject u only

 

[Ronaldo88]

Just do whatever u can to get ur goals achieved..just answer for ur actions..income will grow only when skills n knowledge keep upgrading..

 

[handwritten past]

Tambi, u take public housing like maciam your penny stocks. You keep emphasizing you want to get grant.

What are all these about? Business. Definition of business - To make a healthy profit over the sales of a service or an item.

When you buy the flat with all the grants. u zhun zhun 5 years later want to dispose of the unit. Firstly, u need to cough out the interest PAYABLE to yourself. I would feel anal if I need to pay interest to myself though. And you want to get cheap furniture just to live frugaly. With your initial thought of getting a EC, to me, you are lavish. Also, you mention you want to get married before 30. Wait. I am a dumb old man. Will your age stop for you?

And when your wife is pregnant, get some 3rd hand milk bottles and a cranky old cheap baby colt. Because your family don't deserve the best? only after 5 years later, you get a EC in a good location, then you will start have a life?

I guess this is putting the cart before the horse.

Reading this thread makes me jin gek sim. T_T.

I go read laksa boy better.

Disposing of a flat may be difficult as well. Many sellers now are already finding it hard to sell off their flat even at value. With the recent announcement of btos having a shorter waiting time and more sobf exercises, it will be even harder to sell off your flat.

Ie, govt is making it harder for people to try to profit from selling their house

And ts talks like selling a property is easy too

 

[iphone1s]

Disposing of a flat may be difficult as well. Many sellers now are already finding it hard to sell off their flat even at value. With the recent announcement of btos having a shorter waiting time and more sobf exercises, it will be even harder to sell off your flat.

Ie, govt is making it harder for people to try to profit from selling their house

And ts talks like selling a property is easy too

BECAUSE

"I am earning a combine income of $7,000 with an annual increment of 14%-17%. The industry my bf is in ish the legal industry. very stable"

"our $7,000 income can feed my parents, feed my kids, save up for their Harvard Ivy bridge education, can buy EC also "

"Don't say lyke that ok? we buy cheap furniture in our BTO, and flip it after 5 years later. we also want location."

"JUST BECAUSE OF THE ABOVE AND ALSO MY FREN'S EXPERIENCE, if i want to buy bidadari, I CAN BUY! if 5 yrs later I decided to sell my BTO with my cheapo furniture at a million dollars, I CAN SELL!"

YAYY!

 

[iphone1s]

Tambi, I think get a 3 room better. Will save you and your wife a lot of unwanted heartaches. And more trips and atas lifestyle to enjoy.

Peace

 

[deskoh91]

I believe you can be assessed for HLE as long as you can produce a 12 month CPF contribution from the last 15 months. There will be a reassessment before key collection anyway. The lowest tier for the grant says up to 1.5k, so you should be fine as long as you can prove both of you will have a full time job from next year to build your income before payments begin.

EC wise, many senior members have said as much. My girlfriend and I are looking at 7k combined when I start work this year, but we are picking a BTO in a non mature estate to maximise grants and maintain a buffer for my parents who have little savings.

 

[iphone1s]

I believe you can be assessed for HLE as long as you can produce a 12 month CPF contribution from the last 15 months. There will be a reassessment before key collection anyway. The lowest tier for the grant says up to 1.5k, so you should be fine as long as you can prove both of you will have a full time job from next year to build your income before payments begin.

EC wise, many senior members have said as much. My girlfriend and I are looking at 7k combined when I start work this year, but we are picking a BTO in a non mature estate to maximise grants and maintain a buffer for my parents who have little savings.

Bro, I think tonight no happy ending for you liao.

she mentioned bidadari, you mentioned non-mature estate..
she mentioned pay increment, you mention parents little savings..

I feel she's like a LV bag. You are a wise and frugal guy wanting the best for the family.

 

[Franzz]

Heng I can only buy cheapo unwanted 5-room flat at bird no lay egg de place... else kena scold by iPhone sia