Hi all,
Can i check with you guys,
eg. with a loan of 350K with HDB. The purchase price of the flat is 530K.
Total my cpf & my co-applicant CPF add up to 100K(on the 4th yr).
[530K - 350K - 100K = 80K]
Taking HDB 2.6% interest rate into consideration.
Location to purchase, Bukit merah TBH.
a). Does it mean we need to top up the 80K with cash?
b). Is it adviceable to purchase the unit with loans at 350K n cpf 100K?
c). Is it worth selling off the unit after 5 yr?
Urgently need some help.. Thanks
Did you include the other misc fees? The stamp duty, conveyancing fee and caveat registration fee should add up to around $11000. This is payable when you put in your deposit.
What do you mean by it adds up to 100K on the 4th year? Do you already have 100K or are you projecting that you should have 100K in CPF in 4 years time?
Any amount not covered by the loan would need to be covered either by cash or CPF upon collection of your keys. If you don't have enough, you forfeit your deposit and the flat.
You did not state your salary but I would assume a combined income of 3.5k considering your loan amount of 350K. Frankly it looks like a stretch to buy a 530K house with a 3.5K income, but you didn't give enough details. For instance if one of you hasn't started working yet and you expect to earn a combined income of 5-6k within 2 years.
If anyone here can accurately predict the property market here in 5 years time, then he'd be living in sentosa cove and not coming to this forum. That said you need to have more than one property to make money out of property. Or where would you stay after selling? If you can sell high, it would imply the rents are high as well and any alternative property would also be similarly expensive. That said I realistically expect some correction in the property market but doubt it will be much unless interest rates rise which probably won't happen in 5 years, but as a first time buying looking for the first home, it is a bit difficult to time the market because there are other considerations like starting a family.