Why BBFA should hoot condo 🏡🏢

[Milodrink]

Even for couples. But now, what happens if people wait till they’re 40?

If the people waits until age 40, their maximum loan tenure drops from 30 to just 25 years (since 40 + 25 years = retirement age of 65).

This shifts the limiting factor from LTV to TDSR.

Let’s assume the same combined monthly income of about $14,098 (hopefully their income didn’t decrease).

At the four per cent floor rate over 25 years, that works out to a maximum loan of about $1.33 million – a drop of nearly $100,000 in borrowing power, versus if they had taken the loan between the ages of 30 to 35.

We also need to consider any property price growth if they wait longer: over this period, even a modest 10 per cent increase in private home prices would push that $1.9 million condo to around $2.09 million, making the gap even harder to bridge.

 

[Milodrink]

Greater Investment Potential

• Capital Appreciation: Historically, private properties like condos appreciate at a higher rate than public housing, generating higher total profit margins due to their larger overall price quantum.

• Fewer Ownership Restrictions: Unlike HDBs, condos do not restrict buyers based on income ceilings, ethnic quotas, or citizenship, making them easier to sell or buy.

• No Minimum Occupation Period (MOP): Condo owners have the flexibility to sell or rent out their entire property at any time without having to wait out the mandatory 5-year MOP required for HDBs.

 

[Milodrink]

Can't tell you why other people buy condos if it's for face or prestige.

The reason why buying condo would make sense financially.

1. HDB is constrained (you can't own 2 HDB), if your port you want 30% real estate in Singapore and you have 5m, you will have a hard time with HDB. Real estate in singapore is secure compared to other countries due to the CM, and the demand and supply being controlled from housing and land sale policy.


2. Even if you don't have 5m, if you have the potential to earn 5m in the course of your work life, due to the cost of mortgage, it's essentially free money to buy it upfront. mortgage tends to be lower than inflation rate and wage increases year on year.


3. You can remortgage and realize the value of your property. That is if you have a 2m condo, you can pledge it to get a loan of 1.x million which you can invest into secure assets like corp bonds. Generally there is a arbitrage that you can profit from. HDB can't do that.


4. en-bloc allows you to exit at a higher value and you can always return to HDB after 55 without waiting period.

 

[SaintPeachie]

Edmwers chanting for property price to crash.

 

[thenewguy]

i nv bought bto or hdb. But am thinking if i should, should the government relax the cooling measure

 

[Milodrink]

i nv bought bto or hdb. But am thinking if i should, should the government relax the cooling measure

More FT than sinkies.



FT is here to catch condo flippers.



No fear

 

[CaiPuDan]

need how much to buy the cheapest condo?

 

[thenewguy]

need how much to buy the cheapest condo?

need 1 liver and 1 kidney. Not sure what's the latest exchange rate.

 

[Lchlch]

Yes if hv cash n single, why not.
But must make sure your income can cover condo expenses.
Heard many sudden jobless, condo expenses stuck...

 

[Sforthought]

Condo ship sailed. Would love to see hdb more well sought than condo in the future.

 

[Milodrink]

Yes if hv cash n single, why not.
But must make sure your income can cover condo expenses.
Heard many sudden jobless, condo expenses stuck...

Woeat sheeet happen then jiu rent out.

Ppl thought hdb no need pay mortgage liao. Also need to pay.

3k and 2.5k pm no diff u jobless.

But once u hdb 5 years also cannot rent, this then is really stuck siaa

 

[Lchlch]

Woeat sheeet happen then jiu rent out.

Ppl thought hdb no need pay mortgage liao. Also need to pay.

3k and 2.5k pm no diff u jobless.

But once u hdb 5 years also cannot rent, this then is really stuck siaa

I may rent out a room in future when my kids married n moved out.
I don't want to use my cof money n want ro gv all my kids.

 

[Hello_Kitty]

need how much to buy the cheapest condo?

last time i bought 2-bedder at S$700,000 in 2011.

 

[charliebrown]

buy within your means

if u think of this... if u stick by this rule, u will nv get to buy any.
cos only time when it is within ur means is 5-10 years ago.

 

[CaiPuDan]

last time i bought 2-bedder at S$700,000 in 2011.

wah. wats the value now?

 

[buttbERry]

if u think of this... if u stick by this rule, u will nv get to buy any.
cos only time when it is within ur means is 5-10 years ago.

not all the case

 

[Milodrink]

if u think of this... if u stick by this rule, u will nv get to buy any.
cos only time when it is within ur means is 5-10 years ago.

Yes... Well said.


Imagine our prime years really is from 25yo to 45yo. But usually financial strong in 30s.



After that companies and banks also hiam u old liao.


Even property stay stagnant or drop also no use to u not your biz liao.

By then u want buy or flip sheet also no one want to loan u.

Bbfa no kids should need to find ways to build retirement funds.

Don't flip condo property with FT is flip what sia.