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View Full Version : Dilemma, appreciate advices from gurus!


leesg123
31-10-12, 01:27
Currently wife and I stayin in pc, 4 bedrm, still under mortgage.

already purchase one mm for rental income.

am thinking to buy a 2 bedroom unit about 600sqft (budget 7xx to 8xxk, Loan 60%, 30yrs), wife and i move over. then rent out our 4bedder (est rent about $5000, mthly mortgage fully covered using combine cpf). Do-able? anything I overlooked?
dtrax
31-10-12, 01:42
family? how about x1 chewren yrs down the road?
hyenergix
31-10-12, 02:05
What if cannot rent out?
chestnut
31-10-12, 05:26
Bro, always do stats. You are doing very well for your age.

House 1 (4 bedder)
Monthly installment :
Monthly conservancy :
Expected rental income :
Worst case scenario rental income :

House 2 (mm)
Same scenario to determine worst case scenario and current scenario if any surplus.

House 3 (2 bedder)
Same as above.
If u have no kids, can even rent out the extra room based on worst case scenario.

When u have worked it out, u have a better pix and know how the money flow. Once u do it enough, it will be in the brain for future calculations.

I believe, we need to plan for the worst case scenario so we are prepared for it and if it really happens, your mind is prepared and u just need to execute. This will also allow your wife to be in it as it is a joint decision.

Based on your hypothetical scenario, one of the couple is 35 and below, you have amassed > 370k based on 800 k purchase.

So if that being the case, technically, within a few years, you can already pay up for your 2 bedder.

The worst part about earning a lot and saving a lot is finding a safe instrument to invest.

People say, property is illiquid, during bad times, diff to liquidate. But the truth of the matter, when something bad strikes, stocks will be the first to get hit. When u get hit like Lehman time and u have say 1 mil in there and stocks drop 10% in a single day, how many will liquidate? Talk is cheap. Execution is tough.

Oh, btw, do your own calculations. Please don't fill up and get us to share share. If you have really amassed the amount for downpayment on your own, you should know what to do. We all here to tcss.
CondoWE
31-10-12, 07:57
Currently wife and I stayin in pc, 4 bedrm, still under mortgage.

already purchase one mm for rental income.

am thinking to buy a 2 bedroom unit about 600sqft (budget 7xx to 8xxk, Loan 60%, 30yrs), wife and i move over. then rent out our 4bedder (est rent about $5000, mthly mortgage fully covered using combine cpf). Do-able? anything I overlooked?

Your pc under mortgage, mm also under mortgage?

If both under mortgage n the amount is big then you must think twice before you jump into 3rd property lo..:rolleyes:
chiaberry
31-10-12, 08:46
family? how about x1 chewren yrs down the road?]

Agree..

600 sq ft is squeezy if you have a child. Unless you move back into the 4 bedder by then.

If in your worse case scenario (eg one partner not working), you can still afford to service the mortgages, then you can consider your plan workable.
kane
31-10-12, 08:55
When you move back into a 4 bed. Likely to spend a chunk of money on reno. This doesn' take into account the reno you's spend on the 2 bed that you plan to move into. I am inclined to say stay put.
carbuncle
31-10-12, 09:15
Large 4bed units are not easy to rent out, unless your location and amenities are good.
Laguna
31-10-12, 09:20
Chestnut has given u quite a few pointers.
My :2cents:
1. what were the reasons prompted u to buy the 4 bedders? it is never easy to move from a big one to a small one.
2. If u have $100 investable fund, how much is in properties and other asset class? U need to balance.

My word is be PRUDENT. There is no such thing that SURE WIN or SURE UP in any investment.
Komo
31-10-12, 09:27
sell 4 bedder... buy 2 x 2 bedder:D
Secretariat
31-10-12, 10:00
"ALL IN"...:D

But seriously, anyone who needs to ask the forum if he should buy, then shouldn't buy it.
chestnut
31-10-12, 11:02
"ALL IN"...:D

But seriously, anyone who needs to ask the forum if he should buy, then shouldn't buy it.

Bro, I think he already knows what to do but using this forum to uncover more things. Like any hidden corners, any area left out.

A person who has 2 properties, would roughly have gone thru this process already. I brought up the process just for the benefit of the others.

Hahahahaha

:D
2824
31-10-12, 13:30
My opinion,

Keep the 4 bedder (it is rare, as most current developements only have 1 stack at most) but rent it out. Then rent a 2 bedder for own stay. Each month shd get at least a couple of thousand extra (assuming similar location). Can make both leases for the same period. Can move back to the 4 bedder if needed after the lease.
proper-t
31-10-12, 13:43
Don't forget to factor in ABSD of 3% upfront since you already own 2 properties...
leftfield
31-10-12, 14:01
Don't forget to factor in ABSD of 3% upfront since you already own 2 properties...

If 2nd and 3rd property under the respective individual names of the husband and wife each, then no need. :D
cavaliver
31-10-12, 14:02
Currently wife and I stayin in pc, 4 bedrm, still under mortgage.

already purchase one mm for rental income.

am thinking to buy a 2 bedroom unit about 600sqft (budget 7xx to 8xxk, Loan 60%, 30yrs), wife and i move over. then rent out our 4bedder (est rent about $5000, mthly mortgage fully covered using combine cpf). Do-able? anything I overlooked?

My situation is quite similar to yours.
Property 1: 3 bedroom pc (bought in 2002)
Property 2: MM (bought in 2009)
Property 3: Soho unit , 527 sqft (bought in June 2012)

The only difference is that I plan to continue to stay in my 3 bedroom pc.