View Full Version : Right time to buy?
Thermofisher
30-03-14, 13:57
I am late 30s in lifescience industry. Relatively stable job. Got a 12 yr old two bedder apartment in west with outstanding loan 450k. Have spare savings and investment total of 300k.
Wanna get another MM preferably in kallang FH. Possible? Should I go for it? Right time? Pls comment.
I am late 30s in lifescience industry. Relatively stable job. Got a 12 yr old two bedder apartment in west with outstanding loan 450k. Have spare savings and investment total of 300k.
Wanna get another MM preferably in kallang FH. Possible? Should I go for it? Right time? Pls comment.
how long u plan to hold? Coz its not down much. and from a yield perspective its not going to improve much in near term with looming interest rate hike. Also have u done your sums with the fact that interest rates will go up?
Another thing u need to be aware is tenants now have a lot of choice so rental market is weak , as well as tenant pool is not growing due to curb in employment passes.
So take those into consideration before you plunge. There is never a right time. The right time is aways where ur sums are done right.
:ashamed1:
Thermofisher
30-03-14, 14:08
how long u plan to hold? Coz its not down much. and from a yield perspective its not going to improve much in near term with looming interest rate hike. Also have u done your sums with the fact that interest rates will go up?
Another thing u need to be aware is tenants now have a lot of choice so rental market is weak , as well as tenant pool is not growing due to curb in employment passes.
So take those into consideration before you plunge. There is never a right time. The right time is aways where ur sums are done right.
:ashamed1:
Honestly speaking...I don't really know how to go about or begin with the calculation or doing the "sum". Holding period can be long for I am investing not speculating less flipping. With 300k savings on hand, should I just go ahead paying off outstanding loan for my 2 bedder apartment or I should just go for the new project in kallang FH. The project looks interesting. Btw. I am single. That's why I am look out for a 1 to 2 bedder.
You should use $250k to pay off your loan partially and get a wife first.
Thermofisher
30-03-14, 14:35
You should use $250k to pay off your loan partially and get a wife first.
It's okay. I prefer to go for FL. Cheaper, faster and less liability. F**K and Forget.
I am late 30s in lifescience industry. Relatively stable job. Got a 12 yr old two bedder apartment in west with outstanding loan 450k. Have spare savings and investment total of 300k.
Wanna get another MM preferably in kallang FH. Possible? Should I go for it? Right time? Pls comment.
with ABSD and loan restriction you will need at least $500k of cash and CPF to buy your 2nd property.
Thermofisher
30-03-14, 14:40
with ABSD and loan restriction you will need at least $500k of cash and CPF to buy your 2nd property.
Thanks. How do you calculate that? I am noob in all these. Can you help me spread out the details?
Thanks. How do you calculate that? I am noob in all these. Can you help me spread out the details?
ABSD + Stamp Duty + Min. Down Payment
Thermofisher
30-03-14, 14:47
ABSD + Stamp Duty + Min. Down Payment
What's the quantum you looking at based on your above calculation matrix.
You should use $250k to pay off your loan partially and get a wife first.
He's married.
http://www.condosingapore.com/forums/showpost.php?p=443135&postcount=36
Honestly speaking...I don't really know how to go about or begin with the calculation or doing the "sum". Holding period can be long for I am investing not speculating less flipping. With 300k savings on hand, should I just go ahead paying off outstanding loan for my 2 bedder apartment or I should just go for the new project in kallang FH. The project looks interesting. Btw. I am single. That's why I am look out for a 1 to 2 bedder.
Let me put it this way.
My qustion on sum is how much u need to down for the new MM?
say u must down $200K inc lawyer fees, stamp duty and ABSD. u still have 100K as spare.
That is ideal for current situation.
Then u need to consider what u are buying which is 12yr old do u need to plonk some $$ for reno? Say $10K to touch up so u can rent out.
Then Question is what is the right price? u need to check the rental. ideally ur rent if possible can generate 3-4% yield. then u need to check with this rental of 3-4% are u competitive with those in the same building.. i.e. if u spend XXX on the MM and to get 3-4% yield u have to rent out 50% more than those in ur building then u wont get a tenant. unless there is something so special why the tenant must pay that premium.
Last think is spare cash. Property is abt ability to hold. so base on ur both property mortgage rare u going to still be able to pay if int hit 3.5%? And plus ur reserve cash enough to tong u for min 6mths in event u have no tenant?
other things u want to consider is TDSR is there plans for u to upgrade ur current stay? coz commiting in a MM would pose a challenge on ur TDSR if u plan to upgrade later.
As u mention its long term investment. then u need to make sure u can tong the long term. Do ur sums right and u will enjoy the fruits of labour. do it wrong then it will be sleepless nights.
my short 5c thought on what u need to sum up.
Thermofisher
30-03-14, 15:14
He's married.
http://www.condosingapore.com/forums/showpost.php?p=443135&postcount=36
You stalking me? OMG~:scared-5:
with ABSD and loan restriction you will need at least $500k of cash and CPF to buy your 2nd property.
actually with 300K cash there is little yield left in the prop in near term. cap appreciation is also limited. Risk is interest moving up.
Must well wait for interest to move then see have durian to catch a not. coz in market transition always have durian.
300K can use 50% put into some rights that pay 4-5%... and 150K as spare in case a good deal pop up.
Thermofisher
30-03-14, 15:16
Let me put it this way.
My qustion on sum is how much u need to down for the new MM?
say u must down $200K inc lawyer fees, stamp duty and ABSD. u still have 100K as spare.
That is ideal for current situation.
Then u need to consider what u are buying which is 12yr old do u need to plonk some $$ for reno? Say $10K to touch up so u can rent out.
Then Question is what is the right price? u need to check the rental. ideally ur rent if possible can generate 3-4% yield. then u need to check with this rental of 3-4% are u competitive with those in the same building.. i.e. if u spend XXX on the MM and to get 3-4% yield u have to rent out 50% more than those in ur building then u wont get a tenant. unless there is something so special why the tenant must pay that premium.
Last think is spare cash. Property is abt ability to hold. so base on ur both property mortgage rare u going to still be able to pay if int hit 3.5%? And plus ur reserve cash enough to tong u for min 6mths in event u have no tenant?
other things u want to consider is TDSR is there plans for u to upgrade ur current stay? coz commiting in a MM would pose a challenge on ur TDSR if u plan to upgrade later.
As u mention its long term investment. then u need to make sure u can tong the long term. Do ur sums right and u will enjoy the fruits of labour. do it wrong then it will be sleepless nights.
my short 5c thought on what u need to sum up.
As much as I want the sum to be simpler and easy it seems it is very complex. Will draft a xls to spell all costs out. Thks!
You should use $250k to pay off your loan partially and get a wife first.
Why pay off loan when interest is so low, when it goes above 2% then pay off also not too Late right? Leverage us more powerful, almost fully paid house where got money to be Made?
Why pay off loan when interest is so low, when it goes above 2% then pay off also not too Late right? Leverage us more powerful, almost fully paid house where got money to be Made?
He has another big loan.
There is always e probability of medical condition or accident that prevents one from working n requires expensive medication.
Interest rates are moving up. Good to have a financial buffer now.
Thermofisher
30-03-14, 15:49
He has another big loan.
There is always e probability of medical condition or accident that prevents one from working n requires expensive medication.
Interest rates are moving up. Good to have a financial buffer now.
Raised valid considerations. I am actually hesitating to buy and buy where if I decided to go with.
Kallang FH looks attractive but wonder my savings of 300k would be suffice with another big loan in my pocket.
Raised valid considerations. I am actually hesitating to buy and buy where if I decided to go with.
Kallang FH looks attractive but wonder my savings of 300k would be suffice with another big loan in my pocket.
U have little financial buffer. It becomes a gamble.
If u calculate tt u can pay e installment without tenant, then just go ahead
I am late 30s in lifescience industry. Relatively stable job. Got a 12 yr old two bedder apartment in west with outstanding loan 450k. Have spare savings and investment total of 300k.
Wanna get another MM preferably in kallang FH. Possible? Should I go for it? Right time? Pls comment.
sabbie , my brother...:D:D:D:D
You stalking me? OMG~:scared-5:
In the internet world, you can run but cannot hide...:cheers1:!
Btw, I'm also curious...Single, Married or Divorced....:simmering:!
Thermofisher
30-03-14, 16:17
sabbie , my brother...:D:D:D:D
Hello...any lobang?
There is such thing called:
1) disability income insurance
2) medical insurance
Term life and TPD even cheaper, depending on your age, may be $2m coverage for $200 per month (just a guess, not real figure) say for a 40 years old?
He has another big loan.
There is always e probability of medical condition or accident that prevents one from working n requires expensive medication.
Interest rates are moving up. Good to have a financial buffer now.
Thermofisher
30-03-14, 16:20
In the internet world, you can run but cannot hide...:cheers1:!
Btw, I'm also curious...Single, Married or Divorced....:simmering:!
Married. Household income 10k.
sabbie , my brother...:D:D:D:D
This is Sabbie? hahahaha. The one with 400k? now left 300k?
Allthepies
30-03-14, 17:34
With 300K and taking 2nd loan, there really nothing much u can buy... max u can only buy a 500K property...
Hello...any lobang?
too late already lar. TDSR, sure cannot pass one:D
NB so many nick, hard to notice you:p
300K would only means u can by max a 500K 2nd prop. pretty limited choice. better off investing it in something that pay 5% dividen.
SingaSling
30-03-14, 22:55
Are you referring to REITS for 5% dividend. Don't think we have much choices with 5% dividend.
300K would only means u can by max a 500K 2nd prop. pretty limited choice. better off investing it in something that pay 5% dividen.
Are you referring to REITS for 5% dividend. Don't think we have much choices with 5% dividend.
looking at rights.
I am late 30s in lifescience industry. Relatively stable job. Got a 12 yr old two bedder apartment in west with outstanding loan 450k. Have spare savings and investment total of 300k.
Wanna get another MM preferably in kallang FH. Possible? Should I go for it? Right time? Pls comment.
U won't mind pay 7% ABSD on top of the high price condo FH?
SingaSling
31-03-14, 08:01
Apologies. What is rights? I google but cant find anything about it. Is it bonds?
looking at rights.
Apologies. What is rights? I google but cant find anything about it. Is it bonds?
rights is when a company wants to get funding from existing shareholders.
For every X amount of shares you have they offer you the right to buy Y amount of new shares at a discounted price.
Sounds good - but if your investment strategy is to buy to be paid with an income stream, it can be disruptive. Instead of the company paying you - you pay the company to help it to expand.
It can be taken as a sign of expansion, it can also taken as a sign that the company is not well run.
SingaSling
31-03-14, 08:34
Got it!! Thanks EBD. :cheers1:
rights is when a company wants to get funding from existing shareholders.
For every X amount of shares you have they offer you the right to buy Y amount of new shares at a discounted price.
Sounds good - but if your investment strategy is to buy to be paid with an income stream, it can be disruptive. Instead of the company paying you - you pay the company to help it to expand.
It can be taken as a sign of expansion, it can also taken as a sign that the company is not well run.
Got it!! Thanks EBD. :cheers1:
no sweat :)
Concur with you 300k cash and household income of $10k is not worth playing with property now in late 30s. Better prepare to make capital repayment when interest rate shoot up or wait for fire sale, if any, when you have consolidated at least 800k cash. :D
With 300K and taking 2nd loan, there really nothing much u can buy... max u can only buy a 500K property...
If its buying for own stay, is it consider silly to buy now?
I noticed a lot of ppl buy condo only for investment. not for stay..
Iskandar is the worst. So many condo.
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