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View Full Version : Can we afford a 3-storey terrace house?



mooomooo
17-12-08, 10:07
Hi, seeking all gurus here for some advice.

My brothers and myself are planning to sell our existing 2 x 5-rooms HDB flats and sharing to buy a 3-storey terrace house together so that we can live together.

Our 2 current 5-rooms HDB flats could fetch market value of around S$800k (about $400k for each) and our total income is around S$15-S$18k per month.

Based on the value of our exisiting 5-rooms HDB and our total income, do you think we can afford a 3-storey terrace house? We are looking at least a 6-rooms terrace. What budget for the terrace house should we target? Any recommendation on price via target location?

Thank you all!

Joe6816
02-01-09, 09:14
First is to check with the bank to see how much you and your brother can loan. Then with that you will know your budget and narrow down the location.

zoros
05-01-09, 15:21
Similar to your sold amount of $800k for your 2 HDB 5 room flats, you can get about the same or at about $900k now for the 99years 3 storey terrace house at Villa Verde area (at choa chu kang region). These units typically have about 5 to 6 rooms each.

Petmail
07-01-09, 05:30
hi, I supposed there are really quite a number of stuffs you will need to do in order to plan your property investment accurately.

1) Apply for a HDB Valuation so you will know exactly how much does your properties can estimately fetch you in the current market. If you were looking to sell your HDB now I would think its pretty good time for an upgrade.

2) Appoint an Exclusive Agent to help you market your properties while making sure that your interest is also being protected. It doesn't hurt to give your agent a good commission which would also motivated him well enough to ensure that your properties are being market at the highest possible Fair Market Value instead of eventually realised that you could have gotten yourself a much better deals after the sale by scrimping on the commission which may not even be significant to the sales proceed that you gain against appointing a good agent with good rewards than another agent with a lower commission yet.

3) Its VERY IMPORTANT to remember having your agent to work out a financial plan for both your properties to find out what would your available cpf and cash proceed after the sale completion minus all the cost, upgrading cost incurred, etc.

4) Meanwhile, both of you should try to secure a Letter of Offer or In-Principle of Approval from the banks on your next property. You do not need to have any property in mind for the moment but at least you will know exactly what would be the likely budget possible for your next property so you may know where and how to start your house hunting. You need to be aware of how much cash upfront does both of you have available in order to secure a loan. Generally, you will still require a minimum 5% cash + 15% cash/cpf as your down payment to your next property. 80% loan from the bank most likely is possible.

Doing a quick calculation for you basing on an avg monthly income with your brother, I have put these into a simple table below for your consumption.

a) Monthly Instalment: $7500/Mth (Estimated)
b) Principle Loan Amount: $1.72mil (Estimated)
c) Maximum Purchase Price: $2.15mil (Estimated)

d) Option Fee (1%): $21.5k (Estimated in Cash)
e) Option Exercise Fee (4%): $86k (Estimated in Cash)
f) Downpayment (Balance = 15%): $322.5k (Estimated in Cash/CPF or Both)

I personally advise you to take up the variable rate rather than to take up the floating rate interest due to the stability. There are a lot of banks offering the floating rates but these are on basis of quarterly adjustment where variable rates are usually a fixed yearly rate. A very good scheme that I always recommend my client who are not purchasing our new launch projects with financial scheme tie up to take up the DBS Home Ideal which is basically pegged on the CPF interest rate and to be honest, CPF is one of the most firm rate that almost guarantee you no adjustment and looking at the table below you will also realise that the rates are almost as good as taking a HDB loan. Generally, the interest rates of the Home Ideal package is as follows:

1st Year: CPF + 0.25%
2nd Year: CPF + 0.5%
3rd Year: CPF + 0.75%
Legal fee will also be subsidised to a capped amount
(Please do drop me a line should you wish to know a better package that my clients are enjoying with DBS thru my referral)

Alternatively you may also wish to go for a similar financing package offered by OCBC as well.

DBS & OCBC are currently two of the strongest & competitive housing loan banks available in Singapore that most home buyers prefers.

4) After all these hassle, you are finally ready for your house hunting excursion! First and foremost, you will need to know what kinda location will be suitable for both you and your brother. Different buyers have different needs and motivations, ie, some will wanna loaction which is near to their office, schools for their children, markets, mrt, shopping centres, town, etc.

5) Tenure of Leasehold 99 years, 999 years or Freehold is the next consideration. Tenure with less than 60 years lease available will generally not be granted the full valuation even if you do qualify for a better loan quantum.

6) Land Size & Built Up is the next to ponder on. Number of bedrooms & Shower is one of the key things most buyers look out for.

7) Facilities if possible would add more value and leisure for your family as well. Although most of the time it has to be interpreted as having a bigger land size and cost. But honestly, you may be in for a good surprise sometimes that basing on your above budget adn financial plans, you might just be in for one that is newly TOP and even come with pools, facilities, etc.

8) Renovation will thus be your last consideration before you make an offer to the property you like. I have seen some clients who were looking at brand new TOP houses while some prefers a really run down house instead.

9) Finally, make your cheque offer thru a capable agent to the owner within the Fair Market Value of that property that you prefer and close the deal!!!

I hope all these information are sufficient and helpful in helping you get the dream home of yours. Please do not hesitate to drop me a line @ 82818888should you have further enquiries or clarifications if any especially pertaining to the bank financial schemes.

Good Luck & Happy House Hunting!!!

:)
Pet

Petmail
18-01-09, 02:42
I have a new listing just came to me. Semi-D selling @ $390psf with $200k reno done just last year! extremely beautiful house yet affordable!!!

Drop me a call @ 82818888 if you are keen in it.

:)
Pet

zoros
19-01-09, 12:47
I have a new listing just came to me. Semi-D selling @ $390psf with $200k reno done just last year! extremely beautiful house yet affordable!!!

Drop me a call @ 82818888 if you are keen in it.

:)
Pet\

What's the total sqft size for this Semi-D, and the location please?

Petmail
19-01-09, 17:40
\

What's the total sqft size for this Semi-D, and the location please?


D19
FreeHold
Land Size: 4623sqft
Built Up: 5371sqft

For more information and viewing appointment, kindly drop me a call @ 82818888.

Thank you for your interest!

:)
Pet