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Thread: HELP: How much is needed?

  1. #1
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    Default HELP: How much is needed?

    Hi all...as some veterans would already know, I have committed into a landed and still servicing the loan. Now, with household income around 10k (my wife - 3.5k, myself - 4k, bro-in-law 3k), how much would be needed or required to get a 2nd property?

    The breakdown as follows:

    1. Existing loan around 5300 per month @ 35 year loan tenure. (Currently we use our CPF OA respectively to clear out (800+600 = 1400), cash outlay we need to pay 4000 approx.
    2. Car fully paid, left with 2 years COE.
    3. Monthly expenditures - 1000 approx.
    a) Food - 500
    b) Transportation (Petrol) - 200
    c) Utilities with internet - 250

    Please kindly advise us how to work on it and assuming we wish to get another unit 2-3bedder 900sf-1000sf size OCR, for example Yishun Northpark residence etc? We wish to know how would ABSD, TDSR to be calculated and work against us. Hopefully we could see someone sharing and work out for us here. Thanks in advance.

  2. #2
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    any other income such as rental income? If not TDSR should fail.

  3. #3
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    Quote Originally Posted by Ibuyistay View Post
    any other income such as rental income? If not TDSR should fail.
    No. Our household income is the maximum we could think of. Can someone shows me the calculation matrix and equation so I could work out on it?

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  5. #5
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    Well done, u will be in the 14% soon

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    The cheapest Northoaks as today property guru around 800k. Stamp Duty + ABSD is around 10% or around 80k
    Down payment for 2nd property is 50% which is around 400k.
    Total cash needed is around 480k.

  7. #7
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    Quote Originally Posted by Sandiwara View Post
    The cheapest Northoaks as today property guru around 800k. Stamp Duty + ABSD is around 10% or around 80k
    Down payment for 2nd property is 50% which is around 400k.
    Total cash needed is around 480k.
    Thanks for the quick calculation. Am afraid we do not have this amount of cash outlay to begin with.

    If we opt for those underway i.e. BUC - can we go slowly with 480k disbursement, in stages? If I have 200k, and hoping the remaining 280k to spread across several months to TOP period? Possible?

  8. #8
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    Always wonder if u are real......food 500 enough for 2 is it? If u have 6 person in your family, even eat chicken rice every meal also not enuf. ......

    Petrol $200 - even if I take 1 litre $1.8, this is only 111 litre. You only pump twice a month? Then if utilization rate is so low, maybe should sell away the car to cut cost

    10k stay landed and buy some more is almost impossible.....if you are really doing it, we'll done!

    Quote Originally Posted by yowetan View Post
    Hi all...as some veterans would already know, I have committed into a landed and still servicing the loan. Now, with household income around 10k (my wife - 3.5k, myself - 4k, bro-in-law 3k), how much would be needed or required to get a 2nd property?

    The breakdown as follows:

    1. Existing loan around 5300 per month @ 35 year loan tenure. (Currently we use our CPF OA respectively to clear out (800+600 = 1400), cash outlay we need to pay 4000 approx.
    2. Car fully paid, left with 2 years COE.
    3. Monthly expenditures - 1000 approx.
    a) Food - 500
    b) Transportation (Petrol) - 200
    c) Utilities with internet - 250

    Please kindly advise us how to work on it and assuming we wish to get another unit 2-3bedder 900sf-1000sf size OCR, for example Yishun Northpark residence etc? We wish to know how would ABSD, TDSR to be calculated and work against us. Hopefully we could see someone sharing and work out for us here. Thanks in advance.

  9. #9
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    could be one of the lucky Ang Pow TOTO winners

  10. #10
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    I am bringing this thread up again as I really need to seek all kind inputs or suggestion to circumvent the situation.

    I am thinking if we could really plunge in and take a 2nd unit in west coast area in anticipation of HSR development in Jurong East. Am exploring hundred Trees 2 bedders 700+sqft which probably marketing at 1.1mil approximately. Wonder if it is really wise to enter the market at this junction.

    My wife and myself both of us has manage to get some loan which is around 300k and we will need to think of how to garner the remaining 200k to compete in this 2 property long prong strategy. Now, if I ever did that I will probably need to lease out the unit in west coast to keep rental income flowing in. So, can any wise person or guru could help me identified or see the potential teething problems and challenges? Would appreciate that and really hoping to own more than a landed in my lifetime.

  11. #11
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    Quote Originally Posted by yowetan View Post
    I am bringing this thread up again as I really need to seek all kind inputs or suggestion to circumvent the situation.

    I am thinking if we could really plunge in and take a 2nd unit in west coast area in anticipation of HSR development in Jurong East. Am exploring hundred Trees 2 bedders 700+sqft which probably marketing at 1.1mil approximately. Wonder if it is really wise to enter the market at this junction.

    My wife and myself both of us has manage to get some loan which is around 300k and we will need to think of how to garner the remaining 200k to compete in this 2 property long prong strategy. Now, if I ever did that I will probably need to lease out the unit in west coast to keep rental income flowing in. So, can any wise person or guru could help me identified or see the potential teething problems and challenges? Would appreciate that and really hoping to own more than a landed in my lifetime.
    You are already the most accomplished magician in this forum owning a landed in a good area with what, 3K salary and combined household 10K?

    You just need to wave your magic wand again.

    We must all learn from you, Mr Guru.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  12. #12
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    Quote Originally Posted by Kelonguni View Post
    You are already the most accomplished magician in this forum owning a landed in a good area with what, 3K salary and combined household 10K?

    You just need to wave your magic wand again.

    We must all learn from you, Mr Guru.
    I have exhausted all resources securing the Mt Sinai landed. Honestly I do not have much resource. So I am seeking for ideas, suggestions and possibly the alternatives to get the money or whatever means or ways to go about it. Also, I am also keen to learn from all of your perspectives if going in this time is an appropriate timing?

  13. #13
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    Quote Originally Posted by yowetan View Post
    I have exhausted all resources securing the Mt Sinai landed. Honestly I do not have much resource. So I am seeking for ideas, suggestions and possibly the alternatives to get the money or whatever means or ways to go about it. Also, I am also keen to learn from all of your perspectives if going in this time is an appropriate timing?
    You still have like 3 or 4 HDBs?
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  14. #14
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    How do you and your wife get the $300k loan?

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    Quote Originally Posted by Kelonguni View Post
    You still have like 3 or 4 HDBs?
    No, we sold in exchange for the landed.

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    Quote Originally Posted by MrTan View Post
    How do you and your wife get the $300k loan?
    We borrow some unsecured loans if needed be. But we calculated it would be around 300k if we really borrow to make it happen.

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    Quote Originally Posted by yowetan View Post
    No, we sold in exchange for the landed.
    You already exchanged already. What to do...?

    Probably still carrying a mountain of debt right? Clear some first lah, focus on children education.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  18. #18
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    Quote Originally Posted by yowetan View Post
    We borrow some unsecured loans if needed be. But we calculated it would be around 300k if we really borrow to make it happen.
    Since already 300k from unsecured loans, might as well borrow another 200k more.

  19. #19
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    Quote Originally Posted by MrTan View Post
    Since already 300k from unsecured loans, might as well borrow another 200k more.
    How to have 300K unsecured loans? Unless have rich relatives. He is really a magician.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.

  20. #20
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    Quote Originally Posted by Kelonguni View Post
    You already exchanged already. What to do...?

    Probably still carrying a mountain of debt right? Clear some first lah, focus on children education.
    Ya. The outstanding loan is quite huge. The reason of getting Mt Sinai because I want to enroll our children to Henry park primary.

  21. #21
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    Yowetan,

    I would urge you to consider the below carefully before making any hasty decisions:

    - Your Debt to income ratio, based on the current loan is already very high. Based on the info you provided, you may already be servicing a $1.7m-$1.8m loan. If interest rates were to rise just 1% above current levels, your monthly payments will increase by approximately $700 per month.

    - You do not have the cash downpayment for the second property (you mentioned borrowings)...and I really doubt banks will give you a second loan for the remaining 50% if your financials are what you have mentioned.

    - Property market is likely to remain subdued for a few years at least, so there is no need to rush into making more investments, especially given your financials.

    - My sister is one of those who bought 'Hundred trees' at 830k pre-construction and sold it for 1.1m upon TOP. The 999yr leasehold may seem attractive, but the entire west coast region has plenty of freehold and 999 year old properties. In all likelihood, the West coast area will also get an MRT line for the Jurong regional line and the cross island line.....but even with these developments, price movements are likely to be slow.

    Most importantly, your financials do look very 'thin' to enable a second property purchase...so please think carefully. Best of luck.

  22. #22
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    Quote Originally Posted by yowetan View Post
    Ya. The outstanding loan is quite huge. The reason of getting Mt Sinai because I want to enroll our children to Henry park primary.
    R they in Henry park primary already? If yes, then ur objective is achieved. Time to sell mt Sinai and buy 2 other cheaper properties, one for stay and one for rental as per ur other objective.

  23. #23
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    Yowetan,

    I would urge you to consider the below carefully before making any hasty decisions:

    - Your Debt to income ratio, based on the current loan is already very high. Based on the info you provided, you may already be servicing a $1.7m-$1.8m loan. If interest rates were to rise just 1% above current levels, your monthly payments will increase by approximately $700 per month.

    - You do not have the cash downpayment for the second property (you mentioned borrowings)...and I really doubt banks will give you a second loan for the remaining 50% if your financials are what you have mentioned.

    - Property market is likely to remain subdued for a few years at least, so there is no need to rush into making more investments, especially given your financials.

    - My sister is one of those who bought 'Hundred trees' at 830k pre-construction and sold it for 1.1m upon TOP. The 999yr leasehold may seem attractive, but the entire west coast region has plenty of freehold and 999 year old properties. In all likelihood, the West coast area will also get an MRT line for the Jurong regional line and the cross island line.....but even with these developments, price movements are likely to be slow.

    Most importantly, your financials do look very 'thin' to enable a second property purchase...so please think carefully. Best of luck.

  24. #24
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    Quote Originally Posted by rook View Post
    Yowetan,

    I would urge you to consider the below carefully before making any hasty decisions:

    - Your Debt to income ratio, based on the current loan is already very high. Based on the info you provided, you may already be servicing a $1.7m-$1.8m loan. If interest rates were to rise just 1% above current levels, your monthly payments will increase by approximately $700 per month.

    - You do not have the cash downpayment for the second property (you mentioned borrowings)...and I really doubt banks will give you a second loan for the remaining 50% if your financials are what you have mentioned.

    - Property market is likely to remain subdued for a few years at least, so there is no need to rush into making more investments, especially given your financials.

    - My sister is one of those who bought 'Hundred trees' at 830k pre-construction and sold it for 1.1m upon TOP. The 999yr leasehold may seem attractive, but the entire west coast region has plenty of freehold and 999 year old properties. In all likelihood, the West coast area will also get an MRT line for the Jurong regional line and the cross island line.....but even with these developments, price movements are likely to be slow.

    Most importantly, your financials do look very 'thin' to enable a second property purchase...so please think carefully. Best of luck.
    Thanks for the advise - your points are all well-taken. Yes. I need this kind of good advice.

  25. #25
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    Quote Originally Posted by MrTan View Post
    R they in Henry park primary already? If yes, then ur objective is achieved. Time to sell mt Sinai and buy 2 other cheaper properties, one for stay and one for rental as per ur other objective.
    No my children are still young. I am preparing for the admission criteria.

  26. #26
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    how much is your outstanding property loan? in percentage against valuation and loan amount.

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    Quote Originally Posted by MortgageGuru View Post
    how much is your outstanding property loan? in percentage against valuation and loan amount.
    Please give me example.

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    You are really at risk. Interest rates may rise significantly soon, take on somemore loans and I will see a mt Sinai landed up for bank auction. Aren't there several condos in holland area?

  29. #29
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    Quote Originally Posted by yowetan View Post
    No my children are still young. I am preparing for the admission criteria.
    In that case, too early to plan for 2nd property based on ur situation. Fulfil ur 1st objective first before executing ur 2nd. Greed is good, but must have capital first.

  30. #30
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    Quote Originally Posted by yowetan View Post
    Please give me example.
    How much did you purchase your landed at? and how much loan did you took up?

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