How to own a property when my household income is net $4600

[Leander]

Hi,

I am with UOB for 10 years loan and on fixed rate for the 1st 2 years. By next month my fixed rate will end. Thus, does this mean, I won’t be able to refinance if the amount falls below $100K? Please advise.Thanks advance

[Harleston]

I have also similar amount of income and want to own a residential property. I am looking for home loan which is under my financial means so that I can pay the loan amount easily.

[dreamrat]

Harleston, will u be buying EC or condo?


Right now, we are considering to sell our HDB and buy EC instead of Condo as Condo seems out of our reach, unless our income increases significantly. Owning two properties seems not feasible at current market pricing.

[jojo]

which loan package is good?

[dankhim]

Hi dreamrat,

if 5 years ago, I would say EC. Because it's much lower than condo. But these days EC are not cheap.
Good thing about EC is u may still get $30 to 40K grant(now may be insignificant due to high price) and it's become private condo after 10 years.
You should consider which one near to your children's school and your working area.
regards

dreamrat:

Harleston, will u be buying EC or condo?

Right now, we are considering to sell our HDB and buy EC instead of Condo as Condo seems out of our reach, unless our income increases significantly. Owning two properties seems not feasible at current market pricing.

[dankhim]

jojo:

Hi Financial Guru,


More questions for you:)

Which is better investment if both ppty is 99 y lease? brand new or 20 y o ppty.
Friends told me brand new unit it might not the layout we see in the showflat plus we have to pay a premium price. As for old unit we can have a feel whether we are comfortable plus the facing of the unit. :xedfingers:
What is your thoughts?

Hi Jojo,
For investment, if for renting, 99 y lease better than freehold because of higher yield. When u rent out, the rental will not so much determine whether it's freehold.
Brand new has advantage if you are super rich as you can pay to choose your ideal unit. The better the facing, the higher the price. You may sometime ask yourself you want to pay that extra premium to stay at a better facing. Anyway you have the choice. The layout will be the same as stated in the floor plan but the design in showroom can be misleading. But the empty layout can turn to your dream home that you want it to be. I agree with the view from condo may turn out diff from the day you buy, but that can minimise from the experience u had. Try to get more advice before u decide on the unit loh.

As for resale, you may not get the most ideal home unless the one you want decided to shift out. That may take years.

[jojo]

dankhim:

jojo:

Hi Financial Guru,


More questions for you:)

Which is better investment if both ppty is 99 y lease? brand new or 20 y o ppty.
Friends told me brand new unit it might not the layout we see in the showflat plus we have to pay a premium price. As for old unit we can have a feel whether we are comfortable plus the facing of the unit. :xedfingers:
What is your thoughts?

Hi Jojo,
For investment, if for renting, 99 y lease better than freehold because of higher yield. When u rent out, the rental will not so much determine whether it's freehold.
Brand new has advantage if you are super rich as you can pay to choose your ideal unit. The better the facing, the higher the price. You may sometime ask yourself you want to pay that extra premium to stay at a better facing. Anyway you have the choice. The layout will be the same as stated in the floor plan but the design in showroom can be misleading. But the empty layout can turn to your dream home that you want it to be. I agree with the view from condo may turn out diff from the day you buy, but that can minimise from the experience u had. Try to get more advice before u decide on the unit loh.

As for resale, you may not get the most ideal home unless the one you want decided to shift out. That may take years.

Hi Dankhim, Thanks for sharing. Am agree with you, 99 yr ppty the rental is more attractive as the location is nearer to MRT compare to Freehold.

We had committed a unit and going to rent out our HDB flat to ease our loan

[Laurenwkids]

Hi financial guru,


With the global economy not doing well, do you think it would affect Singapore soon in terms of housing. We are thinking of getting a condo in a central area and not sure if we should commit to it. Now Singapore is doing very well economically but I was thinking with US economy struggling and europe not doing well. It would trickle down to affect us sooner or later.

So we are still undecided about getting a condo in the central area. We want to get one to stay and then later sell when prices are good. But not sure if prices will continue to go up.

Any input?

[Mdm Lau LP]

Hi Laurenwkids, in my opinion, Singapore high-end property prices (approx $3000+ psf) are still low as compared to Hong Kong property prices which are priced as high as $8000+ psf in severn road. With a strong economy coupled with stable government, property prices are unlikely to fall unless there is a major economic crisis around the world. While there are certain indication of debt woes in Europe and US, it appears to be stablising and in fact, there was a recent article that mentioned U.S. properties prices are expected to go up as their subprime mortgage issues are becoming more contained.


Within Singapore, different segments of the property market moves differently. Even 2 condos within a certain area/district can appreciate at different pace. This is how seasoned property investors/speculators look at the trend and buy under valued property and sell them later to earn astronomical profits. With the government coming in strongly against speculators, it is good news for genuine buyers as the market is more stablised. And by saying stablised, it means in a healthy economy, property prices will continue to go up (at a more manageable pace) instead of a huge surge in prices. That is just my humble opinion.

[MadScientist]

Laurenwkids:

Hi financial guru,


With the global economy not doing well, do you think it would affect Singapore soon in terms of housing. We are thinking of getting a condo in a central area and not sure if we should commit to it. Now Singapore is doing very well economically but I was thinking with US economy struggling and europe not doing well. It would trickle down to affect us sooner or later.

So we are still undecided about getting a condo in the central area. We want to get one to stay and then later sell when prices are good. But not sure if prices will continue to go up.

Any input?

If I may interject Laurenwkids, perhaps this might help if it does not confuse more...

http://sg.news.yahoo.com/blogs/singaporescene/pore-property-crash-serious-095330844.html

Cheers!