What income level to own a $1.2M hse comfortably?

[Robo]

i know of someone he bought a 1.2M house with 600k cash den renovate with 400k cash and the remaining loan 3 within 1 yr he fully pay off the loan.

 

so i think he's very very good example. loan 950k how long u intend to pay it off.. bo hua lah very very dangerous.

[Throttle2]

I personally feel at least 20k per month...

 

 

yes .

 

""At least" is the key phrase here

[Throttle2]

Probably at least 6k per person?

your monthly payment should be about 4k.

maybe 1k taken from CPF for both you and wife

1k cash payment every month from you and wife

you should still have some money (maybe 3k left) for ur kid and living expenses.

Do-able but you have to be very careful with every dollar and cent.

 

all these is assuming the house is already in live-in condition with no need for reno and fully furnished.

 

you can get a rough gauge here on how much you may be paying :)

http://www.uob.com.sg/personal/loans/prope...alculators.html

 

PS: Dont forget to take into consideration you have to pay about 20% of the sale price upfront (in your case its about 240k)

legal fees (think its free if u take loans with banks? else about 5k)

 

 

wah, $6k per person? three some or foursome maybe.

 

$12k household income best be looking at $700k max apartment.

 

it's 2009 now not 2007 you know...heh heh

[Whitecvt]

Yes its stretched .. but this is assuming lots of factors... like no need to spend any extras on the house, no plans to upgrade car and TS is spending well within means every month.

 

there are people/couples with at least 10k a month, paying just a few hundred for a HDB flat (maybe a 450k 5 room HDB?), yet having no money at the end of each month cuz they are also paying heavily for expensive cars and/or simply loaded with loans for furniture/renovation/credit card bills etc etc

 

and with the property prices in SG, TS may get lucky selling the house at much higher profit since its landed.

Edited May 16, 2009 by Whitecvt

[Throttle2]

Yes its stretched .. but this is assuming lots of factors... like no need to spend any extras on the house, no plans to upgrade car and TS is spending well within means every month.

 

there are people/couples with at least 10k a month, paying just a few hundred for a HDB flat, yet having no money at the end of each month cuz they are also paying heavily for expensive cars or simply loaded with loans for furniture/renovation/credit card bills etc etc

 

and with the property prices in SG, TS may get lucky selling the house at much higher profit since its landed.

 

 

dude, assume until like that is not realistic already

 

might as well assume, dont need to eat, wear same clothes for 10 years, zero entertainment... hehe

 

and even with such assumptions still stretched, thats bad......

Edited May 16, 2009 by Throttle2

[Zze121]

Cash .8mil and loan .4mil, AI $100k, you can try yr luck to invest.

Many are stuck and u never noe.

 

 

[Felipe]

i know of someone he bought a 1.2M house with 600k cash den renovate with 400k cash and the remaining loan 3 within 1 yr he fully pay off the loan.

 

so i think he's very very good example. loan 950k how long u intend to pay it off.. bo hua lah very very dangerous.

 

 

cannot pay just sell. but make sure sell at the right time and earn some profit

[Throttle2]

cannot pay just sell. but make sure sell at the right time and earn some profit

 

 

when you cannot pay, it means you are screwed.

when you are screwed it means you will not be selling at right time

when you are not selling at right time means you are likely not to earn anything

 

[Whitecvt]

when you cannot pay, it means you are screwed.

when you are screwed it means you will not be selling at right time

when you are not selling at right time means you are likely not to earn anything

 

 

 

in this case, it depends on the TS's priorities.

From the above calculation, its $1000 cash payment per person.

 

Since this is a car forum :) Lessay i'm stuck between getting a BMW 320 which is about 130k

for a short term analysis, if i'm gonna take a 10 year loan, thats roughly 1.3k per month. and lessay touch wood, he loses his job and wants to sell the car, he still has to repay a lump sum to the bank by cash.

 

to some people, they rather take the alternative of spending that 1k into property... at least the price of the property will not drop like a BMW 320 would after 1 yr.. in fact, who knows it may even be evaluated at 2mil next year? (when economy recovers) or even more after 10 yrs - when TS gets enough money for renovation.

Edited May 16, 2009 by Whitecvt

[Sir8]

Buying a house, unlike a car, is buying an asset.

By loose definition, an asset is something that would potentially make a profit.

 

So the question is.. what is the exit strategy?

Keep for 5 yrs and expect it to fetch 25% more? Enough to cover all interests?

What if another big recession and lost of existing income level - got enough cash to hold? How much loss is one willing to take by letting go of the asset?

 

If want simple life, just stay in smallest hdb that can accomodate all family members. Staying in hdb dun mean one is not rich.

[Vinceyeo]

Buying a house, unlike a car, is buying an asset.

By loose definition, an asset is something that would potentially make a profit.

 

So the question is.. what is the exit strategy?

Keep for 5 yrs and expect it to fetch 25% more? Enough to cover all interests?

What if another big recession and lost of existing income level - got enough cash to hold? How much loss is one willing to take by letting go of the asset?

 

If want simple life, just stay in smallest hdb that can accomodate all family members. Staying in hdb dun mean one is not rich.

 

Yes I agree this makes alot of sense good one bro since property is really an asset unlike car. If people are willing to stretch their dollar for a liability then they are better off stretching it for an asset. If you are buying property to stay its much safer than speculative buying IMO.

 

Food for thought!

[Josho]

Staying in hdb dun mean one is not rich.

 

Cash rich! Some of them just living in HDB are able to own a lot of things in their house, nurture their children with good education. It is good to be cash rich then in debts. Then make me to think that I shld earn more money because I am not cash rich at all. lol

[Watwheels]

Take loan but never consider the loan interest they are paying. Yes, at first interest rate is low, let's say like someone here mentioned 3%~7%, it will no doubt end up very quickly at 7%, for 950k for 35yrs, the bank song song kao jurong smilling all the way.

 

So what your car is paid up, it only last for 10yrs, dan what? You intend to take public transport or buy a new car?But you are still paying for your hse, still got 20++yrs to go.

 

I assume your 250k down payment is from selling your current hse. It's a big risk you are taking, buy is one thing, things like renovation, do you consider? After 20years maybe somemore renovation.

Edited May 17, 2009 by Watwheels

[Jerms]

Probably at least 6k per person?

your monthly payment should be about 4k.

maybe 1k taken from CPF for both you and wife

1k cash payment every month from you and wife

you should still have some money (maybe 3k left) for ur kid and living expenses.

Do-able but you have to be very careful with every dollar and cent.

 

all these is assuming the house is already in live-in condition with no need for reno and fully furnished.

 

you can get a rough gauge here on how much you may be paying :)

http://www.uob.com.sg/personal/loans/prope...alculators.html

 

PS: Dont forget to take into consideration you have to pay about 20% of the sale price upfront (in your case its about 240k)

legal fees (think its free if u take loans with banks? else about 5k)

 

 

no offence bro.. 6k per person? no way.

[Jerms]

when you cannot pay, it means you are screwed.

when you are screwed it means you will not be selling at right time

when you are not selling at right time means you are likely not to earn anything

 

 

 

well said... reward you a cigar. haaa

[Babyt]

just pray u win TOTO then w ur additional 6k mthly...u can afford....if not, dont think so

 

6k for condo still okay.

[Twofouronenite]

Around 16K mthly, you should be able to get the 950K loan. That's based on the pre-crisis period.

[Coburn]

Around 16K mthly, you should be able to get the 950K loan. That's based on the pre-crisis period.

 

950k? i think can get much higher loan

 

was speaking to UOB and OCBC recently when attending some of the property launches

for 20k monthly income, UOB can lend up to 2million and OCBC 2.5million. they are willing to put down in writing if you give them salary documents etc.

 

er, i am not advocating that people who earn 20k should buy 2million property. in fact i think they should be prudent and buy up to maybe 1.2-1.5m property. i just want to point out that the loan quantum can be higher