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Purchasing a resale property: need help


Sofarsogood
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Neutral Newbie

haha...i just sharing on another aspect indirectly linked to renting being discussed here. [flowerface]

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Neutral Newbie

Hi,

 

Do you shop for your bank loan first before looking for the property? What do the banks ask for when you go there?

 

u gotta check with the banks for in principle approval before u offer....as for rates....i did look around but when not all can offer u the loan...u not really in the position to shop around for loans...they will ask for your income documents, the property address etc...the normal loan application docs..

 

anyway i took fixed 2 years at 2.25 and 2.5 %....i rather be able to forecast my future CFs then see variances every 3 months when sibor resets...anyway i think rates are low enough...

 

but please note me take mortgage alone so if dual income should be able to get 80%...but to match your purchase price depends on case by case...mabbe now better since market seems to be picking up.

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another kind of question...

if you get permission from HDB to sublet your flat... is there any change in the property tax or any other kind of tax for the flat? ie. because you now make money from this flat, instead of just occupying it.

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another kind of question...

if you get permission from HDB to sublet your flat... is there any change in the property tax or any other kind of tax for the flat? ie. because you now make money from this flat, instead of just occupying it.

 

 

property tax of rental flat is 10%. normal is 4%

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What's the current home loan interest rate?

 

Is there a standard formula I could use to calculate the monthly instalment?

 

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What's the current home loan interest rate?

 

Is there a standard formula I could use to calculate the monthly instalment?

 

after 2-3 yrs, your i/r will be floating rate.... anyway most bank webbies have the home loan calculator

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Bro,

 

Sibor is indeed attractive the rates, however, tht's if u r a big player, smallies player like us, forget about Sibor ... most of the time would be Sibor + addition interest (usually 0.5 to even 2%!!! depending on amount & duration - bigger amount & longer lock in period, the lower the additional interest, cos more blood to suck mah ...)

 

So try not to be "charmed" by Sibor. I long time no look at Sibor liao ... all useless one ... tht person serving u is the one tht decided whether to give u whatever he/she can so tht he/she can meet his/her monthly quota.

 

Currently for most of the private property loan packages, the fixed rate is usually fix up till the lock-in period (ranging from 1 ~ 3 years) and thereafter, it will revert to floating rate anyway. And the floating rate is usually based on the bank's board rate which is still a function of Sibor plus whatever junk computation that the bank got to factor in, which imo is much less transparent than Sibor coz you have no clue what are the other components that goes in.

 

Of course you can go for re-pricing to continue with a fixed rate in the same bank but then you may probably incur some admin fees, or re-pricing charges etc...

 

So far if I am not wrong, the longest lock-in fixed rate package is Dee-Bee-Sss where you can fix up till 10 years or more... but I feel it is a total rip-off coz the i/r is damm high considering we are in a low interest rate environment....

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What's the current home loan interest rate?

 

Is there a standard formula I could use to calculate the monthly instalment?

 

Approach the bank and get them to work out a loan repayment schedule with a detailed breakdown on how much of your monthly repayment goes back to reducing your principal and how much is interest servicing. You will be surprised different banks works on different allocation formula when you put the schedules side by side to compare....

 

If logic prevails, you should go for the bank that allocates more of your monthly installment towards reducing your principal amount....

 

But maybe the mortgage sales person is a [gorgeous] or your uni classmate or your relative etc..... then the above logic may not be so easily applied.

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What's the current home loan interest rate?

 

Is there a standard formula I could use to calculate the monthly instalment?

 

 

Question is ..can you afford it?

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Still doing homework. Got to see what will e liability be if really go ahead with one.

 

 

U must say how much you make a month..and how much expenditure u have right now.... then's it will be crystal clear....

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U must say how much you make a month..and how much expenditure u have right now.... then's it will be crystal clear....

 

Combined income abt $13k per month. Only got car. Still servicing HDB loan but not much left. Cash+CPF can meet 20% of purchase price.

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Combined income abt $13k per month. Only got car. Still servicing HDB loan but not much left. Cash+CPF can meet 20% of purchase price.

 

 

I think you are good...your situation is somewhat similar to mine. Just said goodbye to HDB half a year ago and I never look back. [thumbsup]

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(edited)

Combined income abt $13k per month. Only got car. Still servicing HDB loan but not much left. Cash+CPF can meet 20% of purchase price.

 

 

just curious... you looking for landed or condo....

 

and if you looking at it as a part investment, it will be good to know it does not matter how well a house done up or not, the location will supercedes everything when it comes to selling.

Edited by Galantspeedz
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Actually the newer HDB flats are better designed than condo, minus the swimming pool, tennis court and security guards.

On and off, government also give out money or rebates to HDB dwellers which Condo owners can only smell from far far.

For us, we only reach home after 10pm most nights, just to sleep only. I rather use the money to see the world and not be a slave to the debts of a new condo. 800K plus obscene interest stretched over 30 years is no joke. If suddenly no job/income, really got to 跳楼。

[shakehead]

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Actually the newer HDB flats are better designed than condo, minus the swimming pool, tennis court and security guards.

On and off, government also give out money or rebates to HDB dwellers which Condo owners can only smell from far far.

For us, we only reach home after 10pm most nights, just to sleep only. I rather use the money to see the world and not be a slave to the debts of a new condo. 800K plus obscene interest stretched over 30 years is no joke. If suddenly no job/income, really got to 跳楼。

[shakehead]

 

 

Well said.

 

 

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