Upgrade to EC

[TVT]

Just amaze me how you folks can afford and koon peacefully at nite when husband n wife combine income only 12k and you dreaming of buying a 1m EC. Divide by 2, i person only 6k mthly nieh. Can afford meh? Every mth pray good health and boss love you deep deep?

 

People always think positively when they commit, and having a "it won't happen to me" mentality. So losing job or health isn't what they are expecting, hence buy lah.

[Mustank]

I am not referrimg to cash rich folks with a healthy saving. I am talking abt borderline families with little or not that much savings dreaming abt owing a EC. hDB not good enough meh?

 

Selling existing flat for 500k doesnt mean you shd 'upgrade' to an EC if your income still qualify to buy one. If you "qualify" to buy one, that mean you cannot "afford" one. Of course, if you have 6 fig savings, dif story. Take the risk and maybe can profit from a recovering economy.

 

My young 24 yr old staff told me one day that she was sad that she didnt manage to ballot successfully for a Duxton flat costing over 600k. I told her she shd be happy that she didnt. I was paying her $2200 a mth and her hucband was earning like $3300.

 

End of day, can be ambitious, but dun try to wear a bigger hat than one's head and try to look better than the other Joe.

 

those ec fellows usually are very near 12k one

usually are upgraders who had full paid their hdb, then sell at about say $400k

plus somemore they already paid 20% downpayment already

so say ec cost 1m, - 20%, - 400k

so loan 400k

for middle age couple of say 40 years old, 12k income, 400k i think can clear within 10 years

50 years old, debt free again

[Enye]

One should be ambitious to achieve economic goals. None of the world richest men are not ambitious. When you are young, you should be more ambitious and at a point of age then be more passive to protect your investment portfolio.

 

If your 24 yr old staff do get the Duxton flat, she can sell that now for a million. Or else how to achieve 6 fig saving with peanut pay? At the end of the day, it basically boils down to the risk appetite of that person and the aim of his retirement age.

 

That's why there is a movie called 'Young And Dangerous'!

 

you are born into a good life so you cannot imagine

 

but i can tell you for sure that the couple, with proper financial prudence and planning, can achieve a 6 figure savings with time

 

the trouble is people simply like to take shortcuts

 

[Soya]

 

those ec fellows usually are very near 12k one

usually are upgraders who had full paid their hdb, then sell at about say $400k

plus somemore they already paid 20% downpayment already

so say ec cost 1m, - 20%, - 400k

so loan 400k

for middle age couple of say 40 years old, 12k income, 400k i think can clear within 10 years

50 years old, debt free again

 

 

IMHO, EC shld be for 1st timers. Upgraders who hv oredi profited a few hundred k from their first hdb shld be competing in the pte mkt, not competing wif new entrants wif smaller treasure chests.

[Wt_know]

not entirely true

 

1. many young couple salary below $12k whack EC because they think buy toyota sell lexus after MOP 5 years. this group of buyer is increasing rapidly

 

2. upgrader who sold their hdb ... they normally cash out the profit and they do not plonk $400k to the EC. they would love to cash out $100k-$150k and take on more loan for the EC

 

of course ... sensible and play safe type will plonk as much as possible into the EC and settle the loan in the shortest period

 

1st timer buy EC if nothing goes wrong in life for 5 years ... profitablity is high ... let's say buy at 30-35 with a 10 years early headstart compare to upgrader

 

upgrader age 40-45 buy EC ... i don't see a point especially the hdb is already fully paid up unless living in EC is a die die must have

 

those ec fellows usually are very near 12k one

usually are upgraders who had full paid their hdb, then sell at about say $400k

plus somemore they already paid 20% downpayment already

so say ec cost 1m, - 20%, - 400k

so loan 400k

for middle age couple of say 40 years old, 12k income, 400k i think can clear within 10 years

50 years old, debt free again

 

Edited August 26, 2014 by Wt_know

[Thaiyotakamli]

 

you are born into a good life so you cannot imagine

 

but i can tell you for sure that the couple, with proper financial prudence and planning, can achieve a 6 figure savings with time

 

the trouble is people simply like to take shortcuts

 

Its not that i am born into good life,in fact that i am not born in a silver spoon, only during my secondary school days my parent getting better financially.

 

Even if u r born with silver spoon, one will still to take risk when he was young just that they are taking the bigger risks than average joe.

 

That is why in invesment most of the young are more aggressive in their investment portfolio.

[Enye]

Its not that i am born into good life,in fact that i am not born in a silver spoon, only during my secondary school days my parent getting better financially.

 

Even if u r born with silver spoon, one will still to take risk when he was young just that they are taking the bigger risks than average joe.

 

That is why in invesment most of the young are more aggressive in their investment portfolio.

 

there is a difference between aggressive investment and overleveraging

[SuPerBoRed]

My young 24 yr old staff told me one day that she was sad that she didnt manage to ballot successfully for a Duxton flat costing over 600k. I told her she shd be happy that she didnt. I was paying her $2200 a mth and her hucband was earning like $3300.

 

End of day, can be ambitious, but dun try to wear a bigger hat than one's head and try to look better than the other Joe.

 

Share my personal story... graduated in 05.. early 06 with minute savings+wife's CPF... went for a 400k 3bdroom condo in CCK... owned that place until 2010 and sold it at 720k to leverage and buy current place.

 

To us.. the rationale was simple... HDB back then also cost 3xxk same size same area.. no point have to lock in 5years... many people.. including bosses like yourself, my parents etc told us we were overstretching to own a house (mkt was slowly recovering then). And yes.. really damn xiong the first year.. But 2nd year till the 5th year.. we rented out the place. Stayed with parents and waited for property to appreciate.

 

Don't forget everyone's pay is should appreciate over time... fresh out of school can afford on combined pay..吃点苦..

should try la

In hindsight.. there is really a fine line between trying to wear bigger hat... and being ambitious... No one knows for sure how property prices will move in 3yrs.. let alone 5~10years.. But one thing for sure.. if you dont take risks.. 按部就班... its much much more difficult to survive...

[Wyfitms]

 

U mean the agent or the EC ?

 

 

just do a search for the number on propertyguru

 

photo all there to see

[Mustank]

not entirely true

 

1. many young couple salary below $12k whack EC because they think buy toyota sell lexus after MOP 5 years. this group of buyer is increasing rapidly

 

2. upgrader who sold their hdb ... they normally cash out the profit and they do not plonk $400k to the EC. they would love to cash out $100k-$150k and take on more loan for the EC

 

of course ... sensible and play safe type will plonk as much as possible into the EC and settle the loan in the shortest period

 

1st timer buy EC if nothing goes wrong in life for 5 years ... profitablity is high ... let's say buy at 30-35 with a 10 years early headstart compare to upgrader

 

upgrader age 40-45 buy EC ... i don't see a point especially the hdb is already fully paid up unless living in EC is a die die must have

 

 

 

those upgrader normally eye those super units, at least 2000sqft one

because new hdb dont have this option

of course there are always old jumbos, em, ea

[Wyfitms]

Just amaze me how you folks can afford and koon peacefully at nite when husband n wife combine income only 12k and you dreaming of buying a 1m EC. Divide by 2, i person only 6k mthly nieh. Can afford meh? Every mth pray good health and boss love you deep deep?

 

very common that parents will help with 20% to 30% of the EC

 

these couple typically quite young - late 20s to early 30s. To them, the future is bright and they are confident that in a few years time, each will be earning 10k

Thats why, when there is true recession with retrenchment, i think this time, many will die cock stand compared to before. Moreover so many cheaper FTs can take those places. Pray, that doesnt ever happen.

 

economic cycles is a fact of life

 

pray like mad also cannot change the fact

 

those upgrader normally eye those super units, at least 2000sqft one

because new hdb dont have this option

of course there are always old jumbos, em, ea

 

saw a jumbo, 1900 sqft, 6 bedrooms. nicely renovated and asking 888,000

 

but location like crap

 

nearby got a 1200 sqft resale condo asking 800,000

 

which better value? The 20 year old jumbo or 10 year old condo?

[Mustank]

 

 

IMHO, EC shld be for 1st timers. Upgraders who hv oredi profited a few hundred k from their first hdb shld be competing in the pte mkt, not competing wif new entrants wif smaller treasure chests.

 

usually new couple will buy 2-3 room

upgrader, minimum is 4 room, most prefer jumbo size or penthouse

for upgrader staying in a 90sqm hdb, a 3 room and below is already a downgrade in size, dont say those un usable area

[Mustank]

 

very common that parents will help with 20% to 30% of the EC

 

these couple typically quite young - late 20s to early 30s. To them, the future is bright and they are confident that in a few years time, each will be earning 10k

 

economic cycles is a fact of life

 

pray like mad also cannot change the fact

 

saw a jumbo, 1900 sqft, 6 bedrooms. nicely renovated and asking 888,000

 

but location like crap

 

nearby got a 1200 sqft resale condo asking 800,000

 

which better value? The 20 year old jumbo or 10 year old condo?

 

thats why i tell my friend dont hold on to his em like dear life

now he 35 years old, double income, no kids, dont intend to have kids, house fully paid

he say move for what? now 166sqm divide 2 person, one person 80sqm, very luxurious

problem is house is 30-35 years old liao

if kena enbloc, sure

buyer also don want to buy because cannot get 80% loan

[SuPerBoRed]

Oh.. and continuation on my story... back then.. mount sophia was offered/available at 800k. but i 卖底裤.. also cannot afford... So, take risks... but.. must still think through the move...

 

Nowadays.. houses are really meant to be retirement nest eggs. Gone are the days when house can be fully paid up in few years of ownership..

 

look to future.. don't just look at the past and complain. move with the changing world

[Wyfitms]

 

thats why i tell my friend dont hold on to his em like dear life

now he 35 years old, double income, no kids, dont intend to have kids, house fully paid

he say move for what? now 166sqm divide 2 person, one person 80sqm, very luxurious

problem is house is 30-35 years old liao

if kena enbloc, sure

buyer also don want to buy because cannot get 80% loan

 

ok lah, 35 yr old fully paid his em, dun have to worry lah

 

even if en bloc also wont bankrupt him right

 

just relax and enjoy his space !

[Enye]

 

Share my personal story... graduated in 05.. early 06 with minute savings+wife's CPF... went for a 400k 3bdroom condo in CCK... owned that place until 2010 and sold it at 720k to leverage and buy current place.

 

To us.. the rationale was simple... HDB back then also cost 3xxk same size same area.. no point have to lock in 5years... many people.. including bosses like yourself, my parents etc told us we were overstretching to own a house (mkt was slowly recovering then). And yes.. really damn xiong the first year.. But 2nd year till the 5th year.. we rented out the place. Stayed with parents and waited for property to appreciate.

 

Don't forget everyone's pay is should appreciate over time... fresh out of school can afford on combined pay..吃点苦..

should try la

In hindsight.. there is really a fine line between trying to wear bigger hat... and being ambitious... No one knows for sure how property prices will move in 3yrs.. let alone 5~10years.. But one thing for sure.. if you dont take risks.. 按部就班... its much much more difficult to survive...

 

one question ....so now do you have a much bigger debt on your current place than when you bought your first place?

 

not judging you of course...no offence

[SuPerBoRed]

 

one question ....so now do you have a much bigger debt on your current place than when you bought your first place?

 

not judging you of course...no offence

 

oh yes.. of cus! the house is owned by the bank! At current price... abt 50% loan

But.. if we didnt make the move to buy the place back in 2006.. we could never afford this place on downpayment alone!

 

[Thaiyotakamli]

 

there is a difference between aggressive investment and overleveraging

Depend on how the economy perform, when economy is growing its still ok to over leverage but not now