Need advises on buying flat and investing.

[Kusje]

you forget about cpf interest rates that has to be returned to your account once you sell off your flat. Your calculation to simplistic.....i not agent but i wont count my profit that way should i sell off my unit. I must return nearly 80k-100k in accumulated interest should i sell.

 

Whatever is returned to CPF can be used for the new flat lor.

So even with $190k cash on hand we can't buy a private property in sg after going through option 3.

 

How old are the 2 of you?

[Evillusion]

Whatever is returned to CPF can be used for the new flat lor.

ya i know......but he din add in that variable. The compounded interest can add up if 1 is not careful.

[Ec_2008]

nothing is more secured than cash in the bank for rainy day. I used to think like you bought a unit in malacca thinking can retire there one day. Didn;t even bother to rent the unit out.

 

After paying off the loan end up sit there for a few year and gave up. Reason is we will never go back after retirement cos there are nothing there we can relate to. End up sold the unit at the same price we bought but loss big time on exchange rate.

I am sorry to said that parking cash in bank is an unwise way of saving money. Bank interest rates won't beat inflation rates.

 

If we really need money for rainy days. Eg. If we are fortunate already have some overseas property. We can just sell off one unit or some to get cash.

 

Again I need to apologize. Boleh land is totally different from China. With their open policy. The whole country is growing fast. And I had went to Haikou to see for myself. Haikou is growing rapidly. That's why we don't even think of investing in boleh land.

[Kusje]

I am sorry to said that parking cash in bank is an unwise way of saving money. Bank interest rates won't beat inflation rates.

 

If we really need money for rainy days. Eg. If we are fortunate already have some overseas property. We can just sell off one unit or some to get cash.

 

Again I need to apologize. Boleh land is totally different from China. With their open policy. The whole country is growing fast. And I had went to Haikou to see for myself. Haikou is growing rapidly. That's why we don't even think of investing in boleh land.

 

Your argument would be valid if you're talking about 5mil or even @enye's 700k. Dumping $$$ in the banks only makes the banks happy.

 

But 50k..... Surely you need 50k for liquidity/rainy day? How fast will you be able to sell off your overseas property and what if it happens during a downturn and your property has no equity in it?

 

Anyway, no need to apologize over here. It's your money. No one here will apologize if property prices double and you miss out on an opportunity.

Edited July 20, 2017 by Kusje

[Throttle2]

Thanks for your encouragement. We are still holding the ideas of buying a small apartment unit in Haikou.

 

We may go for option 3. Gave up the Bedok BTO. Lose $2k option fee. Apply for another 4 room BTO that cost less maybe around $280k price range in punngol, Sembawang, woodlands, yishun etc.

 

In doing so, we will have extra cash in hand maybe even for private property in sg.

 

Woodlands flat sell $400k.

After HDB levy and leftover bank loan

Still have $320k.

New 4 room flat in another location around $280k.

HDB grant us a loan of $150k.

Therefore new flat need to top up $130k.

$320k - $130k = $190k cash.

 

This is the figure we got after doing the simple math. Are we correct? Or are we wrong?

Your life your money, you decide.

But you seem to deem the $150k loan from HDB as free money.

$150k is probably crushed peanuts to many bosses here but its not free

 

Huat ah!

 

 

[Aventador]

Your story too long winded. Let me summarize for you:

 

Current Flat - Woodlands

Sell at 400k, loan 80k = 320k available funds

 

Planned Flat - Bedok

Buy at 537k

 

-------------------------------------

ignoring other noise first, 

 

1) you want to liberate $50k in cash for a Ferrari, Sentosa cove bungalow, etc.

2) I highly recommend spare cash in hand for any problems, especially medical. Minimally please keep $20k (this will not support you long if you lose your job, but will cover most medical problems if you are subsidised, C class ward etc)

 

so after selling your flat, 320k - 50k - 20k = 250k balance

 

If you buy the Bedok flat at 537k - 250k balance = Loan 287k

 

looking at the HDB installment calculation your installment is $1551 per month

with income of $5500, your CPF (37%) should have about $2k per month, so installment should be ok

 

so changing to the Bedok flat is manageable

Debatable is how much capital gains you will make from 537k upwards

so if changing flat for better location/transport is ok - changing for hope of gains, maybe you should think further

 

----------------------------------

with 50k in hand, buying a property in China for 100k+ is not too bad

i am sure in the very long term (10-20 yrs), you will make some money just simply due to inflation at least

 

----------------------------------

the main risk is if you lose your job

then you will have 2 loans to service with outstanding liabilities of 300k plus

 

this point, no one can advise you anymore, because only you know best how skilled you are

how likely you can find another job

 

i think singapore wont die one, if you willing work as delivery driver, hard labour, 2 jobs type - still can make 3-4k a month

 

if you think losing your job wont be end of the world, and you are tough enough to work hard jobs. then i think you are good to go

 

can't always be too safe, and you have one advantage is that your wife is from China , so it is safer for you to invest in China than us Singaporeans. And i am willing to bet that the China growth is going to beat the Singapore growth story

 

--------------------------------

if i were to give you one advice, if you serious about building your assets in the long term

 

sell the Woodlands flat and buy a 3 room flat (why need a 5 room if you have no kids)

with the free cash , invest it better

 

 

 

 

[Ec_2008]

Whatever is returned to CPF can be used for the new flat lor.

 

 

How old are the 2 of you?

Yes actually. Whatever money used in my current flat will return back to CPF plus interest. But we can also used that amount for our new flat.

 

So let's calculate again. I have used $170k in CPF plus interest as of now.

After selling off Woodlands flat. Left $320 - $170k(CPF) = $150k cash.

 

New flat around $280k - $170k(CPF) = $110k.

If HDB able to grant us a loan of around $80k. (Around 70%)

We need to pay $30k cash to complete the transaction.

Therefore $150k - $30k = $120k cash on hand.

 

Selling woodlands flat for $400k is just a safe figure. We might get more since Thomson line(Woodlands south station) is going to complete in 2019 if I am not wrong. We might fetch a higher price than $400k.

[Jman888]

I am sorry to said that parking cash in bank is an unwise way of saving money. Bank interest rates won't beat inflation rates.

 

If we really need money for rainy days. Eg. If we are fortunate already have some overseas property. We can just sell off one unit or some to get cash.

 

Again I need to apologize. Boleh land is totally different from China. With their open policy. The whole country is growing fast. And I had went to Haikou to see for myself. Haikou is growing rapidly. That's why we don't even think of investing in boleh land.

 

 

that is a big IF and even more far fetch than msia property. it seem to me your plan is only a preliminary thought without going throught thorough calculation and risk assessment.

 

Anyway i didn't buy the property for investment, my old man was staying there till he pass on. 

[Angcheek]

Bedok 4rm bto at 520k .... waaa i wondering who huat

[inlinesix]

Rental yield will be ok if there is a pool of expats who is willing to pay.

 

In fact, most ppl who invested in property in Beijing are looking at capital gain.

 

In HaiKou, i have doubt about expats pool.

 

As Technician, there is always a danger of technological obsolescence if don't catch up with time.  You would know what's the outcome of Technological obsolescence.

 

It is always good to have some liquidity on hand.  50k is not a lot of $$$.

 

 

[Throttle2]

TS already knows what to do as he is fending off everyone who is saying otherwise.

Property is as liquid as cash in the bank, everyone knows that

Property sure to go up, everyone knows that.

Money in bank is stupid everyone knows that

The only way to go is leverage or else how to make money, everyone knows that

 

Why you guys block his road to huatness?

 

Huat ah

Huat ah

Huat ah

 

 

Edited July 20, 2017 by Throttle2

[Throttle2]

Well at least now people understand better what kind of buyers are fuelling the low end market.

Is it Prime? No?

Ooops then?

 

Everybody thinks that if they need cash, just sell, how smart

Everybody thinks, their job is forever

Everybody thinks loans are free money

 

Confirm huat ah!

[Angcheek]

Apparently, it worked. The incident happened in Haikou, Hainan’s capital province.

 

https://m.facebook.com/story.php?story_fbid=1583905571649089&id=592308557475467

[Throttle2]

Siao kao.

Crazy dog.

 

Hhhmmmm, maybe i can go and open ktv there with @staff69 ?

He knows the stock and inventory very well.

Sure huat

[RadX]

Well at least now people understand better what kind of buyers are fuelling the low end market.

Is it Prime? No?

Ooops then?

 

Everybody thinks that if they need cash, just sell, how smart

Everybody thinks, their job is forever

Everybody thinks loans are free money

 

Confirm huat ah!

 

 

so this thread is for???  

[Throttle2]

so this thread is for???

Dont know leh 大哥

I think you better lock it

Hee hee

[Enye]

so this thread is for???  

 

to cheer on TS and help him decide how best to spend(invest?) his 50k cash and borrow more?

 

[Angcheek]

The thoughts were not wrong ma ...