Jump to content

Any place to find free financial planning advice?


Red_ryder
 Share

Recommended Posts

I know there are a lot of financial planners out there, but they are all selling something. I just want to seek some advice for people in my situation, what is the best way to proceed.  I currently have no liabilities (housing and car loan paid off), but staying in 4-room HDB. Wish to upgrade to private property, but I'm also concerned about risk since I am a single income family.

 

I'm not seeking advice on investments, but rather how much property I can afford based on my income level, net worth, and age. 

 

 

 

 

 

Edited by Red_ryder
↡ Advertisement
  • Praise 1
Link to post
Share on other sites

in SG, not really.

There used to be a flat fee financial advisory agency. But not sure if they are still around.

 

Why not just read up?

 

I don't see the need to consult unless the financial planners are well versed in some details of insurance planning. And by then, u will be looking to buy something anyway.


For insurance, the closest thing is that the financial planner aka insurance agent is agent for several different companies and can offer the product best suited for u.

  • Praise 3
Link to post
Share on other sites

I know there are a lot of financial planners out there, but they are all selling something. I just want to seek some advice for people in my situation, what is the best way to proceed.  I currently have no liabilities (housing and car loan paid off), but staying in 4-room HDB. Wish to upgrade to private property, but I'm also concerned about risk since I am a single income family.

 

I'm not seeking advice on investments, but rather how much property I can afford based on my income level, net worth, and age. 

 

Pretty straight forward, go to those properties site like guruproperty and so on... 

 

They will have info for HDB upgraders.

 

In general, for bank loans, banks will look at several aspects of your income and wealth, ie total interest + repayment < 35% of monthly income, servicing period, load amount.  

 

Also, depends on whether you intend to keep the HDB or sell off?  Have different impact since there's a ABSD on 2nd property onwards starting from 7%.  Also, depend on the type of private property you are buying, EC or private condo?

Pretty straight forward, go to those properties site like guruproperty and so on... 

 

They will have info for HDB upgraders.

 

In general, for bank loans, banks will look at several aspects of your income and wealth, ie total interest + repayment < 35% of monthly income, servicing period, load amount.  

 

Also, depends on whether you intend to keep the HDB or sell off?  Have different impact since there's a ABSD on 2nd property onwards starting from 7%.  Also, depend on the type of private property you are buying, EC or private condo?

 

BBTW, just go to any of the current property showrooms.  They will assign a property agent to you.  Act like you really interested in buying and they will walk you through everything, including getting a banker to work out how much you can borrow.

 

No need to consult FC lah... Those are for exotics products, land banking, insurance products, ETFs and so on.

  • Praise 2
Link to post
Share on other sites

(edited)

I don't need advice in terms of financing, loans, or insurance products. What I'm looking for is more general advice like whether I should even be buying property, or saving more for retirement, or what type of property I should buy (99 LH vs FH, private vs higher end HDB). 

 

Because I am already 41 yrs old, single income family supporting two children. The property calculators at PropertyGuru only tell me maximum affordability based on max borrowing TDSR, Not really helpful. Even if I take a conservative ratio of 30% of my monthly salary, is that worth the risk or better to just save for retirement? 

 

 

Edited by Red_ryder
Link to post
Share on other sites

Lol. Ok this is quite a loaded topic here in MCF, if you're talking abt property investment.

 

I think just read and make up your own mind.

  • Praise 1
Link to post
Share on other sites

On the one hand, I'd like to save for retirement for me and my wife since we are 40 years old already. It's a good situation to be debt free so I can concentrate on just saving. 

 

On the other hand, my current 4-rm flat is a corridor unit and neighbours can be noisy. I wish for more privacy, a bigger flat and better neighbours. If strictly looking at affordability calculators in Property Guru I can afford up to 2.9M property, but that's borrowing at maximum TDSR. 

 

99 yr LH condos at 1500 sqft are more affordable, but are they worth buying for long term stay? Should I consider larger HDB flats instead? 

 

How to answer this kind of deep questions?  

 

Only yourself can answer and decide.  If noisy corridor and don't want excessive debt.  Sell HDB and upgrade to 5 rooms or Executive Maisonette/Flats, more privacy.  But are you prepare to move out of your existing estate and its location, advantages and disadvantages?

 

Taking on debt for a private condo is to achieve what purpose?  Show off?  Get a good location and address?  Private facilities like pools and so on?  Willing to pay the monthly conservancy charges that increases every year?  In my case, I move to condo because of travelling convenience and need to show off to friends and relative that I have "made it".   [laugh]

 

Anyway, if you approach a FC, they only interested in pushing things to you that they can earn money on... so talking to them guarantee that you will not be talking about property and it's viability at all.

  • Praise 2
Link to post
Share on other sites

If you don't like living in a corridor unit, by all means upgrade. 

I mean u maybe staying in this unit for another 40 years leh.

Haha

 

Retirement savings, maybe u can read more on CPF website or moneysense to get a better gauge.

I'm sure there are some retirement calculators, that u can use to calculate how much u need in cash/cash equivalent by your retirement age.

  • Praise 1
Link to post
Share on other sites

I don't need advice in terms of financing, loans, or insurance products. What I'm looking for is more general advice like whether I should even be buying property, or saving more for retirement, or what type of property I should buy (99 LH vs FH, private vs higher end HDB).

 

Because I am already 41 yrs old, single income family supporting two children. The property calculators at PropertyGuru only tell me maximum affordability based on max borrowing TDSR, Not really helpful. Even if I take a conservative ratio of 30% of my monthly salary, is that worth the risk or better to just save for retirement?

If I am u, I wouldn't buy a private property even if I can afford it

 

It is better to upgrade to a bigger BTO or HDB, and enjoy the bigger space without having to slog to pay off a big loan

 

The bank will be most willing to offer a big loan, just approach a banker, they will calculate and tell you how much loan you can take to purchase a new property, it's probably more than u can imagine

 

Single income is risky business, times are bad, touch wood if u kanna retrench, the bank wouldn't allow u to delay payment

 

With 2 children, if I am in your shoes, I would be extra prudent not to get myself into debts

  • Praise 7
Link to post
Share on other sites

I don't need advice in terms of financing, loans, or insurance products. What I'm looking for is more general advice like whether I should even be buying property, or saving more for retirement, or what type of property I should buy (99 LH vs FH, private vs higher end HDB). 

 

Because I am already 41 yrs old, single income family supporting two children. The property calculators at PropertyGuru only tell me maximum affordability based on max borrowing TDSR, Not really helpful. Even if I take a conservative ratio of 30% of my monthly salary, is that worth the risk or better to just save for retirement? 

 

Then you must ask yourself... why are you asking these questions of someone else who does not understand your circumstances and probably have some incentives or ulterior motives of their own in any advice that they give you?  What outcome you want from the discussions?

 

Here's some general questions that you can ask yourself and review the answers yourself.

1. Current savings.and assets, do not count in the HDB that you are staying in.  Unless you want to squat in the streets?

2. Liabilities.

3. Possible changes in income and assign probabilities to those events

4. Possible changes in liabilities (example, single child support sick elderly parents) and assign probabilities to those events.

5. When you want to retire?  If ever?

6. How much is your current expenditure annually?

7. Do you anticipate major changes to your expenditures?  

8. Is your current expenditure pattern stable and steady ie when you retire, your spending pattern will still be approximately similar?

9. How old does your immediate families live to?  Expected life expectancy fr males is 85 currently.

10. For every 10 years, double your expenditure, that will allow you o arrive at the sum of money that you need to maintain your current lifestyle.  Eg, your expenditure is 12K/yr, by 2056, you will need 48/yr.

11. If that is not achievable, what can be changed in your expenditures in the future.

12. Do you intend to leave any estate to your heirs?

13. How much more eggnest can you build up between now and retirement?

14. Are you prepare to draw down on the egg nest?

15. Do you have any assets that appreciates at the same rate as inflation?

16. Do you intend to depend on your heirs for your future care and housing needs?

 

Anyway, in general, if your intention is to upgrade your property and do not/cannot hold another property, then your property cannot be treated as an asset as you will need a place to stay in even when old.

 

The other alternative is to buy a private property to move into (for the considerations you mention) and rent out your HDB flat as a source of income.  But hey, we know how some bros feel about that [laugh]  

Also you need to consider the 7% ABSD for a second piece of property and whatever HDB housing rules that are in force for owning private condo and HDB flat at the same time.

 

Also, only you know much valuable is your existing flat in the rental market. 

 

Oh yeah, lot's of also... you need to consider property taxes for every piece of property you own.  4% of annual for the one you squatting in, 10% annual value for the ones rented out.  Also, rental income is chargeable as part of personal income tax.

Edited by Limwsv
  • Praise 3
Link to post
Share on other sites

I don't need advice in terms of financing, loans, or insurance products. What I'm looking for is more general advice like whether I should even be buying property, or saving more for retirement, or what type of property I should buy (99 LH vs FH, private vs higher end HDB). 

 

Because I am already 41 yrs old, single income family supporting two children. The property calculators at PropertyGuru only tell me maximum affordability based on max borrowing TDSR, Not really helpful. Even if I take a conservative ratio of 30% of my monthly salary, is that worth the risk or better to just save for retirement? 

 

eh........... no one can give you the right answer except yourself........ or start a poll in MCF lor....... but must reveal all your monies, CPF etc, assets, debts and dependence etc

 

then we can poll correctly

  • Praise 4
Link to post
Share on other sites

TS, there are no questions that cannot be answered in MCF

 

that is if you are willing to share info in the first place

 

many gurus of all trades here

 

:D

  • Praise 3
Link to post
Share on other sites

Thanks all the bros for the quick reply.

 

My flat can get about $700k since its in a good location. I don't intend to keep it for rental income. At my current income level, I just barely squeak under the income ceiling for ECs. Maybe can consider those.

  • Praise 1
Link to post
Share on other sites

Ok if you say your current hdb is paid, your car loan paid, then for now you have very little debts apart from monthly credit card spending right?

 

41 years old with at least a good further 15-20 years of income age left.. my advice is.. when your HDB completes it MOP.. put it up for rent. Use some savings and put them as downpayment + more to reduce loan for a condo unit. Live in the unit and use the rental income to service the condo unit repayment. 

 

Housing market is slow now but 5-8 years down the road it will pick up.. its only a cycle. 

  • Praise 2
Link to post
Share on other sites

Thanks all the bros for the quick reply.

 

My flat can get about $700k since its in a good location. I don't intend to keep it for rental income. At my current income level, I just barely squeak under the income ceiling for ECs. Maybe can consider those.

 

wah 200k pa many people stay atas private condo already

 

yolo lah

 

:ph34r:

  • Praise 1
Link to post
Share on other sites

Ok if you say your current hdb is paid, your car loan paid, then for now you have very little debts apart from monthly credit card spending right?

 

41 years old with at least a good further 15-20 years of income age left.. my advice is.. when your HDB completes it MOP.. put it up for rent. Use some savings and put them as downpayment + more to reduce loan for a condo unit. Live in the unit and use the rental income to service the condo unit repayment.

 

Housing market is slow now but 5-8 years down the road it will pick up.. its only a cycle.

Sorry what do you mean HDB complete MOP? At present I don't have much cash to afford condo down payment. Will need to sell the HDB for the cash.
Link to post
Share on other sites

Sorry what do you mean HDB complete MOP? At present I don't have much cash to afford condo down payment. Will need to sell the HDB for the cash.

Minimum Occupation Period (MOP) = 5 years from the date u started living in the flat. Once it completes 5 years you can rent it, sell it do whatever you want.

 

if you arent interested to get rental income.. then can look into ECs but not sure whether u can keep ur HDB unit and also the EC. 

 

Can consider to just keep on saving then.. once your children grow up they'll find their way and you have one nest egg (the hdb) for retirement. 

Link to post
Share on other sites

This is my personal take on your circumstances... so take it as you will...

 

Probably you will see it very differently.

 

Given that you share that your current flat can sell for $700K, it must be in one of the mature HDB estate with good infrastructure and such.  Assuming you work downtown, travelling time on public transport is probably between 15 ~ 45 minutes. 

 

I really don't know very much about ECs since they are not on my selections list, but my impression is that most of the new ones are all in the far reaches of Singapore.  So, your kids, wife and yourself are going to undergo a wenching dislocation and major change in lifestyle.  Everything is much farther.

 

Of course, provide that you are looking at new launches and not existing/EC converted condos.

 

Assuming you intend to utilize the max value in your flat to convert to EC, you still have to take a load of 1/2 million.  At current interest rates, equates to about 2.5K - 2.8K monthly for interest and repayment.  

 

If me, i rather stay closer to the city in a HDB flat than to move out far far away.  And the savings from not having to pay off loan is substantial enough to be re-invested into assets for retirement.

 

  • Praise 2
Link to post
Share on other sites

wah 200k pa many people stay atas private condo already

 

yolo lah

 

:ph34r:

I guess I'm very conservative. I have subordinates who live in bigger flat and drive bigger car than me. Haha

This is my personal take on your circumstances... so take it as you will...

 

Probably you will see it very differently.

 

Given that you share that your current flat can sell for $700K, it must be in one of the mature HDB estate with good infrastructure and such. Assuming you work downtown, travelling time on public transport is probably between 15 ~ 45 minutes.

 

I really don't know very much about ECs since they are not on my selections list, but my impression is that most of the new ones are all in the far reaches of Singapore. So, your kids, wife and yourself are going to undergo a wenching dislocation and major change in lifestyle. Everything is much farther.

 

Of course, provide that you are looking at new launches and not existing/EC converted condos.

 

Assuming you intend to utilize the max value in your flat to convert to EC, you still have to take a load of 1/2 million. At current interest rates, equates to about 2.5K - 2.8K monthly for interest and repayment.

 

If me, i rather stay closer to the city in a HDB flat than to move out far far away. And the savings from not having to pay off loan is substantial enough to be re-invested into assets for retirement.

I'm of the same view as you and my wife is not keen to move at all. Hence the difficult decision whether to stay in my corridor unit HDB or look for a reasonably priced condo in a mature estate. Or move to a 5 rm or EM HDB in a mature estate.
↡ Advertisement
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share

×
×
  • Create New...