At 29, Janice Lim is the proud homeowner of a quaint walk-up apartment in Joo Chiat

[Asterix]

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TDSR for private property is set at 60% of gross monthly income.

Monthly repayment of $2,700 means her gross monthly income is at least $4,500, assuming she has no other debts.

https://blog.moneysmart.sg/home-loans/total-debt-servicing-ratio-tdsr-loans/

Things that can go wrong:

- 1.4% is only for 2 years, after which it floats with the prevailing rate which may go higher, leading to larger monthly repayments

- may lose job and then how to make the monthly repayments

Flaws in conventional thinking:

- 30 year loan doesn’t mean have to make monthly repayments for 30 years

- can sell and redeem mortgage from sale proceeds, check loan terms to see what’s the penalty if any for early redemption, usually there is a lock in period eg if redeem after two years no penalty

- if price goes up means make money after redemption, if price goes down means lose money or no money or worse still owe money after redemption

Buying real estate is both a business and personal life decision. Nothing more nothing less.

 

[pvtpublic]

That’s the exact wish of some of my kakis, I told them to think again carefully and asking them who will pay the price in future.

asset prices tend to track inflation and unless the world enters a prolonged period of deflation, prices will likely continue to rise to match inflation at the very least.

it boils down to risk appetite and it's fine for young people like Janice to take on more risk. it will be too late to load up on risk in her 40s and 50s. 20s and early 30s is the best time to load up on risk. if fail can still fight back.

what's different today from the Japanese ppty crash in the 90s is the willingness of central banks to print money and increase money supply. this has thrown tradition economic theory out the window.

and this Quantitative Easing by the central banks is akin to a drug habit, highly addictive and hard to break.

 

[Asterix]

TDSR for private property is set at 60% of gross monthly income.

Monthly repayment of $2,700 means her gross monthly income is at least $4,500, assuming she has no other debts.

https://blog.moneysmart.sg/home-loans/total-debt-servicing-ratio-tdsr-loans/

Things that can go wrong:

- 1.4% is only for 2 years, after which it floats with the prevailing rate which may go higher, leading to larger monthly repayments

- may lose job and then how to make the monthly repayments

Flaws in conventional thinking:

- 30 year loan doesn’t mean have to make monthly repayments for 30 years

- can sell and redeem mortgage from sale proceeds, check loan terms to see what’s the penalty if any for early redemption, usually there is a lock in period eg if redeem after two years no penalty

- if price goes up means make money after redemption, if price goes down means lose money or no money or worse still owe money after redemption

Buying real estate is both a business and personal life decision. Nothing more nothing less.

In most cases, the deal breaker will be the down payment of $287,500 which is a lot of money for a 29 year old.

Women got no NS, so after graduate 4 year uni course, she will start work at 23.

To be able to save $287,500 in 6 years means her salary is probably higher than $4,500 per month or she is a super-saver (unlikely since women like to shop) or got some help from parents.

Having to stress test her repayment abilities in a scenario where interest rates go up to 3.5% means her gross monthly has to considerably more than $4,500 per month.

 

[tobelightlight]

In most cases, the deal breaker will be the down payment of $287,500 which is a lot of money for a 29 year old.

Women got no NS, so after graduate 4 year uni course, she will start work at 23.

To be able to save $287,500 in 6 years means her salary is probably higher than $4,500 per month or she is a super-saver (unlikely since women like to shop) or got some help from parents.

Having to stress test her repayment abilities in a scenario where interest rates go up to 3.5% means her gross monthly has to considerably more than $4,500 per month.

I wonder why you think she is going the route of graduation from degree. then WORK FOR PEOPLE, then get a SALARY, then got the money.

There are many young men and women who are doing very well using the internet and social media. Because they are very creative and that is very different from BOOMERS.

They even make a name for themselves and having their own products. Does this not come as a possible way of making a living in this current times and era?

The young lady in the video who help make over uncle roger is one example of someone doing well in life WITHOUT the boring route of degree, work and save.

 

[amransan]

correct me if i am wrong i never dont study high

in singapore if u plan to live there till u die u should buy the cheapest HDB flat around dont ever think of location and which floor(high floor) becuse at the end of the day your HDB flat value start to loss value after 40 years. so why pay so much when at the end of the day it not belong to u right.

HDB flat is a good way to may money after u buy at the good location and high floor after 6 to 10 years u migrate to another country sell your hdb and collect your hard earn CPF money and u can buy 2 landed properties or more in your new found country!

u must always remember buying a HDB flat is no different then buying a car in singapore

 

[kaninabuchaojibye]

u must always remember buying a HDB flat is no different then buying a car in singapore

that is sad but absolutely true

 

[zhihau]

prices will likely continue to rise to match inflation at the very least.

inflation in private property market can go with market forces, my beef is with the exhorbitant HDB prices.

 

[kkbutterfly]

if her parents can help pay her down payment, it mean her parents got no difficult in paying installments for her as well.

 

[pvtpublic]

inflation in private property market can go with market forces, my beef is with the exhorbitant HDB prices.

woody and his asset enhancement schemes started the ball rolling on higher hdb prices.

anyway as someone pointed out, high prices keep the wage slaves in check.

 

[Asterix]

I wonder why you think she is going the route of graduation from degree. then WORK FOR PEOPLE, then get a SALARY, then got the money.

There are many young men and women who are doing very well using the internet and social media. Because they are very creative and that is very different from BOOMERS.

They even make a name for themselves and having their own products. Does this not come as a possible way of making a living in this current times and era?

The young lady in the video who help make over uncle roger is one example of someone doing well in life WITHOUT the boring route of degree, work and save.

Because if she could afford it without working (for other people or herself, basically we are all working for ourselves, it is just whether the business that pays you the "salary" or "dividends" or "profits" or whatever belongs to you or not), she would have bought the $1.3 million condo with 100% CASH, which quite a few Samsters can do.

From the bank's point of view, it doesn't give a damn whether the borrower earns his or her money in a boring or exciting way. What it is looking at is the ability of the borrower to service (i.e. repay) the loan. The bank must have enough confidence in the stability of the borrower's cash flow before it lends the money on a promise to repay it by monthly installments over 30 years. The bank is running a business, it is not a charity.

Will a bank lend $860,000 to a sugar baby based on her claimed monthly income of $8k to $10k per month? Will you?

 

[zhihau]

woody and his asset enhancement schemes started the ball rolling on higher hdb prices.

anyway as someone pointed out, high prices keep the wage slaves in check.

Woody didn’t expect the HongKongers to snap up our properties prior to gao chart.

 

[tobelightlight]

Because if she could afford it without working (for other people or herself, basically we are all working for ourselves, it is just whether the business that pays you the "salary" or "dividends" or "profits" or whatever belongs to you or not), she would have bought the $1.3 million condo with 100% CASH, which quite a few Samsters can do.

From the bank's point of view, it doesn't give a damn whether the borrower earns his or her money in a boring or exciting way. What it is looking at is the ability of the borrower to service (i.e. repay) the loan. The bank must have enough confidence in the stability of the borrower's cash flow before it lends the money on a promise to repay it by monthly installments over 30 years. The bank is running a business, it is not a charity.

Will a bank lend $860,000 to a sugar baby based on her claimed monthly income of $8k to $10k per month? Will you?

My point is on YOUR (NOT THE BANK) perception of her being a salaried worker after graduation as the only choice in life. Not on how she service the loan. You view everyone as a salaried worker that i think is not realistic and pretty narrow. Boomers only think that making a living in life is only restricted and limited to being a salaried worker.

For the sake of debate, she can also choose to take a loan even though she can pay for it 100% for various reasons she has. You dunno her background and her finance at all. Your limited and narrow view of her does not seem very realistic on her situation.

 

[tobelightlight]

siao boh. owe the bank money until she retires. the interest accrued already a couple of 100k.

What makes you think that she will stay there till the day she dies? Maybe she will emigrate to another counhtry in 5 years time and sell off her home.

 

[amransan]

that is sad but absolutely true

actually bro the more expensive one buy the hdb flat the deeper one in debt and that is the reason why many cant retire when they get old because at 60 year old they still paying their mortage :(

well many sgrean bougth their flat so expensive some $700K i say they are hero or too much moneyy dont know where to spent on.

 

[pvtpublic]

Woody didn’t expect the HongKongers to snap up our properties prior to gao chart.

HKers got buy HDB meh? I thought mostly buy private only

 

[shittypore]

Once you get caught in the materialistic world Here, prepared to be Pappies slaves untill they lower you 6ft underground.

 

[Asterix]

My point is on YOUR (NOT THE BANK) perception of her being a salaried worker after graduation as the only choice in life. Not on how she service the loan. You view everyone as a salaried worker that i think is not realistic and pretty narrow. Boomers only think that making a living in life is only restricted and limited to being a salaried worker.

For the sake of debate, she can also choose to take a loan even though she can pay for it 100% for various reasons she has. You dunno her background and her finance at all. Your limited and narrow view of her does not seem very realistic on her situation.

What's wrong with assuming that she is a salaried worker after graduation when that is the route that most Sinkies take?

No need to debate lah. If she can pay 100% cash for $1.3 million condo, she would not be pleasantly surprised that she can afford it, which is the gist of the first post in this thread. What kind of idiot does not remember or know that she actually has $1.3 million in the bank? Youtubers or so-called "influencers" perhaps

Why the obsession with boomers? You must be suffering from sour grapes because you missed the property boom

It is not disputed that there are many roads to riches, but there is nothing wrong with assuming that she is taking the route that most ordinary Sinkies take as otherwise this thread is not of much relevance to ordinary readers since not everyone have what it takes to be a movie star ... and oh there is a lot of BORING work before you can even think of becoming a movie star

 

[bushtucker]

What makes you think that she will stay there till the day she dies? Maybe she will emigrate to another counhtry in 5 years time and sell off her home.

She's a sinkie. She's not like your gung ho beloved Trump.

 

[tobelightlight]

What's wrong with assuming that she is a salaried worker after graduation when that is the route that most Sinkies take?

No need to debate lah. If she can pay 100% cash for $1.3 million condo, she would not be pleasantly surprised that she can afford it, which is the gist of the first post in this thread. What kind of idiot does not remember or know that she actually has $1.3 million in the bank? Youtubers or so-called "influencers" perhaps

Why the obsession with boomers? You must be suffering from sour grapes because you missed the property boom

It is not disputed that there are many roads to riches, but there is nothing wrong with assuming that she is taking the route that most ordinary Sinkies take as otherwise this thread is not of much relevance to ordinary readers since not everyone have what it takes to be a movie star ... and oh there is a lot of BORING work before you can even think of becoming a movie star

29 year old taking a huge loan ( to you) is not ordinary. So if you see it with an ordinary eyes, presumption is always wrong and no point for further discussion as it is on the wrong side of the road.

I am just pointing out that ordinary people using their ordinary eyes can't see past their ordinary view and assume anything that is not within ordinary view, is ready for an overwheming disaster and extraordinary drama which is so unnecessary.

 

[tobelightlight]

She's a sinkie. She's not like your gung ho beloved Trump.

If you are ordinary, it does not mean she is also ordinary. She might be at Trump's SES level.