Wages and Purchasing Homes & Cars.

[psy83]

I have noticed many of my friends are the same, Just got into the work-force and not earning much(Around 2.1 to 2.5 k and Partner is earning around the same with a Combine cpf of no more then $30k) and buying cars and 5room flats.(Some have purchased left over 5room flats and have moved in after getting married a few months earlier or just got married and buying 5room under BTO, Not much savings, not much in CPF savings)

Taking note of the Economy, Housing inflation etc, Does this make sense or is it risky....

What happen to being in less debt and having more cash in hand?

Why move direct to a 5room flat instead of building up from 3 room then 4 room then 5room, Like most of our parents?

 

[drifter]

I have noticed many of my friends are the same, Just got into the work-force and not earning much(Around 2.1 to 2.5 k and Partner is earning around the same with a Combine cpf of no more then $30k) and buying cars and 5room flats.(Some have purchased left over 5room flats and have moved in after getting married a few months earlier or just got married and buying 5room under BTO, Not much savings, not much in CPF savings)

Taking note of the Economy, Housing inflation etc, Does this make sense or is it risky....

What happen to being in less debt and having more cash in hand?

Why move direct to a 5room flat instead of building up from 3 room then 4 room then 5room, Like most of our parents?

theres no point of cash in hand if one does not know how to snowball their money .

 

[chonburifc]

That's what the ruling party wants their peasants and their descendants to be, forever in debt and obedient.

Majority of the peasants are trapped in this vicious cycle.

 

[laksaboy]

I have noticed many of my friends are the same, Just got into the work-force and not earning much(Around 2.1 to 2.5 k and Partner is earning around the same with a Combine cpf of no more then $30k) and buying cars and 5room flats.(Some have purchased left over 5room flats and have moved in after getting married a few months earlier or just got married and buying 5room under BTO, Not much savings, not much in CPF savings)

Taking note of the Economy, Housing inflation etc, Does this make sense or is it risky....

What happen to being in less debt and having more cash in hand?

Why move direct to a 5room flat instead of building up from 3 room then 4 room then 5room, Like most of our parents?

It's all about face.

So you can brag about having 'got it made' during lunchtime chat with your co-workers, during meetup sessions with friends, and during CNY with relatives.

If you don't have such a big head, don't wear such a big hat.

Taking on additional and unnecessary debts is never a good idea.

A car's value depreciates sharply once it has been bought. And in Singapore, car ownership is a major moneysink (fuel, COE, parking, ERP etc).

And even if you want to get a car for the sole practical purpose of travelling from point A to point B, why not consider other options? A motorbike? A second hand car or a modest car (e.g. Honda Fit)? A weekend car?

Always be sensible with your money. With the govt already having spirited away a considerable chunk of your disposable income into CPF/Medisave, you must plan, budget, save and invest wisely.

 

[kulgai]

Young ppl these days do not have the patience to 'slowly' move up the ladder. They're an impatient lot trying to showcase their success right from the start.

 

[no_faith]

Why move direct to a 5room flat instead of building up from 3 room then 4 room then 5room, Like most of our parents?

if im not wrong, newly wed, they will be granted loan at a lower interest for the first time applying HDB.
futhermore, now mostly built are 4-5 room flat, dun tink have a choice.

as for car, if they are doing sales, imho, it might be better to have a car than keep on taking cabs, buses and mrt.

have a high end car out of your means, den i dunno wat to say.

 

[saratogas]

If you do not know how to make use of the low interest rates to make $$$, then forever you will no be rich...

Use bank's $$$ as long as you have a job slowly pay them, worry here worry there... No need to "live".

 

[zhihau]

Does this make sense or is it risky

bro,
cash is king. stay debt-free, utilise all of your CPF on housing since you can't take it out anyway. cash out later when you need a bigger place when you have your budding family

 

[Ash007]

Indeed, especially after the recent fiascos on public transportation.

if im not wrong, newly wed, they will be granted loan at a lower interest for the first time applying HDB.
futhermore, now mostly built are 4-5 room flat, dun tink have a choice.

as for car, if they are doing sales, imho, it might be better to have a car than keep on taking cabs, buses and mrt.

have a high end car out of your means, den i dunno wat to say.

 

[SirRichard]

theres no point of cash in hand if one does not know how to snowball their money .

Totally agree with this bro's comment. It's important not to anyone spend money BUT, it's also important not to let your money be left idle coz inflation will diminish the value. Use the money saved to do some investment such as property or bonds, blue chips stocks etc with a longer term view.

Delay gratification is better.. don't live it up when you are not financially stable.

 

[Charlie258]

I have noticed many of my friends are the same, Just got into the work-force and not earning much.....(abbreviated....)

Well, you said it yourself......"just got into the work-force...."

Obviously, these are young people. Never get a taste of the previous Recessions that bit the Oldies deeply and left Ugly Scars that have yet to heal! Many young people in Sinkiepoor never get a taste of Retrenchment yet. That is soon about to change.

With all the 'Cooling Measures' on property, I still see Condo's being snapped up at S$1,450+ psf. It is obvious to me many of these sales are not 'Phantom Sales,' i.e. developer getting his employees to pretend to buy up many units, and later hopefully subsale them to the Market. Many of these are to young people buyers. These youngsters have not lived thru the Crash of '98. If they have tasted the bitter experience of properties crashing down and staying down more than 10 years, they will not be so brave today.

 

[greedy and cunning]

I have noticed many of my friends are the same, Just got into the work-force and not earning much(Around 2.1 to 2.5 k and Partner is earning around the same with a Combine cpf of no more then $30k) and buying cars and 5room flats.(Some have purchased left over 5room flats and have moved in after getting married a few months earlier or just got married and buying 5room under BTO, Not much savings, not much in CPF savings)

Taking note of the Economy, Housing inflation etc, Does this make sense or is it risky....

What happen to being in less debt and having more cash in hand?

Why move direct to a 5room flat instead of building up from 3 room then 4 room then 5room, Like most of our parents?

nothing surprising , this is the typical traits of a sinkie.

i still remember an article i read here more than 10 years ago.
briefly , family with a teenage son went on group tour to china.
tour guide brought the group to see old historic town ,
sinkie boy , seeing an ancient pogoda , exclaimed loudly : they even copied the building at our chinese garden .

 

[ElaineTan]

Now COE so high, how to afford to buy a Brand New Car?

 

[Scrooball (clone)]

If you earn $2.5k and u buy a car, you are daft.
If you earn $2.5k and u buy a flat for investment, then maybe not so bad.

 

[no_faith]

Now COE so high, how to afford to buy a Brand New Car?

then dun buy lor. why need to post a link?

 

[Narong Wongwan]

Combine income of 5K income how to buy car and flat? unless got family support or savings.
If not cannot renovate the flat or have any furniture unless buy from courts on installment and take renovation loan.
Then car buy already after monthly car loan installments left with no money pay petrol and parking or maintenance.