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Tampines EC Penthouse to be priced at $2 Million

Darryn

By Darryn,
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Darryn

Darryn

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Just been announced that the latest Tampines EC Penthouse will be priced at $2.05 million.

 

How much is that?

 

Well.....

 

Assuming the minimum 20% deposit, the deposit will be $410,000.

Stamp duty is $56,100 for a total up front cost of $466,100.

 

Put that into perspective, if you assume an income of $12,000 (the max for EC) and a 40% savings rate would need to save for 97 months (a touch over 7 years) just for the deposit alone.

 

The payments?

 

Will extend the loan to 35 years, and assume a low 1.5% interest rate - then it will be $5,021.00

 

If the interest rate is 2%, this will jump to $5,432

If the interest is 3.5% then it will be $6,777

 

What is the cash top-up?

 

Well assuming each earns $6k, they will put $2,300 into the OA each month. So the top-up (at 2%) would be $3,132 or 31% of the total take home pay.

 

Playing a little further - if you reduce the term to 30 years, at an interest rate of 3.5% the monthly payments are $7,364.

 

Or - if wifey take time off to have kids, and hubby salary has grown to $9k (just to pluck figure from backside)

 

This would make the top-up (after $1,150 CPF Contribution) a total of $6,214 (or 77% of take home before tax pay).

 

HUAT AH!

 

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Darryn

Darryn

Turbocharged
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For somebody like myself, that has not been contributing to CPF for so long, but is lucky enough to have a HDB to sell, I can probably realise about $450k from selling current place.

 

But at age 38 - can only take a 27 year loan.

 

My payments, at 3.5% interest and a $450k downpayment - the payments would be $7400 per month. Cash top up of $6250.

 

And that's not even counting that the amount going to my OA is now starting to drop.

 

Who will be buying a place like this? Would have to be those that have a lot of investments on the side or have cash rich parents.

 

There is no why in heck that this is affordable for a "sandwich class" - they are either well off with income that is not counted towards the ceiling, or have parents that can contribute significant sums.

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Darryn

Darryn

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EC also need to pay stamp duty?

 

Don't worry on the loan for those that are buying, alot of them have rich elites parent.

 

So far as I know

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Throttle2

Throttle2

Supersonic

Wow so worth it.

$2mil can only buy a new 750sft unit in D9 .

 

Quickly grab! Penthouse leh, must be at least 2000sf right?

 

Cheap ah!

Singaporeana are so lucky.

Low tax, low fees, low cost food and education, low cost housing, still want to complain?

 

 

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Wt_know

Wt_know

Supersonic
(edited)

$2.05M only ar

no worry, rich grandpa rich papa rich mama will help in downpayment and monthly mortgage

you think just husband+wife with $12K income can save up to buy a $2M penthouse?

after getting key, smelly smelly also need to fork out $100k++ for decor & designer furniture leh ... no?

Edited by Wt_know
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Stratovarius

Stratovarius

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Heard the below incident from my gf:

Her colleague was looking at some DBSS recently and saw a penthouse priced @ 2.5mil. So she went to the bank rep stationed at the showroom to check if she is eligible for a loan based on 12k income. She knew 12k income ceiling is not possible, but just want to see what the reply will be. The bank rep told her, "Miss, 12k ceiling cannot afford it. This penthouse is for rich parents buying for their children."

Really wtf....

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Throttle2

Throttle2

Supersonic

$2.05M only ar

no worry, rich grandpa rich papa rich mama will help in downpayment and monthly mortgage

you think just husband+wife with $12K income can save up to buy a $2M penthouse?

after getting key, smelly smelly also need to fork out $100k++ for decor & designer furniture leh ... no?

 

 

Can lah, save 50% of income for 25yrs and then borrow the rest for the next 25yrs.

Just nice would be paid off when person dies at 65 lor.

 

Perfect calculation by the scholars! Hurray!

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Darryn

Darryn

Turbocharged
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Heard the below incident from my gf:

Her colleague was looking at some DBSS recently and saw a penthouse priced @ 2.5mil. So she went to the bank rep stationed at the showroom to check if she is eligible for a loan based on 12k income. She knew 12k income ceiling is not possible, but just want to see what the reply will be. The bank rep told her, "Miss, 12k ceiling cannot afford it. This penthouse is for rich parents buying for their children."

Really wtf....

 

At least the bank rep honest.

 

But you don't need to be a genius to know that such an answer is probable and the real truth.

 

The bigger question, and the one for discussion.

 

What can / should the government do about it? It's patenetly obvious that a $2.05 million condo should not be part of the HDB "public housing" - even if it is for the "sandwich class" - so what can be done?

 

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