Bto vs private condo

[Spring]

 

 

Anyway, just for info.. next yr will be exciting year for insurers... because there MAS announce that ppl can directly buy insurance "skipped" the agent in the coming mths.

 

How it will pan out, not sure.. but i think insurance will be more affordable soon.. cos' from what i understand only 30-40% goes to the company that undertake the insurance payment. So skipping the middle-mEn.. will mean alot of $$ saved. BTW , e.g. if you by insurance from AIA , it not realy AIA that pays out.. they resell your insurance/risk to smaller companies that will take up the "gurantee", and then get resell , then resell... etc...That's how lehman dieded..

 

Currently, I am covered "mortgage + 1mil" in term insurance which cost > $1k a year. Hopefully, can cut the expenditure by half next year.

 

Thks for the info! Yes cutting out middleman should help cut costs.

 

Actually in my view, the insurance companies should just cut their commission abit because i feel there is still room for ins agents esp when it comes to claims and advice. All they need to do is take a lesser commission and i'm sure there will be some who are willing to pay abit for this service so I would counter the threat of direct insurance this way if I were them.

As for the re-insurance part, that one is anybody's guess how it will pan out.

 

Your mortgag+1mil term ins at >$1k sounds cheap to me. Think you are much younger cos I won't be able to get it at this price unfortunately!

[Darryn]

yeah... very lucky.. in any case.> 300 was expensive that time.. that's what i meant.

We paid $206k for our five roomer in Punggol, 2004, just before walk in selection was stopped.

[Coltplussport]

yeah... very lucky.. in any case.> 300 was expensive that time.. that's what i meant.

 

I think I know where you stay. Redhill those block 70+ is it?

[Kxbc]

 

I think I know where you stay. Redhill those block 70+ is it?

if really Redhill, then 300+ is really cheap. That place is really convenient.

 

[Coltplussport]

if really Redhill, then 300+ is really cheap. That place is really convenient.

 

That place near mrt 300+ for a 100 sqm 4 room flat. At that time looks expensive but now the rental can reach around $3500pm. What a return on investment.

[Chucky2007]

 

 

Anyway, just for info.. next yr will be exciting year for insurers... because there MAS announce that ppl can directly buy insurance "skipped" the agent in the coming mths.

 

How it will pan out, not sure.. but i think insurance will be more affordable soon.. cos' from what i understand only 30-40% goes to the company that undertake the insurance payment. So skipping the middle-mEn.. will mean alot of $$ saved. BTW , e.g. if you by insurance from AIA , it not realy AIA that pays out.. they resell your insurance/risk to smaller companies that will take up the "gurantee", and then get resell , then resell... etc...That's how lehman dieded..

 

 

 

its cap at S$400k sum assured I think.

[ShepherdPie]

That place near mrt 300+ for a 100 sqm 4 room flat. At that time looks expensive but now the rental can reach around $3500pm. What a return on investment.

 

 

the same time.. my friend bought lilydale EC (3bedrom) at 330k, the warren at CCK (3bedrom) @ 400k., HDB was selling 190k for JW 5rm flat.

 

So 300k for redhill 4-rm was actually expensive.. but we want location over "face" i.e. EC/Condo.. so stick to the purchase.. :P

its cap at S$400k sum assured I think.

but can buy a few right ? i am not sure.. the details not out yet i think.

Edited December 5, 2014 by ShepherdPie

[Yaloryalor]

Hmmm.. But now private condo offering discounts and 2015 we may see more of these.. Wondering if condo can be affordable in 2022?

 

We looking at 3 bedder condos which has one more room than the 3 room bto.. Bto location near mrt but condo location is near future mrt...

Bro dun talk about 2022 price. Expert also can't tell what will be the condo price in 2016.

[Teatreeoil]

Bro dun talk about 2022 price. Expert also can't tell what will be the condo price in 2016.

But can we say property prices will be a General uptrend in the future? Meaning prices will go up, be it gradual or steep with some ups and downs?

[Yaloryalor]

But can we say property prices will be a General uptrend in the future? Meaning prices will go up, be it gradual or steep with some ups and downs?

Really hard to say. In general, land bidded price went up, labour cost and material cost went up. The new houses should be rised not fall. However, if over supplied and lesser buyer then price war will cause the selling price to go down. IMO, if you looking at long term ( at least 5 years) and not forced to sell, then your property should not lose money.

[antelop]

Mature estate 3 room bto income ceiling is 10k. So we are quite average. For the condo, we calculated is about 1.5k cash monthly...

Cos if we use cpf for the bto, then we will have insufficient funds for the second property. Cash outlay is almost impossible with the absd. If we buy the condo now, we will be able to settle the downpayment. The condo will have an additional room which can house my two kids.

Bear in mind mortgage rates are likely to be 4% or higher in 2017.

The mass market property here peaked in early 2013, while the high end peaked in 2007. Historically a property cycle takes 8 to 12 years to complete. Some of the high end property here (st regis, sentosa) have dropped almost 40% from the 2007 peak.

Even the priced landed property have also dropped some 25% from the early 2013 peak.

On the other hand, the mass market segment will see huge completion pipeline in the next few years, portending further pricing pressure.

From the past 2 years BTO pricing, the government is sending out a signal that $300psf is the floor. Those in more sought after area like toa payoh, kallang etc are priced upwards of $570psf for 4-room flat.

It has also reaffirmed the high land price policy by aggressively developing underground usage such as the recently completed jurong cavern, the upcoming biopolis underground city, bidadari bus interchange etc.

The government in all probability will relax the property curb, likely to be in the run up to or around or after the general election in either May 2015 or Sep 2015.

The most logical thing to scrap is the nonsensical ABSD, especially for the locals.

 

So to buy bto or condo:

1. job security and wage growth propspects.

2. are u willing to compromise your lifestyle (own car, holiday, domestic helper etc) when cash flow is temporary insufficient.

[Luckydrawcar]

Hmmm.. It's those condo almost completed ones. So everything is brand new. So do some lighting and simple Reno should be good to move in

To be frank you are already 38 yrs old. And unless u have at least 800k of cpf + cash combined then i would say still can consider the $1.2mil ppty (remember to factor in misc stuffs like stamp duty etc) But for $1.2mil new condo with 3 bedrooms its either mickey mouse sized or probably in the outskirts. Pls do factor in if anyone of you *touch wood* lost ur job and cannot find one that pays well will u still be able to afford the instalments? Also do bear in mind what if interest rates go up in the future?

 

Also remember if you forgo the bto i think need to pay 5% penalty.

 

If i were u i rather go for a newer resale 5-rm flat in gd locations like tpy central, tiong bahru etc

 

Btw i am 35 with fully paid hdb flat near town with spare cash n my 2 kids already in lower primary but we dnt even dare to think of pte condo for now yet. Will wait for hsing prices if come down then buy a 2 bedroom for investment. When u have kids you must really be prudent.

Edited December 6, 2014 by Luckydrawcar

[Teatreeoil]

To be frank you are already 38 yrs old. And unless u have at least 800k of cpf + cash combined then i would say still can consider the $1.2mil ppty (remember to factor in misc stuffs like stamp duty etc) But for $1.2mil new condo with 3 bedrooms its either mickey mouse sized or probably in the outskirts. Pls do factor in if anyone of you *touch wood* lost ur job and cannot find one that pays well will u still be able to afford the instalments? Also do bear in mind what if interest rates go up in the future?

 

Also remember if you forgo the bto i think need to pay 5% penalty.

 

If i were u i rather go for a newer resale 5-rm flat in gd locations like tpy central, tiong bahru et

 

Btw i am 35 with fully paid hdb flat near town with spare cash n my 2 kids already in lower primary but we dnt even dare to think of pte condo for now yet. Will wait for hsing prices if come down then buy a 2 bedroom for investment. When u have kids you must really be prudent.

What's your net income like? If u don't mind sharing.

[Luckydrawcar]

 

 

in sg, COE still at $70,000 but ah gong say inflation has come down becoz cars are cheaper........

 

simi got inflation?

I always feel that juz take those stats with a pinch of salt. Juz walk arnd supermkt, hawker centres everything has gone up. Even my kids told me their sch canteen food prices went up. Their sch bus fees went up too. Hence i wonder how they calculate all these. *faintz* to me family expenses only keep going up.

What's your net income like? If u don't mind sharing.

We can qualify for bto leh. Lol

 

But on a serious note when ur kids are very young you really must be prudent. For us we set aside 12mths liquidity for any emergency.

 

But if u really must get the condo, at least set aside 12mths liquidity as backup.

Edited December 6, 2014 by Luckydrawcar

[Luckydrawcar]

 

 

the same time.. my friend bought lilydale EC (3bedrom) at 330k, the warren at CCK (3bedrom) @ 400k., HDB was selling 190k for JW 5rm flat.

 

So 300k for redhill 4-rm was actually expensive.. but we want location over "face" i.e. EC/Condo.. so stick to the purchase.. :P

 

but can buy a few right ? i am not sure.. the details not out yet i think.

Those who bought that time earn like siao. My parents bought the pte condo opposite Nex shopping centre at $600k 1152sqft. Now even after cooling measures ppl selling at $1.25-1.3mil. Hence i think location is impt whether pte of hdb.

Bear in mind mortgage rates are likely to be 4% or higher in 2017.

The mass market property here peaked in early 2013, while the high end peaked in 2007. Historically a property cycle takes 8 to 12 years to complete. Some of the high end property here (st regis, sentosa) have dropped almost 40% from the 2007 peak.

Even the priced landed property have also dropped some 25% from the early 2013 peak.

On the other hand, the mass market segment will see huge completion pipeline in the next few years, portending further pricing pressure.

From the past 2 years BTO pricing, the government is sending out a signal that $300psf is the floor. Those in more sought after area like toa payoh, kallang etc are priced upwards of $570psf for 4-room flat.

It has also reaffirmed the high land price policy by aggressively developing underground usage such as the recently completed jurong cavern, the upcoming biopolis underground city, bidadari bus interchange etc.

The government in all probability will relax the property curb, likely to be in the run up to or around or after the general election in either May 2015 or Sep 2015.

The most logical thing to scrap is the nonsensical ABSD, especially for the locals.

 

So to buy bto or condo:

1. job security and wage growth propspects.

2. are u willing to compromise your lifestyle (own car, holiday, domestic helper etc) when cash flow is temporary insufficient.

I dont agree with scrapping absd yet. The prices went up so much and only came down a little (except special cases like luxury d9, sentosa properties) most mass mkt housing only dropped a little hence its definitely not right time to lift absd whether for locals/foreigners. There should be at least a 30% correction for mass mkt then they shld start thinking of lifting some cooling measures. We have to spare a thought for the future generations.

Edited December 6, 2014 by Luckydrawcar

[Kxbc]

my philosophy for housing:

don't ever gamble with the house you are going to live in.

 

buy something you can comfortably afford w/o sacrificing your lifestyle too much.

 

take into account contingencies which might require urgent cash when you buy that house. can be medical, unplanned child, lose job etc.

 

And don't buy that house with the view that it will be worth $xxx more in yyy number of years. if it is really going to be $xxx more in the future, your next house will be $xxx++ so you are going to be back to Sq 1.

 

 

but for your 2nd house (as investment or maybe buy for your next generation) once you have sufficient savings, you can take more risk since you can always fall back to your first house however bad the economic situation might turn into.

 

must think long term (I say at least 15 years) for the sanity of the whole family.

 

[Yaloryalor]

We paid $206k for our five roomer in Punggol, 2004, just before walk in selection was stopped.

I think you same as my fren. Also in 2004 walk in selection bought a 5 room flat in Punggol at less than $210k. Good deal!

[Mustank]

We paid $206k for our five roomer in Punggol, 2004, just before walk in selection was stopped.

Last time the walk in selection was solid