Need advises on buying flat and investing.

[Ec_2008]

Hi all,

Needed some advices as me and my wife couldn't decide which way to go.
I shall tell my story in point form.

1. Currently living in a 5 room flat in woodlands.
2. Bank loan left 8 years to clear about $52K.
3. Applied for a 4 room BTO flat and was lucky enough to have slected a flat next
   to Bedok Mall and opposite Bedok MRT.
4. We had paid the the $2k option fee.

5. Pending to pay $52k(10% downpayment) + $15k(3% stamp fee). These 13% going to cost
    us about $67K.
6. We have $50k cash on hand. Another $15k from my wife CPF.
7. Wife just became PR 2 years ago. Therefore her CPF OA was little.
8. My CPF OA was used to service the bank loan of our current flat.
9. The amount was just enough to service the monthly loan.

10. New BTO flat in Bedok TOP 2021.

11. Selling our current Woodlands flat in 2021 need to pay HDB $50k levy.
12. Expected bank loan left around $30k in 2021.
13. I am using a safe amount to calculate. Let's say we only managed to sell our
     Woodlands flat for $400k in 2021. Minus levy and leftover bank loan.
     we can get back $320k from our Woodlands flat.
14. I knew out of the $320k that i get back. About half need to goes back to my
     CPF OA. But these money that went back to CPF OA will be used to pay for our
     New Bedok flat in 2021.
15. New flat left $470k after the downpayment. HDB able to grant us about $150k loan.
16. Therefore we have no problem for the new flat. We only need to save another
    $50k - $70k to renovate our new flat in 2021.

Option 1

1. Thinking of investing our $50k cash on hand on oversea property. Wife is from china
   Hainan Dao.
2. We are thinking of buying a small condo unit about 40 square meter that cost about
   400k - 500k RMB.

3. Why small unit? We only have $50k SGD on hand. Plus small unit
   maybe easier to rent out to single professional.
4. Downpayment needed about 30%. Therefore downpayment for an average 40 square meter
   condo unit about 120k - 150k RMB which is about $24k - $30k SGD.

Option 2

1. Shall we go ahead with the Bedok BTO flat? (We like the location very much as it
   is next to Bedok Mall and opposite Bedok MRT). Capital gain from the new flat will
   be much better as compare to other flat that is not near to mall and mrt.


OPtion 3

1. Apply for another 4 room BTO in other location which cost around 280K. I believe
   after selling our current 5 room flat in Woodlands. We should have enough cash for
   other investment.

Hope that the expert here will give us some advises. Thanks in advance!
 

[Jamesc]

Option 2

[Enye]

option 4

 

pay off your existing hdb loan then accumulate savings another few years before making your next move

 

got children yet?

 

 

[Ec_2008]

option 4

 

pay off your existing hdb loan then accumulate savings another few years before making your next move

 

got children yet?

 

 

[Pinobii]

Option 2

Edited July 19, 2017 by Pinobii

[Ec_2008]

Option 2

 

Go for this, best investment return

 

Forget about option 1, too risky

 

Option 3 - dont think u can get a better location than this, cheaper but may not be better

 

Thanks for your advise.

 

Option 1. Yes, there's alway some risk involve in investment. But we are buying the oversea property to rent out. The tenant will help us to pay off

the monthly installment.

 

Option 3. What i mean is getting another 4 room flat in different location so that we can cash out more cash after selling the Woodlands 5 room flat. Eg. Woodlands flat left $320k after levy and leftover bank loan. New BTO 4 room cost about $280k. HDB can grant us a loan of $150k. So we need to top up $130K after HDB loan. $320k - $130k = $190k cash on hand for other investment.

[inlinesix]

Why ask in open forum like MCF

[Ec_2008]

Hi all,

 

Needed some advices as me and my wife couldn't decide which way to go.

I shall tell my story in point form.

 

1. Currently living in a 5 room flat in woodlands.

2. Bank loan left 8 years to clear about $52K.

3. Applied for a 4 room BTO flat and was lucky enough to have slected a flat next

   to Bedok Mall and opposite Bedok MRT.

4. We had paid the the $2k option fee.

5. Pending to pay $52k(10% downpayment) + $15k(3% stamp fee). These 13% going to cost

    us about $67K.

6. We have $50k cash on hand. Another $15k from my wife CPF.

7. Wife just became PR 2 years ago. Therefore her CPF OA was little.

8. My CPF OA was used to service the bank loan of our current flat.

9. The amount was just enough to service the monthly loan.

10. New BTO flat in Bedok TOP 2021.

11. Selling our current Woodlands flat in 2021 need to pay HDB $50k levy.

12. Expected bank loan left around $30k in 2021.

13. I am using a safe amount to calculate. Let's say we only managed to sell our

     Woodlands flat for $400k in 2021. Minus levy and leftover bank loan.

     we can get back $320k from our Woodlands flat.

14. I knew out of the $320k that i get back. About half need to goes back to my

     CPF OA. But these money that went back to CPF OA will be used to pay for our

     New Bedok flat in 2021.

15. New flat left $470k after the downpayment. HDB able to grant us about $150k loan.

16. Therefore we have no problem for the new flat. We only need to save another

    $50k - $70k to renovate our new flat in 2021.

 

Option 1

 

1. Thinking of investing our $50k cash on hand on oversea property. Wife is from china

   Hainan Dao.

2. We are thinking of buying a small condo unit about 40 square meter that cost about

   400k - 500k RMB.

3. Why small unit? We only have $50k SGD on hand. Plus small unit

   maybe easier to rent out to single professional.

4. Downpayment needed about 30%. Therefore downpayment for an average 40 square meter

   condo unit about 120k - 150k RMB which is about $24k - $30k SGD.

 

Option 2

 

1. Shall we go ahead with the Bedok BTO flat? (We like the location very much as it

   is next to Bedok Mall and opposite Bedok MRT). Capital gain from the new flat will

   be much better as compare to other flat that is not near to mall and mrt.

 

 

OPtion 3

 

1. Apply for another 4 room BTO in other location which cost around 280K. I believe

   after selling our current 5 room flat in Woodlands. We should have enough cash for

   other investment.

 

Hope that the expert here will give us some advises. Thanks in advance!

 

 

Wanted to edit my original post but can't find the edit button. Therefore using this method to add on something.

 

OPtion 3

 

1. Apply for another 4 room BTO in other location which cost around 280K. I believe

   after selling our current 5 room flat in Woodlands. We should have enough cash for

   other investment.

 

2. Getting another 4 room flat in different location so that we can cash out more cash after

    selling the Woodlands 5 room flat. Eg. Woodlands flat sold for $400k. We left $320k after

    levy and leftover bank loan. New BTO 4 room cost about $280k. HDB can grant us a loan of $150k.

    So we need to top up $130K after HDB loan. $320k - $130k = $190k cash on hand for other investment.

 

 

 

 

 

Why ask in open forum like MCF

 

I thought this is the property buzz section where we can ask anything about property.

Please enlighten me. Thanks.

[Kklee]

Option 3 then Option 1.

 

If you have a kid or two within the next few years, will there be suitable and sufficient facilities and amenities in Option 2? 

[Jman888]

4rm bto flat in Bedok only $280k?

[Wondertree]

$50k you can forget about investing in real estate in China. No offence but the amount is too paltry.

 

My in laws own multiple properties in 2nd and 3rd tier cities in China. All studios or 2 bedders. The cheapest unit cost them in the region of $150k. 

 

I assume you and your wife don't hold jobs in China. How are you going to secure loans over there? Even if you do, the mortgage rate over there is about 5 times of ours currently.

Edited July 19, 2017 by Wondertree

[Ec_2008]

Option 3 then Option 1.

 

If you have a kid or two within the next few years, will there be suitable and sufficient facilities and amenities in Option 2? 

 

Thanks for advise.

 

Option 3 is to get another 4 room BTO flat in another location so that we can have more cash on hand after selling Woodlands 5 room

flat. Option 1 is to invest in oversea property as sg property are too expensive.

 

Option 2 should have sufficient facilities and amenities as the new flat is located next to Bedok Mall and just opposite Bedok MRT.

4rm bto flat in Bedok only $280k?

 

No, what i mean is getting another 4 room BTO in other location which cost around $280k like punngol, woodlands, yishun etc.

[Ec_2008]

$50k you can forget about investing in real estate in China. No offence but the amount is too paltry.

 

My in laws own multiple properties in 2nd and 3rd tier cities in China. All studios or 2 bedders. The cheapest unit cost them in the region of $150k. 

 

I assume you and your wife don't hold jobs in China. How are you going to secure loans over there? Even if you do, the mortgage rate over there is about 5 times of ours currently.

 

 

Hainan Dao was consider as 3rd tier city in china. My wife still holding on to her china passport and she's from Hainan Dao.

I haven't go and find out about that. All i know from internet was down payment needs 30%. Therefore we need china local bank to loan us the remaining 70%. We are looking for 2nd hand unit as basic renovation was done so that we can start to rent out to single professional.

[Enye]

50k cash keep as emergency buffer also dunno enough or not.... still wanna invest and worse leverage

 

ok lah... young people can afford to take risk.

 

good luck!

Edited July 19, 2017 by Enye

[Jman888]

I assume you and your wife were married for some time but why is she only got her PR 2 years ago.

 

you trust her enough to invest in property in her hometown.

50k cash keep as emergency buffer also dunno enough or not.... still wanna invest and worse leverage

 

ok lah... young people can afford to take risk.

 

good luck! ðª

 

ð

how you know they are young?

[Wondertree]

Hainan Dao was consider as 3rd tier city in china. My wife still holding on to her china passport and she's from Hainan Dao.

I haven't go and find out about that. All i know from internet was down payment needs 30%. Therefore we need china local bank to loan us the remaining 70%. We are looking for 2nd hand unit as basic renovation was done so that we can start to rent out to single professional.

Well first Hainan is a province. And Sanya and Haikou are most likely out of your budget. 

 

That leads to the second issue. Who are you going to rent to? Single professionals renting flats only exist in big cities. In small cities they are mostly local and stay with parents or have bought their own homes. Not everywhere is like Singapore that you can find herds of foreign tenants. 

 

The last issue is returns. We rented a 3 bedder at prime location at Haikou for $500 a months. That flat was also advertised for sale at about $400k. The return is tmd low..

[Kklee]

Thanks for advise.

 

Option 3 is to get another 4 room BTO flat in another location so that we can have more cash on hand after selling Woodlands 5 room

flat. Option 1 is to invest in oversea property as sg property are too expensive.

 

Option 2 should have sufficient facilities and amenities as the new flat is located next to Bedok Mall and just opposite Bedok MRT.

 

 

You should do Option 3 then maybe you have cash for Option 1. 

 

The facilities and amenities are for the kid(s) if you intend to have any. 

I was looking around in Google Map, like not many primary school in that area.

 

My simple theory is

4 room have 3 bedrooms 

5 room also have 3 bedrooms.

A flat is a place to stay and Zzz'ing is a large part of the time.

The cost of the area occupied by Zzz'ing is in direct relation to the cost of the flat or place to stay.

Of course everyone is free to decide how much the Zzz'ing area will cost.  

Edited July 19, 2017 by Kklee

[Enye]

Well first Hainan is a province. And Sanya and Haikou are most likely out of your budget.

 

That leads to the second issue. Who are you going to rent to? Single professionals renting flats only exist in big cities. In small cities they are mostly local and stay with parents or have bought their own homes. Not everywhere is like Singapore that you can find herds of foreign tenants.

 

The last issue is returns. We rented a 3 bedder at prime location at Haikou for $500 a months. That flat was also advertised for sale at about $400k. The return is tmd low..

don't everything just look at $ and cts can?

 

if you factor in the 面子 the wife receives from her relatives who realised that she had become a landlord

 

the returns are tmd tmd high