Property prices in Singapore, rant

Been to a few new launch condos recently. These are OCR condos, mass market ones, usually around 500 units.

3BR are around 1000sqft, priced from S$2300psf, and 4BR starts from 1180sqft, priced from $2200psf

This means, a 3BR will set you back at least S$2.3M

Assume you can take maximum loan, you will still need to down 25% at least, plus 3% BSD, plus legal fees etc. That's around S$650k!

And people are complaining how expensive HDBs are. With $650k, you can literally pay off the HDB, unless you are gunning for the large units or popular ones that could go above $1M

I really wonder how long will the govt continue to let the private property prices go up.

As a reference, an OCR new condo costs around $1800psf in 2020. So in less than 5 years, it jumped 27%. This is around 5% p.a., which some may say, that's inflation! Well, it could be possible. As long as it goes along with inflation, I guess that is ok?

but what would the the limit? Young people will find it harder to get private property. This puts a damper on aspirations and motivations.

Staying in HDB is of course perfectly fine, but the point of private condo is more about that jump in capital and asset value to help one hit financial goals/freedom. Once you have an HDB, there are strict rules and also ABSD should you want to venture into investments in private properties. I guess it's a good thing to prevent clueless/reckless people from going kaput.

Comments

CPF balances 24 July 2024

I think for SA, my balance is considered "self-sustaining" as the 4% pa for SA could ensure my balance will continue to meet the FRS requirement every year until I reach 55. from CPF website, my SA balance already exceeds FRS for 2024. Every year, the FRS increases a little for inflation. E.g. the FRS for 2025 is 3.4% increase compared to 2024. But SA interest rate is 4%, so as long as you already reach FRS amount for current year, you will be fine I think, even if you stopped working (i.e. SA stops having contribution)

Income tax for YA2024

Lesser than previous years due to lower stock prices during vest date. Got lucky. Interest-free instalment for paying income tax spread over 12 months...about $5k per month. Quite a lot of cash outflow per month just to pay tax, but I think this is already low compared to most other countries

Getting comfortable without a salary from working

Not sure if I am there yet. Basically I am effectively drawing down my cash each month, primarily due to 2 things : mortgage and income tax mortgage (after CPF) is about $9k per month income tax is about $5k per month My investment cashflow covers all my other expenses, including utilities, groceries, handphone/internet bills, insurance, property taxes, condo maintenance fees, personal spending. With some input from wife who is still working, I am still out of pocket by almost $11k per month. She will continue to be able to save a decent sum per month and I'll let her grow that and managed it for her via safe investments. Am I comfortable? Not really. I will if I am not out of pocket per month. If I really stop working for good, the income tax amount will go to $0 after 2025. So only mortgage left We can pay off the mortgage but I think I said before, it doesn't make sense since it's our home and we will be locking the money up with little leeway to do other things. So I ...

uncle lim kopi

Search This Blog