We make $180k per year and live in a 3-room HDB flat. Should we save to buy an investment property, upgrade to a condo, or larger flat?

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Hello, We’ve read with interest on your advice columns, and we especially appreciate the effort and detail put into the responses. My wife and I are in a bit of a dilemma. We live in a 3-room HDB flat in Clementi Ridges which we bought for close to $400k. Our MOP is up in April this year. We’re in our...

Drawing from the Property Price Index in the different regions, we can see that prices in the RCR and OCR have appreciated significantly more than in the CCR in recent years. We do expect that prices in the CCR will eventually right themselves and the growth rate will catch up. We have recently also written a piece about the narrowing gap between prices of new RCR and CCR projects, which you can read here.

Given that you currently own a flat, which we assume is under both your names, and have an outstanding housing loan, there are several things to take into consideration when purchasing a second property.When purchasing your first property, depending on your income, you may be eligible to loan up to a maximum of 75 per cent of the property value .

The latest Basic Retirement Sum if you have at least one property bought using CPF or the property that you are buying can cover you till age 95** If you subsequently sell the property that can cover you till age 95, you will need to set aside the FRS instead. Also, the maximum amount of CPF that can be used for your second property depends on whether the remaining lease of this property can cover the youngest owner up to the age of 95.Let’s say you were to purchase a second property at $1 million for the sake of simple calculations:

 

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No go for the investment in stocks ..when you are having 2kk then invest in house for 200k

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