Legal fees: $2,500
Even though the rent will partially offset your monthly loan repayment while you wait for prices to appreciate, it is still quite a long time to wait just for you to breakeven based on rental income.Understandably both of you are still relatively young, but if in the worst case scenario either of you lose your jobs or have to sell the property for liquidity – you'll have to sell at $200,000 above your neighbours.
Because of that, finding the right property becomes even more important with this handicap thrown in.From this chart above, you can see that the price disparity between HDBs and private properties has been growing over the past three years. The price decrease from the 21st year onwards was significantly slower, almost plateauing until the 40th year before it starts declining again.[[nid:595878]]
The current market situation is unique as there is a greater demand than supply for resale flats, so even older HDBs are selling at high prices. But should the market revert, you should see a wider gap in prices between younger and older flats. There are new launches that are priced right, or if the developer has staged the pricing well and you have selected a good unit which has significant buffer against the rest of the units – typically that will stand you in good stead.