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Bad move in my opinion. Quite a stretch to upgrade to condo. He can be retrenched anytime. Property price is also at all time high. Better to prioritize retirement over upgrading. Current hdb location is also fantastic.
I am 51 this year. Fully paid for both 5 room flat and a modest car years ago. Plan to stay this way till I kick the bucket. Can sustain a fairly dose of healthy hobbies without issues. No fancy dreams/aspirations to upgrade to a condo or a BMW. Can sleep in peace every night. To each their own..
Good advice Josh. I see their income like this want to stay big condo I already know sure cannot make it. Our combined income almost $25k we also don't dare to upgrade. Happy to stay in our 4 room HDB and go for nice holidays and spend money on whatever we want. No need to rush into the property investment craze so widely celebrated online. These condo-crazy people are really not grounded man...
@@joshconsultancy I mean, I agree with your feedback quantitatively, but qualitatively a 1.59m condo is so small that it's not really an upgrade for them lah. 🤣
@@xeenslayer Exactly. I rather have a larger space and better neighborhood amenities. People need to learn that they can make tons of money from other types of investment besides property. They just need to be patient.
If buying the condo is to fulfil an aspiration, then do what you need to stay happy. But practically it's not advisable. There are many people at C-suites level still staying at HDB flat even though they can only buy resale units. The government provided such cheap housing for citizens and PR, why not just take advantage of it?
In the 80s, the condos were much bigger than HDB flats and that was a good reason for buying condos. For me, gym, pool and security guards do not justify the premium.
at 40 plus... once you are retrenched it's hard for you the find a job that pays as well if you can find one to begin with.... they want to have kids which will increase their expenditure.....and property market seems to be cooling or even going down (aka chances of capital appreciation slim)..... But perhaps they are in government job which has metal rice bowl? lol...... Live within your means....
My partner and I are in our late 20s/early 30s, make 19k combined and we are still firmly looking at resale HDBs. Better to be prudent than squeeze yourself for private ownership.
While the 1 million 4 room Clementi HDB they are holding on to is indeed a ST news article headline figure, the truth is that this amount cannot even buy anything in the D5/D21 condo market . Even looking at your proposed budget of 1.5 - 1.6 million, it is enough for only a 2 bedder in the above districts . That’s the hard truth .
Good advice you have given. I can see that you have a prudent approach towards property investments. A lot people will go in aggressively taking advice from other influencers. This couple in fact do not realize how lucky they are to be staying in such a well located HDB flat. Frankly the properties they want to upgrade is nowhere as good a location as their HDB flat. I would suggest for them not to even sell their flat, especially if they are starting a family.
Thanks Josh for sharing your insights. I definitely prefer to retire at 58 or even earlier rather than being stretched and stress of going for a condo.
Most people don't have the money to finance a condo when they are young. By the time they can, they can't secure enough loan anymore. My advice for people who really want to try owning 2 condos is to stay cheap. Stay in a house that's older and smaller. Then you'll take less loan, pay less interest, save up faster for the downpayment of a second condo. Rent it out and finance itself. Living with parents is the best. All you need is to save up enough for the downpayment and then rent it out to finance it.
Actually I think just buy 3br compact clavon at abt 2.0 mil. Use max loan eligibile. Keep the rest as cash and CPF. Need to have at least 24 to 36 mths of installment as buffer. Coz got ssd period. If retrenched, can slowly sell. If they like they buy Lor. But age 40 plus must quickly have kids, if not may need ivf. That one more urgent, condo is secondary. Some ppl like house, some ppl like car, some ppl like holiday. As long they r happy with a nicer house, don’t feel too stressed with mortgage may not be a bad idea. They tasted the hdb profits, hence became strong advocate. Ppl that tasted bitcoin profits, also love bitcoin and all in
This situation reminds me of a similar one with my friend, who is heavily-leveraged even at the age of 55 in order to own 2 condos (1 for own-stay; another small one for investment). The root cause I feel is a very strong belief that property is the best investment. To the point where it is often their biggest and possibly ONLY investment. As Mr Loo of 1m65 put it, there is nothing wrong with property investment, but when it forms > 85% of your asset portfolio, then something is off.
Buying an investment property. Shoebox or 1 BR seems to be a poor choice. Tenants profile. are very limited .. A 2+study could be a better own stay choice if they intend to start a family. Pls don’t be twins 👯!😎
They should focus all their energy and time to have a child first. Both in their 40s, the window is closing fast. Why are they playing house at this time?
@@joshconsultancy I think he's just suggesting not to introduce another risky move concurrently with a risky move of having a kid, which I think makes sense. Focus on one thing at a time.
Agree with your assessment. Home is a liability in US context, but not in Singapore when land is a shortage. You are using your home to do CZcams vid, means your house is generating income. Your kid is using your house to study and grow. So how can it be a liability?
Singapore when land is a shortage is not always true - we can build flats upwards and shrink sizes to create units US also has major cities which we mirror against. The home is liability comes from it needing expenses to maintain. Unless rented out, there isnt cashflow as an asset. Hope it answers
@@joshconsultancy Asset does not necessarily need to generate cash and tats from an accounting perspective. Computer assets, plant and equipment, these are all assets and don’t directly generate income. Also even we can build upwards or create more space but historically, psf in SG is always been an increasing trend and most probably go higher. Just like the stock market..
honest feedback, before i finish watching the video, i think u should stop analysing for them. They should just stay current HDB and stop upgrading. HDB is singaporean entitlement. if wife gets a new job and husband doing well, that means the clementi house fengshui is good (got job, got health and got income). Why go for condo which is over-price. What is husband kenna retrenched ? hong gan liao
But Eric the property huatkueh guy say must include employer oa contribution which will increase affordability. Your computation did not include that, thou it means OA will be kosong for as long as the mortgage exists
If you are thinking of upgrading your property and want to do a full fee based financial plan, ENGAGE Josh Tan on a fee NOW - ► www.theastuteparent.com/josh-tan
*****
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Bad move in my opinion. Quite a stretch to upgrade to condo. He can be retrenched anytime. Property price is also at all time high. Better to prioritize retirement over upgrading. Current hdb location is also fantastic.
Some condos preferred are opposite current HDB location
Agreed with your analysis..
Everyone wants to stay in a condo but not everyone can afford to. Live within our means.
@@TheButterCrab Agreed. Jobs are no longer secure. Once you lose your job, you may be forced to sell your condo
@TheButterCrab not everyone want to stay condo la. there are a lot can afford but choose not to
I am 51 this year. Fully paid for both 5 room flat and a modest car years ago. Plan to stay this way till I kick the bucket. Can sustain a fairly dose of healthy hobbies without issues. No fancy dreams/aspirations to upgrade to a condo or a BMW. Can sleep in peace every night. To each their own..
Yes To each their own. Happy for you
Why do people consider BMW as luxury car? It is just another car like Kia
Thats great. All the best. Am 51 too
@@richie6802foolish to own a BMW
Good advice Josh. I see their income like this want to stay big condo I already know sure cannot make it. Our combined income almost $25k we also don't dare to upgrade. Happy to stay in our 4 room HDB and go for nice holidays and spend money on whatever we want. No need to rush into the property investment craze so widely celebrated online. These condo-crazy people are really not grounded man...
Thank you for the praise. It’s ok to upgrade hence I’ve given constructive feedback of $1.59m budget
@@joshconsultancy I mean, I agree with your feedback quantitatively, but qualitatively a 1.59m condo is so small that it's not really an upgrade for them lah. 🤣
@@xeenslayer Exactly. I rather have a larger space and better neighborhood amenities. People need to learn that they can make tons of money from other types of investment besides property. They just need to be patient.
Pretty sure your holiday gives you more memories
If buying the condo is to fulfil an aspiration, then do what you need to stay happy. But practically it's not advisable. There are many people at C-suites level still staying at HDB flat even though they can only buy resale units. The government provided such cheap housing for citizens and PR, why not just take advantage of it?
I was thinking of them perhaps upgrading to a larger HDB like a 5-room or a marionette in the same good location rather than going for a condo.
Thank you for the alternative non-property agent viewpoint!
Thank you Rich, happy to cya around
All the best =)
In the 80s, the condos were much bigger than HDB flats and that was a good reason for buying condos. For me, gym, pool and security guards do not justify the premium.
Very honest and truthful advice.
Thank you for the high praise
at 40 plus... once you are retrenched it's hard for you the find a job that pays as well if you can find one to begin with.... they want to have kids which will increase their expenditure.....and property market seems to be cooling or even going down (aka chances of capital appreciation slim)..... But perhaps they are in government job which has metal rice bowl? lol...... Live within your means....
Agree on " Live within your means" hence I raised this discussion
My partner and I are in our late 20s/early 30s, make 19k combined and we are still firmly looking at resale HDBs. Better to be prudent than squeeze yourself for private ownership.
Yes be prudent. Upgrading as a goal no problems, go with the right amount more important
While the 1 million 4 room Clementi HDB they are holding on to is indeed a ST news article headline figure, the truth is that this amount cannot even buy anything in the D5/D21 condo market . Even looking at your proposed budget of 1.5 - 1.6 million, it is enough for only a 2 bedder in the above districts . That’s the hard truth .
Yes and maybe go for the 2 bedder then?
Good advice you have given. I can see that you have a prudent approach towards property investments. A lot people will go in aggressively taking advice from other influencers. This couple in fact do not realize how lucky they are to be staying in such a well located HDB flat. Frankly the properties they want to upgrade is nowhere as good a location as their HDB flat. I would suggest for them not to even sell their flat, especially if they are starting a family.
Thank you for the high praise. I advocate for upgrade within the comfortable budget
Thanks Josh for sharing your insights. I definitely prefer to retire at 58 or even earlier rather than being stretched and stress of going for a condo.
No probs, happy to see you around =)
Most people don't have the money to finance a condo when they are young. By the time they can, they can't secure enough loan anymore.
My advice for people who really want to try owning 2 condos is to stay cheap.
Stay in a house that's older and smaller. Then you'll take less loan, pay less interest, save up faster for the downpayment of a second condo. Rent it out and finance itself.
Living with parents is the best. All you need is to save up enough for the downpayment and then rent it out to finance it.
Agree with your points
Actually I think just buy 3br compact clavon at abt 2.0 mil. Use max loan eligibile. Keep the rest as cash and CPF. Need to have at least 24 to 36 mths of installment as buffer. Coz got ssd period. If retrenched, can slowly sell. If they like they buy Lor. But age 40 plus must quickly have kids, if not may need ivf. That one more urgent, condo is secondary. Some ppl like house, some ppl like car, some ppl like holiday. As long they r happy with a nicer house, don’t feel too stressed with mortgage may not be a bad idea. They tasted the hdb profits, hence became strong advocate. Ppl that tasted bitcoin profits, also love bitcoin and all in
Ah I don’t quite like the retrench can slowly sell but Point of view noted
Always leave one income untouched
having household income of 16k with 2 children is not much. To buy 2 condo seems like over stretching
100% agree, should stay on the caution side
Hey boon tee yes indeed. My goal on this sharing was to reinforce caution
Shoebox Size / Mickey Mouse @ 560 / 570 square feet @ High Demand @ Single / Couple @ City Square Residences = Perfect.
Job security is top priority given your age!!
What do you get out of staying in a condo?
A waste of money
This situation reminds me of a similar one with my friend, who is heavily-leveraged even at the age of 55 in order to own 2 condos (1 for own-stay; another small one for investment).
The root cause I feel is a very strong belief that property is the best investment. To the point where it is often their biggest and possibly ONLY investment. As Mr Loo of 1m65 put it, there is nothing wrong with property investment, but when it forms > 85% of your asset portfolio, then something is off.
Yes indeed if it is too much of asset it creates risk. Tenant competition risk and interest rate risk come to mind
16k combined income probably still considered above median right? Younger generation is gg at this rate ..
It’s the budget that I’m trying to help define
@@joshconsultancy cheers love your videos
Mm… their pay will increase over the years too.
If they are my younger self, no is my answer. Save and invest instead.
If it increases it will solve the equation. But I worry after age45, it doesnt increase much
Buying an investment property. Shoebox or 1 BR seems to be a poor choice. Tenants profile. are very limited ..
A 2+study could be a better own stay choice if they intend to start a family. Pls don’t be twins 👯!😎
Yes I hear that market feedback also
They should focus all their energy and time to have a child first. Both in their 40s, the window is closing fast. Why are they playing house at this time?
Sometimes arrival of kid not blessed yet. We need to be sensitive🙏🏻
@@joshconsultancy I think he's just suggesting not to introduce another risky move concurrently with a risky move of having a kid, which I think makes sense. Focus on one thing at a time.
Ya lor, window rusty Liao still don't want to hurry up
Why can't do both?
Agree with your assessment. Home is a liability in US context, but not in Singapore when land is a shortage. You are using your home to do CZcams vid, means your house is generating income. Your kid is using your house to study and grow. So how can it be a liability?
Singapore when land is a shortage is not always true - we can build flats upwards and shrink sizes to create units
US also has major cities which we mirror against.
The home is liability comes from it needing expenses to maintain. Unless rented out, there isnt cashflow as an asset. Hope it answers
@@joshconsultancy Asset does not necessarily need to generate cash and tats from an accounting perspective. Computer assets, plant and equipment, these are all assets and don’t directly generate income. Also even we can build upwards or create more space but historically, psf in SG is always been an increasing trend and most probably go higher. Just like the stock market..
BTW, do we own the land? We bought a house with a finite lease right? Who can clarify?
Omg. $15k per month can buy 2 condo??? Lol.
be nice be nice
Mickey Mouse / Shoebox Size @ No Children @ No Crowded / Noisy Neighbors @ No Pets @ Harmony / Peace / Tranquility.
Then don’t buy condo.
Through this discussion I hope to help them define the budget. Buying condo is ok
Can be traggic if one of them out of job.
Yes thats what Im cautioning about too
560 / 570 square feet rent @ $3,000 per month ÷ 6 people = $500 per person per month @ gym / swimming pool / Tennis = $$$.
The "BEST" investment is to buy a unit in an all fully mickey mouse / shoebox size @ entire block / project = good 100% failproof.
Does buddy have a discord channel?
Dont have yet
honest feedback, before i finish watching the video, i think u should stop analysing for them. They should just stay current HDB and stop upgrading. HDB is singaporean entitlement. if wife gets a new job and husband doing well, that means the clementi house fengshui is good (got job, got health and got income). Why go for condo which is over-price. What is husband kenna retrenched ? hong gan liao
They can upgrade. Im trying to help define a prudent level
Hope it answers
But Eric the property huatkueh guy say must include employer oa contribution which will increase affordability.
Your computation did not include that, thou it means OA will be kosong for as long as the mortgage exists
I advocate for prudence. Have enough to ride through life turbulences.
Different view point
Over committed... if no job or recession and retrenchment...should we factor in these as well.
WE 0wned FOUR (4) Mickey Mouse / Shoebox Size for 10 + years Fully Occupied @ Pre-COVID / COVID / Today = Excellent 5*****
Pov noted, avoid spamming thanks