May 15, 2006 14:14
I had this crazy notion yesterday night when I was going home. Lately, I've been looking around showflats and boy, are they damn nice or what? How nice it is to own a place of your own, to stay with your loved one, to enjoy your own privacy, and... to hold parties every week at your place!!! lol...
And thus... my crazy idea was that...
I WANT TO BUY A CONDO BY THE AGE OF 30!!!
Of course, whenever I have a crazy idea like this, I immediately start to work mentally around my resources and means by which how can I ever fulfill this cranky wish of mine.
Assuming that I'm going to get an average condo with a price tag of $500,000.
Lets say that I need to save $100k down payment logically speaking, I should have about $50k in my CPF by then. That should settle about $150k of the payment, remaining of $350k loan. Of which I divided by 25 year term loan, which will come up to a $1,799.46 monthly loan repayment to the bank.
Ouch... I cannot survive paying $1.8k per month...
Hmm...but logically speaking, if my CPF contribution continues on its current rate and my investments are keeping up their current rate or returns and doesn't give me a heart attack a few years down the road, logically speaking... a 100k in my CPF by the age of 30 should not really be a problem.
And thus...that makes my total payment amounting to $200k... of which a $300k term loan from the bank over a 25 year loan period will amount to approximately $1,542.39, which is slightly more acceptable.
Well, paying $1.5k a month is such a drain, anyway, if I ever get there, then I'll think about it when the time comes... Back to the orginal problem of getting there.
I need to save up $100k for the downpayment in 5 years time before I reach 30. That will be a $20k per year savings. Which I eventually work down to:
$1,000 per month savings, and $3,000 savings everytime I get my quarterly bonus.
Summary: Workable, but I probably have to eat bread and drink water for the rest of the 30 years(5 years savings and 25 year loan repayment), which makes my diet slighly worse than those in changi prison. Besides, condos might no longer cost $500k when I reach 30 and the loan interest rate might no longer be 3.75%. Downpayment rules might change, hopefully to a lower tier though. Plus, this is based on the assumption that I do not get a car. And most importantly, I'm not fired from my job!
Hmm... doesn't sound very pratical right? what other solutions are present for me?
well, I can
1)start buying 4D and hope that one of those tickets help with a big contribution,
2)hope that my investments boom, I get a pay raise, a promotion
3)property prices take a dip(which is highly unlikely)
4)or someone is going to share the condo equally with me, which effectively takes all my costs and payments down by half, which is A LOT MORE FEASIBLE in this sense.
Ok, I'll going to save $1000 on my next pay. Friends, if you are going out with me, please encourage me not to spend the way I used to spend.