GuidesShould You Buy A Resale Flat Or New Launch Condo First?

Ryan J Ong

Ryan is an old school print journalist gone digital. He's lived in almost every type of housing in Singapore, from flats to landed homes. Over the past 18 years, he's been a content developer for companies large and small, a co-founder in an education business, and sometimes a voice on the radio. He also spends too much time and money on painting little plastic soldiers.

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Karen
Karen

Hi Ryan, to make the comparison fairer, I think you should factor in the time value of money of the difference in upfront cost. 150K today is not the same as 150K in 5 year’s time.

Ryan
Ryan

Hey Karen! Thanks for highlighting that. Actually we were just making a comparison between the profit/loss for 2 methods – buying a resale HDB or a new launch condo, which was why we didn’t take into account the time value of money as the goal was to see which method is better. Both outcomes would have been affected by the same time value of money factor

sylvia
sylvia

very useful and informative article. in some ways, an eye-opener. thanks

Stacked Homes
Stacked Homes

Thank you Sylvia, we’re glad you found it informative 🙂

Waaaaaaaaaa
Waaaaaaaaaa

Hi Ryan,

the interest calculations for private condo does not seem to tally?

$651,750 (loan) – $597,512.79 (outstanding with principal paid inclusive) = $54,237.21

is less than the $60,512 interest payment only

Ryan
Ryan

Hey! Thanks for your question. The $651,750 is the total loan amount, and it being reduced to $597,512.79 means that a principal of $54,237.21 is being paid. The $60,512.29 is just the interest (cost of the loan). So the total payments made are the principle of $54,237.21 and interest of $60,512.29, a total of $114,759.50. Since the $60,512.29 is just the interest, it cannot be used to deduct the outstanding loan since that is just the cost of the loan and doesn’t form part of the balance of the loan. Hope this clarifies!

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