Advice

We Make $280k Per Year And Are In Our 40s. Can We Afford To Decouple And Buy A Second Property?

  • April 14, 2023
  • 10 min read
Join our Telegram group for instant notifications
Join Now
Subscribe
Notify of
guest
4 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
CH Property
CH Property
9 months ago

Hi Ryan – question on the comparison between investment vs a 900K rental property. A loan of $500K was taken to pay for the property over 22 years. This means that an additional 500K was injected over 22 years (outside of interest which was accounted for) to reach the final property value at 30 years. Did you also consider to also add that 500K into the investment side? I have previously done a similar calculation, and when I input your numbers, at the 20 year mark, both tracks are similar in value (within uncertainty) and at the 30 year mark, the property track was a clearer winner.

Stacked Homes
Admin
9 months ago
Reply to  CH Property

Hey CH Property! You’re absolutely right here. We did consider this but the analysis became quite long and confusing, so we kept it brief here. If we had gone down that route, we’d have to factor in cost to maintain the property which includes maintenance, taxes, rental vacancy, agent fees etc. In the end, it was more important to focus on the benefit of having a second property later on which they can sell for cash or to move into.

Brian
Brian
9 months ago

Hi Ryan, I think the couple’s initial purchase price for Twin Vew should be taken into consideration for the decouple calculation as the capital gain from that property can taken in consideration by the bank to offer additional loan for Twin Vew during the decouple. The cash proceed from the capital gain could be used to supplement as the downpayment for the next property for decoupling option to be viable instead.

Stacked Homes
Admin
9 months ago
Reply to  Brian

Hey Brian! This would be a home equity loan, something that can be taken but not for the purchase of property. We’ve described this in our article here.

Latest Posts

5 Cheapest Spacious But Old Condos Under 3M Above 2000 Sqft
Units Of The Week 5 Cheapest Spacious But Old Condos Under $3M (Above 2,000 Sqft)
February 22, 2024
february 2024 bto review
BTO February 2024 BTO Launch Review: Ultimate Guide To Choosing The Best Unit
February 21, 2024
J'Den Model 1
Buying Can You Afford To Upgrade To A Condo In 2024?
February 20, 2024
The Arden 3 model
Editors' Pick Where To Find The Cheapest New Launch Condos In 2024 (From $1.15 Million)
February 19, 2024
Lentor Sites 1
Analysis Should You Buy Lentoria? A Detailed Pricing Review Against Lentor Modern, Lentor Hills Residences And Hillock Green
February 19, 2024
Pasir Panjang Hill 19
Editors' Pick Touring Pasir Panjang Hill: Affordable Freehold Landed Homes With Good Views From $3.88m
February 18, 2024
Zane Gruff Jo Man 2 Compressed No watermark
Living In Inside A Modern 1-Bedroom Apartment Inspired By Heritage Homes
February 18, 2024
budget 2024
Property News How Budget 2024 Will Affect Singapore Homeowners: New Property Tax Changes And ABSD Remissions
February 16, 2024
lentoria condo review
Editors' Pick Lentoria Condo Review: Smallest Lentor New Launch Within 1 Km To CHIJ St Nicholas
February 15, 2024
Lor Lew Lian Thumbnail 1 compressed
Insider Tour Inside A Pottery Maker’s Small 786 Sqft Multi-Functional Home
February 15, 2024
5 Cheapest Freehold Condos Above 2300 Sqft For Families Who Need Space From 2.9m
Units Of The Week 5 Cheapest Freehold Condos Above 2,300 Sqft For Families Who Need Space (From $2.9m)
February 15, 2024
Woodlands Glen 81 blocks
Resale HDB Where To Find The Cheapest 4-room Resale HDB Flats In 2024 (From $350,000)
February 14, 2024
sengkang general hospital 1
Analysis Are Condos Near Hospitals A Good Investment? A Look At 66 Condos Near Tan Tock Seng Hospital
February 13, 2024
singapore property prices forecast
News Are Singapore Property Prices Set To Drop In 2024? Here’s A “Surprising” Prediction
February 12, 2024
Lentoria
Commentary Where Did Home Prices In Singapore Grow The Most (And The Least) In 2023?
February 8, 2024
Inside An Architects Mid Century Modern Home Inspired By Frank Lloyd Wright
Editors' Pick Inside An Architect’s Mid Century Modern Home Inspired By Frank Lloyd Wright
February 8, 2024