Advice

We Make $510k Per Year And Own A Landed Home. Should We Redeem Our $1m Loan, Decouple To Buy Another Property, Or Rebuild?

Join our Telegram group for instant notifications
Join Now
Subscribe
Notify of
guest
8 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Frank
Frank
2 years ago

This makes no sense. They earn 200k+ each and yet they say they expect t to be able to save up another 300k cash within 12 months (ie their cash goes from 600 to 900). How on earth does this stack up? Their mortgage is 7k a month which is 84k for the year. After utilities, tax etc. that means they expect not to eat let alone spend anything else in order to save 300k? Saving 70% of your salary is not remotely feasible. Unless they have some other very substantial income from somewhere that isn’t disclosed in the piece (and frankly if they do then the whole thing is a bit of a nonsense) then the figures have to be wrong.

jacy
jacy
2 years ago
Reply to  Frank

saving 70% is definitely feasible. it all depends on your spending habits.

Keith
Keith
2 years ago
Reply to  jacy

obviously inflation is not real in this context

James
James
2 years ago
Reply to  jacy

Yes, but must be very thrifty.

Ultra Shiny Marines
Ultra Shiny Marines
2 years ago
Reply to  Frank

Agree with you that the information provided is incomplete or untrue.

Typically for a fixed rate mortgage, it would automatically move on to a floating rate after the fixed rate period ends, there is no need to “renew the contract or pay up in full”.

Also, given the current CPF contribution ceiling and their ages, it is highly unlikely for both to have $1,000,000 each in their CPF accounts.

Furthermore, it is rather strange for someone staying in a $7 million landed property to want to rebuild the house, as A & A (Addition and Alteration) would usually suffice.

James
James
2 years ago

For fixed rate, at the end of the contract with the bank which is typically 2 years, the mortgagee has the option to renew, jump ship to another bank or just continue with variable interest rate.
The owner could jolly well pay up in full if he has the resources. From this case, the owner has the resources but will be stretched.

Based on CPF contribution rates and their age, it is more than possible for them to have $1m each in CPF savings.

As for $7m landed property, it is up to the owner to decide if they wish to tear down and erect anew, do A&A or just keep it as it is. If the land is big, then the $7m house would likely be an older house. However, for smaller houses in non prime district, it is likely to be a nicely rebuilt house. Cannot determine whether one should rebuild, do A&A, etc.. just by looking at the value of the house. There could be bigger landed houses that are worth eg. $15m but in a bad shape.

Richard Tan
Richard Tan
2 years ago

I don’t think they have 1million in CPF oa. It should be total cpf (oa,SA,ma) 1 million

James
James
2 years ago
Reply to  Richard Tan

Technically, it is possible to have $1m in OA as they would have worked for 30 years.

Latest Posts

Untitled Artwork
Property Stories “We Spent Just $5k On Reno” Why Some Buyers Are Skipping Big Renovations In 2025
April 1, 2025
watertown condo review
Property Stories “We Saved Money By Living Above An MRT” 5 Homeowners Share The Good And Bad About Integrated Developments
April 1, 2025
Screenshot
Property News An Executive Condo Just Sold For $3.05m: Is This An Outlier Or A Sign Of Things To Come?
March 30, 2025
A Bright Minimalist Condo Apartment With A Loft 1
Living In A Bright Minimalist Condo Apartment With A Loft
March 30, 2025
reduce property price
News Why Rejecting The First Property Offer In Singapore Could Cost You
March 30, 2025
Bloomsbury Residences Model 31
New Launch Reviews Bloomsbury Residences Review: Unblocked Views With 2-Bedders From $1.366m In One-North
March 29, 2025
prime plus hdb
Property News HDB Just Made It Easier For Young Couples To Buy Flats: But Not Everyone Is Happy
March 28, 2025
A Bachelor’s Industrial Inspired 4 Room HDB Home With A Garden Balcony 1
Living In A Bachelor’s Industrial-Inspired 4-Room HDB Home With A Garden Balcony
March 28, 2025
property agent 2023
Selling Can You Really Sell Your Home For Just $2K In Singapore? Here’s When A Fixed-Fee Property Agent May Work
March 27, 2025
5 HDB Flats With Good Unblocked Views Above 1,000 Sqft
Units Of The Week 5 HDB Flats With Good Unblocked Views Above 1,000 Sqft
March 27, 2025
Punggol 24th 23
Property Stories Where To Find 999-Year Landed Homes By The Sea In Singapore: Touring Ponggol 24th Avenue
March 26, 2025
johor bahru causeway
Editors' Pick Looking To Live Near JB? Here Are The Cheapest Condos By The Causeway In Woodlands
March 25, 2025
Best layouts we’ve seen among new launches in Q1 2025
Buying The Best New Launch Condo Layouts We’ve Seen So Far In 2025
March 25, 2025
New vs Resale Two Bedders Why Are Buyers Opting for New Launches in 2025?
Commentary Why Are Homebuyers Choosing Pricier New Launch 2-Bedders Over Resale Options In 2025?
March 24, 2025
How preferences toward kitchen layouts have changed in 2025
Commentary How Condo Kitchen Preferences Have Changed In 2025
March 23, 2025
An Award Winning Condo Apartment That Blends Modern & Vintage Aesthetics 1
Editors' Pick An Award Winning Condo Apartment That Blends Modern & Vintage Aesthetics
March 23, 2025