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

  • August 19, 2022
  • 13 min read
Join our Telegram group for instant notifications
Join Now

Stacked

Stacked is an online editorial aimed at helping Singapore home buyers, sellers and renters make better decisions. By regularly conducting research and publishing our findings, we hope to give our readers a much better perspective on buying, selling or renting Singapore real estate.

avatar
Frank
Frank

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… Read more »

jacy
jacy

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

Keith
Keith

obviously inflation is not real in this context

James
James

Yes, but must be very thrifty.

Ultra Shiny Marines
Ultra Shiny Marines

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

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… Read more »

Richard Tan
Richard Tan

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

James
James

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

Latest Posts

international plaza bungalow
Property Picks 6 Most Interesting Homes In Singapore And Where To Find Them
October 3, 2022
westlake gardens landed estate lake 3
Property Stories Touring Westlake Gardens: Scenic Freehold Landed Living At MacRitchie Reservoir & Near Famous Schools
October 2, 2022
Alkaff Oasis 172 entrance top view
Commentary “I’m Essentially Homeless For 15 Months Now”: New Cooling Measures Leaving Some Homeowners In A Difficult Situation
October 1, 2022
choa chu kang crescent 1
Commentary NEW Cooling Measures Announced: An Attempt To Cool The Hot Property Market And How It May Affect You
September 30, 2022
new launch regrets
Buying My Biggest Regrets After Buying A New Launch Condo: We Share 5 Most Common Regrets Homebuyers Have
September 29, 2022
5 Unique Freehold Walk Up Apartments Near An MRT Station
Units Of The Week 5 Unique Freehold Walk-Up Apartments Near An MRT Station
September 29, 2022
Evertonenclave 69
Interior Tour An Old 1980 Everton Park Transformation: How A Couple Achieved A Monochrome Look With A $110k Reno Budget
September 28, 2022
SkyTerrace @ Dawson Architecture 1
Commentary Why Is A Million-Dollar Flat Reasonable To Some Homeowners In 2022?
September 28, 2022
coronation road landed home skylight
Interior Inside A Coronation Road Landed Home In Singapore With An Incredible 7m High Family Hangout Space
September 27, 2022
City View @ Boon Keng DBSS
HDB Reviews City View @ Boon Keng DBSS Review: Million Dollar City Fringe Living With Great Views And Convenience
September 27, 2022
lentor modern land 2
Commentary Property Prices May Get Even More Expensive In 2023: Why New Land Betterment Charge Rates Will Affect Prices
September 26, 2022
bedok walk landed estate
Property Stories A Landed Home For Just $780k? Touring Jalan Chempaka Kuning & Bedok Walk: Landed Estates With A Lot Of Character
September 25, 2022
kopiandmilktea 8
Interior A $13k Condo Renovation Breakdown: How This Creative Homeowner Self-Designed & Decorated Their 732 Sqft Home
September 24, 2022
chuan park condo
En Bloc Chuan Park En Bloc Saga: 4 Key Lessons To Learn For Future En Bloc Hopefuls
September 23, 2022
HDB Executive Apartment Jan Sep 2022 Map
Resale HDB An Updated List Of 22 Executive Apartments In 2022: How Much Have Prices Increased & Where To Find Them
September 22, 2022
avoid absd legally
Investment 7 Ways To Avoid ABSD Legally In Singapore (Updated For 2022)
September 22, 2022