The cost of buying a condo (flat in block with pool) in Singapore

I've been to several talks on making money and saving money. The general consensus of opinion (general or majority view) is that you should spread your money over different types of saving and investment, not only money in banks, building societies or shares, but also property. Like people who invest in both ice cream and umbrellas, whatever the weather, your gains offset your losses.

The money you spend on rent could be used to pay off a mortgage.

Problem 1
What if you want to live in the centre but can only afford to buy in the distant suburbs? I have friends who bought a property in a cheaper area out of town. The rental income pays their own rent to live in the city centre.

Problem 2
Whenever I tell somebody that I or my friends are renting in Singapore I get asked, "Why don't you buy?'

Answers
Many people who come to Singapore don't expect to stay more than two years. No guarantee of longer employment. The company might move them on. The company will pay rental. I'm not sure you can use the money for a mortgage instead.

Profiting From Inflation
Normally a property owners gains from inflation, having money in property which increases in value, whilst money in the bank would be worth less.

Negative Equity
Another worry might be negative equity. That means that you buy at the top of the book and then prices tumble.

However the reverse happens in negative equity. Your property is worth less. You sell at a loss. If you can't repay the mortgage, when the loans company repossess, the property is sold at lower than it cost to buy, so you owe the loans company more.

Tip
Before making a decision, check out the figures.

Take into account, cost of buying ready-built new, second -hand, from a plan, government property. Note your income, ability to pay down payment, costs of any stamp duty or government tax, and legal fees for the transfer and searches and property agent fees. You also need to consider:
whether you can get insurance to cover loss of income yet without losing the property, and the cost of this insurance;
and the maintenance costs of the building admin
plus what you need to pay to redecorate, furnish, and repair the property.
Do you need to pay an agent to rent out and look after the property if you are overseas.

HDB
HDB are government dwellings, subsidised for those on lower income. You can use your government scheme mention savings (CPF) to buy property if allowed. However, I was told I would not be eligible if I had property overseas.

Website Tip
http://sgyounginvestment.blogspot.sg/2014/02/how-much-money-do-you-need-to-own.html

Author
Angela Lansbury, travel writer and photographer, has lived in the UK, Spain, USA and Singapore.
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