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.
I have another profiles and posts on blogger.com and Facebook, LinkedIn, YouTube, Instagram. Look at my books on Amazon.com and Lulu.com
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Buying and Renting Property in the USA, UK, Spain and Singapore

Problem
Should you rent or buy? What will it cost? What will it save in terms of money? Any risks? Advantages?

Answers
You have several ways to find out prices:
1 STREET SEARCH
Search the internet for a location such as a street - if the street is purely residential and not known for anything else such as a department store, statue, museum or murder case, up will pop ads for house agent sales.
Street view will show you the type of housing and amenities near by.
Maps will show underground train stations, green parks and tennis courts, hidden behind housing
names searches will bring up: beaches, garages UK term - in the USA and elsewhere petrol stations, or gas stations,
golf clubs, leisure centres, libraries, railway stations, schools, swimming pools, tennis courts, motorways, airport.
2 NEWSPAPER ADS
In Singapore we went through the classified ads in the major newspaper, The Straits Times, to find out rental prices in the central business district and district one where the American live, the Orchard Road shops and the American Club for social life.
3 PROPERTY AGENT
You can sign up online or go into the office. Some agents will run you around in their cars to several properties in a day. You may have to wait two or three days whilst they find somebody not already committed to showing other customers around, and to allow time for them to contact all the properties in your price range and to collect keys from the owners and, for a second viewing, to arrange for you to meet the owners. If you are on a job interview trip for just a week or two, line up the agents on day one as they might take a day to get back to you by phone and then say nothing in your price range or nothing in your area, or they might waste your time showing you unsuitable properties. (However, sometimes they know the owner has asked a higher price in the hope of getting it, but will come down, or that you might be willing to pay more if you see a must have property.
In Singapore we wanted a large property with a swimming pool within walking distance of the main street, Orchard Road, and near an MRT underground railway. The agents and friends all said impossible, at our price limit. However after turning down all the phone calls offering properties miles away or twice our budget, we were offered a 'very old' property, which was not the brand new gleaming sort of property most CEO Americans would want. The property had been on the market and empty, we negotiated a deal which suited both sides, and we rented it.
4 SHOP THE AGENTS' WINDOWS
On holiday in an area you like?
Walk around the area looking for properties in your price range in the agents' windows. Drive around your favourite areas and look for sale boards. Having located a suitable street, a house or shortlist of houses whose exterior you like, go into local agents with your specific enquiry.
5 PERSONAL ENQUIRY
Drop a note through the doors of every house in a street you like. Or walk up and down and give your business card to everybody saying you want to rent. Ask every business in the area if they know anybody. Put an appeal on the club notice board. Ask advice from colleagues at your new place of work, and ask personnel if you can share with another worker, or another family, to reduce cost.

Story
UK
In London a friend of man drew the location of his new job and a circle of five miles around it. He then picked out the railway stations and bus routes direct to his place of work within the circle. He went to an estate agent to ask about rental properties where he could live in the area. He already had the streets of interest marked.

USA
In Boston, USA, the company which took us to the USA had a house which had enough rooms for two or thee employees and the their families to live on different floors for a few weeks or months until they could rent a flat for a year. It worked very well. You could always buy kitchenware and bedding on sale. You might be able to buy small essentials on expenses. If not, you just bought cheaply. When you left you offered your kettle or toaster to the new people coming in at a cheap price, or a box of kitchenware (and mops etc) and bathroom goods (shower curtain) and bedding.

SINGAPORE
In Singapore a chat to local people soon reveals what you need to know. A bought condo flat with three or four bedrooms might be one and a half million Singapore dollars to buy, if you watch and wait for a good deal, up to two million.

Sounds a lot? One couple got a mortgage. How much is the mortgage? It varies depending on the pay back time. You might be given, and seek, a bigger mortgage with two wage earners. One couple smiled, "before we retire!" They wanted to pay it off fast while they were still earning well.

SPAIN
Laws may be different. Check language, translation, rules about foreigners owning.

Tip
SHORTLIST REQIREMENTS
Location, location, location. Can you work there? Will you make friends? Is it suitable for children/ pets/ garaging a car. Public transport? Should you buy before you retire in order to establish friends and club memberships in the new area?

Glossary
UK - USA
UK house agent, property agent, property; - USA realtor, real estate
UK council house; USA affordable housing, social housing; Singapore HDB (Housing Development Board)

Author
Angela Lansbury, travel writer and photographer, author and speaker