Several Singaporeans believe that purchasing properties is nearly impossible. Some probably still believe that the sub-urban condo cost around 2 million dollars. It may sound ridiculous to others, but that’s a prejudice developed among lots of Singaporeans- overestimating the private price properties. Why don’t we stop assuming for a while and try to understand why a property like The Garden Residences Serangoon could be cheaper than what we most believe?
- “No condo that costs under one million dollars”.
If you are to take a guess, how much do you think does a condominium unit cost? Some would probably estimate a million dollar. Others might think a “lower” price of $800, 000 should be enough. Then it should come to a surprise that when you hit the search button at 99.co, there are over 3,000 condo units priced for $700,000 and even lower!
“$700,000? Are you sure it’s not a rat hole?” Not! Do you know there are three bedrooms, 850 sq? Foot apartments from The Visionaire available for $690,000 only? The Northwave offers 893 sq ft. Apartments at the price of $686,100. Yishun’s The Criterion has large units, available for only $677,600.
And just because these condos are cheaper, it does not mean they offer a lot lesser. You can enjoy a number of their facilities like tennis courts, Jacuzzi, gyms, pools, etc. This is probably too good to be true for a lot of Singaporeans. News flash, these condos exist.
- “A monthly payment of $4,000.”
Interest rates of the Home loan are undeniable on the rise, but there are things that you should still remember: First- these loan interests are cheaper than HBD loans for these public housing, and second the options you can get is like the FHR loans exist as a way to handle the rising cost.
For instance, you are to buy a $800,000-worth unit. You will have to pay the 20% as a down payment while only 5% of the price of the condo must be paid cash. The CPF may cover the 15%, and banks will shoulder or finance 80% of it. That would make a $40,000 down payment in cash, with remaining $120,000 from CPF.
If we are to assume that you are to use a loan for 30 years with 1.8% interest rate annually and $640,000 for quantum, you will have to pay $2,032 per month only. That’s almost the half of what some of you might be expecting.
But if that amount is to be divided between you and your co-borrower, it can even go lower. The $40,000 down payment will become a 20,000 dollars each person and from your CPF with $60,000. The repayments on a monthly basis, if split in two, can become only a quarter of what we used to believe – $1,151 only.
It may not be as cheap, but if we are to compare the expectation from the reality, then the reality is not bad.
- Mortgage tax interest rates can be deductible
Do not forget that home loan interest payments can be deducted from tax. Here are the tax deductions that are claimable according to IRAS: Visit https://www.thegarden-residences.com.sg
- Mortgage loan interests
- Tax on properties
- Insurance for Fire Emergency
- Get commissions by getting tenant that are subsequent
- Cost for new tenants or renewing lease
- Maintenance and repairs for the monthly maintenance, pest control, painting, etc.
You are going to pay 1.8% interest on your CPF Account which grows 2.5%. Moreover, 1.8% is being deducted from income tax.
- Exaggeration when it comes to conservancy charges
To be honest, condos can get higher conservancy charges compared to HBD properties, but not as high as the embellishments seem to be! Probably you have heard from one of your friends owning a condo the issue about the thousand dollar bill; certainly, that is worth of three-month maintenance.
Fear not as you doesn’t have to sell your kidneys over a condo, although the fact remains that it’s higher than HDB flats. But indeed, there are examples of condos with fees for over $1000 a month. Units that are high-end usually from District 9 and 10. These are the ones “made for celebrities”- the ones with huge apartments, with concierge service and all.
But for condos that are mid-ranged, most of them, only cost monthly of around $350 to $400. This amount of tax is deductible.
Sure they can be expensive, but it’s not as nearly impossible as what others think it could be.
Your dream private property can always be within your reach. All you have to do is to research on the cost thoroughly before you scrap away the opportunity. If both of you has mid-income of around $4000 a month), you can ask a financial planner for help to make your plans come true.