Have you heard of people who don't earn alot of money and yet
they still go and buy a hdb flat and pay by instalement and in
fact, the monthly money they pay to hdb/bank is only enough to pay
for the interest?
Yes, I heard of ppl barely touch the 8k ceiling buy boon keng
city view flat for 600K. After selecting the flat then do the math
then realise they everyday have to eat grass. So they forfeit their
selection but had to fork out the deposit. Ouch.
Interest rate for HDB loan is 2.6%, depending on your age, can
take up to 30 years. I think the max is 35, not so sure.
CPF contribution can take max safe level of 35% combined
household income.
So lets say you work out the monthly installment to be $1300,
but your CPF max out at $1000, you have to fork out the 300 bucks
by cash every month.
So if you really want to buy flat, you honestly have to think
long term. If you think you rather not fork out extra cash in hand
every month, it would be wise to get a flat that your CPF
contribution alone can completely cover. Thats why ppl prefer BTO,
its usually cheaper. Look at the sengkang and punggol flats for
instance, 4/5 room don't exceed 350K.
Honestly I like the pricing, but I dunno if its worth more in
the long term, I just don't buy it, although I live hougang, I
still find punggol kinda ulu.
