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Propnex Read More

Hi,

I think you are already approaching your purchase quite sensibly. Keeping a 12-month emergency fund and limiting your mortgage to below 30% of your income shows that you are thinking beyond simply qualifying for the maximum loan.

Since you are buying for your own stay and intend to hold the property long term, I would also budget for the following:

1. **Renovation, furniture and appliances:** Even a well-maintained resale condo may require some refurbishment, air-conditioning replacement or new appliances.

2. **Condo maintenance fees:** These are recurring expenses on top of your mortgage. Check the actual fees for the unit and whether the MCST has planned major works or additional levies.

3. **Property tax and insurance:** Budget for annual owner-occupied property tax, home insurance and any mortgage-related insurance you consider necessary.

4. **Unexpected repairs:** Air-conditioning, plumbing, water heaters and appliances can fail unexpectedly. I would maintain a separate home maintenance reserve rather than rely entirely on your emergency fund.

5. **Mortgage interest rate changes:** Your repayments may increase when your loan package expires or interest rates change. Work out whether you can comfortably manage a higher monthly instalment.

6. **Future lifestyle changes:** Even if you intend to stay long term, your employment, family circumstances or financial priorities may change. Make sure the property does not leave you financially stretched.

One additional point I would emphasise is that you are purchasing with a single income. I would therefore place greater importance on liquidity and financial flexibility.

Beyond the financial considerations, choosing the right property is equally important.

At a budget of $1.8 million, I would want to understand whether you are getting good value compared with similar two-bedroom units, the development's maintenance condition, its layout and its longer-term resale appeal.

May I know which locations or condominiums you are considering?

Also, have you engaged a property agent to assist with your search? If so, has your agent helped you compare actual transactions, monthly ownership costs and the financial implications of different properties?

A good agent should help you identify the right property within a comfortable budget, rather than simply encourage you to spend up to $1.8 million.

Geryl Lim
 9278 7772  Read More

Hi, I would add three separate budgets. First, moving-in costs: renovation, appliances, furniture, inspection, utility setup and any overlap between your existing accommodation and the new home. Second, recurring costs: the actual MCST contributions for that unit, property tax, insurance, utilities and regular servicing. Third, irregular costs: appliance replacement, leaks and your share of any future major works.

For a resale condo, ask about approved or proposed special levies, upcoming works, fund balances and recent meeting minutes through the appropriate channels. The headline monthly maintenance fee does not tell the whole story.

Also test your mortgage at a higher rate and check what the rate becomes after the initial package. Keep the emergency fund separate from your furnishing allowance. Your 30% target is useful, but the remaining disposable income after all commitments is the stronger test for a single-income household.

Silas Tan | Huttons | TRIBE
Free property guides and calculators: https://tribesg.com Read More