Hi John,
Your cash and CPF levels are very healthy, and you can afford property at around the million dollar mark.
However, based on your income level, the max. loan you can get is around $430k (2% interest over 25 years). That means that if you are taking a full 80% loan, you can afford property up to $537k.
Since your cash and CPF levels are very good, you might not want to take a full 80% loan. You should not be stretching your finances too much in buying a home.
For a comfortable financing and loan, you should be looking at a property around $800k.
Property Price:$700,000
Stamp Duty: $15,600
Cash Upfront: 5% ($35,000) + stamp duty = $50,600
CPF Upfront: 15% ($105,000)
Since you have a bit of CPF left, you can use another $200k CPF so that you take lesser loan, and the monthly repayment will be lower.
CPF usuage: $105,000 + $200,000 = $305,000
Loan amount: $700,000 - $35,000 - $305,000 = $360k.
Loan monthly repayment based on $360k loan: Approx $1,700/mth.
This way, you will have $29,400 cash left($80,000 - 50,600), and $35,000 CPF left ($340,000 - $305,000). Your loan size is also smaller. A $700k property is comfortable for you.
You can purchase slightly more expensive property, since you have some cash, CPF remaining. You can also max the loan if the repayment is comfortable for you. But if it best not to stretch finances too much.
Your estimate of a $600,000 property is very safe and conservative; my calculation is to show you that you can afford a slightly more pricey property, in case you happen to really a property that is close to or slightly higher than $700k.
If you need more help in understanding property financing and calculations, or if you need my help in sourcing for a good property, do let me know.
Thanks!
Regards,
Richard Wan
Black Diamond Real Estate
richardwan@live.com
94363793
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