Asked by Anonymous
Hello, I'm seeking financial advice as I'm not particularly knowledgeable about managing finances. At 43, I currently own a fully paid-off 2-room BTO that I'm planning to sell on the open market. I met my partner, who is 42, later in life, and we've decided to start a family. We're also considering having my elderly parents live with us. Consequently, instead of choosing another BTO due to the long waiting period and location constraints, we're thinking about buying a larger 4-room resale flat at our preferred location.
After browsing various websites, most of the 4-room resale flats we've shortlisted are priced at 750k and above.
Based on my estimates, I expect to have 200k in my CPF Ordinary Account (OA) savings after the sale, along with personal savings of 100k. My partner has 300k in her CPF OA savings. As second-time buyers of HDB BTO flats, we may not qualify for significant HDB grants.
After crunching the numbers, we've concluded that we could afford a resale flat priced up to 800k if we stretch our budget, utilizing all our CPF savings, most of our personal savings, and taking a loan of up to 200k over the next 20 years.
However, this would deplete all our 500k OA CPF savings earmarked for retirement, as well as a substantial portion of our 100k personal savings. Additionally, we would need to use our OA CPF for monthly mortgage payments for the next 20 years, potentially leaving us with insufficient OA CPF savings for retirement after the age of 63.
Our combined monthly income is approximately 8k, and aside from paying our bills and groceries, we don't have many monthly obligations. We don't own any cars or have premium insurance.
Any guidance/opinions would be highly appreciated. Thank you.
After browsing various websites, most of the 4-room resale flats we've shortlisted are priced at 750k and above.
Based on my estimates, I expect to have 200k in my CPF Ordinary Account (OA) savings after the sale, along with personal savings of 100k. My partner has 300k in her CPF OA savings. As second-time buyers of HDB BTO flats, we may not qualify for significant HDB grants.
After crunching the numbers, we've concluded that we could afford a resale flat priced up to 800k if we stretch our budget, utilizing all our CPF savings, most of our personal savings, and taking a loan of up to 200k over the next 20 years.
However, this would deplete all our 500k OA CPF savings earmarked for retirement, as well as a substantial portion of our 100k personal savings. Additionally, we would need to use our OA CPF for monthly mortgage payments for the next 20 years, potentially leaving us with insufficient OA CPF savings for retirement after the age of 63.
Our combined monthly income is approximately 8k, and aside from paying our bills and groceries, we don't have many monthly obligations. We don't own any cars or have premium insurance.
Any guidance/opinions would be highly appreciated. Thank you.
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