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I visited Dakota Residences over the weekend. There was no crowd, just a couple of families looking at the showflat and the architectural model.
Currently Dakota has fully sold its 2 bedroom apartments and are left with few units of 3 bedroom apartments. 4 bedroom apartments are still plentiful as there are little takers.
I enquired about the 3 bedroom apartments. They cost a minimum of $1.16m or $889 psf for a low floor unit, with an area of 1313 square feet. Similarly sized unit but at 17th floor, costs $1.33m or $1014 psf.
Seriously, for a 99 year leasehold property I do feel that such prices are out of the reach of ordinary Singaporeans.
Let the numbers tell you why.
Assuming I pay a 20% downpayment to purchase the 17th floor unit, I will need to take out an 80% loan which will mean a monthly repayment of nearly $4,800 @ 3.5% interest. I would have paid about $3.3m for the house after 30 years.
(I used 3.5% interest as it is usually the interest rate banks use to calculate the affordability of individual income on the house and to be conservative)
After 5 years, my outstanding loan will be about $956,530. I would have paid 60 months of mortgage installments amounting to about $288,000.
If I intend to sell it in 5 years, I will need to sell it at $956,530 (to cover outstanding loan) +288,000 (interest and principal paid) +266,000 (down payment paid) = $1.51M just to BREAKEVEN. Read more...[caption id="attachment_3392" align="alignright" width="150" caption="Photo from Singapore Blue Chips"]
[/caption]
I visited Dakota Residences over the weekend. There was no crowd, just a couple of families looking at the showflat and the architectural model.
Currently Dakota has fully sold its 2 bedroom apartments and are left with few units of 3 bedroom apartments. 4 bedroom apartments are still plentiful as there are little takers.
I enquired about the 3 bedroom apartments. They cost a minimum of $1.16m or $889 psf for a low floor unit, with an area of 1313 square feet. Similarly sized unit but at 17th floor, costs $1.33m or $1014 psf.
Seriously, for a 99 year leasehold property I do feel that such prices are out of the reach of ordinary Singaporeans.
Let the numbers tell you why.
Assuming I pay a 20% downpayment to purchase the 17th floor unit, I will need to take out an 80% loan which will mean a monthly repayment of nearly $4,800 @ 3.5% interest. I would have paid about $3.3m for the house after 30 years.
(I used 3.5% interest as it is usually the interest rate banks use to calculate the affordability of individual income on the house and to be conservative)
After 5 years, my outstanding loan will be about $956,530. I would have paid 60 months of mortgage installments amounting to about $288,000.
If I intend to sell it in 5 years, I will need to sell it at $956,530 (to cover outstanding loan) +288,000 (interest and principal paid) +266,000 (down payment paid) = $1.51M just to BREAKEVEN. Read more...
[/caption]
I visited Dakota Residences over the weekend. There was no crowd, just a couple of families looking at the showflat and the architectural model.
Currently Dakota has fully sold its 2 bedroom apartments and are left with few units of 3 bedroom apartments. 4 bedroom apartments are still plentiful as there are little takers.
I enquired about the 3 bedroom apartments. They cost a minimum of $1.16m or $889 psf for a low floor unit, with an area of 1313 square feet. Similarly sized unit but at 17th floor, costs $1.33m or $1014 psf.
Seriously, for a 99 year leasehold property I do feel that such prices are out of the reach of ordinary Singaporeans.
Let the numbers tell you why.
Assuming I pay a 20% downpayment to purchase the 17th floor unit, I will need to take out an 80% loan which will mean a monthly repayment of nearly $4,800 @ 3.5% interest. I would have paid about $3.3m for the house after 30 years.
(I used 3.5% interest as it is usually the interest rate banks use to calculate the affordability of individual income on the house and to be conservative)
After 5 years, my outstanding loan will be about $956,530. I would have paid 60 months of mortgage installments amounting to about $288,000.
If I intend to sell it in 5 years, I will need to sell it at $956,530 (to cover outstanding loan) +288,000 (interest and principal paid) +266,000 (down payment paid) = $1.51M just to BREAKEVEN. Read more...
