Property
Which is My Best Option to Fund My Condo Purchase?
By Investment Moats  •  May 17, 2020
A long time reader wishes to purchase a condo that is valued at $1.65 million. Currently, the family is staying at a 5-Room HDB valued at around $500,000 that is fully paid-up. This HDB can potentially rent for a gross rental income of $2,500 a month. He considered 3 options. Option 1: Sell current HDBUse the sales proceed + CPF + cash to buy the condoDo not leverage up Option 2: Sell current HDBUse the sales proceed + CPF to purchaseAlso loan $300,000 Option 3: Keep HDBUse CPF + some cash to buy a condoAlso Loan $900,000This will incur an additional ABSD of $198,000 since this is the second property they would own. Other assets the family own include: CPF OA: $900,000Cash: $500,000Stocks and Bond: $1,500,000 So he asked for my second opinion. I can’t give much advice since I am not his planner. But I think I...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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