### 🏠 Can You Afford a $1.2M | Gallery posted by Ben Wong | Lemon8

### 🏠 Can You Afford a $1.2M Condo with a $10,000 Monthly Income in Singapore? 🤔

Affording a $1.2 million condo in Singapore with a $10,000 monthly household income involves evaluating several financial factors. Let’s break it down with some fun and emoji-filled insights! 🌟

### 🔑 Key Financial Considerations:

To afford a $1.2M condo with a $10,000 monthly income, you need to consider several factors: ensure your total debt servicing ratio (TDSR) is within the 55% limit, allowing up to $5,500 for monthly debt payments; prepare a 25% down payment of $300,000, with at least $60,000 in cash and the rest from CPF savings or cash; account for the buyer's stamp duty (BSD) of $32,600, payable via CPF; and factor in estimated legal fees of around $3,000.

### 📝 Additional Considerations:

- **Emergency Fund 🆘**: Ensure you have at least 6 months of living expenses saved. This provides a safety net in case of unexpected financial challenges.

- **Other Debts 📉**: Include any other monthly debt obligations in your calculations to ensure you stay within the TDSR limit. This includes credit card debts, personal loans, car loans, etc.

- **Lifestyle and Savings 🌟**: Consider your lifestyle needs and savings goals. Ensure you have enough disposable income after paying for housing costs to maintain your desired lifestyle and save for future goals like vacations, children's education, retirement, etc.

- **Market Conditions 📊**: Keep an eye on the real estate market trends and interest rates. Market conditions can influence property prices and interest rates, affecting the overall affordability.

- **Future Plans 🌍**: Think about your long-term plans. If you anticipate needing to relocate in a few years, it might be better to wait. Selling a property shortly after purchase can incur additional costs and may not always be financially beneficial.

- **Potential for Rental Income 💸**: If you are open to renting out a room or part of your condo, this could significantly offset your mortgage payments and make homeownership more affordable.

### 📢 Final Thoughts: The Smart Move?

Buying a $1.2M condo with a $10,000 monthly income in Singapore is a realistic goal, but it requires careful financial planning and a clear understanding of your long-term goals. Consider the immediate financial benefits of owning a home, such as saving on rent and potential rental income. However, also weigh these against the substantial initial costs and the long-term commitment of a mortgage.

Ensure you have a robust emergency fund to handle unexpected expenses and consider how other debts may impact your ability to comfortably manage a mortgage. Staying informed about market conditions can help you make a more strategic decision.

Ultimately, homeownership can offer significant emotional and financial benefits, providing stability and a sense of security. Yet, it's crucial to ensure that your purchase aligns with your overall financial strategy and long-term plans.

What’s your take? Would you buy a condo right after getting your PR? Share your thoughts! 👇

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