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Forum Property Buying a private apartment built in 1974

Forum Property Buying a private apartment built in 1974

Forum Property Buying a private ...

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  • #1675
    M
    MoneySmart.sg
    Keymaster

    Posts: 156

    Joined: Mar 19, 2014

    Expert

    Hey Suhasini,

    About buying an older apartment, there are two main points to consider:

    1. Banks will generally give you a loan based on the numbers of years left on the lease.

    So if your house is brand new with a 99 year lease you can get the maximum of 30-35 years loan tenure. However for an apartment built in 1974 this would mean there is only 57 years left on the lease.

    So if we base it on your age you can qualify for a 30 year loan, there is a possibility a bank will only give you 57 years – 30 years (Bank rule) = 27 year loan

    and that could affect your loan tenure.

    1. Purchasing an older apartment would mean you have to spend more money on renovation as well. Do take this cost into account.  Of course if the previous owner has done the reno, then you’re clear. 🙂

    About your ideal monthly income:

    Say you take a 25 year loan and have <b>no liabiliites, </b>and you would like to get a $1.4 million apartment and take an 80% loan, the loan amount would be $1,120,000 loan:

    You’ll need to earn $9,345 basic pay a month. (This is based on TDSR 60% calculation)

    Hope this helps! All the best!

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