To sell the car - Car loan remaining $57000
Car value currently $40000-45000
Amount to pay back to bank if I sell the car. $17000-12000.
That means paying $17000-12000 upfront. And you have no more car. And I do not have $17000 to pay it off even if I wanted to sell the car.
To buy a new car after one year. New loan of $70000 and above. Plus the $17000 I lost with my previous car.
To struggle with car for one year $7000.
After that. I will still have a car. When you plan on starting a family(kids) soon. A car will help. Bottom line is where to find that $12000-17000 to pay off the remaining loan?
To sell the house - Home loan remaining $50000
Home resale value $300000
Amount left from home sale after loan repayment. $250000
Price of new 5-room HDB flat. $350000
Amount I have to fork out if I don't sell the house. $50000
Amount I have to fork out if I buy a new house. $ 100000
Family plan. 2 years.
New HDB flat. 4-5 years.
Because of the fact that selling my 4-room flat will mean my first home is gone. The next HDB flat I am eligible to buy is only an upgrade to a 5-room flat. And because it's not my first time anymore. All the first time flat buyers incentives are gone. Which means more money.
It is a definite struggle for one year. But getting rid of all these would mean a normal life for one year. And a struggle to "re-settle" down for another 5 years. And "re-settling" means an additional $170000 or more.
It is a simple case of struggle first. Sweet in one years time.
Or sweet for one year. Struggle for 5 years plus $170000.
What about not getting married and pushing everything back? That would solve all the problem.
For those who want to start a family. Do you really want to be 45 years old and attending your child's Primary 1 orientation?
Or using your senior citizens card when you go visit your child's secondary school teacher?
Or being 60yrs old when your son ORD's from the army?
It's hard I know. But I guess that's just the way the system in our country work. The only way to work for your future is to get yourself knee deep in debts. Working your life away to repay it.
Unless of course. You are from a rich family to start with. Then everything should be simpler.
*Thanks everyone for the concern. It's hard but I believe it will work out. Like Mr Wan always says. "Just make it happen".
In the meanwhile, we will need all the support we can get.
8 comments:
I don't think u should be thinking about getting a new car any time soon. Sure it will help, but many families have made do without one, in other words, it's possible. You don't have to burden yourself with the unnecessary stress of getting a new car in the next 2-3 years.
I understand that the flat has come into your possession under unique circumstances, which is why I can see why it is complicated and really falls under the "suay" category.
Still, I don't think you need to get a new 5 flat, a house that big normally retail at $400k to $450k, that's probably where you can look at with regards to selling your house.
With regards to downgrade, to my knowledge, you can downgrade, you just can't get a HDB loan if you downgrade, you CAN, however, get a Bank Loan.
http://www.iproperty.com.sg/iexpert/Question.aspx?ID=728
A 3rm flat nowadays around your same area would set you back, perhaps, $300K.
I would suggest you try registering to iproperty.com or propertyguru, and post on their forums for help. You'll get a lot of agents helping you answer your questions (mostly because they want your business), which may help you solve your problems with regards to having to burden yourself with a huge house.
Having a financially secure background does help as a cushion, but it's not an ultimate solution. My Cousin who has been married for 5 years, has a monthly combined income of 4K, live in a 3rm flat, have no kids, and still don't own a car cause they got other priorities at hand to settle. Their dad's a retired Taxi Driver...goes to show it's possible for you as well, so don't give up hope.
The house is more or less fine, it's the car that's a problem.
But how do I sell my car and have the $17000 upfront to pay off the loan?
It doesn't make much sense to both lose the car and $17000 which I don't have.
The problem is the car is already bought. Without the consideration that I would be not generating income for these 2 years (not that I knew about it at that point of time).
A 4-room flat is sufficient for the small family we are planning. No plans to get a 5 room anytime soon. Which also means all the going through of selling the house and getting a new one without a housing loan is not very advisable. Bank loans means more stress on normal monthly income. I firmly believe the CPF should be used since its there.
I know that with a combined income of 4k is more than enough to live comfortably in SG. But like you mentioned. They do not have a car, nor kids.
Actually you can use your CPF to pay for a Bank Loan. A HDB loan is normally more enticing cause of the benefit to pay your entire loan using CPF while Bank loan requires a 5% cash down payment. You can check it up here if needed.
http://mycpf.cpf.gov.sg/CPF/my-cpf/buy-house/BH5.htm
I understand that at the moment the house issue is something not to look at because it is something currently being rented out, but you can re-look this option in future I guess.
One solution would be to see if you can find someone to temporarily loan your car perhaps?
Maybe you can consider a personal loan from yours, hers or both parents since it is a valid argument. Then you can repay them when you start teaching again.
You are damn right about working your ass off to repay debts in Singapore. And CPF is there to stop you from migrating.
Yup Colin there will be a loan available when the shit hits the fan. (i.e. my parents)
Just that we can't just happily spend like mofos and not save up until then.
Andrew, having a car and a house is always a liability if not bought in proper investment terms. I took financial management in college. I know how to calculate depreciation and do sound financial planning.
I just have to let you know, that sound financial planning is only possible, if people have put in place the discipline and savings from at least 3 to 5 years before they embark on greater commitments like cars and houses. Or if they already generate enough income to put aside at least $500 to 1k a month.
Melvin did not expect having the need to marry within 5 years before he bought the car. We did not expect having to receive the house as early as next year and having to deplete our savings that cannot sustain us with the added loan repayment. We did not expect that getting the crossover meant only one income.Things happen beyond our expectations.
I planned from as early as 2008. I did my bank calls. I did my spreadsheets. I got it all sorted out. The savings were piling in.
Until we meet unexpected situations. HDB law changes. Not enough income to sustain a bank loan with added interest EVEN with CPF. Combined CPF unsustainable either. I am only 22. I have less than 5k in my CPF.
Logically, I know that we cannot survive. Logically, the plans had to pushed back at least 2 to 3 years. Logically we have sat down with families and friends and financial advisors to make sense of it all.
But when life throws things at you. Logic disappears.
On paper its easy to spell out the solutions. In life, you have to bend and just try not to break.
If so many low income families like truck drivers and delivery men can have 3 kids, a house and a small car and their wives not working, anything is possible.
The question is not about survival. Its is about the QUALITY of living that you want. As simple as that.
So many many many couples give up their future together because they keep saving and saving and saving for that perfect scenario where they will have a comfortable lifestyle. But because they take so long to achieve that, having being stuck together for so long that they grow tired and split up. Ask anyone if they have friends who went through this. The ratio is very high.
If you ask me? Perfect scenario to have comfortable life? Even with no car and no kids? Impossible. Unless our combined income can hit above 6k. If not? Wait for another 10 years for our wedding invitation lor.
Many times, ideal situations are purely dreams that serve as motivations. The sound choice is not incur ANYMORE debts other than the two loans we have to pay for. The current market boom is too high a risk to throw away these things and snowball the debts.
The best bet we have now is to get married to secure the house and wait for less than a year for Melvin to return to his full-time job and everything will be resolved.
We are not even in a dilemma. Everything is crystal clear. We just chose the harder path to preserve something that is harder to define in material standards.
I hope this clarifies everybody's concerns. Thank you.
Pro sia.....
lol all I said was maybe it would be good to loan out the car during the one year period.
But after tonight's discussion at Macs, I think Colin's idea would be a much better compromise.
Post a Comment