Monthly Expenses In Upkeeping A Landed Property?

[joon 0]

Hello landed property owners,

I am a HDB upgrader planning to own a landed terrace property. Can you share with me your regular monthly expenses (approx) to help with my planning eg

Pest Control?

Refuse Charges?

SCV charges?

PUB bills (pls indicate sqft/rms)

Security Network?

Others not listed

THANKS!

[leechaorui 2]

Hello landed property owners,

I am a HDB upgrader planning to own a landed terrace property. Can you share with me your regular monthly expenses (approx) to help with my planning eg

Pest Control?

Refuse Charges?

SCV charges?

PUB bills (pls indicate sqft/rms)

Security Network?

Others not listed

THANKS!

I have been staying in a landed property for 5 years. Depending on your location, some are quite ulu and you will need a good security system and your own transport. Besides location, the condition of your house also matters. Is your house a green building? Some houses have solar panels, etc... to reduce electricity bill and others have high ceiling with a few more trees planted in the garden, providing shade and reduce the need for air-con, etc...

Let me now go to the specific question.

Pest Control?

If you are referring to rats, lizards, ordinary ants, etc... The best control is not to leave food exposed in your house. This tend to attract unwanted visitors. If you are referring to termite, a one time fee for 5 years protection cost about $4000 to $5,000.

Refuse charges.

Can't remember the exact figure but I think it is about $18 per month.

SCV charges.

The first time laying of cable into the house cost about $2600. I am not sure of the exact figure. You can try MIO plan with TV package. The additional TV package cost $15 per month. It is a cheaper option. Alternatively, you use antenna and you need not pay anything except for the government TV licence fees.

The link shows the more details on SCV connection.

http://cabletv2.starhub.com/portal/site/Ca...000464114acRCRD

PUB Bills

My place is 2,500 sqft with 3 rooms. Monthly bill inclusive of refuse disposal is about $220 to $250 per month (with my maid wasting lots of water and electricity). Without a maid, my utilities bill was $120 to $150 per month. I don't have solar panel at home. Some of my neigbours collect rainwater and use it to wash the floor. They told me that their bill per month is about $100 for a family of 6, size of house is about 3000 sqft.

Security Network

I don't have a security system network. A system would likely cost about $5000, excluding maintenance. My neighbourhood is very peaceful. I went with my family for a 2 weeks holiday, forgetting to close the gate and left the door open, nothing happen. Guess I was also lucky besides being in a safe neighbourhood with friendly neighbours.

Hope this help.

Edited December 10, 2008 by leechaorui

[fanguojun 0]

wow....your utilities bills quite low for a landed leh...how do u do it? care to share?

i am staying in a 4-room HDB flat and my monthly bill is close to $300

[Diavonex 0]

1. Roof leak can be costly to rectify.

2. Fence will corrode after a few year unless you are using stainless steel

3. Electric gate need repair maybe once a year.

4. Must cut grass regularly otherwise you'll be fine.

5. Two storey terrace cost more to paint (exterior may need scaffolding)

[hihihi 0]

don't forget the evil property tax

[leechaorui 2]

I am only expressing my experience and opinion and this may not reflect the experience of other landed homeowners. Will try to respond to some of the queries below.

Dear hihihi,

Concern about high property tax

So far, I think property tax is quite affordable. My property tax per year is $200 per year. Some other landed properties have higher taxes. I know of one bungalow owner. He pays about $1,500 of property tax a year. As long as the property is owner occupied, the concessionary tax rate is 4% of the annual value. BTW, the annual value of landed property computed by IRAS is quite low compared to condos.

Dear Diavonex,

Expensive to repair roof leakage

I just replaced my 1,100 sqft roof six months ago at the time when the construction cost is very high. It cost me $7000 inclusive of 50 years warranty on roof tiles, insulation against heat, replacement of faulty supporting wood structure. Although the one time cost is quite high, the average cost depreciated over the years is quite modest.

Corrosion of fence

For fence, my place uses red brick wall. So far, it seem like it can last forever. For those people who use metal grills would have to use those that are rust proof and regularly paint it (about once in 2 years will be good enough).

Maintenance of electric gate

I did not use electric gate. Hence, not sure of maintenance cost. A manual gate works fine for me and it is maintainence free except for the once in 2 years painting. So far, I have not painted the gate for the past 5 years and there is no problem with rust.

Fine for not cutting grass regularly

For cutting grass, the govt doesn't care about the length of grass if the grass is grown within your premises. If the grass is outside your house, you can contact NParks to cut the grass if you feel that there is overgrown. NParks will maintain the external garden area for you FOC. I prefer to grow herbs in my garden and outside area. So far, no problem with grass issue except for the occassional growth of weed which doesn't bother me much.

Painting for 2 storey terrace

Yes, a 2 storey terrace will cost more to paint. If you have got cheap lobang, I think it probably cost less than $3000 to paint. To maintain the facade, homeowners can use weather proof paint. It should last for about 5 years.

Dear Fanguojun,

Cut down utilities bill

Because I don't use air conditioner in my place and substitute it with fans, it brings down the cost quite a fair bit. In addition, the design of the house that allow more light into it can also cut down the use of lights. So far, I think my utilities bill is already quite high compared with some of my neighbours. Those who maintain big koi pond, air-conditioned the whole house with high ceiling, I think the utilities bill will skyrocket.

Hope it answers all your queries. Cheers.

Edited December 10, 2008 by leechaorui

[joon 0]

leechaorui, you have been most helpful and detailded - THANKS!! (& I agree with fanguojun, your utilities bills are amazingly low or comparatively mine is extremely high

Dont mind, can you also advise mortgage protection amount (insurance)?

I am also hunting for the best mortgage deals in town. Any comments? How about HSBC Smartmortgage or Stanchart packages?

[leechaorui 2]

leechaorui, you have been most helpful and detailded - THANKS!! (& I agree with fanguojun, your utilities bills are amazingly low or comparatively mine is extremely high

Dont mind, can you also advise mortgage protection amount (insurance)?

I am also hunting for the best mortgage deals in town. Any comments? How about HSBC Smartmortgage or Stanchart packages?

No problem, it is a pleasure to lend assistance to one another.

I have just redeemed my housing loan, therefore, no need to purchase mortgage protection. Mortgage protection is basically a decreasing term insurance policy on your life and can include your spouse's life as well.

The bank usually require its customers to take up mortgage insurance policy to protect its own interest and the interest of the customer. In the event that the customer pass away or suffer from permanent incapacity, the insurance policy will pay up the outstanding loan amount. Hence, the quantum of insurance is determined by the amount of outstanding loan. In short, the insured value is the amount you owe the bank.

If you want to know more about mortgage packages without obligation, you can contact Paul Ho at 91453863. He is a mortgage consultant and has good knowledge of the market. Basically, he will help you source for good packages based on your needs and present it to you. You do not need to pay him anything for his work and he is renumerated by the bank for bringing business to them.

Take note that banks are less willing to lend and can be quite stringent with credit evaluation. If you are planning to commit on a house, it is more prudent to ensure that you can get a bank loan approved before signing on the dotted line.

Edited December 10, 2008 by leechaorui

[fanguojun 0]

Dear Fanguojun,

Cut down utilities bill

Because I don't use air conditioner in my place and substitute it with fans, it brings down the cost quite a fair bit. In addition, the design of the house that allow more light into it can also cut down the use of lights. So far, I think my utilities bill is already quite high compared with some of my neighbours. Those who maintain big koi pond, air-conditioned the whole house with high ceiling, I think the utilities bill will skyrocket.

Hope it answers all your queries. Cheers.

oh, no wonder....ya...air-con is a killer. Because my unit was a resale one, the air-con passed down was not those energy savings type. I had to change it to help with the cost savings. But no other choice, wife and kids need air-con, if not they will be in foul mood

[zirhk3355 1]

This is a very informative thread!

I am also planning to upgrade to landed property next time, but its still a long way to go cuz just got my new SERS replacement flat last year. So financial planning towards my goal is my concern now.

But would appreciate some advice if there are some forummers who upgrade from HDB and stay together with parents in landed. Did you sell both flats, or kept one? I intend to keep one for rental income. What are the costs that I have to look out for, other than those above listed?

[leechaorui 2]

This is a very informative thread!

I am also planning to upgrade to landed property next time, but its still a long way to go cuz just got my new SERS replacement flat last year. So financial planning towards my goal is my concern now.

But would appreciate some advice if there are some forummers who upgrade from HDB and stay together with parents in landed. Did you sell both flats, or kept one? I intend to keep one for rental income. What are the costs that I have to look out for, other than those above listed?

I moved from my Bishan flat to a terrace about 5 years ago. My parents have their own apartment and stays with me during the weekdays and return to their home in the weekends.

I took the maximum 80% loan 5 years ago and have just managed to redeem the loan in June 2008. In buying a house, there are two main cost categories. One is intial outlay (downpayment for the house, legal fees, stamp duty, etc.) and the other is the ongoing cost (eg. monthly loan instalment, upkeeping cost, etc.)

I think the financial consideration in buying a landed property is similar to an apartment. Take note that you will need to pay a stamp duty fee of 3% on the transacted value of the property. Besides this, you will need to pay for legal fees and arrange your own bank loan. I took up the fixed rate bank loan, some may prefer the floating rate loan. Each has its own pros and cons. Property agents normally don't charge you any fee or commission for buying a landed property.

If you plan to rebuild your own house in the near future, buy a run down place because it is cheaper. If you prefer more luxurious living immediately, go for those newly built by housing developer. You can still choose something in between, depending on your budget, housing type and choice of location. Generally, bungalows are more expensive and terrace houses are cheaper. Other factors affecting price will be the land area, the build up, renovation, etc..

On hindsight, I think it is important to be more conservative because the ups and downs in economy can be quite erratic and this impacts employment and business stability. I feel that one should not have a loan tenure that is more than 10 years. Preferably, one should be able to redeem the mortgage loan in 5 to 6 years.

However, this is only my view and I know that there are also others who are comfortable with a 20 to 30 years loan tenure and use credit more easily. I guess it is a matter of perspective, each perspective will have its own merits and sacrifice.

Edited December 11, 2008 by leechaorui

[joon 0]

Hi zirhk3355,

HDB requires you to stay in the HDB even if you own the private property. If you continue to own the HDB, your property property purchase is considered investment property (2nd property). Bank loan for 2nd property now is tightened to only 75% of the total purchase/valuation (whichever is lower). Note property tax is 10% instead of 4% if you are not residing in the property as well.

[Yang Guo 7]

1 important point is that, if you have many family members who drive, then its better right? cos u save alot on season parking already.

[fanguojun 0]

Hi zirhk3355,

HDB requires you to stay in the HDB even if you own the private property. If you continue to own the HDB, your property property purchase is considered investment property (2nd property). Bank loan for 2nd property now is tightened to only 75% of the total purchase/valuation (whichever is lower). Note property tax is 10% instead of 4% if you are not residing in the property as well.

if gotten HDB approval to sublet the flat (after fulfilling the occupation period), you can stay in your private property

[joon 0]

Do you know if it'll be easy or diifficult to justify to HDB (after fulfilling the occupation period)?