Monthly Expenses In Upkeeping A Landed Property?

[zirhk3355 1]

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.

Hey thanks for your advice!

As for credit/loan, well I am one of those who believe that a mortgage loan should be the last thing to pay off; usually will invest my cash, but even if not investing, I will rather put it in a savings account than pay off the mortgage. To me, remaining liquid is important so I can react to any sudden changes more freely. But you are right, each has it own merits lah, so depends on how you strategise your life and money lor.

Again appreciate your advice!

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

You do not need to justify anything if you fulfill these two criteria:

1. Pay up the mortgage loan in full;

2. Fulfill MOP of 3 yrs if no grant, or 5 yrs if taken grant.

Can even apply on MyHDBPage; on-the-spot approval, straightaway pay admin fee then can rent out liao.

But many a times the issue with owning a HDB flat and private property at the same time is the CPF, mortgage payment (esp if the flat still got loan) and taxes. So for my case, the plan is either my parent owns the HDB flat and I own the landed, or vice versa.

[joon 0]

Cool! Keep learning new things here.

Can I clarify if must meet BOTH 1 & 2 criterias or either one will do?

[JustAsking 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!

Welcome to the Club!

Once you have worked out that you can repay for the landed terr and it is in rather good condition, you are well on your way to peaceful living till retirement !

Choose a nice neighbourhood to live in. Make sure the roofing is in good condition if you're are not doing major A-A.

Pest Control is about $250 to $400 per year quarterly inspection.

Refuse should be about $40+ included in the Utility bill monthly.

If not cable ready then you have to pay about $2500+ to have it cabled up , you can opt for a 2 year installment payment and get 2 yrs of many free channels too.

PUB depends on uasge but reasonable rate would be about $250 to $350.

Security depends whether you need it or not, most does not.

Others would be for repair and maintanence. Need to set aside $2000 to $5000 yearly depends on size of unit.

[xebay11 0]

Security depends whether you need it or not, most does not.

My Security is wirelss IP camera - $100+ and CCTV Warning sticker $20

[leechaorui 2]

Welcome to the Club!

Refuse should be about $40+ included in the Utility bill monthly....

Others would be for repair and maintanence. Need to set aside $2000 to $5000 yearly depends on size of unit.

I have just rec'd the utilities bill for my terrace house. The refuse charge is $18.46. Just wondering whether different types of landed house attract different rates of refuse charges.

As for repairs, so far I have only changed taps and do some minor repainting work on my own which cost less than $200 a year. The largest item was changing the roof of which comes with a warranty of 50 years. I changed my roof for $7,500.

Edited December 24, 2008 by leechaorui