How much do you need to earn to afford a unit in Tembusu Grand condo?
Calculating the Minimum Income Required
To determine the minimum income required to buy Tembusu Grand condo, we need to look at a few critical factors, such as the purchase price, down payment, and monthly instalment. The general rule of thumb is that the total monthly instalment, which includes the mortgage payment, property tax, and maintenance fees, should not exceed 30% of your gross monthly income.
For instance, let’s say you want to buy a two-bedroom condo that costs SGD 1.5 million. You have saved SGD 300,000 for the down payment, which means you need to take a loan of SGD 1.2 million. Assuming an interest rate of 1.5% per annum and a loan tenure of 25 years, your monthly instalment would be approximately SGD 4,680.
Add in property tax and maintenance fees, and you may end up paying SGD 5,000 or more per month. Therefore, your minimum gross monthly income should be around SGD 16,600 to afford this condo comfortably.
Factors That Affect the Minimum Income Required
The minimum income required to buy a condo varies depending on several factors, such as:
- Loan tenure: The longer the loan tenure, the lower your monthly installment, and vice versa. However, a longer loan tenure also means you pay more interest in the long run.
- Interest rate: A higher interest rate means a higher monthly installment, which translates to a higher minimum income requirement.
- Down payment: The higher your down payment, the lower your monthly installment, and vice versa. A higher down payment also means you pay less interest over the loan tenure.
- Property location: The cost of a condo varies depending on its location. Condos located in prime areas, such as the Central Business District or Orchard Road, are more expensive than those in the suburbs.
- Size of the condo: The larger the condo, the higher the purchase price, and the higher your monthly installment.
- Additional fees and taxes: As mentioned earlier, owning a condo comes with additional costs, such as maintenance fees and property taxes. These fees can add up and increase your monthly expenses.
To sum it up,
Owning Tembusu Grand is a significant financial commitment that requires careful planning and consideration. The minimum income required to buy a condo depends on several factors, such as the purchase price, down payment, loan tenure, interest rate, location, and additional fees and taxes. Therefore, it is essential to have a clear understanding of your financial situation and the costs involved before deciding to purchase a condo. Remember to work with a reputable real estate agent and a trusted financial advisor to ensure that you make a sound investment decision.