HDB BTO
Hello, I am thinking of backing out my BTO application. I’ve just started working in corporate world same as my gf.
We both earn a combined income of <5K. My gf is starting her part time degree soon whereas i am not interested in degree. The BTO price is insanely at $520K. The loan amount given is not much as we are both not high earners. Our cpf/cash combine also barely make it.
The upfront cash/cpf after the loan and grant I’m afraid we need to tie our stomach just to save but I don’t thibk it is enough still. Even 5 years later when our income increase I still think it’s bare minimum if not less to cover the $520K
Thinking of backing out and save a few bucks and BTO again next year or so. The chances of getting a unit again will be low but no choice. Great advise will be greatly appreciated.
Roasting too. What do yall think ??
Here are what netizens think:
- Pls don’t back out. Yearly house price is increasing. If u say u want to save more then apply again, it will be hard. No matter how hard to save cannot catch up with inflation. Therefore buy first, after 5 years if really very tight you can downgrade.
- When i initially applied for BTO, i also didn’t had a high combined income (less than 5k too), which is similar to your situation. Hdb approved loan wasn’t at our full 90%. 5 years passed, income actually increased a lot higher and now our combined is sufficient to cover it. Use the 5 years n think how you’re going to improve yourself rather than think that you cannot make it. You will get there somehow. Jiayou
- When I first purchased my flat 5 years ago, my wife and my combined income was $5.9k. We bought a resale at 410k. At current moment our income can easily afford a 1.5m private property. My point is we always are too conservative about how much we will earn. I never thought I would be earning this amount right now as well. If I did, I would have went for an EC/EA back then. Trust me, by 5 years down the road, you’ll easily be able to afford the property and be glad that you didn’t cancel your BTO.
- Secure already, just stick with it laa. Who ask you to choose a flat out of your price range. Getting a bto is like a lucky draw. Not many can get. Anyway, if yours is a 4 room in a nice location or a 5 room in a not so nice location, u can always rent out 1 or 2 room to help with the mortgage. The big problem is not enough loan to cover as much of the $520k. 2 solutions, first one, either you or your gf, apply for a better paying job for the short term to get a better loan quantum. If not, save as hard as possible for the balance of upfront cash/CPF. Worse case, get a short term loan from either parents. With renting out 1/2 rooms, u can cover back their money.