Home sweet loan

[WolfT]

I wouldn't have given my own kid a loan. They'd have to learn to live within their means and only purchase what they can afford. Just my personal opinion.

i wouldn't too, just like how my parent did to me and i thanks them for it...

[CY09]

With their combined income of $5,300, they should not even be buying a $720,000 flat. I'd assume the $1,500 per month installment is based on a 30-year loan. This would take up nearly 33% of their take home pay, and that is not counting what they give to their parents, food and potentially, a child in future. Seems like its really stretching it.....

In the article, there was another case of a NTU 3rd year student and her husband (23), just out from NS who purchased a three room flat at 433k (not sure if it is the DBSS flat Pasir Ris One which was mentioned in the article).

Wondered how they got the approval for the 80% loan in the first place

[HitandRun]

With their combined income of $5,300, they should not even be buying a $720,000 flat. I'd assume the $1,500 per month installment is based on a 30-year loan. This would take up nearly 33% of their take home pay, and that is not counting what they give to their parents, food and potentially, a child in future. Seems like its really stretching it.....

In the article, there was another case of a NTU 3rd year student and her husband (23), just out from NS who purchased a three room flat at 433k (not sure if it is the DBSS flat Pasir Ris One which was mentioned in the article).

Wondered how they got the approval for the 80% loan in the first place

Guys

I think you have forgotten something.... i.e. CPF. Based on a combined pay of $5,300, they will need to pay very little in cash...

[corydorus]

I remember a number of Guru indicated 1/3 of income for home.

[Bibi]

I wouldn't have given my own kid a loan. They'd have to learn to live within their means and only purchase what they can afford. Just my personal opinion.

i wouldn't too, just like how my parent did to me and i thanks them for it...

My generation, we dont expect parents to give us loan. We have to give them monthly allowance instead. We are their monthly cash flow investments actually. The younger generation now are lucky as their parents are well to do and self sufficient and they do not require their children to give them any allowance.

[pianist]

I had always puzzled over the death tax or estate duties until Buffett explained it plainly: it is to somewhat even out the playing field. Without it the social gap will just get bigger.
That's why Singapore is dumb or politically motivated to scrap it. OTOH the rich parents are not so afraid to pay the tax per se. it is the declaration of estate that they fear more.

the underlying is to attract riches' monies to make thisa financial centre...so with this understanding, they scrap it with no 2nd tots?

[specuvestor]

Their argument was that the revenue for estate tax is mere millions. That is missing the point. With the skyrocketing property prices, this maths now becomes interesting.

OTOH without estate taxes, we won't be able to audit the assets of certain rich individuals that has passed away. We wouldn't have been able to uncover the issues with Khoo Teck Puat estate, or other politically linked people. I think this point is even more important.

http://www.asiaone.com/Business/My%2BMon...50223.html

[pianist]

Their argument was that the revenue for estate tax is mere millions. That is missing the point. With the skyrocketing property prices, this maths now becomes interesting.

OTOH without estate taxes, we won't be able to audit the assets of certain rich individuals that has passed away. We wouldn't have been able to uncover the issues with Khoo Teck Puat estate, or other politically linked people. I think this point is even more important.

http://www.asiaone.com/Business/My%2BMon...50223.html

exactly, another arugument was that estate tax was do away with the emergence of trust...a lot of riches in sg use trust vehicle to evade estate tax..i think

[Musicwhiz]

Hi guys,

Maybe if the discussion on estate duty were to continue, that a separate thread/topic be created for it under "General Discussion"?

I think the rule of thumb for DSR is 35%. Some of the couples who have taken that loan from their parents seem to breach this amount if you count in the repayment to their parents + bank!

[Muck]

That's if they repay their parents at all!