How Much Do You Need To Earn To Afford A Private Property In Singapore?
One of the major decision one has to make is to decide to buy a house. This decision requires a lot of research and financial planning even before they start to find one. When it comes to Singapore, the decision is even more difficult as Singapore has some of the world’s most priciest properties. The cost to own a private property in Singapore will be more expensive than public housing. According to a recent report it is said that from 2017 they have seen a price rise of 1%.
Private property has its own perks as they can provide easy access to recreational facilities like swimming pool, etc. If you want to buy a property it is a very common notion that the private property developers will generally cater for foreigners or the high income Singapore. If you are planning to buy a private property in the Island republic all you need to have a little bit of better financial planning and the also a good sense of estimation which can help you earn or afford the private home area.
Calculating your debt to income ratio
Now that you have your household income calculated one of the most important decision to determine your debt-to-income ratio. This is your capacity to manage debt repayments which can be totalled by your monthly debt obligations. The average monthly salary in Singapore is $4800 per month and if you pay $1500 for your home mortgage you have additional loan of other sorts will have a debt to income ratio of 41%.
The Core Central Region
This is one of the most affluent and expensive regions in Singapore where you can easily buy in neighbourhood places like Holland Village, River Valley, Orchard, Tanglin, Sentaso. Even if you are planning to buy a property here. One needs to be ready for the expenses that comes with it.
The Rest of Central Region
The Rest of Central Region consists of mid to upper neighbourhoods which can work on places like Tao Poyah, Bukit Merah, etc. The property ares here can easily cost you around $1,579-$2,184 per square foot depending on locations.
Outside Central Region
For Areas outside the central region, prices can differ from $689-$1187 per square foot. This includes neightbour hoods like Clementi, Bedok South and Choa Chu Kang. The prices are significantly lower when compared to the other regions but also have some of the best properties.
Purchasing a property is important which needs to factor in things like loan eligibility to household income. This is even more harder when you have to look into private properties of the country. Try to make sure that you have examined all the requirements before signing the agreement for the dream house.