Singapore’s housing market has seen a big jump in prices, making it tough for many people to buy homes. Even places that used to be more affordable, like Bukit Panjang, are seeing homes cost over $1 million. This brings up a question: With prices going up so much, is buying a $2 million condo still considered expensive?
This article will break down what it really costs to own a $2 million property in Singapore, looking at daily costs over 30 years, including the bank loan, maintenance fees, taxes, and even the cost of fixing up your home. We’ll also look at how much money you need to make to afford this and what it means for your future.
Daily Costs of a $2 Million Condo
Let’s look at the costs of owning a $2 million home by breaking it down day by day for 30 years:
- Loan and Interest: For a $2 million home, the daily cost, including the loan interest, is about $208 per day.
- Upkeep and Bills: Everyday costs like condo maintenance, property taxes, and bills add up to $31 per day.
- Making Your Home Nice: Spending $200,000 on renovation and buying furniture spreads out to $18 per day over 30 years.
So, living in a $2 million condo costs about $257 per day. This might seem like a lot, but let’s think about the long run.
Looking Ahead: Benefits and Retirement
After 30 years, you’ve paid off your home, which means you don’t have to pay the loan anymore. This makes living there cheaper since you only have to pay for upkeep and bills. If you decide to sell the home for $2 million, you get your money back, which can help you when you retire.
Can You Afford It?
In Singapore, there’s a rule called the Total Debt Servicing Ratio (TDSR) that helps make sure people don’t borrow too much money for their homes. To buy a $2 million property, you need to earn about $13,000 a month. Interestingly, 27.4% of households in Singapore make more than $15,000 a month, but not everyone has bought a condo yet. This shows that more people could afford these homes than you might think.
What About More Expensive Homes?
Upgrading your home to a more expensive one doesn’t add too much to your daily costs. Going from a $1 million to a $1.5 million home adds $52 a day, and going to a $2 million home adds another $52 a day. For couples buying together, each person only has to pay $26 more each day for every $500,000 more expensive the home is.
So, Is It Really Expensive?
Whether a $2 million home is too expensive depends on how much money you make and your future plans. For people making enough money, it could be a good investment and not as out of reach as it seems. Saving a bit more each day could make owning a fancy home possible.
Conclusion
Buying a $2 million home in Singapore is a big decision with lots of costs to think about. But when you break it down, it might be more doable than you think, especially if you plan for the long term. It’s not just about having a nice place to live; it’s also an investment that can help you later in life. As home prices keep changing, understanding all these costs is key to making a smart choice about buying a home in Singapore.
