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Choosing a Flat for Newly-wed Couples
By: Vance Wong
Articles (74) Profile

One of the biggest headaches for newly-wed couples in Singapore should probably be choosing a suitable and affordable home. Although most of us are able to pay the down payments and the subsequent instalments through our Central Provident Fund (CPF) money, it would typically take a Singaporean couple one to two decades to pay off the housing loan.

Advice from local investment guru Daniel Loh to newly-wed couples in Singapore: Try not to take up a loan that will be too much of a financial burden to the family. Even if you have the money to afford a condominium, Daniel thinks that a HDB would be a more sensible choice.

3-room, 4-room, or 5-room

If you are not going to move in with your parents, having a 3-room or 4-room HDB flat would be more than enough. You must also consider the renovation fees, car loans if you intend to get a new car, and the costs of bringing up a child.

As such, Daniel thinks that starting with an average 3-room or 4-room HDB flat would lighten the couple’s financial burden in the years to come. Being able to pay off the housing loan early opens up more possibilities of investing in other financial instruments, which would make your lives easier.

Having paid off the housing loans, it would also mean more liquidity for you to consider buying other properties when the opportunity comes.

Start Financial Planning Early

Most newly-wed couples think that having a comfortable home is of utmost importance. However, Daniel thinks that while comfort is important, it is more practical to have a plan to make sure that you do not need to slog your hearts out for one to two decades just to pay off the housing loan.

Spending within your means would prove to be useful, especially when property prices soften. “It is never too early to start one’s financial planning,” says Daniel. “The earlier you start planning for your finances in the future, the earlier you can start investing and growing your wealth. Investing is one of the best ways that we can multiply our wealth.” 

With a Communications background, Vance has the passion to write with a purpose - to provide content supported with substantial evidence to vested readers.

Please click here for more information about this author.

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