We’ve previously shared how much you need to afford a million-dollar HDB maisonette, a condo, and even a $3M landed property. But here’s a first: buying a condo on your own at 24. A number of us might still have been getting allowances from our parents and living under their roofs, or living pay cheque to pay cheque at that age, but not for Singaporean homeowner, Hannah, who managed to buy a condo as a single, under 35 years old, and finance a $200K down payment on her own.
Note: All names have been changed for privacy reasons.
Deciding to move out at 24 years old
It may not be for all of us, but in the case of 24-year-old Hannah back in 2021, living with her parents felt stifling for her personal growth. She was already working full time while juggling her undergraduate studies, and was financially independent, including footing her own university fees.
For Hannah, the stumbling block came in the form of having to abide by her parents’ rules whilst staying with them, and so she decided to take a leap of faith to move out.
Paying for the $190K down payment
Every big expense is only made possible by a series of little things━for Hannah, one of these came in the form of working in sales with Standard Chartered during the gap year she took after graduating from polytechnic.
Earning a good amount of sales commissions and keeping her monthly expenses low allowed her to save a good $48K in that one year alone. Other than these, she shared with us about how she put her initial pay cheque from working during her gap year into investments, allowing her to set aside everything she eventually needed for that $190K down payment.
Navigating the purchase & renovation process
Planning for the purchase didn’t take very long in Hannah’s case, because she already had the savings on hand from what had been 3 full years of working and investing. So it was only 3 months from the time she decided to move out, to putting in an offer on her first home: a 2-bedroom condo on what she calls “the fringe of the city”, measuring in at 818sqft.
Purchasing the flat was the easy bit for Hannah, whose mother works in the property industry and walked her through the quagmire of red tape and SOPs. Her condo ultimately cost $760K in the 2021 housing market, which was still recovering from the Covid-19 years. Interest rates then were also lower than they are today, which allowed her to lock in rates of 1.25% over 2 years. It’s also good to note that the lower interest rates also meant she was able to borrow more than you would today with the same salary.
Here’s the breakdown of costs involved in the purchase of her condo that amounted to around $200K:
- 1% deposit for Option to Purchase: $7,600
- Minimum 25% down payment: $190K, of which she used her CPF OA account to pay for $38K
- Stamp duty: $17.4K
- Legal fees: $1,800
- Remaining at completion
It was during the renovation of her flat that problems arose, such as having to deal with contractors that were unpleasant to her on account of her youth━without any help from her parents. She also had to contend with jacked-up prices, as was common in the initial post-Covid period.
Renovating her 2-bedroom condo for <$20K
To keep the costs of renovation manageable, she found herself having to scale back on the lofty plans she had for her first home, and prioritising the necessary works that had to be done. The kitchen and toilets, for one, needed to be redone as they were in poor condition. Then, she opted for cost-saving alternatives such as epoxy in the toilets instead of overlaying tiles.
In total, it cost Hannah less than $20K to outfit her flat, including furniture and household equipment.
Lessons learnt, including doing more research
Hindsight is always 20/20, and in Hannah’s case, one of the lessons she learned was to shop around more before settling on one property. She also suggests being open to obtaining and heeding advice from more knowledgeable and experienced parties. Of course, not all of us have mums who are property agents, so we do have to cast our nets wider, instead of taking into account only what a property agent says.
Looking back in the eyes of a realtor—her current side hustle—there’s a lot more knowledge she has now that she didn’t 3 years ago. So again, lots of research and finding a dependable agent who will think for your benefit are key things to take into account when you want to purchase a flat.
Although she had shopped for quotations from renovation companies for her flat’s makeover, she had eventually decided to seek out contractors and oversee the renovations on her own. “It’s not a challenge worth taking on”, she feels; an interior designer would have been a better choice. Having to go back and rectify problems often adds to the costs which you were initially trying to keep low.
Advice for other young singles looking to buy a condo
“Don’t rush into things,” she advises anyone who’s looking to get their first flat. Whether it’s the choice of flat, renovations, or even household appliances, it’s perfectly fine to take your time to find something that suits your needs. An example that she shared was of getting both an air fryer and a pressure cooker when she could have bought a multifunctional appliance.
Another cost to factor into your financial planning is monthly expenditures such as utility bills, paying for WiFi, and other peripherals like condo maintenance fees, which vary across developments.
On the note of costs, Hannah advises budgeting for interest rate hikes, which she hadn’t done. Although she had secured a 1.25% initial interest rate on her loan, her monthly mortgage shot up by more than $1K each month after that 2-year period, resulting in her having to make lifestyle sacrifices to pay for the increased mortgage.
If you don’t know where to begin, a good place is to get an IPA (In-Principle Approval) from the bank so you know how much you can loan, then work backwards from there to calculate the estimated mortgage payment. Her two cents is not to max out the IPA, and to give yourself a buffer.
We’re not all go-getters like Hannah, but a quote she lives by is how expenses can only be cut so far; increasing your income at the same time should be a WIP. It will definitely take sacrifices, and it may be cliched, but in this case, you really cannot have your cake and eat it too.
Buying & financing a condo as a 24-year-old single Singaporean
It’s not impossible for a single Singaporean under 35 to buy a flat, and Hannah proves that we don’t need to be financially backed by our parents to do so. In fact, she’s already in the process of selling that first flat and buying another place with her new husband. To the rest of us under 35 and wanting to get our own place, all is not lost yet.
For more home financing content:
- How much you need to make to afford a condo
- How to finance your home renovation
- Home insurance packages
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