Advice Needed - First Time Buyer

cornfudge — Tue, 20 Dec 2016 02:54:40 +0800

Hi guys, I could use some advice (financial) from the experienced people here regarding on how to determine if a house and loan is affordable for me.

I'm looking to buy my first property ever and I was wondering about how I should evaluate my affordability. I did some research and spoke to a couple of banks about loans and I have a rough idea of what my repayment would be every month. Now I need to make the decision on whether it's a wise financial choice.

Here are some numbers - I've rounded all the expenses and payments up to the nearest thousand and rounded my income down to the nearest thousand. Hope to get some advice:

Property: 650,000
Loan 90%: 585,000
Tenure: 35 years
Monthly Loan Repayment: 3,000 (rounded up to nearest thousand)
Net income (monthly): 6,000 (rounded down to nearest thousand)
Monthly Expenses: 2,000 (rounded up to nearest thousand)
Cash Reserves: 180,000 (FD, Savings, ASN) (rounded down to nearest thousand - after paying down payment, fees, etc.)

So because I work in the private sector, job security is a concern because you can never know when the economic tide will turn and you'll be out of a job in the private sector. Based on my current pattern of expenses, my montly repayment in future and my current cash reserves:

Monthly Loan Repayment: 3,000
Monthly Expenses: 2,000
Total Monthly Cash Outflow: 5,000
Cash Reserves: 180,000 (FD, Savings, ASN) (rounded down to nearest thousand - after paying down payment, fees, etc.)

How long I can sustain my expenses and repayment if I'm unemployed: 180,000 / 5000 = 36 months = 3 years

3 years of cash reserves seems "ok" but I hope to get some opinions on whether this is really "ok"?

A bit worried, don't want to end up bankrupt. Would appreciate any advice you guys can give

//Sorry for the dupe, wanna keep my financials private

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Advice Needed - First Time Buyer