How Much Cash Do You Really Need to Buy A Property?

how much cash do you really need to buy a property

In this post, I have done up a quick reference table for you to check what is the property price range you can afford with your current income and savings.

Also, if you already have the price range in mind, you can use these tables to find out how much income or savings you need to be eligible to buy.

Here are the assumptions made:

  • Monthly repayment is set to be 50% of your monthly income. (this is lower than the maximum of 60% capped by Total Debt Servicing Ratio)
  • Mortgage interest is set at 3% per year.

Other points to note:

  • These tables will be more useful if you are buying private properties. If you are planning to purchase a HDB or Executive condominium, there is an additional ceiling of 30% Mortgage servicing ratio which is not accounted for in these tables.

Buying your first property

Case 1: Sufficient cash but insufficient income

  • You have $40,000 cash in your bank
  • You have $150,000 in your CPF ordinary account
  • Your monthly gross income is $4,100

Despite having more cash, you are only eligible to buy a property around the price of $700,000

 

Case 2: Insufficient cash but sufficient income (most people are here)

  • You have $35,000 cash in your bank
  • You have $110,000 in your CPF ordinary account
  • Your monthly gross income is $8,100

Despite having more income, you are only eligible to buy a property around the price of $700,000 as well.

Property Price 5% Cash 15% Cash/CPF 80% Loan Min monthly gross salary (combined) for the 80% loan
 $          700,000  $     35,000  $      105,000  $        560,000  $                4,722
 $          800,000  $     40,000  $      120,000  $        640,000  $                5,397
 $          900,000  $     45,000  $      135,000  $        720,000  $                6,071
 $       1,000,000  $     50,000  $      150,000  $        800,000  $                6,746
 $       1,100,000  $     55,000  $      165,000  $        880,000  $                7,420
 $       1,200,000  $     60,000  $      180,000  $        960,000  $                8,095
 $       1,300,000  $     65,000  $      195,000  $    1,040,000  $                8,769
 $       1,400,000  $     70,000  $      210,000  $    1,120,000  $                9,444
 $       1,500,000  $     75,000  $      225,000  $    1,200,000  $              10,118
 $       1,600,000  $     80,000  $      240,000  $    1,280,000  $              10,793
 $       1,700,000  $     85,000  $      255,000  $    1,360,000  $              11,468
 $       1,800,000  $     90,000  $      270,000  $    1,440,000  $              12,142
 $       1,900,000  $     95,000  $      285,000  $    1,520,000  $              12,817
 $       2,000,000  $   100,000  $      300,000  $    1,600,000  $              13,491
 $       2,100,000  $   105,000  $      315,000  $    1,680,000  $              14,166
 $       2,200,000  $   110,000  $      330,000  $    1,760,000  $              14,840
 $       2,300,000  $   115,000  $      345,000  $    1,840,000  $              15,515
 $       2,400,000  $   120,000  $      360,000  $    1,920,000  $              16,190
 $       2,500,000  $   125,000  $      375,000  $    2,000,000  $              16,864
 $       2,600,000  $   130,000  $      390,000  $    2,080,000  $              17,539
 $       2,700,000  $   135,000  $      405,000  $    2,160,000  $              18,213
 $       2,800,000  $   140,000  $      420,000  $    2,240,000  $              18,888
 $       2,900,000  $   145,000  $      435,000  $    2,320,000  $              19,562
 $       3,000,000  $   150,000  $      450,000  $    2,400,000  $              20,237
 $       3,100,000  $   155,000  $      465,000  $    2,480,000  $              20,912
 $       3,200,000  $   160,000  $      480,000  $    2,560,000  $              21,586
 $       3,300,000  $   165,000  $      495,000  $    2,640,000  $              22,261
 $       3,400,000  $   170,000  $      510,000  $    2,720,000  $              22,935
 $       3,500,000  $   175,000  $      525,000  $    2,800,000  $              23,610
 $       3,600,000  $   180,000  $      540,000  $    2,880,000  $              24,284
 $       3,700,000  $   185,000  $      555,000  $    2,960,000  $              24,959
 $       3,800,000  $   190,000  $      570,000  $    3,040,000  $              25,634
 $       3,900,000  $   195,000  $      585,000  $    3,120,000  $              26,308
 $       4,000,000  $   200,000  $      600,000  $    3,200,000  $              26,983
 $       4,100,000  $   205,000  $      615,000  $    3,280,000  $              27,657
 $       4,200,000  $   210,000  $      630,000  $    3,360,000  $              28,332
 $       4,300,000  $   215,000  $      645,000  $    3,440,000  $              29,006
 $       4,400,000  $   220,000  $      660,000  $    3,520,000  $              29,681
 $       4,500,000  $   225,000  $      675,000  $    3,600,000  $              30,355
 $       4,600,000  $   230,000  $      690,000  $    3,680,000  $              31,030
 $       4,700,000  $   235,000  $      705,000  $    3,760,000  $              31,705
 $       4,800,000  $   240,000  $      720,000  $    3,840,000  $              32,379
 $       4,900,000  $   245,000  $      735,000  $    3,920,000  $              33,054
 $       5,000,000  $   250,000  $      750,000  $    4,000,000  $              33,728
 $       5,100,000  $   255,000  $      765,000  $    4,080,000  $              34,403
 $       5,200,000  $   260,000  $      780,000  $    4,160,000  $              35,077
 $       5,300,000  $   265,000  $      795,000  $    4,240,000  $              35,752
 $       5,400,000  $   270,000  $      810,000  $    4,320,000  $              36,427
 $       5,500,000  $   275,000  $      825,000  $    4,400,000  $              37,101
 $       5,600,000  $   280,000  $      840,000  $    4,480,000  $              37,776
 $       5,700,000  $   285,000  $      855,000  $    4,560,000  $              38,450
 $       5,800,000  $   290,000  $      870,000  $    4,640,000  $              39,125
 $       5,900,000  $   295,000  $      885,000  $    4,720,000  $              39,799
 $       6,000,000  $   300,000  $      900,000  $    4,800,000  $              40,474

Buying your second property with 1 existing mortgage

The biggest hurdle home owners face when buying their second property is the larger sum of cash they need to prepare which is clearly shown in the following table.

Property Price 25% Cash 25% Cash/Cpf 50% Loan Min monthly gross salary (combined) for the 50% loan
 $       700,000  $     175,000  $      175,000  $          350,000  $                        2,951
 $       800,000  $     200,000  $      200,000  $          400,000  $                        3,373
 $       900,000  $     225,000  $      225,000  $          450,000  $                        3,794
 $    1,000,000  $     250,000  $      250,000  $          500,000  $                        4,216
 $    1,100,000  $     275,000  $      275,000  $          550,000  $                        4,638
 $    1,200,000  $     300,000  $      300,000  $          600,000  $                        5,059
 $    1,300,000  $     325,000  $      325,000  $          650,000  $                        5,481
 $    1,400,000  $     350,000  $      350,000  $          700,000  $                        5,902
 $    1,500,000  $     375,000  $      375,000  $          750,000  $                        6,324
 $    1,600,000  $     400,000  $      400,000  $          800,000  $                        6,746
 $    1,700,000  $     425,000  $      425,000  $          850,000  $                        7,167
 $    1,800,000  $     450,000  $      450,000  $          900,000  $                        7,589
 $    1,900,000  $     475,000  $      475,000  $          950,000  $                        8,010
 $    2,000,000  $     500,000  $      500,000  $       1,000,000  $                        8,432
 $    2,100,000  $     525,000  $      525,000  $       1,050,000  $                        8,854
 $    2,200,000  $     550,000  $      550,000  $       1,100,000  $                        9,275
 $    2,300,000  $     575,000  $      575,000  $       1,150,000  $                        9,697
 $    2,400,000  $     600,000  $      600,000  $       1,200,000  $                      10,118
 $    2,500,000  $     625,000  $      625,000  $       1,250,000  $                      10,540
 $    2,600,000  $     650,000  $      650,000  $       1,300,000  $                      10,962
 $    2,700,000  $     675,000  $      675,000  $       1,350,000  $                      11,383
 $    2,800,000  $     700,000  $      700,000  $       1,400,000  $                      11,805
 $    2,900,000  $     725,000  $      725,000  $       1,450,000  $                      12,227
 $    3,000,000  $     750,000  $      750,000  $       1,500,000  $                      12,648
 $    3,100,000  $     775,000  $      775,000  $       1,550,000  $                      13,070
 $    3,200,000  $     800,000  $      800,000  $       1,600,000  $                      13,491
 $    3,300,000  $     825,000  $      825,000  $       1,650,000  $                      13,913
 $    3,400,000  $     850,000  $      850,000  $       1,700,000  $                      14,335
 $    3,500,000  $     875,000  $      875,000  $       1,750,000  $                      14,756
 $    3,600,000  $     900,000  $      900,000  $       1,800,000  $                      15,178
 $    3,700,000  $     925,000  $      925,000  $       1,850,000  $                      15,599
 $    3,800,000  $     950,000  $      950,000  $       1,900,000  $                      16,021
 $    3,900,000  $     975,000  $      975,000  $       1,950,000  $                      16,443
 $    4,000,000  $ 1,000,000  $   1,000,000  $       2,000,000  $                      16,864
 $    4,100,000  $ 1,025,000  $   1,025,000  $       2,050,000  $                      17,286
 $    4,200,000  $ 1,050,000  $   1,050,000  $       2,100,000  $                      17,707
 $    4,300,000  $ 1,075,000  $   1,075,000  $       2,150,000  $                      18,129
 $    4,400,000  $ 1,100,000  $   1,100,000  $       2,200,000  $                      18,551
 $    4,500,000  $ 1,125,000  $   1,125,000  $       2,250,000  $                      18,972
 $    4,600,000  $ 1,150,000  $   1,150,000  $       2,300,000  $                      19,394
 $    4,700,000  $ 1,175,000  $   1,175,000  $       2,350,000  $                      19,815
 $    4,800,000  $ 1,200,000  $   1,200,000  $       2,400,000  $                      20,237
 $    4,900,000  $ 1,225,000  $   1,225,000  $       2,450,000  $                      20,659
 $    5,000,000  $ 1,250,000  $   1,250,000  $       2,500,000  $                      21,080
 $    5,100,000  $ 1,275,000  $   1,275,000  $       2,550,000  $                      21,502
 $    5,200,000  $ 1,300,000  $   1,300,000  $       2,600,000  $                      21,923
 $    5,300,000  $ 1,325,000  $   1,325,000  $       2,650,000  $                      22,345
 $    5,400,000  $ 1,350,000  $   1,350,000  $       2,700,000  $                      22,767
 $    5,500,000  $ 1,375,000  $   1,375,000  $       2,750,000  $                      23,188
 $    5,600,000  $ 1,400,000  $   1,400,000  $       2,800,000  $                      23,610
 $    5,700,000  $ 1,425,000  $   1,425,000  $       2,850,000  $                      24,031
 $    5,800,000  $ 1,450,000  $   1,450,000  $       2,900,000  $                      24,453
 $    5,900,000  $ 1,475,000  $   1,475,000  $       2,950,000  $                      24,875
 $    6,000,000  $ 1,500,000  $   1,500,000  $       3,000,000  $                      25,296

There are many ways to gather more cash. One of it is to cash out your existing properties and utilize the proceeds to buy one or two properties.

Furthermore, if you are selling your only property to buy another one, you are still considered to have no property upon purchase, hence you have to use the ‘buying your first property’ table in the first section.

If you have some plans in mind or open to explore opportunities, feel free to contact me and I will do my best to help you.

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44 thoughts on “How Much Cash Do You Really Need to Buy A Property?

    1. Hi Shirley, the minimum age to buy is 21 years old. As it is equivalent to a savings plan, the earlier you start to buy the earlier you start to save.

      Drop me a text or email if you wanna find out more on the opportunities 🙂

      Like

    1. Hdb flat is designed to be affordable for people to afford. If you have a stable consistent income, you should be able buy a decent flat in the heartlands.
      Feel free to drop me a mail with more details so I can recommend further 🙂

      Like

    1. You’re welcome Shet Ling! That’s is a good buy! There are ways to unlock the profits of your current house and build a larger portfolio with rental as your passive income.

      Do text or email me for me to share more opportunities with you 🙂

      Like

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