Seeing value in an otherwise overpriced resale flat

I think for every Singaporean, the biggest purchase for him/her would be property. As I'm about to start getting mine, I just realize just how big that commitment can be. I'm getting a resale flat in a matured estate, so the valuation of the flat itself is 568k. Of course there'll be a COV, and that is 40k on top of the valuation of the flat. 600+k for a roof above my head and a debt of 30 yrs, with monthly installment of 2k+ per month - that is just how big that purchase would be.



I've been working for 7-8 yrs and had only started saving up seriously for the past 2 year. It's not like I've been idling around. But imagine that my entire cash is wiped out after this and I'll have to start from scratch again. The road ahead would be tougher, because I can imagine it'll be harder to save the same amount as I always do if I had earned the same amount after purchasing the flat. If I'm employed, I think I'll start getting cold feet because if I lose my job, then it'll be hell trying to pay off the monthly installments. I don't know, is this how other Singaporeans feel too? Being indebted for a long period of time and being fearful of being retrenched? At the current rate that the prices of HDB goes, I think it'll be more prevalent. I'm just waiting to hear news of the first HDB going past the 1 million mark.



I think whining about the high property price is one thing, eventually one still have to make it work out fine in the end, in whatever ways you can. There are  3 things that I promise myself that I would do once I get the flat and do it up nicely:

1. Earn a lot more than my current income. I guess I would never be able to reduce my expenses much since there's really nothing much else to cut without feeling shortchanged for the hardwork I put in. Going forward, earning more is the best choice for me. It can hit both my savings target and have the life that I wanted.



2. Save a lot more. 50k/yr? Probably that would have to be raised to 100k/yr eventually. How can that be done? It's crazy but that's what dreams are for! I have a plan, but that would take some time to make it work. Will it work? I guess I won't know until I try it out.



3. Enjoy my home. I love to host gatherings but unfortunately, I do not have a place of my own to host it. I think there's no point getting a great property without sharing it with your buddies/family. Great property + Excellent company = Fantastic home. I intend to have fabulous parties that people will look forward to every year.

My house isn't this, but it looks something like this, haha

The funny thing about spending big amount is that suddenly, you get another perspective in life. After spending 40k on the COV, what's another 6k for the commission? After spending 600k on the flat, what's another 60k for the renovation? Is that a dangerous thought to have? I don't think it is for me, because I tend to keep my wallets closed most of the time. Loosening up is going to be good for me. The epiphany is that cash sitting in the bank is not going to bring anyone any happiness at all, until you spend it. When you spend the money, you are exchanging the value of the cash for something of a higher or equal value (I'm treating the word 'value' loosely, it can mean both intrinsic and extrinsic value). I don't think anyone would part of his cash for something he thinks is of lower value. So, by exchanging my cash for the flat, I'll end up with something of higher value to me.


Just what is that value? Can I quantify it?


Let me try. Firstly, personal space and a home to call my own. Secondly, an investment to propel my business way beyond what I am doing now. Thirdly, as my flat is very close to my sibling and parents (it's just right below them), the permutations for family bonding is endless. Now, is it worth all my life's savings to get it?


A definite and resounding YES.