Hi everyone, in today’s episode of ASKPropertyLimBrothers, Beatrice Lim talks about how to calculate your maximum affordability when purchasing a private property in Singapore

Today we’re talking about how to calculate your maximum budget when purchasing a private property. So we have a question that goes like this. “My wife and I are currently staying in a two bedder EC in Yishun. We would like to sell our current place and buy our next property. How do I calculate my maximum investment budget for my next purchase?”

So to answer this question, there are a few steps that you can take to check what is your maximum affordability after selling your property. For the financial calculation for the selling portion, you will need to consider a few things. First of all, what is the estimated selling price of your property? We usually estimate this from bank valuations as well as recent past transactions. Secondly, do you have an outstanding loan and how much is your outstanding loan? Then the next thing is when did you buy your property to determine if you have to pay seller stamp duty?