New EC and how much to pay
The new EC at Buangkok is asking for $730-$750 psf and the buyers are those within the $8k-$10k income group. The average price of a 3 bedroom unit is around $850k. Presumably those earning more than $10k pm are too rich to buy these cheap flats. What would this amount mean to a young couple who probably have worked for less than 5 years? Assuming they could cough out $100k for the initial sum, it would mean taking a loan of $750k for 30 years. Roughly it would mean paying a total of $1.5m by the end of the mortgage. Divide this by 30 it will mean a yearly payment of $50k or $4k monthly. This sounds very reasonable and very affordable. The couple would still have a balance income of $6-7k pm. This is the new minimum price for EC. Can’t get it cheaper any more. And anyone buying a unit will instantly join the millionaire class.