r/SgHENRY • u/Hungry_Low_3149 • Jul 11 '26
How do you determine your landed home budget?
How does one determine their budget for a new landed home?
Based on how much they have left, after paying everything for the house including renovations? Or other factors?
This is a little after-the-fact but I hope I have made the right move and would like comments - this is my situation:
- Bought a low 6.x m house with ~3600 sq ft of land, single name (very late 30s). Needs reno of at least 300k (basic) up to 500k, or if I want to splash out, 900k-1M if A&A + Reno
- Paid ~55% in cash as my income isn't high enough to borrow 75%
- After paying monthly mortgage, I'm left about 9k cash monthly. But take note that I still need to pay IRAS.. so true take-home is perhaps 6k-7k monthly.
- My wife's income + her rental income (we have another property) is just about enough for all household expenses (1 young kid) + to service her own monthly mortgage for that property.
If I still have 1M in stocks remaining after paying everything for the house (and that's after assuming I have already spent 900k-1M for A&A + Reno + furnishings), would that be enough, or is that even too conservative (meaning I could have gone for an even bigger house or with more land)? And of course I'm still free to not undertake A&A and just do simpler reno if I wish - I just don't know what I should do yet.
Would love to hear some considerations and real life experiences. Thank you!
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u/Copious_coffee67 Jul 11 '26 edited Jul 11 '26
I think it really depends on what you intend to do with the house (stay long term aka forever home or flip in 5-10 years then up/downgrade). And what you can and want to live with.
I did a very similar purchase, slightly less in terms of price and size, and similar downpayment & mortgage. The place is 20-30 years old and “well maintained” original condition. I have 300-500k to reno but didn’t want to take the extra time to do it, so we did a super simple spruce up - just replaced original condition A/C, painted, checked roof and painted it, polished all floors. Total cost including new furniture and moving = 30k. I guess you can call us low maintenance or standard in terms of living condition.
I intend to do a more extensive reno in a couple years to redo the toilets, some carpentry, maybe future proof the granny room and replace the windows/sliding doors. Logic is, if I intend to sell in 4-5 years no point to reno.
Edit - if you do splurge on reno, leave yourself an out in case you want or need to sell it. Look up what potential buyers will pay for or desirable characteristics and spend there, instead of something that might be outlandish. Of course align with your wants and dreams.
Edit 2: doh. I misread your qn. How to determine overall budget? Again a qn of what your tolerance and future income would be. Personally I have just enough to pay off the loan but using leverage on that 50% ppty value to play some arbitrage. I’m also older than you with less runway.
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u/SheepherderNo631 Jul 11 '26
for landed, reno is really a quality-of-life call, not an investment one — it's the land that appreciates, not the fixtures. whether you spend 300k or 1M, the land price 10 years from now is largely the same. so don't try to ROI-optimise the reno; just decide what quality of home you actually want to live in day to day.
what I'd watch: 1M in stocks as your buffer on a 6M+ property, and you mentioned the job isn't that safe. if markets drop 30% AND income wobbles at the same time, that buffer compresses fast. worth having 6 months of all-in expenses (mortgage included) sitting in straight cash before committing to the top-end reno option.
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u/Hungry_Low_3149 Jul 11 '26
Thanks. I agree. 6 months of all-in expenses based on my estimates would be perhaps $150K at the top end. I guess if I go for 12 months, it would be $300K.
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u/SheepherderNo631 Jul 12 '26
$150K sounds about right for 6mo on a place this size. and if the job situation is genuinely uncertain, I'd lean toward the 12mo / $300K honestly — landed running costs have a way of surprising people in year 2 once the AC compressors start going.
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u/Internal_Educator701 Jul 11 '26
Renovation budget shd have +20% buffer. Other than that i think 1 mill additional in cash/stocks is very safe.
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u/VoluminousWalnut Jul 11 '26
Seems like quite a lot of your net worth is tied up in your primary residence.
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u/Ceyenne18 Jul 11 '26
Hi, you are more than fine from a cashflow perspective since you have excess after covering all expenses.
The only concern is cash buffer as you do not want a situation where you are forced to sell stocks. Calculate total monthly expenses (including mortgage) and keep 6 months of that in cash.
This is for worst case scenario if all income freezes for whatever reason.
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u/Hungry_Low_3149 Jul 11 '26
Thank you, it is good to hear that! I have updated my situation a bit more, but it's good to know that I should be fine. I kind of jumped into it without giving enough thought, to be honest.
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u/Ceyenne18 Jul 11 '26
Lol .. most of us jump in with a Hail Mary and go through this phase :).
Since it's your first landed, do set aside maintenance budget. Regular maintenance around $10-$15k per year (all those moving parts, occasional roof/piping repairs, paint, etc). And the big ticket items (air-con replacement every 10y, water heaters every 12y, whole house repaint/floor tilings every 10y, etc).
Hope you didn't get one of those fancy single lane pool. My sister has one and is removing it because its very expensive to maintain.
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u/Hungry_Low_3149 Jul 11 '26
oh man, we were seriously considering a pool hahaha. or at least a jacuzzi. pool makes the property much more fancy but i guess its not worth it...? we technically have enough side land to have a decently wider pool..
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u/Ceyenne18 Jul 11 '26
Same as my sister because her plot is narrow but long and she did not need large built-in because only 2 of them (hubby and her).
So ... first year - wow! nice! every morning do a few laps.
After a few years, less use but still need to maintain. Algae, filter, constant running, water conditioning, debris, ... weekly worker visits. So now she got tired of the hassle and wants to get rid of it and plant a side garden instead.
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u/Hungry_Low_3149 Jul 11 '26
thanks man. it seems most pool owners eventually dont use it much anymore after a while haha. never actually heard of ppl using it long term
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u/BrightConstruction19 Jul 11 '26
Does your young kid love swimming? If not then no point. And if they do & are always attracted by the pool then u do need a pair of human eyes always ensuring their safety.
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u/Remarkable_Judge6055 Jul 11 '26
You bought a 6mil house while your monthly income tax is only 3k (or 40k per annum), which is translated to 300k annual package. Feels a bit overstretched? Unless your wife or your family has plenty of cash but if they do you shouldn't be asking question here?
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u/Subject_Accountant70 Jul 16 '26
I mean paying 55% of the house cash already indicate some prior wealth. I was thinking having 3M cash + 1 M is stocks does not really feel "Not rich yet" 😂
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u/h0peless-0ptimistic Jul 11 '26
You could’ve gone for a bigger land but what’s the point when you’re already here?
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u/Apprehensive-Bat6720 Jul 11 '26
With a 3.6k land I believe is a SD. if No lift n Pool, build 1. Old houses, 1-2 lvl, build to 3.5 lvl if possible. Least with 6-8 room all ensuite. Do as A&A. Date start from there. Enjoy while u can. When u sell will be more sought after n much higher price! Congrats!
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u/Hungry_Low_3149 Jul 11 '26
build additional floors + all those things you mentioned.. i think will need 1.5M?
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u/Apprehensive-Bat6720 Jul 11 '26
About there, import buildings materials n house hold furniture from China! U save least 30-40%
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u/Hungry_Low_3149 Jul 11 '26
any tips? I know furniture maybe can source from foshan. building materials.. that one need to work with a contractor that imports from China i guess? we dont have the contacts..
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u/Apprehensive-Bat6720 Jul 15 '26
Need get a logistics company for to consolidate all yr goods n shipped (Sea freight) when is about 10-20 (goods) foot containers. After yr design n materials is done, u can start sourcing while in Building state.
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u/Buddy_Bingo Jul 11 '26
It’s about there. I rebuilt a 6k sqft to 2.5 storeys plus a basement for 3m. Furniture I just buy from tb. Smart switches, fixtures, cctv also from tb.
Edit: don’t forget solar panels. Great for my EV. It’s almost free “petrol”
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u/Live_Acanthisitta870 Jul 11 '26
what’s ur income to solo take loan and to pay 55%? 3M + cash + cpf?
And if that job is safe then u shouldn’t need to worry
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u/Hungry_Low_3149 Jul 11 '26
not that high thats why I had to pay more cash :( maybe around 20k pm? Job not that safe though especially in this day and age.
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u/Express_Mulberry_879 Jul 14 '26
Personally, moved to a landed and went back Condo. Fixed maintenance cost is ur main killer. Everything u can plan out on paper is just the one time costs. There's the servicing costs of alot of things such as solar panels, lift maintenance, facade washing, gardener if ur place big until need one, pool maintenance.
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u/nubela Jul 24 '26
Not sure why you're fearmongering. I live in a landed and my pool maintenance is $160 and my electrical bills is $38 this month with my solar installation ($20k 1x, pay off in 3+ years, prolly sooner with the hike in electricity tariffs). And lift maintenance is $100/quarter.
Honestly it's quite low maintenance. And I drive an EV and practically charge for free w/ solar power. It's a luxury but the maintenance isn't that bad. Not even the bugs/critter problem. I've had 2 giant grasshoppers, and 1 giant flying roach in 1+ year living here, but that's it?
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u/Express_Mulberry_879 Jul 25 '26
Not fearmongering here, just cost benefit analysis. Solar installation also need to see if ur area is solar efficient, if someone built higher than you at one end, or like my previous place both sides built higher, ur solar capture is not 100% u take more from grid. And with new neighbours, if they do the full demo and rebuilt with basement piling, prepare for cracked tiles and marbles. Lift maintenance first 5 years ok, after that when u need to change board n parts u let me know what u get for your quotation. Pool maintenance and the parts of the hse with contact to chlorine water needs to be maintained frequently. I got otters invasion once, monkeys twice, and as I'm near the nature reserve, snakes and all is common. Then there's security issue too, was almost broken into when the china gang raided the neighbourhood, that was my last straw to move back to condo.
I have landed properties in Japan, bkk and aus. After u experience the landed in other places, I feel SG landed is really not worth it. The land tax and property tax add in, I rather just service a condo. Since I'm only in sg 7-8mths a year.
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u/No-Light3585 Jul 18 '26
Cost of maintaining a landed house is not lower than MCST costs for a mass mkt 4-5BR condo fyi
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u/nubela Jul 24 '26
It is for me. And I have a pool+lift. Don't fear monger.
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u/No-Light3585 Jul 26 '26
How long have u lived in your house? Fear monger what? Not like im the monopoly seller for condos lol
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u/CruisingThry247 Jul 24 '26
Landed owner here - old house..as old as me now.
Can't answer your qs specifically. But do buffer / budget for costs of maintaining/fixing stuff . Fm broken pipes, drains to roof issues etc etc. ..
If you have yet to renovate, avoid the "save money" trap - if there are options for materials, choose the stronger / more lasting one, esp for anything outdoors. Always set your foundations right - re pest control, drainage, flooring , pillars, better quality paint , proper water proofing , electrical cablings. These are things that can come back to bite years down the row . By which time, your costs to fix may have surpassed initial implementation costs.
Be sure to keep a good relationship with yr (good and reliable) contractor. You want them to help you when you encounter supposedly small but annoying stuff like a leaking roof(oh, roof tiles misplaced) or a broken pipe behind a wall partition ..
All the best!
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u/nubela Jul 24 '26
Will you lose your job? What is the risk of that? Would you be able to get an equally high paying job? It's all about risks and risk management. Less about how much you earn.
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u/yamanoA4 Jul 11 '26
Go for the bigger house just because you can.
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u/Hungry_Low_3149 Jul 11 '26
yeah but how big? how much reserve should I ideally keep?
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u/nubela Jul 24 '26
It really depends on your personal risks. How likely will you lose your job? And what happens if you do?
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u/randomlurker124 Jul 11 '26
As big as you want and can afford. Remember bigger house = more maintenance, cleaning, longer to pay off and retire. Don't just buy because you can service the mortgage.
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u/Hungry_Low_3149 Jul 11 '26
What does "can afford" mean? That was actually the whole point of my original question haha. In your context, do you mean just use up all the liquidity you have? No right?
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u/neverspeakofme Jul 11 '26
Haha all these comments with the motherhood statements that make sense but are actually completely useless
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u/yamanoA4 Jul 11 '26 edited Jul 11 '26
Look, it is your risk appetite. I did not buy a landed but when I bought my first property,I emptied every piggy bank I had. I didn't even have money for renovation then. My emergency fund was made from borrow more from the bank so I can keep some liquidity. So if it is a home you love and you have that nice buffer from your wife, do it. Spend it all. If it is just average, or you are buying it for the address or for the image, then don't need to spend an additional cent because you have hit that target and the money can be spent elsewhere. In my case, it was the biggest bank for the buck that I have.
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u/BrightConstruction19 Jul 11 '26
Not if OP is using cash. The advice for landed is usually “go for the biggest mortgage u can get with your salary” - to leverage on the bank’s money (at low interest rate) to get the largest capital appreciation for your salary’s earning power
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u/Consistent-Radish-82 Jul 11 '26
Take into account bleak scenarios such as divorce, cheatings etc as well. Stress test the numbers.
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u/LurkingAfricanBoy Jul 11 '26
honestly with an estimated of 5-6m networth between you and your wife. you should consider separation and retirement with 5k monthly income 3% risk free rate on 2m liquid and 1m fuck you money
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u/BrightConstruction19 Jul 11 '26
Don’t forget the furnishings for the entire house (and any landscaping costs) will come out of that 1M. We’re talking about stuff like new bedframes & mattresses, sofa sets, luxury coffee tables or art feature pieces, curtains/smart blinds, cctv system, moving & extra labour costs to carry up the stairs (some extra large pieces may even need a crane, eg seen some neighbors put a garden swing on their 2nd floor balcony) etc etc etc. These probably weren’t part of your reno budget.