Difference between BTO, DBSS and EC.

[Freestylers09]

so the interest figures ah ga correct or not?

[Joseph22]

so the interest figures ah ga correct or not?

which one you refering to??

unlike car loan, HDB loan letter on outstanding loan different from car. car show you how much u need to pay. (including interest.)

 

HDB show you how much you own them. (minus interest)

[Jj5599]

layman term,30 yearsx2.6

 

how deep into it i not sure yet...hmmm but alot my friends still tell me after 10 years,they still paying interest..is it true i not sure

 

Bro, interest is calculated on the principal outstanding. I am certain your calculation is wrong, cannot use straight line to calculate.

 

Paying interest after 10 years? of cos if you have principal outstanding you have to pay interest right?

Edited April 6, 2011 by Jj5599

[Freestylers09]

okay i counted at hdb site,loan 500k ,30 years is $2002 a month,this is hdb loan nia..if bank loan,higher? 2002x360months, 720k total cost...tio bo?

 

 

[Freestylers09]

yes you are right,not linear... thats why i did a layman fast count

 

but still 200k+ leh,if bank loan..

 

if the money no use,pay all collect rent better i think..my opinion..coz rent out,leverage back these interest,where wu hua

 

unless like i said can double fast the cash then different story

Edited April 6, 2011 by Freestylers09

[Sgnick]

eh, how you get $300k interest on $500k loan? Interest is calculated on reducing balance on the principal.

 

If you want to pay full its fine but if you so loaded with the cash you can own 3 to 4 properties instead of 1 fully paid property.

 

You are right, not $300K interest, only $220720 interest.

 

Using the HDB

HDB Monthly Installment Calculator

 

 

 

Loan $500,000 over 30years interest 2.6%

Monthly installment = $2002 x 12 months x 30 years = $720, 720

 

So you pay ($720, 720 - $500,000) = $220,720 of interest over 30 years

 

 

 

Loan $400,000 over 30years interest 2.6%

Monthly installment = $1,602 x 12 months x 30 years = $576, 720

 

So you pay ($576, 720 - $400,000) = $176,720 of interest over 30 years

[Joseph22]

okay i counted at hdb site,loan 500k ,30 years is $2002 a month,this is hdb loan nia..if bank loan,higher? 2002x360months, 720k total cost...tio bo?

bank loan will be lower, but subjected to sibor, so if sibor become high but hdb loan still low. GG liao.

another thing, you also have to calculate the suppose interest you are suppose to earn before paying for your home.

 

so it will be higher unless ur CPF very thick

[Jj5599]

yes you are right,not linear... thats why i did a layman fast count

 

but still 200k+ leh,if bank loan..

 

if the money no use,pay all collect rent better i think..my opinion..coz rent out,leverage back these interest,where wu hua

 

unless like i said can double fast the cash then different story

 

Let me ask you a question,

 

1) Would you rather pay 20% of $500,000 and let your tenant cover all the monthly repayments thereafter? and be able to own a portfolio of properties by leveraging hence multiplying your wealth?

2) Would you rather pay $500,000 in cash and collect monthly rental and not able to own a 2nd property and your life would be the same 30 years later?

[Freestylers09]

How to own multiple properties with 400k ?

 

For me I dun like over leverage.I rather jobless and get rental to eat n no nid bother more lol

 

 

[Jj5599]

How to own multiple properties with 400k ?

 

For me I dun like over leverage.I rather jobless and get rental to eat n no nid bother more lol

 

Say you got no existing loan. A property costs $500k, then 20% of $500k is $100k, use it as downpayment for 1st property. Then rent out.

 

2nd property, say $500k again, then 40% of $500k is $200,000 (due to you have existing loan), use it as downpayment for 2nd property. Then rent out. And so on.

Edited April 6, 2011 by Jj5599

[Jj5599]

How to own multiple properties with 400k ?

 

For me I dun like over leverage.I rather jobless and get rental to eat n no nid bother more lol

 

Thats why I said your life will be the same 30 years later.

[Soya]

Say property costs $500k, then 20% of $500k is $100k, use it as downpayment for 1st property. Then rent out.

 

2nd property, say $500k again, then 40% of $500k is $200,000 (due to you have existing loan), use it as downpayment for 2nd property. Then rent out. And so on.

 

 

still got pte property at $500k meh?

 

$400k nowadays use as d/p for one pte property oredi nearly finish using liao.

[Jj5599]

still got pte property at $500k meh?

 

$400k nowadays use as d/p for one pte property oredi nearly finish using liao.

 

Yes, 1 bedroom. Fr $450K also have.

[Mustank]

i see this thread. now i know why i am a nobody

[Proton_neutron]

 

Investing in properties is a long term investment. It's never a short-term.

 

 

[Freestylers09]

Usually I will ask myself what if I leverage too much and no job,etc

Price diP like 97 and my life will be different wait haha

 

Each of his own,depend how they wan play around the money

 

 

[Soya]

Yes, 1 bedroom. Fr $450K also have.

 

 

i mean something that a human being can live in. so shoebox apt not counted nia....

[Jj5599]

Usually I will ask myself what if I leverage too much and no job,etc

Price diP like 97 and my life will be different wait haha

 

Each of his own,depend how they wan play around the money

 

So what if you have no job? Who pays your monthly repayments? Your tenants.