How much is your outstanding housing loan?

[Extremme]

I am contemplating to take just 5 years for that 80k bank loan. 

The CPF interest is still higher than the bank loan interest I am taking

 

[Volvobrick]

1 hour ago, Sx4falcon said:

Yeap. Assuming the same amount, Interest you earn from CPF will be higher than the interest you are paying the bank.

 

Yep. should take maximum duration as long as CPF interests at 2.5% and bank mortgage (now as low as 1.8% fixed) at less than that.  Extra risk free income, why not?

Or borrow more from bank on existing property to put back CPF, for those approaching 55.

 

[Beregond]

1 hour ago, Extremme said:

I am contemplating to take just 5 years for that 80k bank loan. 

The CPF interest is still higher than the bank loan interest I am taking

 

i will pay up 1 time. lol

all the adm fees for taking loan sometime more then those interest

 

i get fedup of paying repricing fee to bank every 2-3 years. now i go do the full redemption.

nov 2019 i approach ocbc.

the process drag till feb 2020, while they happily earn my higher interest for 2 months. 

not taking anymore loan from them....

Edited January 15, 2020 by Beregond

[Angcheek]

4 hours ago, 13177 said:

If want your house loan installment to be paid fully by CPF, either the price of the house you buy is low or the amount of loan you take is low. If not many people still need to pay the installment both by CPF and cash.

 

It is not about the price ....... its about take loan from Where , Bank or CPF . 

At current % , better to go for Bank , bec it is lower . 

remember take out from CPF , you not only miss out the % there , you also got to pay back higher interest to CPF when you sell your flat. 

 

[Jamesc]

6 hours ago, Jamesc said:

The interest is daylight robbery. 

Just rent lah. 

And put the difference between buying and renting into buying bank shares. 

Then you get the profit from the interest people pay as dividends and use the dividends to buy more bank shares. 

And after 30 years you get so much bank shares you can use the dividends to pay for your rental forever. 

This is even more true if you bought a 99 year leasehold

because after 99 years what have you to show for all the money you paid for the property and all the interest you paid to the bank?

Nothing.

Can you imagine if you rented and used the difference to buy bank shares and use the dividends from the bank shares to buy more bank shares to get more dividends?

Can you imagine how many bank shares you would own after 99 years of doing this?

You will own so many bank shares you can use the dividends to pay for rental forever and you will still have the banks shares.

Its like having your cake and eating it.

[Jamesc]

People want to buy a Mercedes and get condemned for being stupid for paying 42k interest and people say its only for 10 years.

If people buy a 99 year leasehold after 99 years they also have nothing to show for all the money they paid as well as the interest.

So what is the difference?

[Jamesc]

But James before the 99 years is up I will sell and make a lot of money.

And live where? Still need to live somewhere right? No need money?

If your property went up chances are any property you buy will also have gone up.

So the Merc driver can also say before the 10 years is up I will sell and if COE goes up I will make a lot of money too.

Its true if COE goes up he can sell for a higher price than what he paid.

So what is the difference between buying a car for 10 years and a home for 99 years?

Edited January 15, 2020 by Jamesc

[Throttle2]

On 1/15/2020 at 4:48 PM, Beregond said:

i will pay up 1 time. lol

all the adm fees for taking loan sometime more then those interest

 

i get fedup of paying repricing fee to bank every 2-3 years. now i go do the full redemption.

nov 2019 i approach ocbc.

the process drag till feb 2020, while they happily earn my higher interest for 2 months. 

not taking anymore loan from them....

Beregood for you.

 

Edited February 14, 2020 by Throttle2

[Ct3833]

On 1/15/2020 at 4:48 PM, Beregond said:

i will pay up 1 time. lol

all the adm fees for taking loan sometime more then those interest

 

i get fedup of paying repricing fee to bank every 2-3 years. now i go do the full redemption.

nov 2019 i approach ocbc.

the process drag till feb 2020, while they happily earn my higher interest for 2 months. 

not taking anymore loan from them....

lich man spotted.  but seriously, if you have more money in the CPF account, it s still worth even OCBC charges you a few months of floating rate before  repricing. The prevailing rate is probably about 2.2%? CPF OA at least 2.5%. it is still worth  the while.

Edited February 14, 2020 by Ct3833

[Ct3833]

On 1/15/2020 at 6:44 PM, Jamesc said:

People want to buy a Mercedes and get condemned for being stupid for paying 42k interest and people say its only for 10 years.

If people buy a 99 year leasehold after 99 years they also have nothing to show for all the money they paid as well as the interest.

So what is the difference?

buy FH or  999.

[Showster]

On 1/15/2020 at 6:48 PM, Jamesc said:

But James before the 99 years is up I will sell and make a lot of money.

And live where? Still need to live somewhere right? No need money?

If your property went up chances are any property you buy will also have gone up.

So the Merc driver can also say before the 10 years is up I will sell and if COE goes up I will make a lot of money too.

Its true if COE goes up he can sell for a higher price than what he paid.

So what is the difference between buying a car for 10 years and a home for 99 years?

That’s where the greatest misunderstandings lie.

The top strategy is to have a fully paid property to live and additional house(s) to invest.

That’s the only way to defeat the bank shares’ gains. But bank shares are very good too. My second pillar of defence.

[Dp26]

The biggest enhancement to your assets when you purchase a house, with loan, is building your equity monthly, diligently with little or no reason to stop. 
 

imagine a 3k monthly repayment (2.2k to principal and 0.8k to interest, eg) , you are adding 2.2k to your net asset monthly. 
when one is young, how many really able to save 2k monthly diligently? 
When we are in our early stage (young and poor, not the normal standards here) of building our assets, this forced savings is one of the best I feel!
 

whether that savings is further enhanced with property price appreciation or not is another bonus. 
 

Of cos when we are more advanced in age and with more discipline in our savings pattern, we shouldn’t need to “force” ourselves anymore but that’s another story I guess... 

 

not sure if the words come out the way my thoughts are... lol 

[Throttle2]

On 2/19/2020 at 6:03 PM, Dp26 said:

The biggest enhancement to your assets when you purchase a house, with loan, is building your equity monthly, diligently with little or no reason to stop. 
 

imagine a 3k monthly repayment (2.2k to principal and 0.8k to interest, eg) , you are adding 2.2k to your net asset monthly. 
when one is young, how many really able to save 2k monthly diligently? 
When we are in our early stage (young and poor, not the normal standards here) of building our assets, this forced savings is one of the best I feel!
 

whether that savings is further enhanced with property price appreciation or not is another bonus. 
 

Of cos when we are more advanced in age and with more discipline in our savings pattern, we shouldn’t need to “force” ourselves anymore but that’s another story I guess... 

 

not sure if the words come out the way my thoughts are... lol 

Try building equity when you got no income.

😂

Its a long term game, and the market aint as liquid as before.

rental also tough. With Virus, rental even worse. 

If not careful, become negative equity.  

😆

[Throttle2]

On 2/19/2020 at 6:03 PM, Dp26 said:

The biggest enhancement to your assets when you purchase a house, with loan, is building your equity monthly, diligently with little or no reason to stop. 
 

imagine a 3k monthly repayment (2.2k to principal and 0.8k to interest, eg) , you are adding 2.2k to your net asset monthly. 
when one is young, how many really able to save 2k monthly diligently? 
When we are in our early stage (young and poor, not the normal standards here) of building our assets, this forced savings is one of the best I feel!
 

whether that savings is further enhanced with property price appreciation or not is another bonus. 
 

Of cos when we are more advanced in age and with more discipline in our savings pattern, we shouldn’t need to “force” ourselves anymore but that’s another story I guess... 

 

not sure if the words come out the way my thoughts are... lol 

This is not to say that i disagree entirely 

but people nowadays overdo things.

borrow can but dont stretch and leave no buffer.

the pre imposed buffer by the govt is one thing, but when shit hits the fan, no one is going to pay your bills.

moreover the market is just not as liquid as before.

so just be mindful, young or old.

[Showster]

Just signed a tenant at 10% higher rent.

Seems to be better market than 2 years ago, although corona was a let down. Viewing until hands pain legs pain.

Going forward, completion will slow down considerably due to labour crunch. Got unit can be fun, else just wait and see.

 

[Ginyu]

On 1/15/2020 at 6:39 PM, Jamesc said:

This is even more true if you bought a 99 year leasehold

because after 99 years what have you to show for all the money you paid for the property and all the interest you paid to the bank?

Nothing.

Can you imagine if you rented and used the difference to buy bank shares and use the dividends from the bank shares to buy more bank shares to get more dividends?

Can you imagine how many bank shares you would own after 99 years of doing this?

You will own so many bank shares you can use the dividends to pay for rental forever and you will still have the banks shares.

Its like having your cake and eating it.

The feeling of holding the freehold title deed in your hands is heavenly. There are more Mercedes owners than those able to hold their own title deed🤣

Edited February 27, 2020 by Ginyu

[Jamesc]

1 minute ago, Ginyu said:

The feeling of holding the title deed in your hands is heavenly. There are more Mercedes owners than those able to hold their own title deed🤣

There is a good reason for that.

Well not good but a reason.

You would look like an idiot if you went around showing off your title deeds.

But you can drive around showing off your Mercedes.

[Thaiyotakamli]

7 minutes ago, Jamesc said:

There is a good reason for that.

Well not good but a reason.

You would look like an idiot if you went around showing off your title deeds.

But you can drive around showing off your Mercedes.

Drive mercedes only impress other drivers in carpark. Wear patek to impress everyone