For me, it is best to invest with my own money. Leverage is a see saw. It is not easy to keep it in balance. Besides i don't think i can sleep well at night. i try to go on the see saw in my younger days but fortunately my wife disagreed quite strongly.
Using OPM is indeed attractive but who can tell when the tide turns? (aka just job retrenchment will do us in). That's my wife main worry?
But if i am an active business man , of course i am just too please to use OPM if OP willing to lend it to me.
(08-01-2014, 03:42 PM)Ray168 Wrote: [ -> ]Speak from my experience...
It is prudent to have own-stay property fully paid up before 55. One can use this to determine total mortgage year and monthly payment.
For investment property, we can stretch as long as possible so that we have positive cashflow.
(08-01-2014, 02:27 PM)valuebuddies Wrote: [ -> ]Well I bought at one of the peak price, offset by history low interest rate, so I have seriously no idea what is the average mortgage interest rate for the past decade. I have been paying 1.25% then 1.65% which I feel comfortable with, so any increase in rate in painful but not a disaster. With my household income, there is no problem to undertake a 20 years tenor, but it just doesn't make sense for us to go for it in the current cheap borrowing market. And yes if my loan interest rate is high, I would choose a shortest possible tenor which I can afford.
Hard to make up my mind, if I take new loan, I am afraid that I could not get back to 35/40 years tenor again (if the interest rate remains low); and if I don't take new loan, I am paying more. 
"For investment property, we can stretch as long as possible so that we have positive cashflow."
Unquote:
Yes good reminder. i forget about this one. One problem which banks want to loan me for more than 40 years. I think the our GOV has put a cap at 30 years, isn't it?
(08-01-2014, 01:16 PM)Temperament Wrote: [ -> ]My sympathy to all of you(my son's generation 25+ years old). 25 to 30 years loan to pay for a necessity( HDB 99's lease) But is that's the idea of OUR GOV? You have to work your whole life for most of your Generation. Unless you are successful in "passive investing" Or got lucky, "老 爸 扶 你 一 马".
My sympathy.
Shalom.
This is one way to make people continue working for as long as possible, esp those not financially knowledgable. Inflation will basically erase all the interest collected at cpf. So it's advisable to plan early, maybe start on the day a child is born. haha
(08-01-2014, 04:19 PM)Freenasi Wrote: [ -> ] (08-01-2014, 01:16 PM)Temperament Wrote: [ -> ]My sympathy to all of you(my son's generation 25+ years old). 25 to 30 years loan to pay for a necessity( HDB 99's lease) But is that's the idea of OUR GOV? You have to work your whole life for most of your Generation. Unless you are successful in "passive investing" Or got lucky, "老 爸 扶 你 一 马".
My sympathy.
Shalom.
This is one way to make people continue working for as long as possible, esp those not financially knowledgable. Inflation will basically erase all the interest collected at cpf. So it's advisable to plan early, maybe start on the day a child is born. haha
At least finally one has the same believe as me. My mother who had passed away at the age of 90 (a few years ago) had told me that's one way the GOV tries to "control" us. And i was about 30 plus then i think.
Of course, the GOV has many ways to influence us.
From UOB General Mortgage FAQ:
http://www.uob.com.sg/personal/loans/pro...tgage.html
Q3. What is the maximum loan repayment period?
Freehold Property
Up to 35 years or 75 years of age, whichever is earlier. For example, if you are 25 years old now and buying a freehold property, the maximum loan period is 35 years. The loan duration plus the age of the applicant must be less than or equal to 75 years.
Leasehold Property
Up to 35 years or 75 years of age at end of loan tenor, whichever is earlier, and remaining lease of at least 35 years at the end of loan tenor.
(08-01-2014, 04:01 PM)Temperament Wrote: [ -> ] (08-01-2014, 03:42 PM)Ray168 Wrote: [ -> ]Speak from my experience...
It is prudent to have own-stay property fully paid up before 55. One can use this to determine total mortgage year and monthly payment.
For investment property, we can stretch as long as possible so that we have positive cashflow.
(08-01-2014, 02:27 PM)valuebuddies Wrote: [ -> ]Well I bought at one of the peak price, offset by history low interest rate, so I have seriously no idea what is the average mortgage interest rate for the past decade. I have been paying 1.25% then 1.65% which I feel comfortable with, so any increase in rate in painful but not a disaster. With my household income, there is no problem to undertake a 20 years tenor, but it just doesn't make sense for us to go for it in the current cheap borrowing market. And yes if my loan interest rate is high, I would choose a shortest possible tenor which I can afford.
Hard to make up my mind, if I take new loan, I am afraid that I could not get back to 35/40 years tenor again (if the interest rate remains low); and if I don't take new loan, I am paying more.
"For investment property, we can stretch as long as possible so that we have positive cashflow."
Unquote:
Yes good reminder. i forget about this one. One problem which banks want to loan me for more than 40 years. I think the our GOV has put a cap at 30 years, isn't it?
With island wide high property price, A burst in the bubble may result in large scale pain. What is the likelihood of this happening.
(08-01-2014, 08:57 PM)pianist Wrote: [ -> ]With island wide high property price, A burst in the bubble may result in large scale pain. What is the likelihood of this happening.
Elsewhere, systemic property bubbles also burst. How to explain?
(08-01-2014, 12:14 PM)valuebuddies Wrote: [ -> ]Just a question, currently serving a bank mortgage loan at 1.65% (1.95% effective May 2014, then 2.25% after May 2015) with outstanding principal approx 330k and another 39 years to serve. The existing package is variable based on the bank's board rate, which could be changed from time to time at the bank's discretion.
Am considering to refinance to another bank with 3 years fixed at 1.38% but come with a maximum tenor of only 25 years.
My aim is to stretch my loan for as long tenors as possible so that I can make use of the extra cash for better returns, even keep with CPF which can earns 2.5% income. But I do concern about the interest rate increase and board rate adjustment, I foreseen that a lot of cooling measures will be taken out by the government within the next 3 years and I just want to find a safe shelter for this short period of time. But if I refinanced now, I am worry that I will not get back 35/40 years tenors again 3 years later.
So, question is, should I refinance or not? Please share your thought, many thanks.
330k is not a big loan sum..so my feel is not to worry..the most..just break the lock-in period and fully pay off this remaining 330k in one go.
i guess..short term interest rate is unlikely to go up in the near future though long term rate has spiked..
plus 25yo tenure also quite long enough mah
(08-01-2014, 01:44 PM)opmi Wrote: [ -> ]3rm flat BTO not very expensive. $600 monthly installment.
Quite good for a roof over head for 96 years.
In many Asian countries, want also don't have.
So no need to sympathize
just heard from one agent today that govt no longer releasing freehold land, but lease freehold land in 99yo lease tenure..dunno zhiun bo
(08-01-2014, 02:08 PM)yeokiwi Wrote: [ -> ]I lived in 3 rm flat with my family for more than 25 years since 70s. I didn't know that my family and I deserved sympathy.
Got donations a not??
in the earlier years, no donations as 3-room considered a luxury
in the past decade, 3-roommers entitled to many rounds of donations through govt bigger ang bao compared to four or five rommers