View Full Version : 900K cash + cpf, 800K+550K loan, shall I clear my loan first?
lucky new new
05-03-12, 09:58
New to this forum...I would like to seek advice from all the property gurus in this forum :ashamed1: - shall I clear my loan first?
A brief profile as follows:
1 HDB: fully paid, rental at $2600
1 pt for own stay: 800K loan
1 2 bedder pt for investment: 550K, TOP this year
I have about 700K cash + 200K cpf on hand. combine mthly income > 20K. shall i keep cpf for high interest rate, but put 700K to clear off my 800K home loan for my own stay PC? let the 2 bedder rental pays for mortgage?
Your advices are highly appreciated!
New to this forum...I would like to seek advice from all the property gurus in this forum :ashamed1: - shall I clear my loan first?
A brief profile as follows:
1 HDB: fully paid, rental at $2600
1 pt for own stay: 800K loan
1 2 bedder pt for investment: 550K, TOP this year
I have about 700K cash + 200K cpf on hand. combine mthly income > 20K. shall i keep cpf for high interest rate, but put 700K to clear off my 800K home loan for my own stay PC? let the 2 bedder rental pays for mortgage?
Your advices are highly appreciated!
700k + 200k can loan to purchase another 2.25mil property :rolleyes: :rolleyes:
devilplate
05-03-12, 10:10
New to this forum...I would like to seek advice from all the property gurus in this forum :ashamed1: - shall I clear my loan first?
A brief profile as follows:
1 HDB: fully paid, rental at $2600
1 pt for own stay: 800K loan
1 2 bedder pt for investment: 550K, TOP this year
I have about 700K cash + 200K cpf on hand. combine mthly income > 20K. shall i keep cpf for high interest rate, but put 700K to clear off my 800K home loan for my own stay PC? let the 2 bedder rental pays for mortgage?
Your advices are highly appreciated!
well done bro! gd ppty portfolio and gd cash on hand!
i will use the 200k cpf to service the installment.....
duno whr to park ur cash? refinance to stanchart mortgage1 sibor and temp park cash there while waiting for opportunities.....who knows 6mths later ppty px drop by 20% firesale and u can buy one more!!!!!
i am not property guru..
but i wonder what are you worry about to make you want to pay off the loan so fast since the rate gonna be low for at least 2 years..
your cash get standby to grab firesale property later on..
this is what i think la..
700k + 200k can loan to purchase another 2.25mil property :rolleyes: :rolleyes:
and incur 3% ABSD?
lucky new new
05-03-12, 10:21
well done bro! gd ppty portfolio and gd cash on hand!
i will use the 200k cpf to service the installment.....
duno whr to park ur cash? refinance to stanchart mortgage1 sibor and temp park cash there while waiting for opportunities.....who knows 6mths later ppty px drop by 20% firesale and u can buy one more!!!!!
thank you... will it be a waste to use cpf to pay the installment since cpf has 2.5% interest, my loan is only at 1%?
Yes, where to park? Shall i go for 6mth fixed deposit?
lucky new new
05-03-12, 10:24
i am not property guru..
but i wonder what are you worry about to make you want to pay off the loan so fast since the rate gonna be low for at least 2 years..
your cash get standby to grab firesale property later on..
this is what i think la..
i don't know how to fully utilize the cash... the property is getting higher and higher, i just can't commite to buy another one.... and i don't know when will the real firesales come... so thinking if i payoff my current property, i will have peace of mind...
luckily i found this forum, and so many gurus here :)
and incur 3% ABSD?
isnt it 10% ABSD? ok lar 2mil+ 200k+ SD for the Govt to develop Singapore. Not bad wat? :cheers4:
devilplate
05-03-12, 10:26
thank you... will it be a waste to use cpf to pay the installment since cpf has 2.5% interest, my loan is only at 1%?
Yes, where to park? Shall i go for 6mth fixed deposit?
can refinance ur own stay ppty anot? clawback period over liao? if over liao, try stanchart or uob home plus whereby u can park ur cash there
if not maybank 1yr FD at 1.18% (break into many contracts....like 100k each....u nvr noe when u noe break it and use the cash)
i dun really believe in leaving cash in cpf.....later on aso force u to buy annuity.....the $$ u like can see no touch like dat.....might as well use it to service loan ;)
lucky new new
05-03-12, 10:26
700k + 200k can loan to purchase another 2.25mil property :rolleyes: :rolleyes:
and incur 3% ABSD?
i don't feel it's the right time to buy, and don't know when will be the right time to buy....:doh:
devilplate
05-03-12, 10:27
i don't feel it's the right time to buy, and don't know when will be the right time to buy....:doh:
dun buy now.....drop 20% den enter again!!!
if u fully redeem ur loan now....later ppty px drop by 20% how? of coz u can remortgage ur ppty to get some cash but will incur legal fees blah blah
I would nto do partial capital repayment given the low interest. Will use 700k cash as a standby if interest rate shoots up. The monthly repayment of the outstanding mortgage balance of the 800k loan after deducting rental income from HDB can use either CPF or cash. Use CPF if cash in bank is less than 2.5% ROI. Like dp said, can go for std chartered mortgage one.
New to this forum...I would like to seek advice from all the property gurus in this forum :ashamed1: - shall I clear my loan first?
A brief profile as follows:
1 HDB: fully paid, rental at $2600
1 pt for own stay: 800K loan
1 2 bedder pt for investment: 550K, TOP this year
I have about 700K cash + 200K cpf on hand. combine mthly income > 20K. shall i keep cpf for high interest rate, but put 700K to clear off my 800K home loan for my own stay PC? let the 2 bedder rental pays for mortgage?
Your advices are highly appreciated!
lucky new new
05-03-12, 10:29
can refinance ur own stay ppty anot? clawback period over liao? if over liao, try stanchart or uob home plus whereby u can park ur cash there
if not maybank 1yr FD at 1.18% (break into many contracts....like 100k each....u nvr noe when u noe break it and use the cash)
can't refinance yet...
yes, i like your idea of breaking into many contracts.... at least we can have some flexibility to react :)
So nobody supports my idea of paying off my current ppty? :cool:
buttercarp
05-03-12, 10:29
i don't feel it's the right time to buy, and don't know when will be the right time to buy....:doh:
If you think this way, then pay up with everything you have and have a peace of mind.
However if you think of investing in another one, then you should read in detail what the others have advised you.
if not maybank 1yr FD at 1.18% (break into many contracts....like 100k each....u nvr noe when u noe break it and use the cash)
Is that the best FD rates? Thought some china banks offer 1.5 or 1.65
How about overseas property? Looking at some.
dun buy now.....drop 20% den enter again!!!
if u fully redeem ur loan now....later ppty px drop by 20% how? of coz u can remortgage ur ppty to get some cash but will incur legal fees blah blah
can't refinance yet...
yes, i like your idea of breaking into many contracts.... at least we can have some flexibility to react :)
So nobody supports my idea of paying off my current ppty? :cool:
Actually many uncles and aunties i know have fully paid of their loans. I think most of em dont like the idea of owing $$. Car loans Housing loan etc are all fully paid.
Do check with your banker? You can consider Eastspring(formerly prudential monthly payout "M" class) to give you 5% return. You can purchase at blocks of $250k. &750 is not alot.
can't refinance yet...
yes, i like your idea of breaking into many contracts.... at least we can have some flexibility to react :)
So nobody supports my idea of paying off my current ppty? :cool:
devilplate
05-03-12, 10:33
oh ya forget about the age factor.....if above 50yo oredi......den mabe can consider partial redeem own stay ppty later if int rate shoots up....
anyway old or yng now, dont redeem ur loan now.....wakaka
redeem only when int rate rise to let say 2.5%++
devilplate
05-03-12, 10:34
Is that the best FD rates? Thought some china banks offer 1.5 or 1.65
which banks? BOC???
i want!!!
devilplate
05-03-12, 10:36
How about overseas property? Looking at some.
i went to usa....din buy any.....san fran din drop at all lor....so sad...in fact good cities in usa px din drop and are actually creeping up
den where else? msia? i rather just keep RM and earn FD 3%
which banks? BOC???
i want!!!
Yes BOC and ICIC lor. Today i saw ICIC on newspaper.
http://www.icicibank.com.sg/pb_fd.htm
http://www.bankofchina.com/sg/pbservice/pb1/201001/t20100120_955819.html
i went to usa....din buy any.....san fran din drop at all lor....so sad...in fact good cities in usa px din drop and are actually creeping up
den where else? msia? i rather just keep RM and earn FD 3%
Why not AUD Time deposit? best payout % now right?
lucky new new
05-03-12, 10:39
I would nto do partial capital repayment given the low interest. Will use 700k cash as a standby if interest rate shoots up. The monthly repayment of the outstanding mortgage balance of the 800k loan after deducting rental income from HDB can use either CPF or cash. Use CPF if cash in bank is less than 2.5% ROI. Like dp said, can go for std chartered mortgage one.
hi expert, can you please elaborate a bit on this? don't really understand...:ashamed1:
if i just put cash into bank, and wait for property to drop, should i or shouldn't i use $200K cpf to reduce my current $800K loan?
or use this as a expenditure account. Charge ur giro payments to this:
http://www.standardchartered.com.sg/promotion/bonussaver/index.html
and get 1.88% :scared-5: :scared-5:
hi expert, can you please elaborate a bit on this? don't really understand...:ashamed1:
if i just put cash into bank, and wait for property to drop, should i or shouldn't i use $200K cpf to reduce my current $800K loan?
Because the fact i hate monies stuck in CPF, i'll exhaust it if i were you :cool:
devilplate
05-03-12, 10:43
Yes BOC and ICIC lor. Today i saw ICIC on newspaper.
http://www.icicibank.com.sg/pb_fd.htm
http://www.bankofchina.com/sg/pbservice/pb1/201001/t20100120_955819.html
wah piang icic 3yrs fixed!! too long liao.....1yr same same
i don't know how to fully utilize the cash... the property is getting higher and higher, i just can't commite to buy another one.... and i don't know when will the real firesales come... so thinking if i payoff my current property, i will have peace of mind...
luckily i found this forum, and so many gurus here :)
Why dont u do wat one of the forumer say? park in a Standchart or Citi interest offset loan acct? gives u the flexibility. If opportunity calls u can invest. if you suddenly feel squeezed u can redeem ur loan.
Have case flow is the best option in case opportunity or u suddenly (touch wood) need $$
devilplate
05-03-12, 10:45
Why not AUD Time deposit? best payout % now right?
AUD exchange rate all time high now leh....
1.1x den can consider rite?
AUD exchange rate all time high now leh....
1.1x den can consider rite?
I remember 3 years ago i told my dad to return me my $ so i can buy AUD FD at 0.96 to SGD 1. He told me to stop bothering him and said dont be mad :(
dun buy now.....drop 20% den enter again!!!
if u fully redeem ur loan now....later ppty px drop by 20% how? of coz u can remortgage ur ppty to get some cash but will incur legal fees blah blah
Sure will drop 20%? ;) :beats-me-man: :beats-me-man: :beats-me-man:
wah piang icic 3yrs fixed!! too long liao.....1yr same same
I'm quite sure BOC has 1 year 1.5% or smth near that. my grandma just put her $ there :( i dont like FD.
lucky new new
05-03-12, 10:49
Actually many uncles and aunties i know have fully paid of their loans. I think most of em dont like the idea of owing $$. Car loans Housing loan etc are all fully paid.
i'm that kind of uncles and aunties who like debt free at all :D but i'm still young, not reach 50 yet.:rolleyes:
devilplate
05-03-12, 10:50
i'm that kind of uncles and aunties who like debt free at all :D but i'm still young, not reach 50 yet.:rolleyes:
car also fully paid?
lucky new new
05-03-12, 10:52
or use this as a expenditure account. Charge ur giro payments to this:
http://www.standardchartered.com.sg/promotion/bonussaver/index.html
and get 1.88% :scared-5: :scared-5:
but i have to use scb home loan, right? still under locking period... :mad:
devilplate
05-03-12, 10:52
I remember 3 years ago i told my dad to return me my $ so i can buy AUD FD at 0.96 to SGD 1. He told me to stop bothering him and said dont be mad :(
hehehe i manage to change some at 1.0x too! but den regretted to change some back at 1.3.....cryyyyyyyyyyyyy
my life full of regrets.....LOL
lucky new new
05-03-12, 10:53
car also fully paid?
yes...... :ashamed1: :ashamed1: :ashamed1:
sorry.... ask some 'silly question' - why can't fully pay for car loan?
i'm that kind of uncles and aunties who like debt free at all :D but i'm still young, not reach 50 yet.:rolleyes:
Then use ur $200k from CPF. 700k go buy a few pieces of Gold bar in oct when the 7% GST is written off
devilplate
05-03-12, 10:53
but i have to use scb home loan, right? still under locking period... :mad:
anyway ur loan still under lock in....how u gona redeem ur loan? LOL
once lock in over and if ppty px still all time high, den switch to scb, citi or uob......whichever bestest rate
lucky new new
05-03-12, 10:54
hehehe i manage to change some at 1.0x too! but den regretted to change some back at 1.3.....cryyyyyyyyyyyyy
my life full of regrets.....LOL
AUD FD too complicated for me to understand...:p
but i have to use scb home loan, right? still under locking period... :mad:
No lar nothing to do with housing loan. This kinda like the credit line account.
devilplate
05-03-12, 10:54
yes...... :ashamed1: :ashamed1: :ashamed1:
sorry.... ask some 'silly question' - why can't fully pay for car loan?
hahaa....my car also fully paid.....LOL
but recently must take car loan...got cash rebate etc....10% rebate!!! alot!
AUD FD too complicated for me to understand...:p
Bring ur 700k to the counter. The bankers there will spend their entire day to help u understand :tongue3: :tongue3: :tongue3:
devilplate
05-03-12, 10:56
Then use ur $200k from CPF. 700k go buy a few pieces of Gold bar in oct when the 7% GST is written off
yes...i am waiting for tat too! provided gold px drop to 13xx :p
lucky new new
05-03-12, 10:56
anyway ur loan still under lock in....how u gona redeem ur loan? LOL
once lock in over and if ppty px still all time high, den switch to scb, citi or uob......whichever bestest rate
partial redeemption is ok woh.. maybe pay off $500K, keep $200CPF + $200K cash wait for property drop?
hahaa....my car also fully paid.....LOL
but recently must take car loan...got cash rebate etc....10% rebate!!! alot!
Ya these days buy car dont take loan is silly. at least take 1 year! haha
devilplate
05-03-12, 10:57
Ya these days buy car dont take loan is silly. at least take 1 year! haha
actually buy car looks more silly.....LOL :p
lucky new new
05-03-12, 10:57
No lar nothing to do with housing loan. This kinda like the credit line account.
i see! thanks!
lucky new new
05-03-12, 10:59
Ya these days buy car dont take loan is silly. at least take 1 year! haha
of course i took loan, but the shortest period...
devilplate
05-03-12, 10:59
partial redeemption is ok woh.. maybe pay off $500K, keep $200CPF + $200K cash wait for property drop?
u sure? interesting......den wats the point of lock in??? u can redeem till left let say 10k? LOL
anyway u play by ear lor.....USA and EU keep printing $$$.....we must also print tgt mah....'focus' say one hehehe
hehehe i manage to change some at 1.0x too! but den regretted to change some back at 1.3.....cryyyyyyyyyyyyy
my life full of regrets.....LOL
okay lar 1.3 not so bad. many ppl change back after 1.1x - 1.2.
Btw, just checked with my Grandma, its only 1.22 for 1 year FD with BOC
yes...i am waiting for tat too! provided gold px drop to 13xx :p
Devil bro im sure u heard of Geneva? buy gold wit them u'll get fix 2% return per month. P.A. total 24%. I parked my money there before my PC purchase. but again, many ppl say im mad because in Malaysia this company is under checks
lucky new new
05-03-12, 11:01
u sure? interesting......den wats the point of lock in??? u can redeem till left let say 10k? LOL
anyway u play by ear lor.....USA and EU keep printing $$$.....we must also print tgt mah....'focus' say one hehehe
not sure... :ashamed1: need to dig out the offer letter :doh:
i just very worry about the cash... cpf at least still have 2.5%. cash....
devilplate
05-03-12, 11:01
okay lar 1.3 not so bad. many ppl change back after 1.1x - 1.2.
Btw, just checked with my Grandma, its only 1.22 for 1 year FD with BOC
Devil bro im sure u heard of Geneva? buy gold wit them u'll get fix 2% return per month. P.A. total 24%. I parked my money there before my PC purchase. but again, many ppl say im mad because in Malaysia this company is under checks
u r lucky to get back ur cash!!!!
devilplate
05-03-12, 11:02
not sure... :ashamed1: need to dig out the offer letter :doh:
i just very worry about the cash... cpf at least still have 2.5%. cash....
den pump more $$ into SA and ur wife SA etc lor.....can reduce income tax too
u r lucky to get back ur cash!!!!
haha, actually quite a lot of ppl i know park their cash there leh. or at least part of their cash. they got different plans, 1 month, 3 months etc. Even if i lost my cash i got the gold bars to sell. Of course the Gold bars were sold at a premium.
But honestly, which other investment gives u a guaranteed 24% p.a. yield with something to hold on to as insurance (Gold Bars)
devilplate
05-03-12, 11:05
haha, actually quite a lot of ppl i know park their cash there leh. or at least part of their cash. they got different plans, 1 month, 3 months etc. Even if i lost my cash i got the gold bars to sell. Of course the Gold bars were sold at a premium.
But honestly, which other investment gives u a guaranteed 24% p.a. yield with something to hold on to as insurance (Gold Bars)
yes....got sale ger wif sweet little voice ring me up.....den i check their gold px wif uob gold px....i rem smthing like 10% diff!!!
and hey if u tok until like so gd deal...y u cash out to buy ppty instead? can ppty gives u 24% returns pa?:p
i tink u r lucky to get back ur cash bcoz gold px RISE.....
if gold px drop, u tink they will offer to buy back ur gold? tink about it....LOL
lucky new new
05-03-12, 11:07
den pump more $$ into SA and ur wife SA etc lor.....can reduce income tax too
can SA reduce income tax? i thought only retirement accounts?
devilplate
05-03-12, 11:10
can SA reduce income tax? i thought only retirement accounts?
not so sure....anyway i nvr did tat.....LOL
buttercarp
05-03-12, 11:14
can SA reduce income tax? i thought only retirement accounts?
no SA cannot cos you cannot suka suka put in money there.
SRS then can.
devilplate
05-03-12, 11:16
no SA cannot cos you cannot suka suka put in money there.
SRS then can.
let say i got zero cpf contribution, can i reduce income tax wif voluntary SA contribution? or isit voluntary OA contribution ?
lucky new new
05-03-12, 11:17
no SA cannot cos you cannot suka suka put in money there.
SRS then can.
so once put in, can never get out until you really retired?
buttercarp
05-03-12, 11:31
let say i got zero cpf contribution, can i reduce income tax wif voluntary SA contribution? or isit voluntary OA contribution ?
http://mycpf.cpf.gov.sg/CPF/News/News-Release/NR_23Nov2002.htm
http://mycpf.cpf.gov.sg/CPF/my-cpf/Overseas/LivO1.htm
Options available to you:
Contribute to all three accounts
Contribute to Medisave account only
Maximum amount of VC = $30,600 – Mandatory Contributions
so once put in, can never get out until you really retired?
Yup the principal sum will remain there. premature withdrawal incurs a penalty fee.
Interesting topic here!
Finally I get to finish reading all the posts :scared-5:
Well, I would personally feel maybe if want to redeem partial and keep partial for any future investments.
I'm also about the same scenario as lucky new new.
1 x hdb em fully paid (rental $2800)
1 x PC (RS) loan $870k
1 x car (fully paid)
Plan to wait for price drop and invest in a 2bedroom PC (still waiting)
For my purchase for my RS, I did not use my cpf at all. We use cash for the downpayment and will also be servicing the loan by cash.
Intend to accumulate and save our cpf since it pays 2.5% whereas bank loan is only 1.1% for now. Will only switch to cpf if the bank loan interest increase to 2.5% lah... Otherwise, we will just save our cpf for retirement or even for the next property investment.
However, meanwhile will be on cash terms for my RS.
My bro also said I'm stupid to keep cpf buti think individual thinks differently bah.
I'm also the type whom would not like to have any outstanding loans.,. Thus, if possible, for next small unit investment, I will pay by full cash with cpf (that's my dream lah).
So, lucky new new... We kinda same thinking here.
devilplate
05-03-12, 12:18
clear own stay ppty ok....but not investment ppty
clear own stay ppty ok....but not investment ppty
Yes yes. For own stay, clear the loan is ideal. Whereas for investment the. Just drag n pay the loan with the rental income.
why not leave it in the bank.
when STI drop 10% then enter $200k into DBS or UOB or Keppel Corp.
When STI recovered , ur $200k is 10% gained, averaged out ur 900k will be abt 3% gain ....
buttercarp
05-03-12, 12:25
Just....you must remember that for 1st property can use up the OA to pay.
But for subsequent property, there is a minimum sum that must be maintained in the OA before you can withdraw.
Just....you must remember that for 1st property can use up the OA to pay.
But for subsequent property, there is a minimum sum that must be maintained in the OA before you can withdraw.
Yes. The minimum is $65,500.
That's also the reason why we decided to save our cpf and earn the 2.5%.
i prefer stocks then cpf. CPF is illiquid. But can have both lor
yes....got sale ger wif sweet little voice ring me up.....den i check their gold px wif uob gold px....i rem smthing like 10% diff!!!
and hey if u tok until like so gd deal...y u cash out to buy ppty instead? can ppty gives u 24% returns pa?:p
i tink u r lucky to get back ur cash bcoz gold px RISE.....
if gold px drop, u tink they will offer to buy back ur gold? tink about it....LOL
No lar they do balancing every time ur contract ends (1 or 3 months). So if price drop u will get the difference reimbursed and when price increases u gotta pay them more for the same weight of bars ur carrying.
I cashed out because like everyone else, things that seems too good to be true is scary! haha.
haha, actually quite a lot of ppl i know park their cash there leh. or at least part of their cash. they got different plans, 1 month, 3 months etc. Even if i lost my cash i got the gold bars to sell. Of course the Gold bars were sold at a premium.
But honestly, which other investment gives u a guaranteed 24% p.a. yield with something to hold on to as insurance (Gold Bars)
Hi Price,
can i check, how much is the premium charged?
have friends also bot, they said 20%, they are happily collecting the 'rebates', didnt contact them anymore, can share?
Hi Price,
can i check, how much is the premium charged?
have friends also bot, they said 20%, they are happily collecting the 'rebates', didnt contact them anymore, can share?
Yes it's about 20% but that's including GST. UOB bullion prices normally quoted before GST. So net net around 13%? I feel for the amount of returns its worthwhile.
Try with a 100g (in the past was around 7k not sure of the current gold prices now) bullion first and understand how they work. When ur more comfortable try getting 1kg. It's quite a big gold bar :D
The first time i was at their office, the counter girl was serving this uncle with at least 10+ 1 kilo bars on the table. I wonder where is he gonna safe keep em.
buttercarp
05-03-12, 12:48
The first time i was at their office, the counter girl was serving this uncle with at least 10+ 1 kilo bars on the table. I wonder where is he gonna safe keep em.
Probably keep in the safe which is drilled put to the ground of his house?
Yes it's about 20% but that's including GST. UOB bullion prices normally quoted before GST. So net net around 13%? I feel for the amount of returns its worthwhile.
Try with a 100g (in the past was around 7k not sure of the current gold prices now) bullion first and understand how they work. When ur more comfortable try getting 1kg. It's quite a big gold bar :D
The first time i was at their office, the counter girl was serving this uncle with at least 10+ 1 kilo bars on the table. I wonder where is he gonna safe keep em.
could you select the gold brand that you want, eg UBS or Credit suisse for 1kg gold
could you select the gold brand that you want, eg UBS or Credit suisse for 1kg gold
Nope, for 100g usually its PAMP suisse gold bullions. My friend got the unsealed 1 before but its usually what UOB gives them.
http://www.saudagaremas916.com/v8/imagess/gambar%20emas%20DK%20086.jpg
the 1 kilos i got were never sealed
http://suissegold.ch/images/T/Pamp%201KG%20Bar.jpg
lucky new new
05-03-12, 13:10
For my purchase for my RS, I did not use my cpf at all. We use cash for the downpayment and will also be servicing the loan by cash.
Intend to accumulate and save our cpf since it pays 2.5% whereas bank loan is only 1.1% for now. Will only switch to cpf if the bank loan interest increase to 2.5% lah... Otherwise, we will just save our cpf for retirement or even for the next property investment.
However, meanwhile will be on cash terms for my RS.
My bro also said I'm stupid to keep cpf buti think individual thinks differently bah.
I'm also the type whom would not like to have any outstanding loans.,. Thus, if possible, for next small unit investment, I will pay by full cash with cpf (that's my dream lah).
So, lucky new new... We kinda same thinking here.
Hi bro Just, i'm glad to know that i'm not the only one who has this kind of headache :D
lucky new new
05-03-12, 13:14
Yes it's about 20% but that's including GST. UOB bullion prices normally quoted before GST. So net net around 13%? I feel for the amount of returns its worthwhile.
Try with a 100g (in the past was around 7k not sure of the current gold prices now) bullion first and understand how they work. When ur more comfortable try getting 1kg. It's quite a big gold bar :D
The first time i was at their office, the counter girl was serving this uncle with at least 10+ 1 kilo bars on the table. I wonder where is he gonna safe keep em.
must invest on the physical gold bar?? where to safe keep?? like that i have even more worries..:scared-4:
New to this forum...I would like to seek advice from all the property gurus in this forum :ashamed1: - shall I clear my loan first?
A brief profile as follows:
1 HDB: fully paid, rental at $2600
1 pt for own stay: 800K loan
1 2 bedder pt for investment: 550K, TOP this year
I have about 700K cash + 200K cpf on hand. combine mthly income > 20K. shall i keep cpf for high interest rate, but put 700K to clear off my 800K home loan for my own stay PC? let the 2 bedder rental pays for mortgage?
Your advices are highly appreciated!
of course you will should keep your money in your CPF, if you still owe CPF any outstanding from previous property purchase, use your cash to pay them off.
I would use some of the $700k to buy some corporate or government bonds and leave some hardcash for opportunity.
Peace of mind? Are you approaching retirement age?
lucky new new
05-03-12, 13:26
of course you will should keep your money in your CPF, if you still owe CPF any outstanding from previous property purchase, use your cash to pay them off.
I would use some of the $700k to buy some corporate or government bonds and leave some hardcash for opportunity.
Peace of mind? Are you approaching retirement age?
Hi Jadey, thanks.
not retirement yet, just worry about how to fight with inflation...initially i wanted to buy one more small ppty for investment... but nowadays all the new ocr ppty is getting higher and higher, resales seems no room to drop at all... so i started this topic to seek advices from all the gurus :)
propertychap
05-03-12, 13:40
If you already have a HDB, how does the new ruling allow you to buy condo without disposing of your HDB?
must invest on the physical gold bar?? where to safe keep?? like that i have even more worries..:scared-4:
If u keep the gold bars with them u get more than 2% per month. But honestly will u do that? Many will rather keep the bars at home or safekeep with a bank
lucky new new
05-03-12, 13:43
If you already have a HDB, how does the new ruling allow you to buy condo without disposing of your HDB?
My HDB was fully paid long time ago and we have stayed there more than 5 years liao, so it's safe to buy private properties.
lucky new new
05-03-12, 13:44
If u keep the gold bars with them u get more than 2% per month. But honestly will u do that? Many will rather keep the bars at home or safekeep with a bank
i mean is there any way to invest gold but no need to touch the physical bars? i heard there are some thing like gold accounts?
i mean is there any way to invest gold but no need to touch the physical bars? i heard there are some thing like gold accounts?
Gold Options?
http://www.certissecurity.com/safedeposit/box_price.php
For S$99 a year, you can safely store your physical gold at Cisco Security.
[/quote]
Devil bro im sure u heard of Geneva? buy gold wit them u'll get fix 2% return per month. P.A. total 24%. I parked my money there before my PC purchase. but again, many ppl say im mad because in Malaysia this company is under checks[/quote]
If it is too good to be true, then don't try it!
1) When gold price crashes, your counterparty will disappear;
2) When they decide to disappear, the "gold" you hold will NOT be real gold.
propertychap
05-03-12, 14:28
Can I check if anyone knows if I am occupier of a flat and my parents will it to me say, and I own private properties, do I have to sell off my private properties if I intend to keep the flat? I have stayed in the flat for more than 20 years.
No lar, the gold is 100% authentic. i brought it to gold smith before. haha. they even offered to buy. u can actually sell it to any of the world class land outlets (citigems, goldheart taka) ya they may disappear, then just hold on to the gold lor?
Just like property crashes if u have the holding power, sure will rise again.
HI New Luck,
I know this is not the answer you're looking for but this is what i will do.
Assuming that price of appartments will fall, i will sell away the 2 apartments to take profit.
To hedge inflation as well as to realise the singaporean dream for some if you are one of them, i will use the profits and the cash+CPF to buy a landed property as i really feel that singaporeans are much more affluent today and there would be a shift to landed properties from apartments upgrader.
felicia_sg
05-03-12, 18:04
After that sell the landed to who? We the younger generation totally not interested in landed, prefer bungalow in the sky. I actually suggest BITS instead since all we young Gen like them & can sell to us!
HI New Luck,
I know this is not the answer you're looking for but this is what i will do.
Assuming that price of appartments will fall, i will sell away the 2 apartments to take profit.
To hedge inflation as well as to realise the singaporean dream for some if you are one of them, i will use the profits and the cash+CPF to buy a landed property as i really feel that singaporeans are much more affluent today and there would be a shift to landed properties from apartments upgrader.
Oh then you are not savvy to understand that some people buy condo is to buy a piece of the land. LAND. Landed is jus for the land, lifestyle comes second
Problem is, you can sit on the landed, sacrifice your lifestyle, but yet you can't sell at good price as well because sell to who in future if the younger generation not interested? I am not interested in landed as well, even though I am considered the old generation. See! That is the problem! Most young generation not interested, many old generation like me also not interested! Now good only because of "greater fool" theory, just like chasing after gold! :p
In future, all the olds want to sell, few people interested to buy! :banghead:
Oh then you are not savvy to understand that some people buy condo is to buy a piece of the land. LAND. Landed is jus for the land, lifestyle comes second
Problem is, you can sit on the landed, sacrifice your lifestyle, but yet you can't sell at good price as well because sell to who in future if the younger generation not interested? I am not interested in landed as well, even though I am considered the old generation. See! That is the problem! Most young generation not interested, many old generation like me also not interested! Now good only because of "greater fool" theory, just like chasing after gold! :p
In future, all the olds want to sell, few people interested to buy! :banghead:
Oh then you must be anti landed. I say some people think the other way dosen mean i pro landed. In fact I am also BITS lover
Can I check if anyone knows if I am occupier of a flat and my parents will it to me say, and I own private properties, do I have to sell off my private properties if I intend to keep the flat? I have stayed in the flat for more than 20 years.
http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/PrivatePtyEligibility?OpenDocument
http://www.hdb.gov.sg/fi10/fi10325p.nsf/w/PrivatePtyProcedures?OpenDocument
http://www.hdb.gov.sg/fi10/fi10321p.nsf/w/BuyingNewFlatStudio?OpenDocument
http://sgms.internet.gov.sg/Search.aspx?q=buy+private+property&site=hdb&filter_s=Within+HDB+Website%23hdb|Within+All+Government+Websites%23default|&feedback_url=http%3A//www.hdb.gov.sg/fi10/fi10297p.nsf/ImageView/FEEDBACKREDIRECTION/%24file/FeedbackRedirection.html&contact_url=http%3A//www.hdb.gov.sg/fi10/fi10296p.nsf/WPDis/Contact%2BUsOverview%3FOpenDocument&client=default&proxystylesheet=default&output=xml_no_dtd
Can I check if anyone knows if I am occupier of a flat and my parents will it to me say, and I own private properties, do I have to sell off my private properties if I intend to keep the flat? I have stayed in the flat for more than 20 years.
You need to check with HDB area office. My friend was told by HDB he need to sell his private to take over his mother HDB. He have a HDB and a PC.
After that sell the landed to who? We the younger generation totally not interested in landed, prefer bungalow in the sky. I actually suggest BITS instead since all we young Gen like them & can sell to us!
You have just answered your own question of "landed sell to who"? Land being scarce, you can sell to developers building BITS.
I find it strange, don't you know landed can't built up into sky because of plot ratio regulation? May be people can dream about it, but it is as good as people buying potential "en-bloc" condos, but wait >10 years also nothing in sight. :doh:
You have just answered your own question of "landed sell to who"? Land being scarce, you can sell to developers building BITS.
I find it strange, don't you know landed can't built up into sky because of plot ratio regulation? May be people can dream about it, but it is as good as people buying potential "en-bloc" condos, but wait >10 years also nothing in sight. :doh:
You may be right today but we are talking concepts here. No offence, i believe regulations are always subject to changes no?
Yes, but wait long long lor! :p
Condos also can change wah, now built 30 storeys, next time 60 storeys. People who want BITS want higher the better, better still, in the clouds! Therefore, the higher it is, the higher price and value it has. :D
You may be right today but we are talking concepts here. No offence, i believe regulations are always subject to changes no?
Yes, but wait long long lor! :p
Condos also can change wah, now built 30 storeys, next time 60 storeys. People who want BITS want higher the better, better still, in the clouds! Therefore, the higher it is, the higher price and value it has. :D
:scared-2:
I have about 700K cash + 200K cpf on hand. combine mthly income > 20K.
If you have 200K CPF, you are likely close to retirement age.
20K income is nice, but for how long?
It's best to start to leverage and eventually get your title deed. You may not want bank holding the 1st claim when you need to pass the property to the next generation.
I always notice low plot ratio big old condos in D4 gets bought over too easily back then. Oh maybe I should look into Foresta @ Mount Faber again.
My friend in UCB (UC Berkeley) area said the prices has corrected. Was looking at bangkok. What are your views?
i went to usa....din buy any.....san fran din drop at all lor....so sad...in fact good cities in usa px din drop and are actually creeping up
den where else? msia? i rather just keep RM and earn FD 3%
Bottomline. Put money in higher interest avenue whether bank or cpf account. now, there is an additional 1% for the 1st 60k. The remainder will be 2.5%. Unless the spare cash that you have can help you to earn more than 2.5% then use CPF otherwise use cash to pay for the mortgage of your house. I had pay up a house using my cpf account plus some capital repayment while collecting rent from it those days and use it to reinvest in higher return investment tools where houses are much cheaper then. It is rather difficult now as houses are more expensive. I will not sell this houses as rental yield is good and do not want to channel the $ back to my CPF account to pay for the principal plus interest.
hi expert, can you please elaborate a bit on this? don't really understand...:ashamed1:
if i just put cash into bank, and wait for property to drop, should i or shouldn't i use $200K cpf to reduce my current $800K loan?
SCB home loan is good with mortgage one. Can get lots of points from the loan and convert to vouchers for dinning.
but i have to use scb home loan, right? still under locking period... :mad:
Bottomline. Put money in higher interest avenue whether bank or cpf account. now, there is an additional 1% for the 1st 60k. The remainder will be 2.5%. Unless the spare cash that you have can help you to earn more than 2.5% then use CPF otherwise use cash to pay for the mortgage of your house. I had pay up a house using my cpf account plus some capital repayment while collecting rent from it those days and use it to reinvest in higher return investment tools where houses are much cheaper then. It is rather difficult now as houses are more expensive. I will not sell this houses as rental yield is good and do not want to channel the $ back to my CPF account to pay for the principal plus interest.
Well-said! Thumbs up!
Yes. The minimum is $65,500.
That's also the reason why we decided to save our cpf and earn the 2.5%. I thought is 2.5+1% = 3.5%
You still approval from HDB before you can lease out your flat even though it has exceeded the 5 years of MOP. Right?
My HDB was fully paid long time ago and we have stayed there more than 5 years liao, so it's safe to buy private properties.
May be another sunshine empire. Be careful.
Devil bro im sure u heard of Geneva? buy gold wit them u'll get fix 2% return per month. P.A. total 24%. I parked my money there before my PC purchase. but again, many ppl say im mad because in Malaysia this company is under checks[/quote]
If it is too good to be true, then don't try it!
1) When gold price crashes, your counterparty will disappear;
2) When they decide to disappear, the "gold" you hold will NOT be real gold.[/QUOTE]
Landed property is not for sale. It will be pass on from generation to generation. Can rebuild after 25 years on the same plot of land. Hence, it has to be freehold and in good locations. Not tuck in one corner of Singapore without mrts, buses, amenities like malls, etc.
After that sell the landed to who? We the younger generation totally not interested in landed, prefer bungalow in the sky. I actually suggest BITS instead since all we young Gen like them & can sell to us!
URA has relaxed the design of landed properties quite a fair bit in the last 10 years. More design options for architect and home owners. :rolleyes:
I find it strange, don't you know landed can't built up into sky because of plot ratio regulation? May be people can dream about it, but it is as good as people buying potential "en-bloc" condos, but wait >10 years also nothing in sight. :doh:
Landed property is not for sale. It will be pass on from generation to generation. Can rebuild after 25 years on the same plot of land. Hence, it has to be freehold and in good locations. Not tuck in one corner of Singapore without mrts, buses, amenities like malls, etc.
I also prefer bungalow in the air concept for the security, amenities, facilities and view. I feel that Singapore is becoming less secure and more crowded at the landed area.
Depends where you are in Singapore. :D
I also prefer bungalow in the air concept for the security, amenities, facilities and view. I feel that Singapore is becoming less secure and more crowded at the landed area.
flagship74
05-03-12, 21:33
i don't know how to fully utilize the cash... the property is getting higher and higher, i just can't commite to buy another one.... and i don't know when will the real firesales come... so thinking if i payoff my current property, i will have peace of mind...
luckily i found this forum, and so many gurus here :)
yeah many "guru" and "goondo":D
May be another sunshine empire. Be careful.
They're totally different lar. At any point in time, u are only at a 13% loss. Even property can't give u that much security and returns
If you have 200K CPF, you are likely close to retirement age.
20K income is nice, but for how long?
Not true, Most people i'm working with have 150k - 200k in their OA mid 30s. 20k income is not that difficult these days.
Your figure didn't tally lah. See, max CPF contribution only $4500 * 0.25 = $1125 pm in OA. To accumulate $200k need 14.8 years, that is assuming he start work already $4500 pm. So, a graduate starting work at 25 years old to accumulate $200k would most likely be >40 years old! :p
Not true, Most people i'm working with have 150k - 200k in their OA mid 30s. 20k income is not that difficult these days.
Your figure didn't tally lah. See, max CPF contribution only $4500 * 0.25 = $1125 pm in OA. To accumulate $200k need 14.8 years, that is assuming he start work already $4500 pm. So, a graduate starting work at 25 years old to accumulate $200k would most likely be >40 years old! :p
You forgot about interests? and i said mid 30s 150k :beats-me-man:.
My point is 200k in CPF doesnt mean ur gonna retire.
New to this forum...I would like to seek advice from all the property gurus in this forum :ashamed1: - shall I clear my loan first?
A brief profile as follows:
1 HDB: fully paid, rental at $2600
1 pt for own stay: 800K loan
1 2 bedder pt for investment: 550K, TOP this year
I have about 700K cash + 200K cpf on hand. combine mthly income > 20K. shall i keep cpf for high interest rate, but put 700K to clear off my 800K home loan for my own stay PC? let the 2 bedder rental pays for mortgage?
Your advices are highly appreciated!
Hey Bro, you are in a good position. If you do this right, you should be able to grow your net worth by double digits in the next few years.
Pls calculate your net worth (total assets - total liabilities) and decide on your financial goals. Is passive income very important to you?
You definitely have excess cash - and since i don't know your risk profile, here's what I'll do if I would do.
Checklist #1
Ensure that your debt to service ratio (DSR) - total financial commitments (all loan repayments/total income is less than 40%.
(if not, use some of you cash to pay back your loans - important to ensure that for your 2 properties, your initial cash outlay should be at least 40%-50% of the value of your properties (this is to ensure that if your property falls in value - you don't get screwed especially if you need to refinance your loan in future since the economy is very unpredictable within the next few months
Checklist #2
Keep spare cash of at least 6 mths emergency funds (this should also include loan repayments to your new TOP apartment.). Something could happen to your job.
Once you have the above, if you want to invest in property, take note of the 40% downpayment needed and additional buyer's stamp duty.
I would not go for a new property (as your money will be stuck until TOP)...Find a desperate property owner who wants to sell - so you already make the money at the point of purchase - buying below valuation. ensure you have a rental yield of at least 4% (which is as important as the price you pay). Don't buy if you cannot get at last 4%.This way, whatever property to buy, brings in passive income.
Checklist #3
Don't be tempted like other high-paid individuals to move to an expensive house/property worth >$3m and take on a huge debt with zero ROA (return on Assets). I am sure you are comfortable with you current home loan of 800k
Personally, I am keeping my cash to watch how the market is turning out in the next 3-6 months.
I have 2 rental properties bringing in $7k a month and like you, investing in properties was the best decision I have made.
I had cashed out of Casah Merah and put the profits into the stock market which I expect to recover - to ensure I have a balanced portfolio.
I will not pay back my loan until the interest goes up to 4-5%.
Hope this helps! Good luck :cheers5:
I am sure others in this forums will provide good advice on how to make the best use of your cash.
Your figure didn't tally lah. See, max CPF contribution only $4500 * 0.25 = $1125 pm in OA. To accumulate $200k need 14.8 years, that is assuming he start work already $4500 pm. So, a graduate starting work at 25 years old to accumulate $200k would most likely be >40 years old! :p
If you have big bonuses each yer, the CPF attaching, will add up quickly. I believe CPF attaching to bonus has no cap.
Your figure didn't tally lah. See, max CPF contribution only $4500 * 0.25 = $1125 pm in OA. To accumulate $200k need 14.8 years, that is assuming he start work already $4500 pm. So, a graduate starting work at 25 years old to accumulate $200k would most likely be >40 years old! :p
You forget to include cpf contribution from bonus n aws.
I am only 30 and my cpf acc is 100k ++
You forget to include cpf contribution from bonus n aws.
I am only 30 and my cpf acc is 100k ++
OH yes Bonus! Maybe he never got a big fat bonus :beats-me-man:
Dear all bros and sistas
I am sorry to step in here (not sure if it's ok), but some relevance as I like to hear your views for our profile below:
Household income: S$20k pm
CPF OA: almost zero (used to pay downpayment on PC recently)
A 5 rm HDB (fully paid)
Cash: S$100k
Loan: S$1m (inclusive of PC and car loan)
My hubby and I are both under 35yr and with 2 young children.
I am thinking if we should sell our HDB when PC top so as to reduce our loan by abt 50%. Is this good? I know to retain HDB for rental will be a better choice but that means we are highly geared?
Look forward to your guidance. Thanks!
lucky new new
06-03-12, 08:30
Problem is, you can sit on the landed, sacrifice your lifestyle, but yet you can't sell at good price as well because sell to who in future if the younger generation not interested? I am not interested in landed as well, even though I am considered the old generation. See! That is the problem! Most young generation not interested, many old generation like me also not interested! Now good only because of "greater fool" theory, just like chasing after gold! :p
In future, all the olds want to sell, few people interested to buy! :banghead:
We saw some landed around 2008/9, super super cheap! but for own stay, sorry, i still prefer condo life...:rolleyes:
no offence, bro yjcai! ;)
lucky new new
06-03-12, 08:33
If you have 200K CPF, you are likely close to retirement age.
20K income is nice, but for how long?
It's best to start to leverage and eventually get your title deed. You may not want bank holding the 1st claim when you need to pass the property to the next generation.
haha, like what other brothers said, I have big fat bonus, that contributed a lot to my cpf... not that old yet lah....
but yes, must start to leverage and eventually get the title deed. that's why i came to this forum for best advice :)
lucky new new
06-03-12, 08:34
Bottomline. Put money in higher interest avenue whether bank or cpf account. now, there is an additional 1% for the 1st 60k. The remainder will be 2.5%. Unless the spare cash that you have can help you to earn more than 2.5% then use CPF otherwise use cash to pay for the mortgage of your house. I had pay up a house using my cpf account plus some capital repayment while collecting rent from it those days and use it to reinvest in higher return investment tools where houses are much cheaper then. It is rather difficult now as houses are more expensive. I will not sell this houses as rental yield is good and do not want to channel the $ back to my CPF account to pay for the principal plus interest.
bro DC, thanks!
lucky new new
06-03-12, 08:36
You still approval from HDB before you can lease out your flat even though it has exceeded the 5 years of MOP. Right?
yes, i always follow book follow rule follow law one... check with HDB first for eligiblity, then find agent, check tenants NRIC/work permit etc before sign the agreement, after that quickly go to HDB website for approval :D so far so good
Your figure didn't tally lah. See, max CPF contribution only $4500 * 0.25 = $1125 pm in OA. To accumulate $200k need 14.8 years, that is assuming he start work already $4500 pm. So, a graduate starting work at 25 years old to accumulate $200k would most likely be >40 years old! :p
He could be in a job that Pay very high bonus. That will make the difference
lucky new new
06-03-12, 08:41
Landed property is not for sale. It will be pass on from generation to generation. Can rebuild after 25 years on the same plot of land. Hence, it has to be freehold and in good locations. Not tuck in one corner of Singapore without mrts, buses, amenities like malls, etc.
I feel the good size for landed should be around 2500 sqft. if at good location, not that cheap even at 2008 time.:mad:
lucky new new
06-03-12, 08:42
yeah many "guru" and "goondo":D
don't like that leh!
lucky new new
06-03-12, 08:43
You forgot about interests? and i said mid 30s 150k :beats-me-man:.
My point is 200k in CPF doesnt mean ur gonna retire.
bro price, thanks! yes, i'm not that old yet :D
After that sell the landed to who? We the younger generation totally not interested in landed, prefer bungalow in the sky. I actually suggest BITS instead since all we young Gen like them & can sell to us!
When u grow older u mind would change ;)
Dear all bros and sistas
I am sorry to step in here (not sure if it's ok), but some relevance as I like to hear your views for our profile below:
Household income: S$20k pm
CPF OA: almost zero (used to pay downpayment on PC recently)
A 5 rm HDB (fully paid)
Cash: S$100k
Loan: S$1m (inclusive of PC and car loan)
My hubby and I are both under 35yr and with 2 young children.
I am thinking if we should sell our HDB when PC top so as to reduce our loan by abt 50%. Is this good? I know to retain HDB for rental will be a better choice but that means we are highly geared?
Look forward to your guidance. Thanks!
with that kind of monthly household income (and i'm assuming you aren't a spendthrift and that you aren't intending to be a full-time homemaker), $20k per month should suffice to cover your $1m loan.
if i were you, i won't sell my HDB as regulations disallow you to purchase one in the future, if you were to hold onto your PC. Furthermore, rental income from your HDB can help defray some costs too.
lucky new new
06-03-12, 08:54
Hey Bro, you are in a good position. If you do this right, you should be able to grow your net worth by double digits in the next few years.
Pls calculate your net worth (total assets - total liabilities) and decide on your financial goals. Is passive income very important to you?
You definitely have excess cash - and since i don't know your risk profile, here's what I'll do if I would do.
Checklist #1
Ensure that your debt to service ratio (DSR) - total financial commitments (all loan repayments/total income is less than 40%.
(if not, use some of you cash to pay back your loans - important to ensure that for your 2 properties, your initial cash outlay should be at least 40%-50% of the value of your properties (this is to ensure that if your property falls in value - you don't get screwed especially if you need to refinance your loan in future since the economy is very unpredictable within the next few months
Checklist #2
Keep spare cash of at least 6 mths emergency funds (this should also include loan repayments to your new TOP apartment.). Something could happen to your job.
Once you have the above, if you want to invest in property, take note of the 40% downpayment needed and additional buyer's stamp duty.
I would not go for a new property (as your money will be stuck until TOP)...Find a desperate property owner who wants to sell - so you already make the money at the point of purchase - buying below valuation. ensure you have a rental yield of at least 4% (which is as important as the price you pay). Don't buy if you cannot get at last 4%.This way, whatever property to buy, brings in passive income.
Checklist #3
Don't be tempted like other high-paid individuals to move to an expensive house/property worth >$3m and take on a huge debt with zero ROA (return on Assets). I am sure you are comfortable with you current home loan of 800k
Personally, I am keeping my cash to watch how the market is turning out in the next 3-6 months.
I have 2 rental properties bringing in $7k a month and like you, investing in properties was the best decision I have made.
I had cashed out of Casah Merah and put the profits into the stock market which I expect to recover - to ensure I have a balanced portfolio.
I will not pay back my loan until the interest goes up to 4-5%.
Hope this helps! Good luck :cheers5:
I am sure others in this forums will provide good advice on how to make the best use of your cash.
bro Daredevil, you are angel indeed! :D
I like your advice! I really hope that I can "grow my net worth by double digits in the next few years." but I don't like risk at all :ashamed1: so i dear not to play stock, only interested at housing :) and i paid my investment ppty at 40% downpayment :ashamed1: i don't think i will go any bigger/expensive ppty for ownstay in the near future...
yes, probably i will follow you to "watch how the market is turning out in the next 3-6 months." Good luck to you too! :cheers4:
When u grow older u mind would change ;)
i would prefer a landed property and the tranquility that comes along with it. that's hoping my neighbourhood doesn't turn out to be everitt road part II :D
lucky new new
06-03-12, 08:58
He could be in a job that Pay very high bonus. That will make the difference
yes 20K/mth does not include bonus, and i'm pretty happy for my bonus ;)
lucky new new
06-03-12, 09:01
When u grow older u mind would change ;)
my mindset not ready yet for landed... so far couldn't appreciate those small terrace houses, but can't afford simi-D, so always eyeing at condo :cool:
lucky new new
06-03-12, 09:03
Dear all bros and sistas
I am sorry to step in here (not sure if it's ok), but some relevance as I like to hear your views for our profile below:
Household income: S$20k pm
CPF OA: almost zero (used to pay downpayment on PC recently)
A 5 rm HDB (fully paid)
Cash: S$100k
Loan: S$1m (inclusive of PC and car loan)
My hubby and I are both under 35yr and with 2 young children.
I am thinking if we should sell our HDB when PC top so as to reduce our loan by abt 50%. Is this good? I know to retain HDB for rental will be a better choice but that means we are highly geared?
Look forward to your guidance. Thanks!
use your HDB rental + your cpf, you will feel very easy to pay your mthly installment :)
and most important, you can't buy back HDB in the near future... so if possible, better keep it.
devilplate
06-03-12, 09:22
power....many high flyer here ;)
devilplate
06-03-12, 09:27
Dear all bros and sistas
I am sorry to step in here (not sure if it's ok), but some relevance as I like to hear your views for our profile below:
Household income: S$20k pm
CPF OA: almost zero (used to pay downpayment on PC recently)
A 5 rm HDB (fully paid)
Cash: S$100k
Loan: S$1m (inclusive of PC and car loan)
My hubby and I are both under 35yr and with 2 young children.
I am thinking if we should sell our HDB when PC top so as to reduce our loan by abt 50%. Is this good? I know to retain HDB for rental will be a better choice but that means we are highly geared?
Look forward to your guidance. Thanks!
quite safe leh......even if one of u lose ur job....10k pm still can make ends meet
1m loan installment prolly about 3k now.....int rate rise to 3.5%, abt 4.5k lor
rent out hdb upon TOP shd conservatively fetch 2k....so only about 2.5k......10k pm also can afford lah
The CPF cap is based on salary $5,000 per month (revised from $4,500) and the annual cap is 17 months of the monthly salary, which works out to $85,000 annually. Just a quick estimation and assuming max contribution of 23% into OA (for less than 35 years old), that would mean $19,550 will be contributed into OA annually and would take at least 10.2 years to hit $200k in OA (assuming he earns $5k and gets at least 5 months of bonus every single year).
Luckynewnew - you are in a very good position. I'm no guru here, but seriously i wouldnt be in a dilemna if I am in your position. Parking into FD to get that extra 1% interest for $700k only works out $7k of interest a year; or likewise to save 1% of interest payment for your housing loan is quite negligible considering the potential returns that you can get if you pick the right stock or the right ppty.
I cash out all my shares and waited for STI to correct to 2100 but it never materialised. But no regrets. So I bot into a PC.
Long story short, i will hold cash and wait, not necessary for fire sale or stock market to crash - but for the "right" investment to come along.
lucky new new
06-03-12, 09:44
The CPF cap is based on salary $5,000 per month (revised from $4,500) and the annual cap is 17 months of the monthly salary, which works out to $85,000 annually. Just a quick estimation and assuming max contribution of 23% into OA (for less than 35 years old), that would mean $19,550 will be contributed into OA annually and would take at least 10.2 years to hit $200k in OA (assuming he earns $5k and gets at least 5 months of bonus every single year).
Luckynewnew - you are in a very good position. I'm no guru here, but seriously i wouldnt be in a dilemna if I am in your position. Parking into FD to get that extra 1% interest for $700k only works out $7k of interest a year; or likewise to save 1% of interest payment for your housing loan is quite negligible considering the potential returns that you can get if you pick the right stock or the right ppty.
I cash out all my shares and waited for STI to correct to 2100 but it never materialised. But no regrets. So I bot into a PC.
Long story short, i will hold cash and wait, not necessary for fire sale or stock market to crash - but for the "right" investment to come along.
Thanks! so all i needed is: don't worry, be patient :)
as many bro mentioned, wait for 3-6 mths first :sleep:
use your HDB rental + your cpf, you will feel very easy to pay your mthly installment :)
and most important, you can't buy back HDB in the near future... so if possible, better keep it.
quite safe leh......even if one of u lose ur job....10k pm still can make ends meet
1m loan installment prolly about 3k now.....int rate rise to 3.5%, abt 4.5k lor
rent out hdb upon TOP shd conservatively fetch 2k....so only about 2.5k......10k pm also can afford lah
We have to build up our CPF to hit the minimum sum required (in order not be forced to sell HDB when PC TOP). That should be ard S$80k per pax (not sure if we can achieve that. If not, have to top up with cash into CPF acct lei)
So, we are not going to service our loan with CPF, at least at this junction. :(
Also, I am worried about the rental market (3 years later) and price of HDB (5-8 years later) with the massive number of HDB joining into "resale" market about 8 years later....
Am I worrying too much? :scared-3:
devilplate
06-03-12, 09:59
We have to build up our CPF to hit the minimum sum required (in order not be forced to sell HDB when PC TOP). That should be ard S$80k per pax (not sure if we can achieve that. If not, have to top up with cash into CPF acct lei)
really? i nvr heard of this.....if u had used part of ur CPF for ur 5rm flat...den how come cpf allow u to use ALL ur cpf for ur PC??? tot must set aside 65k??
So, we are not going to service our loan with CPF, at least at this junction. :(
Also, I am worried about the rental market (3 years later) and price of HDB (5-8 years later) with the massive number of HDB joining into "resale" market about 8 years later....
Am I worrying too much? :scared-3:
ppty px and rental up and down in a cycle....u got holding power wat.....if u sell ur hdb later on to reduce ur PC loan, u r actually taking a BIGGER RISK in the long run
Is it true that the smaller HDB flats i.e. 2-3rooms have better yield than EAs and 5 rooms?
to sidetrack, if i had a sum of $900k, first would be to get a patek and a lange to pamper myself :D
so many ppl earning 20k household income huh ?
and seriously you need advice on these financial matters meh ? :)
so this is only my personal opinion not advice hor : if your 5rm HDB had appreciated significantly, like a 100% (like bought new 300k, now worth 600k), I'm in favor of selling the HDB and realize the capital gains. Main reason: HDB is so heavily regulated, u never know when next time Gov says "no HDB renting is allowed" (You should remember last time HDB renting was VERY strict, not so easy like today). And when that happens u will see massive HDB resale supply. Plus your concern of massive oversupply of HDB coming online a few yrs later is VERY real. So many upgraders had bought OCR mass market condos in the last 2 yrs, all hoping later when condo TOP can sell/rent off their HDB to "finance" the condo. This is in addition to the massive nb of new HDBs being built.
You are already old enough to remember HDB prices, even in prime Queenstown/Bishan, had a similar drop before, from 700k to 400k. This is a risk you cannot ignore.
Condo Kaiser
06-03-12, 10:21
to sidetrack, if i had a sum of $900k, first would be to get a patek and a lange to pamper myself :D
haha.. i wont have much left from the 900k after i go to patek and a lange...
devilplate
06-03-12, 10:24
toking about regulation.....
i had NEVER expect govt to set 10% ABSD on foreigners for PRIVATE ppty!!!
so if toking about risk, HDB is having the lowest risk as compared to BIG TICKET PTE PPTY in terms of govt intervention
so if let say HDB not allowed to sublet....den i wud expect many will just stay on to their HDB and rent out PC when TOP lor if resale HDB px falls......
based on history, HDB px fall the least hor......
haha.. i wont have much left from the 900k after i go to patek and a lange...
haha, can lah. no need to those with complications :D
devilplate
06-03-12, 10:25
if i got one PC and one HDB and i must sell one now....i will sell PC
PRIVATE PPTY IS HOPELESS
what is the point of saying 'foreigner is eligible to buy' ....den on the other hand, foreigner pay 10% ABSD
HOPELESSSSSSSSSSSSSSSSSSS
devil u forget PC is also a lifestyle choice, that the member has chosen. It's not interchangeable with an HDB.
.. and I honestly think the 10% thing will be revised some how...
lucky new new
06-03-12, 10:31
so this is only my personal opinion not advice hor : if your 5rm HDB had appreciated significantly, like a 100% (like bought new 300k, now worth 600k), I'm in favor of selling the HDB and realize the capital gains. Main reason: HDB is so heavily regulated, u never know when next time Gov says "no HDB renting is allowed" (You should remember last time HDB renting was VERY strict, not so easy like today). And when that happens u will see massive HDB resale supply. Plus your concern of massive oversupply of HDB coming online a few yrs later is VERY real. So many upgraders had bought OCR mass market condos in the last 2 yrs, all hoping later when condo TOP can sell/rent off their HDB to "finance" the condo. This is in addition to the massive nb of new HDBs being built.
You are already old enough to remember HDB prices, even in prime Queenstown/Bishan, had a similar drop before, from 700k to 400k. This is a risk you cannot ignore.
toking about regulation.....
i had NEVER expect govt to set 10% ABSD on foreigners for PRIVATE ppty!!!
so if toking about risk, HDB is having the lowest risk as compared to BIG TICKET PTE PPTY in terms of govt intervention
so if let say HDB not allowed to sublet....den i wud expect many will just stay on to their HDB and rent out PC when TOP lor if resale HDB px falls......
based on history, HDB px fall the least hor......
selling HDB was one of options before... but now if sell, dont know when can buy back, also headache:doh: somemore, i already have so much cash on hand, don't know how to fully utilize it... i feel that it's not worthy to use HDB to exchange one small PC at this moment :(
so many ppl earning 20k household income huh ?
and seriously you need advice on these financial matters meh ? :)
so this is only my personal opinion not advice hor : if your 5rm HDB had appreciated significantly, like a 100% (like bought new 300k, now worth 600k), I'm in favor of selling the HDB and realize the capital gains. Main reason: HDB is so heavily regulated, u never know when next time Gov says "no HDB renting is allowed" (You should remember last time HDB renting was VERY strict, not so easy like today). And when that happens u will see massive HDB resale supply. Plus your concern of massive oversupply of HDB coming online a few yrs later is VERY real. So many upgraders had bought OCR mass market condos in the last 2 yrs, all hoping later when condo TOP can sell/rent off their HDB to "finance" the condo. This is in addition to the massive nb of new HDBs being built.
You are already old enough to remember HDB prices, even in prime Queenstown/Bishan, had a similar drop before, from 700k to 400k. This is a risk you cannot ignore.
I am here to seek views and just in case I missed something which I have not thought off... :)
devilplate
06-03-12, 10:34
selling HDB was one of options before... but now if sell, dont know when can buy back, also headache:doh: somemore, i already have so much cash on hand, don't know how to fully utilize it... i feel that it's not worthy to use HDB to exchange one small PC at this moment :(
die die keep HDB for ur case....i cant buy HDB tats y end up wif MM.....wakakaka
u shd aim for landed......ur next goal ;)
I already have so much cash on hand, don't know how to fully utilize it... i feel that it's not worthy to use HDB to exchange one small PC at this moment :(
so the idea is to accumulate cash and exchange for a BIGGER PC so it's more worthy isn't it ? like the 10M St Regis. Or gun for firesale 5m Ardmore Park, or 5M for that bungalow at Victoria Park :D
devilplate
06-03-12, 10:36
devil u forget PC is also a lifestyle choice, that the member has chosen. It's not interchangeable with an HDB.
.. and I honestly think the 10% thing will be revised some how...
yes.....
but let say HDB not allow to sublet anymore, den i am sure many will stay put at their HDB first if HDB cant fetch gd px
die die keep HDB for ur case....i cant buy HDB tats y end up wif MM.....wakakaka
u shd aim for landed......ur next goal ;)
DP bro, wheres ur MM :D
I am here to seek views and just in case I missed something which I have not thought off... :)
haha exactly as I thought. so my input help to validate your decision or not ? :D
devilplate
06-03-12, 10:41
DP bro, wheres ur MM :D
many bros noe oredi....clift lor....wakakaka
really? i nvr heard of this.....if u had used part of ur CPF for ur 5rm flat...den how come cpf allow u to use ALL ur cpf for ur PC??? tot must set aside 65k??
ppty px and rental up and down in a cycle....u got holding power wat.....if u sell ur hdb later on to reduce ur PC loan, u r actually taking a BIGGER RISK in the long run
Got, this rule does not affect HDB as it is the only property held, that's all... It affects all 2nd property buyers...
Appreciate your advice, THANKS Bro!
many bros noe oredi....clift lor....wakakaka
Wow thats just a couple of mins walk from where i am now :D How much/big?
haha exactly as I thought. so my input help to validate your decision or not ? :D
:)... your pt is the same as mine, but yet agree with what the other bros are saying too (the fact that cannot buy HDB again, rental income etc)... That's y I am here.... confused... hahaa
lucky new new
06-03-12, 10:51
so the idea is to accumulate cash and exchange for a BIGGER PC so it's more worthy isn't it ? like the 10M St Regis. Or gun for firesale 5m Ardmore Park, or 5M for that bungalow at Victoria Park :D
hahaha, my little heart only can take 800K at most! can't afford those D9, D10 big big name lah:D
devilplate
06-03-12, 10:55
hahaha, my little heart only can take 800K at most! can't afford those D9, D10 big big name lah:D
u oredi tinking of redeem ur small 800k loan and yet amk suggesting u to take up few M loan....hehehe
devilplate
06-03-12, 10:56
:)... your pt is the same as mine, but yet agree with what the other bros are saying too (the fact that cannot buy HDB again, rental income etc)... That's y I am here.... confused... hahaa
if let say u wana take a bigger risk, den u can tink of selling HDB and wait for PC firesale lor....
anyway when ur PC gona TOP?
hahaha, my little heart only can take 800K at most! can't afford those D9, D10 big big name lah:D
For a 800k purchase, you should pay 400k down and hold 3 years of mortgage payments as a buffer. You should use the rest to either partial repay your loan to reach current LTV of 50% or lower and invest the remaining in other liquid investment class.
devilplate
06-03-12, 11:00
For a 800k purchase, you should pay 400k down and hold 3 years of mortgage payments as a buffer. You should use the rest to either partial repay your loan to reach current LTV of 50% or lower and invest the remaining in other liquid investment class.
bro...i remember u not into equities.....so wat other type of liquid investment class u r refering to?
if let say u wana take a bigger risk, den u can tink of selling HDB and wait for PC firesale lor....
anyway when ur PC gona TOP?
My PC TOP late 2014 or early 2015... that's why the massive batch of HDB are ready too. But I guess I dont have to rush to sell my HDB then, can try renting first...
bro...i remember u not into equities.....so wat other type of liquid investment class u r refering to?
You remember well my friend. Others could include FD etc. Basically, the money is meant to be stored as ammo for future buys that could happen anytime, and you do not want to be stuck in an illiquid position or in a downside situation.
I dunno why some bros/sis on this forum are against equities. Keeping $$$ in cash is pretty useless too. Inflation means that your $$$ are shrinking all the time and the miserable interest rate for Fixed D is laughable. If you select a basket of blue-chip equities (from STI) spread out across industries and your timing is not so suay, it will still be better than keeping in the bank or some low yield instruments.
I have to admit that I was also sceptical of equities when I was in my 30s. However I come to realise that equities are okay as part of your non-property portfolio. I see my parents and in-laws.....their equities have done well for them after they retired - they have no property income (my Dad lives comfortably on his dividend income from 2 main counters OCBC and UOB - he retired abt 30 years ago). They don't hold assets like gold/bonds etc. There were not really high flyers either. Professionals/civil servants.
On the other hand, govt owe every citizen 1 cheap HDB flat for the 1st time! If not next time come GE2016, HDB prices too expensive is an issue, and their promise $1k pm salary can afford a 2bedroom HDB, what will be be the price of HDB flats? :p
if i got one PC and one HDB and i must sell one now....i will sell PC
PRIVATE PPTY IS HOPELESS
what is the point of saying 'foreigner is eligible to buy' ....den on the other hand, foreigner pay 10% ABSD
HOPELESSSSSSSSSSSSSSSSSSS
The reverse may be true, like in 1998-2005, those can afford people rather stay in private condos and sell HDB flats (can't fetch good price like previously but still good profit before they become gone!), resale HDB flats super over-supply, so cheep cheep!
yes.....
but let say HDB not allow to sublet anymore, den i am sure many will stay put at their HDB first if HDB cant fetch gd px
Also based on history, we have never seen 5-rm HDB flats selling for >$500k in ulu places in Singapore until after recent few years! Go back to history means have to drop back to about $300+k only? :banghead:
toking about regulation.....
i had NEVER expect govt to set 10% ABSD on foreigners for PRIVATE ppty!!!
so if toking about risk, HDB is having the lowest risk as compared to BIG TICKET PTE PPTY in terms of govt intervention
so if let say HDB not allowed to sublet....den i wud expect many will just stay on to their HDB and rent out PC when TOP lor if resale HDB px falls......
based on history, HDB px fall the least hor......
It is all about location even for landed property. Last deal in Feb around my area already closing at $1600psf. Have been staying in landed and still prefers landed especially it is FH and FP (got title deeds). Condos are meant to be rented our for passive income as they have higher rental.
I feel the good size for landed should be around 2500 sqft. if at good location, not that cheap even at 2008 time.:mad:
devilplate
06-03-12, 12:51
Also based on history, we have never seen 5-rm HDB flats selling for >$500k in ulu places in Singapore until after recent few years! Go back to history means have to drop back to about $300+k only? :banghead:
last time orchard condo at most 1500psf
It really depends on the kind of life when one retires either at the official age or early retirement. $3000-$4000/pax may be enough for now. 20 years later may need double of the above-mentioned amount to enjoy the same lifestyle. Hence, better be safe to achieve at least $15k/month of passive income to financially independent.
I dunno why some bros/sis on this forum are against equities. Keeping $$$ in cash is pretty useless too. Inflation means that your $$$ are shrinking all the time and the miserable interest rate for Fixed D is laughable. If you select a basket of blue-chip equities (from STI) spread out across industries and your timing is not so suay, it will still be better than keeping in the bank or some low yield instruments.
I have to admit that I was also sceptical of equities when I was in my 30s. However I come to realise that equities are okay as part of your non-property portfolio. I see my parents and in-laws.....their equities have done well for them after they retired - they have no property income (my Dad lives comfortably on his dividend income from 2 main counters OCBC and UOB - he retired abt 30 years ago). They don't hold assets like gold/bonds etc. There were not really high flyers either. Professionals/civil servants.
devilplate
06-03-12, 12:53
The reverse may be true, like in 1998-2005, those can afford people rather stay in private condos and sell HDB flats (can't fetch good price like previously but still good profit before they become gone!), resale HDB flats super over-supply, so cheep cheep!
yes
so the strategy is to buy a HDB and SELL ALL UR PC without having receiving a taxman call/letter
PC hopeless....resale flats same fate too as u suggested
SELL ALL!!!!!!!!!!!!!!!!!!!
devilplate
06-03-12, 12:54
On the other hand, govt owe every citizen 1 cheap HDB flat for the 1st time! If not next time come GE2016, HDB prices too expensive is an issue, and their promise $1k pm salary can afford a 2bedroom HDB, what will be be the price of HDB flats? :p
later netizens complain say y orchard condos so ex....must be affordable to all citizens
ok den impose MOP 10yrs for all orchard rd condos!!!
u better SELL ALL B4 ITS TOO LATE!!!
landed property lagi harder to sell to foreigners. watches aside, i would park a portion in equities and bonds and remainder into property. the ratio would definitely depend on your risk appetite.
although there has been much talk about a potential over-supply in the property market, i would have to draw attention to the huge amount of public investments into ramping up transport and healthcare infrastructure. one can guess that we are either critically under-capacity or the govt is building up in prep for more population growth. if the latter, then it sheds a different light on future property prices.
devilplate
06-03-12, 12:56
It really depends on the kind of life when one retires either at the official age or early retirement. $3000-$4000/pax may be enough for now. 20 years later may need double of the above-mentioned amount to enjoy the same lifestyle. Hence, better be safe to achieve at least $15k/month of passive income to financially independent.
ppty passive income shd be able to keep up wif inflation.....
cannot be rental drop 50% and den chicken rice cost $20....hehehe
ppty passive income shd be able to keep up wif inflation.....
cannot be rental drop 50% and den chicken rice cost $20....hehehe
$20 chicken is a little too much to stomach. even in downtown tokyo, a bowl of maguro donburi averages between $5-7 currently. so, don't think we will ever see the day when a plate of boon tong kee goes for $20 but hey, i ain't no prophet.
having said so, $15k passive income is a little overwhelming to achieve. how many of us have retired parents getting that amount currently? if any, probably a small handful of minority
It really depends on the kind of life when one retires either at the official age or early retirement. $3000-$4000/pax may be enough for now. 20 years later may need double of the above-mentioned amount to enjoy the same lifestyle. Hence, better be safe to achieve at least $15k/month of passive income to financially independent.
Bear in mind you might not be in physical capacity to enjoy $15K/month lifestyle in old age. Your stamina for overseas trips declines, your appetite for rich foods also declines and your ability to get in and out of the Lambo with creaky knees and aching back will also decline (as will your eyesight and reflexes to be able to handle the speed - so odd to see old uncle driving a lambo). Not to mention your ability to hang out with mei-meis and toy-boys will also decline.
Impt is to buy the best medical coverage plan NOW while still in good health as the medical bills will be the main expense in old age.
Trust me. I have elderly folks still around.
having said so, $15k passive income is a little overwhelming to achieve. how many of us have retired parents getting that amount currently? if any, probably a small handful of minority
No need that amount currently. My parents and in-law don't have anywhere near that amount of passive income and they live very comfortably. Your expectations are too high unless you are a high-flier already and I don't think most of us here are.
[quote=having said so, $15k passive income is a little overwhelming to achieve. how many of us have retired parents getting that amount currently? if any, probably a small handful of minority[/quote]
Wow $15k monthly passive income would mean owning 5 ppty (1 to stay and 4 to rent)... that would mean about $1m x 5 ppty = $5m into ppty.
devilplate
06-03-12, 15:52
Impt is to buy the best medical coverage plan NOW while still in good health as the medical bills will be the main expense in old age.
Trust me. I have elderly folks still around.
i only got the best medishield...LOL
i see those 30major illness package abit useless......when u r able to claim....oredi half dead.....smthing like cancer 4th stage den can claim....lol
i only got the best medishield...LOL
i see those 30major illness package abit useless......when u r able to claim....oredi half dead.....smthing like cancer 4th stage den can claim....lol
More for ur family lar. but for someone like u, anything happen just choose 1 PC to cash in :2cents: :2cents: can foot monthly medical bills! :D
Netizens many also say PM should take $100k a year, MPs should take <$2k pm since only work 4 evenings a week, meaning $500 per evening!
Netizens many also complain COEs too expensive, COEs system only favors the rich, must abolish COE!
You see all the above happen? :p
later netizens complain say y orchard condos so ex....must be affordable to all citizens
ok den impose MOP 10yrs for all orchard rd condos!!!
u better SELL ALL B4 ITS TOO LATE!!!
Everyone should get the best Incomeshield or equivalent from the private insurers (the highest plan you can afford). Medishield alone not enuff. Some of the new designer drugs for cancer can cost 5 to 6 K a month and may need to be taken indefinitely. That's at today's price. Some years down the road could be even higher.
Those 30 critical illness type of policies is mainly for yr family (if you already have medical insurance).
If you have no kids then they are not so useful. But you never know, one day you may have kids so the situation may change. The earlier you buy insurance, the more affordable are the premiums. And the conditions of claiming are easier too. Every so often, the insurance industry revises the conditions, so it becomes more and more difficult to claim. Those on the old schemes are bound by the old terms and conditions so are much much better off.
I am not an insurance agent. I made a review of my insurance some years ago so I know something abt it.
That last time PM pay only $250k per year. You want to go back that last time? First see whether PM pay goes back to $250k per year. :p
I am not joking, there is a correlation between Orchard condo $PSF price and the earnings of the top 1000 earners. :tsk-tsk:
last time orchard condo at most 1500psf
Everyone should get the best Incomeshield or equivalent from the private insurers (the highest plan you can afford). Medishield alone not enuff. Some of the new designer drugs for cancer can cost 5 to 6 K a month and may need to be taken indefinitely. That's at today's price. Some years down the road could be even higher.
Those 30 critical illness type of policies is mainly for yr family (if you already have medical insurance).
If you have no kids then they are not so useful. But you never know, one day you may have kids so the situation may change. The earlier you buy insurance, the more affordable are the premiums. And the conditions of claiming are easier too. Every so often, the insurance industry revises the conditions, so it becomes more and more difficult to claim. Those on the old schemes are bound by the old terms and conditions so are much much better off.
I am not an insurance agent. I made a review of my insurance some years ago so I know something abt it.
So are you on term plans mostly? I dislike the idea of mixing insurance with investment.
devilplate
06-03-12, 16:29
Everyone should get the best Incomeshield or equivalent from the private insurers (the highest plan you can afford). Medishield alone not enuff. Some of the new designer drugs for cancer can cost 5 to 6 K a month and may need to be taken indefinitely. That's at today's price. Some years down the road could be even higher.
Those 30 critical illness type of policies is mainly for yr family (if you already have medical insurance).
If you have no kids then they are not so useful. But you never know, one day you may have kids so the situation may change. The earlier you buy insurance, the more affordable are the premiums. And the conditions of claiming are easier too. Every so often, the insurance industry revises the conditions, so it becomes more and more difficult to claim. Those on the old schemes are bound by the old terms and conditions so are much much better off.
I am not an insurance agent. I made a review of my insurance some years ago so I know something abt it.
i kiasu de....pte medishield and add in xtra 2 options
buy ppty take some loan and those intend to keep forever one all buy mortgage insurance.....bestest.....die liao dependents got fully paid hse ;)
other whole life insurance etc all nono one lor....pay so much coverage little bit....only make agt rich nia
i kiasu de....pte medishield and add in xtra 2 options
buy ppty take some loan and those intend to keep forever one all buy mortgage insurance.....bestest.....die liao dependents got fully paid hse ;)
Which companies offer good value mortgage policies?
devilplate
06-03-12, 16:33
Which companies offer good value mortgage policies?
duno wat u mean by good wor....i nvr claim b4 leh....wakakaka
duno wat u mean by good wor....i nvr claim b4 leh....wakakaka
Reasonable value premiums lor or are they all pretty much the same $$?
devilplate
06-03-12, 17:00
Reasonable value premiums lor or are they all pretty much the same $$?
duno leh....usually let say i take loan from xxx bank, den i jus take their xxx insurance coy.....wakaka
i believe quite competitive.....
Reasonable value premiums lor or are they all pretty much the same $$?
As long as you don't need millions of insurance coverage, the group term plans from AA, SAFRA and the NSmen insurance from Aviva (not sure of the name - but ex-NS men also eligigle) offer reasonable value premiums. However coverage is only until age 60 - 70 (not sure which - go check yourself).
If you have a housing loan, the mortgage protection policy (reducing term) also offers quite good value but the above is the best value as far as I'm aware. Anybody know of better deals, please share.
For MEDICAL plans, I think Incomeshield (from NTUC) is the cheapest but I understand that the other companies have a bit more extras and easier to claim. Sorry I have no experience in claiming either. Like devil said...take the highest private plan with the riders to cover co-payments, excess etc. Cover all your dependants.
Whole life cover - yes it's expensive but if you take it out when young, it will look better value as you get older.
Unless you are thinking of retiring at the official age of 65 years old. I am thinking of retiring once this amount is reached as it is already below active monthly income. With money, we can go on private tour with private limo and private tour guide. Wake anytime and go anywhere in the country of visit. However, this amount is too fall short of such quality of tour.
Bear in mind you might not be in physical capacity to enjoy $15K/month lifestyle in old age. Your stamina for overseas trips declines, your appetite for rich foods also declines and your ability to get in and out of the Lambo with creaky knees and aching back will also decline (as will your eyesight and reflexes to be able to handle the speed - so odd to see old uncle driving a lambo). Not to mention your ability to hang out with mei-meis and toy-boys will also decline.
Impt is to buy the best medical coverage plan NOW while still in good health as the medical bills will be the main expense in old age.
Trust me. I have elderly folks still around.
$15k of passive is not impossible. I am sure there are people here who are earning more than this. As I have said, our parents may not need so much now but really not sure in the future.
No need that amount currently. My parents and in-law don't have anywhere near that amount of passive income and they live very comfortably. Your expectations are too high unless you are a high-flier already and I don't think most of us here are.
As long as you don't need millions of insurance coverage, the group term plans from AA, SAFRA and the NSmen insurance from Aviva (not sure of the name - but ex-NS men also eligigle) offer reasonable value premiums. However coverage is only until age 60 - 70 (not sure which - go check yourself).
If you have a housing loan, the mortgage protection policy (reducing term) also offers quite good value but the above is the best value as far as I'm aware. Anybody know of better deals, please share.
For MEDICAL plans, I think Incomeshield (from NTUC) is the cheapest but I understand that the other companies have a bit more extras and easier to claim. Sorry I have no experience in claiming either. Like devil said...take the highest private plan with the riders to cover co-payments, excess etc. Cover all your dependants.
Whole life cover - yes it's expensive but if you take it out when young, it will look better value as you get older.
You sound like you are from some defence organisation, as your knowledge of insurances from these organisations are quite good.
lucky new new
24-03-12, 13:03
wow, im away from SG for 2 weeks, my thread went to page 3 liao! I like this forum!
I decided to wait first. Consult all the gurus here for FD - shall I go for Maybank or FairPrice Plus???
Best Singapore Bank Deposit Rates (updated 4 March 2012) (http://www.sgwayoflife.com/forum/viewtopic.php?t=1574#p3544)
Recommended Savings Accounts (no lock-in period) :
Less than S$5,000 = 0.1875% p.a. (Maybank iSAVvy) No minimum monthly balance to maintain
More than S$5,000 to below S$50,000 = 0.30% p.a. (Maybank iSAVvy) No minimum monthly balance to maintain
Less than S$50,000 = 0.10% p.a. (Standard Chartered Bank e$aver) No minimum monthly balance to maintain
S$50,000 to S$199,999 = 0.15% p.a. (Standard Chartered Bank e$aver) No minimum monthly balance to maintain
First S$50,000 = 0.20% p.a. (FairPrice Plus Savings Account) No minimum monthly balance to maintain
More than S$50,000 = 0.38% p.a. (Maybank iSAVvy) (Interest-on-interest every 6 months 6.00% for average monthly balances of at least S$5,000)
More than S$50,000 = 0.40% p.a. (FairPrice Plus Savings Account) (Subject to maximum deposit of S$500,000)
S$200,000 and above = 0.25% p.a. (Standard Chartered Bank e$aver)
devilplate
24-03-12, 13:06
i lock in abit on 1.48% 18mths FD from maybank 12mths i tink 1.18%
very pathetic i noe.....but i am paying less den tat for my mortgages and can even lock in 1.38% for 3yrs!!
wakakaka
lucky new new
24-03-12, 13:13
i lock in abit on 1.48% 18mths FD from maybank 12mths i tink 1.18%
very pathetic i noe.....but i am paying less den tat for my mortgages and can even lock in 1.38% for 3yrs!!
wakakaka
bro, you are so helpful and resourceful! :D
I called maybank, they propose a product to lock 24mth, not 18mths... they ask me to split into 2 - one for 24mth locking, one for iSAVvy. good?
now everywhere so hot. have to be patient right? wait for 2 years??
lucky new new
24-03-12, 13:22
how about this formula for your cash?
25% fixed deposit
25% fund/trust
50% stock
0% property at this moment...
wow, im away from SG for 2 weeks, my thread went to page 3 liao! I like this forum!
I decided to wait first. Consult all the gurus here for FD - shall I go for Maybank or FairPrice Plus???
Best Singapore Bank Deposit Rates (updated 4 March 2012) (http://www.sgwayoflife.com/forum/viewtopic.php?t=1574#p3544)
Recommended Savings Accounts (no lock-in period) :
Less than S$5,000 = 0.1875% p.a. (Maybank iSAVvy) No minimum monthly balance to maintain
More than S$5,000 to below S$50,000 = 0.30% p.a. (Maybank iSAVvy) No minimum monthly balance to maintain
Less than S$50,000 = 0.10% p.a. (Standard Chartered Bank e$aver) No minimum monthly balance to maintain
S$50,000 to S$199,999 = 0.15% p.a. (Standard Chartered Bank e$aver) No minimum monthly balance to maintain
First S$50,000 = 0.20% p.a. (FairPrice Plus Savings Account) No minimum monthly balance to maintain
More than S$50,000 = 0.38% p.a. (Maybank iSAVvy) (Interest-on-interest every 6 months 6.00% for average monthly balances of at least S$5,000)
More than S$50,000 = 0.40% p.a. (FairPrice Plus Savings Account) (Subject to maximum deposit of S$500,000)
S$200,000 and above = 0.25% p.a. (Standard Chartered Bank e$aver)
ALL THE ABOVE LOSE to CIMB 0.8%p.a. compounded daily Starsaver (Normal Savings / Current Account)
No min balance, no fall below fee, no restrictions etc. Free unlimited cheque books (not just the first)
i lock in abit on 1.48% 18mths FD from maybank 12mths i tink 1.18%
very pathetic i noe.....but i am paying less den tat for my mortgages and can even lock in 1.38% for 3yrs!!
wakakaka
2 years got 1.65% liao ma? ICIC :D
i don't know how to fully utilize the cash... the property is getting higher and higher, i just can't commite to buy another one.... and i don't know when will the real firesales come... so thinking if i payoff my current property, i will have peace of mind...
luckily i found this forum, and so many gurus here :)
welcome to this wonderful forum..yes many GURUS around also a FEW GOONDUS...:D:eek::D
wow, im away from SG for 2 weeks, my thread went to page 3 liao! I like this forum!
(http://www.sgwayoflife.com/forum/viewtopic.php?t=1574#p3544)
normal bro this forum got a lot of Rich and free people...so can give u advice and TCSS....:D:D:D
wow, im away from SG for 2 weeks, my thread went to page 3 liao! I like this forum!
even if u come back in 2 years we all still be here...but Hmmmmm...what will
property prices be like THEN...thats the MILLION $$ question:confused:
lucky new new
24-03-12, 15:04
even if u come back in 2 years we all still be here...but Hmmmmm...what will
property prices be like THEN...thats the MILLION $$ question:confused:
I C I C....how is your house hunting? seems that we are at same boat with Mr B hahaha:D
lucky new new
24-03-12, 15:07
ALL THE ABOVE LOSE to CIMB 0.8%p.a. compounded daily Starsaver (Normal Savings / Current Account)
No min balance, no fall below fee, no restrictions etc. Free unlimited cheque books (not just the first)
thanks! will call now.
lucky new new
24-03-12, 15:11
ALL THE ABOVE LOSE to CIMB 0.8%p.a. compounded daily Starsaver (Normal Savings / Current Account)
No min balance, no fall below fee, no restrictions etc. Free unlimited cheque books (not just the first)
OK CIMB said 0.8% for flexibility, 0.95% for 1 year locking.
maybank 1.+% if lock for 2 years.
how???
You did not go in the eastspring MIP? Much better return of 5%.
i lock in abit on 1.48% 18mths FD from maybank 12mths i tink 1.18%
very pathetic i noe.....but i am paying less den tat for my mortgages and can even lock in 1.38% for 3yrs!!
wakakaka
What do you think two years later?
even if u come back in 2 years we all still be here...but Hmmmmm...what will
property prices be like THEN...thats the MILLION $$ question:confused:
devilplate
24-03-12, 16:41
You did not go in the eastspring MIP? Much better return of 5%.
Jim rogers said high yield bond risky leh
Eastspring all bbb- rating bonds.....scary
Its like high risk low return to me....5% yield aso not guaranteed one lor
Fundsupermart only charge 0.5% though.....seriously considering and might dump abit of spare cash when px drop to about 0.99
Have been getting it since 3 years ago. Price is usually very stable except for lethman time which went down to $0.70.
Jim rogers said high yield bond risky leh
Eastspring all bbb- rating bonds.....scary
Its like high risk low return to me....5% yield aso not guaranteed one lor
Fundsupermart only charge 0.5% though.....seriously considering and might dump abit of spare cash when px drop to about 0.99
I C I C....how is your house hunting? seems that we are at same boat with Mr B hahaha:D
i prefer to call it house BROWSING...:D:D:D
What do you think two years later?
some say up some say down...:spliff:
i say i dunno...:confused:
some say up some say down...:spliff:
i say i dunno...:confused:
I oso say dunno, until someone told me the other day that with the current potential inflation of about 5% p.a. over the next 5years property prices must move up between 20% to 30% to stay inline, now I puzzle?
What you guys think?
I oso say dunno, until someone told me the other day that with the current potential inflation of about 5% p.a. over the next 5years property prices must move up between 20% to 30% to stay inline, now I puzzle?
What you guys think?
Property price to raise 20 to 30%, interest must remain low, FED must introduce QE3, population must increase, wage must increase.
GOVT have already start with wages and infrastructure, interest rate determine by FED and the next thing the GOVT will do is increase the population.
Don't sell your HDB flat, Mr Lee tells resident
http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_731351.html
Prices for new HDB flat launches are typically linked to prevailing resale prices
http://www.iproperty.com.sg/news/3954/MND-Minister-Explains-HDB-Prices
devilplate
24-03-12, 23:48
I oso say dunno, until someone told me the other day that with the current potential inflation of about 5% p.a. over the next 5years property prices must move up between 20% to 30% to stay inline, now I puzzle?
What you guys think?
Worstest fear is stagflation....there r no winners
There r oredi some early signs....moi no economist guru.....read it smwhr one
Worstest fear is stagflation....there r no winners
There r oredi some early signs....moi no economist guru.....read it smwhr one
what is stagflation...is it buyer no buy seller no sell...:confused:
i don't feel it's the right time to buy, and don't know when will be the right time to buy....:doh:
same feeling here...:o
devilplate
25-03-12, 15:37
what is stagflation...is it buyer no buy seller no sell...:confused:
Google it :)
In economics, stagflation is a situation in which the inflation rate is high (4.6% @ Feb 2012)and the economic growth rate slows down (4.9% @ 2011) and unemployment remains steadily high(2% @ 2011 can sent back PR, FT, etc about 1.2 million). It raises a dilemma for economic policy since actions designed to lower inflation or reduce unemployment may actually worsen economic growth. The portmanteau stagflation is generally attributed to British politician Iain Macleod, who coined the phrase in his speech to Parliament in 1965.
http://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/labourforce.aspx
devilplate
25-03-12, 18:07
high oil/energy px and low growth is the key ingredient to stagflation
high oil/energy px and low growth is the key ingredient to stagflation
Oil price high because of QE1, QE2. Oil price in USD. QE3 oil price even higher.
Main reason for stagflation is usually due to pursuit of austerity in economic policy when the economy is going into recession! Pursuit of Keynes theory which is now popular in US, China, & even ECB (but only Germany not supportive) will always help to push growth faster than inflation & hence avoid stagflation. That is why doomsayers & hopers hate Keynes!
In economics, stagflation is a situation in which the inflation rate is high (4.6% @ Feb 2012)and the economic growth rate slows down (4.9% @ 2011) and unemployment remains steadily high(2% @ 2011 can sent back PR, FT, etc about 1.2 million). It raises a dilemma for economic policy since actions designed to lower inflation or reduce unemployment may actually worsen economic growth. The portmanteau stagflation is generally attributed to British politician Iain Macleod, who coined the phrase in his speech to Parliament in 1965.
http://www.mom.gov.sg/statistics-publications/national-labour-market-information/statistics/Pages/labourforce.aspx
what is stagflation...is it buyer no buy seller no sell...:confused:
wohoo thats why i failed economics...:D:D:D
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.