equity financing

[marktkt22]

Hi bro and sis,
What the risk of equity financing ?
Top up when valuations go south ...
Current rate look good for equity finance

[devilplate]

Hi bro and sis,
What the risk of equity financing ?
Top up when valuations go south ...
Current rate look good for equity finance

i was told by banker tat MAS dun allow us to use the $ to purchase another ppty anymore wor

[Ilikeu]

Hi bro and sis,
What the risk of equity financing ?
Top up when valuations go south ...
Current rate look good for equity finance

Can share what is the rate like?

[teddybear]

How will they know what you do with the money after they disbursed to you? Simple, tell them that equity financing money is not for buying property loh (even though you may actually do so later)?

i was told by banker tat MAS dun allow us to use the $ to purchase another ppty anymore wor

[devilplate]

How will they know what you do with the money after they disbursed to you? Simple, tell them that equity financing money is not for buying property loh (even though you may actually do so later)?

of coz initially they dun noe...

but wat if suay suay they call u to check where the $$ come from for the next condo purchase?

[marktkt22]

Ok, but what the risks ? .... actually of doing equity finance vs normal house loan ?
Top up risk ?

I Wont use it for house, it for investment.....

[Jonathan0503]

Don't think there's a restriction on what you can do with the money from equity loan.

At least not for my case

[marktkt22]

Rates same as house loan

Can share what is the rate like?

[devilplate]

Don't think there's a restriction on what you can do with the money from equity loan.

At least not for my case

last time definitely can use to buy ppty one lor...somemore can use the interest paid to reduce rental income tax

when u did ur equity loan? i was also very surprised to hear it from banker recently....just about 1mth ago

[marktkt22]

Dbs bank .... Sound good.
I go ahead then ....v likely

last time definitely can use to buy ppty one lor...somemore can use the interest paid to reduce rental income tax

when u did ur equity loan? i was also very surprised to hear it from banker recently....just about 1mth ago

[marktkt22]

Ocbc, scb and anz also can do,
I chk with them also

[devilplate]

Ocbc, scb and anz also can do,
I chk with them also

For fixed rate, wats the spread after lock in period?

[marktkt22]

Let me go and find out,
Because i intend to go 2+2 , so by 4th yr,
All locked in and clawback over already

For fixed rate, wats the spread after lock in period?

[ecimbew]

Sorry I don't know much about equity loan. What's the criteria to secure this loan?

[marktkt22]

Current Valuations exceed purchase price

Sorry I don't know much about equity loan. What's the criteria to secure this loan?

[Arcachon]

Got the loan last year April 11, buy May 11. Going to claim interest for income tax this year.

[Arcachon]

Current Valuations exceed purchase price

And after CSC is issue.

[Jonathan0503]

last time definitely can use to buy ppty one lor...somemore can use the interest paid to reduce rental income tax

when u did ur equity loan? i was also very surprised to hear it from banker recently....just about 1mth ago

About 5 months ago. Maybe rule has changed now?

[ecimbew]

Current value exceeds purchase price and must be after CSC is granted

Then how much equity loan is allowed?

[DC33_2008]

This is not my cup of tea.

Current value exceeds purchase price and must be after CSC is granted

Then how much equity loan is allowed?

[Arcachon]

Current value exceeds purchase price and must be after CSC is granted

Then how much equity loan is allowed?

Before the CM it was 70%, now after CM check with the bank, if I am not wrong should be 60% of valuation of property.

[DC33_2008]

What if the person who took up this suddenly con off?

Before the CM it was 80%, now after CM check with the bank, if I am not wrong should be 60% of valuation of property.

[Arcachon]

What if the person who took up this suddenly con off?

What is con off?

[DC33_2008]

knock out! Go to find the maker suddenly!

What is con off?

[Arcachon]

O I see. In the US, bank take back the house. In Singapore don't know.

[DC33_2008]

Quite bad! Any recent photos of sportshub from SB?

O I see. In the US, bank take back the house. In Singapore don't know.

[rattydrama]

Before the CM it was 70%, now after CM check with the bank, if I am not wrong should be 60% of valuation of property.

I heard that need to payback to cpf if downpayment draw down is from cpf. Is that true?

So in the end the balance amount may not be much.

For eg.
valuation is 1.2m
60% is now 720k

less loan outstanding is 500k.
less cpf refund 100k

cash balance 120k

I think this is how it works.

[ecimbew]

Then it means having sufficient money in CPF and cash for another property!

[Arcachon]

Quite bad! Any recent photos of sportshub from SB?

Still in France, going back Singapore for good maybe end of the year.

[Arcachon]

I heard that need to payback to cpf if downpayment draw down is from cpf. Is that true?

So in the end the balance amount may not be much.

For eg.
valuation is 1.2m
60% is now 720k

less loan outstanding is 500k.
less cpf refund 100k

cash balance 120k

I think this is how it works.

Buy SB at $535,000 loan $428,000 in June 2006 after 20% down. TOP 2010, CSC Jan 2011.

Got a email from UOB, cash out $660,000 about 70% of SB valuation $1,550,000 in Apr 2011.

paying $1475.76 + $2329.14 = $ 3804.9 per month still positive with rental from 5 room, need to do something end of the year.