The increase in interest rate really hurts......

[bakuganboy]

Last time 2000, interest rate 5,6 per cent. Prop market humming along. Scared what. Straight goto 6 per cent lah, scared what

 

[onegoal]

i got properties paying at 9% in 80s last time

Hi Shushu, nice to know this information. Do take care and share us more property stories in 80s.

Those days, my grandfather says kumpumg house cost 20k. Bigger than football field in CCK

 

[aarontansp]

Annual interest rate	1.15%	2.25%
Loan amount	$750,000	$750,000
Loan tenure	20 years	20 years
Monthly payment	$3,499.63	$3,883.56
Total interest paid	$89,911.08	$182,054.91
Total amount paid	$839,911.08	$932,054.91

For the same loan amount of $750,000, an increased interest rate means need to pay nearly $100,000 more!

Hdb 2.6 hokay?

 

[coey]

Once take bank loan cannot take hdb right. Also by that time hdb loan also up rate la lololol

Hdb up rate means cpf also up rate.

 

[NightmareFromTheSky]

Annual interest rate	1.15%	2.25%
Loan amount	$750,000	$750,000
Loan tenure	20 years	20 years
Monthly payment	$3,499.63	$3,883.56
Total interest paid	$89,911.08	$182,054.91
Total amount paid	$839,911.08	$932,054.91

For the same loan amount of $750,000, an increased interest rate means need to pay nearly $100,000 more!

What is 100k when you can afford a 800k flat?

 

[freshvibes]

Always going up~

 

[onegoal]

This low intetest started around 2003. It is been more than 18years. It also means many though it is normal. But the truth is, banks are evil company. They will use this opportunity to suck as much interest as possible from these people. Or force sell properties at low price. UOL is one sub company of UOB, they will happily buy up the property and rent or flip.

 

[chech01]

property agents say can buy 3 for rental

 

[Forestraintree]

Generally, paying 100k more across 20 years is very manageable in most Singaporean property owners. TDSR is implemented to ensure people's debt servicing doesn't exceed their income by 55% .

property prices will not drop too much if the interest rates continue to rise. There's already so many cooling measures in place, gov can relax a bit in any of those measures to support property prices. Singapore property prices will never crash...

If interest rates rises more and more, the first to be hit is Corporate companies cos their debt interest payment will rise. Their loans are in tens of millions. Companies may have to cut costs due to slower economy and higher cost of funding, resulting in many job losses.

Pls don't hope for more interest rates rises, gloating on property owners higher interest payments, hoping for property price crashes.... cos the first to be impacted is all of our job security including parents job security...

 

[Forever84]

Generally, paying 100k more across 20 years is very manageable in most Singaporean property owners. TDSR is implemented to ensure people's debt servicing doesn't exceed their income by 55% .

property prices will not drop too much if the interest rates continue to rise. There's already so many cooling measures in place, gov can relax a bit in any of those measures to support property prices. Singapore property prices will never crash...

If interest rates rises more and more, the first to be hit is Corporate companies cos their debt interest payment will rise. Their loans are in tens of millions. Companies may have to cut costs due to slower economy and higher cost of funding, resulting in many job losses.

Pls don't hope for more interest rates rises, gloating on property owners higher interest payments, hoping for property price crashes.... cos the first to be impacted is all of our job security including parents job security...

Truth is if the interest rate goes higher, I will opt to do partial repayment on my loan, maybe reduce from 1M to 500k, this will reduce total interest paid. (If government remove ABSD, maybe time to consider pick up another instead of paying down loan)

You’re right that the first casualties will be jobs, property will also be a lagging factor. Already many companies tightening their belt due to uncertainty, lots are unsure if they can maintain profitability/margins and stock price in the coming year and beyond.

These people here gloating will likely not pick up even if prices fall 30-40% one la

 

[killing_my_dreams]

no more retire early. work and work to pay the housing loan and generate more gdp

 

[gld998]

Hi Shushu, nice to know this information. Do take care and share us more property stories in 80s.

Those days, my grandfather says kumpumg house cost 20k. Bigger than football field in CCK

Siao.. hdb one period over supply also have.. thanks to hongkie and tiongs fleeing ccp our property market flying to the moon.

 

[gld998]

no more retire early. work and work to pay the housing loan and generate more gdp

this is for sure. planning to work until 65 if still can

 

[drkcynic]

Interest rate low for so many years. In fact I have never paid high rate before.

Don't drama la.

Cannot tong sell lor, it's market forces at work.

 

[drkcynic]

People tend to forget property interest rise, savings interest rate also will rise.

When they can get more for the money they save they don't complain.

 

[andyhtc]

i got properties paying at 9% in 80s last time

Properties were much cheaper in 1980s.

 

[A Better Tomorrow]

People tend to forget property interest rise, savings interest rate also will rise.

When they can get more for the money they save they don't complain.

The pro of taking loan with more interest outweight the pro of taking savings interest rate. Banks made a lot from giving loans and taking the fat cuts.

And of course there is more risks involved in taking loan in this chaotic times.

 

[Killertomato12]

The pro of taking loan with more interest outweight the pro of taking savings interest rate. Banks made a lot from giving loans and taking the fat cuts.

And of course there is more risks involved in taking loan in this chaotic times.

To be frank, banks dun earn alot from mortgage loans. Home loans are mainly for banks to balance up their deposit interests.
Main profit drivers are investments, insurances & corporate loans.

 

[drkcynic]

The pro of taking loan with more interest outweight the pro of taking savings interest rate. Banks made a lot from giving loans and taking the fat cuts.

And of course there is more risks involved in taking loan in this chaotic times.

I did a tie up with my bank. My excess free cash and assets deposited with them will negate whatever interest rise in my mortgage loan.

So net net I am flat as long as i keep cash in there. Mortgage can rise to 5% won't make a difference.

 

[marksnow44]

With inflation and additional GST will have less $$$ to pay for interest increases.

Who did you all vote for last election??