To pay finish housing loans or to invest ?

[Soomp!]

I am actually paying for an overseas property at the rate of 4.2% Interest .
On top of that, HDB Housing loan of 2.6% ..

For the overseas property I am financing it at their bank and I picked the flexi account plan that I just have to pay around S$4 mohthly..
The more Savings in that account, the lesser it will deduct on interest but more on principal paid.

HDB loans, everyone would know.

What do you think?...

Investment means to invest in indexes and stocks, etc...
to get Dividends and etc..

 

[Dividends Warrior]

Repay the housing loans first.

 

[Soomp!]

Repay the housing loans first.

I am also investing $300++ odds bucks in G3B..

That is a small amount i guessed ... hope to catch the growth of singapore..

 

[steven168z]

depend..

no loan mean you are financial secure and u can take higher risk.

 

[mojitoes]

HDB housing loan is the cheapest loan you can leverage with...

 

[steven168z]

HDB housing loan is the cheapest loan you can leverage with...

read this..
Truth Exposed: The Dirty CPF-HDB Scheme To Trick Singaporeans | The Heart Truths

How Are Taxes Built For The Rich In Singapore? | The Heart Truths

 

[path_of_rainbow]

I am actually paying for an overseas property at the rate of 4.2% Interest .
On top of that, HDB Housing loan of 2.6% ..

For the overseas property I am financing it at their bank and I picked the flexi account plan that I just have to pay around S$4 mohthly..
The more Savings in that account, the lesser it will deduct on interest but more on principal paid.

HDB loans, everyone would know.

What do you think?...

Investment means to invest in indexes and stocks, etc...
to get Dividends and etc..

S$4 monthly is cheap

 

[mojitoes]

read this..
Truth Exposed: The Dirty CPF-HDB Scheme To Trick Singaporeans | The Heart Truths

How Are Taxes Built For The Rich In Singapore? | The Heart Truths

The accrued interest goes back to you.

 

[bullsback]

it really depends on what is your investment return percentage and is it quantifiable...? Are u able to leverage and generate cash?

For me, I can generate consistent returns, thus leverage is not an issue, in fact its good to leverage.

If your investment returns is not consistent and quantifable then its better to pay up the loans...

 

[wahkao3]

it really depends on what is your investment return percentage and is it quantifiable...? Are u able to leverage and generate cash?

For me, I can generate consistent returns, thus leverage is not an issue, in fact its good to leverage.

If your investment returns is not consistent and quantifable then its better to pay up the loans...

very few ppl know how to quantify their returns

 

[RubiksCuber]

very few ppl know how to quantify their returns

How does one quantify returns?

 

[henrylbh]

it really depends on what is your investment return percentage and is it quantifiable...? Are u able to leverage and generate cash?

For me, I can generate consistent returns, thus leverage is not an issue, in fact its good to leverage.

If your investment returns is not consistent and quantifable then its better to pay up the loans...

I have got more in the CPF than the housing loan that I have taken!@

Interest on the housing loan is only 1.06245% and I can't find any reason to pay off the loan.

Like to know whether has anyone arranged with bank to pay only interest? I would like to do that.

 

[bullsback]

How does one quantify returns?

this is only in my opinion...to me trading is like taxidriver business...

both business u go out there is unknown, u drive the taxi out, u dunno kenna accident or unable to fetch customers, there is always this uncertainty, but as long as u go out there, and provided u got enough experience prior, u know on average u sure can generate X amount of return given Y amount of hrs...the rest being deviations...

trading/investing is like that also.. given Y amount of capital, whats the average return..?

If u have been doing what u have been doing for a long time, u probably can answer that question...

I am not smart and not reasonably hardworking, but i think most pple take 10,000hrs to achieve success in their special trade or skills....

Golfers, traders, doctors, accountants, fund managers etc...

when u spend roughly 4 yrs in your current job, u become sexpert right?

 

[Shiny Things]

I am actually paying for an overseas property at the rate of 4.2% Interest .
On top of that, HDB Housing loan of 2.6% ..

HDB loans, everyone would know.

What do you think?...

The HDB loan's a no-brainer - you'd rather invest than pay it down. Paying down your HDB loan is the equivalent of getting a guaranteed 2.6% return, which is pretty bloody anemic when you compare it to the return on stocks.

The overseas one's a bit tougher, especially if you're taking on currency risk as well. I'd pay that one down, but it's a bit of a coin-flip.

 

[3dfxplayer]

It depends on your income and how liquid you are, both of which can greatly affect your ability to service your mortgages.

 

[Soomp!]

Overseas property is on Ringgit.
I believed it is now at 500k ++ RM loan..
Paying like 2660 RM monthly..

4.2% per annum interest is nasty on me..

 

[Mecisteus]

Overseas property is on Ringgit.
I believed it is now at 500k ++ RM loan..
Paying like 2660 RM monthly..

4.2% per annum interest is nasty on me..

you cant think it that way.

since the property is in malaysia and it is valued in MYR, you are better off with a longer term loan. because you know MYR is a weaker currency compared to SGD. your interest payments is probably smaller compared to the potential depreciation in the MYR.

on the other hand, you should pay off the loan early if you think MYR is going to appreciate against SGD.

 

[Soomp!]

you cant think it that way.

since the property is in malaysia and it is valued in MYR, you are better off with a longer term loan. because you know MYR is a weaker currency compared to SGD. your interest payments is probably smaller compared to the potential depreciation in the MYR.

on the other hand, you should pay off the loan early if you think MYR is going to appreciate against SGD.

I am thinking to have a decent amount of savings within the account, so lesser $$ would be taken off interest ..

1. Any extra cash you deposit into your current account will automatically reduce your interest charges and shorten your loan tenure. Interest is charged based on the net debit balance of the home loan account and current account.
2. Redraw extra cash deposited at any time with no charges for redrawals.

I am doing a monthly RSP on G3B .. Do u all think this is a good fund to go along?

 

[henrylbh]

I am thinking to have a decent amount of savings within the account, so lesser $$ would be taken off interest ..

1. Any extra cash you deposit into your current account will automatically reduce your interest charges and shorten your loan tenure. Interest is charged based on the net debit balance of the home loan account and current account.

1. 
   
   Reduce interest charges I can understand.
   Shorten loan tenure?

 

[Soomp!]

Reduce interest charges I can understand.
Shorten loan tenure?

basically if u reduce interest means u are paying lesser and thus shorter the period u have to pay the whole thing i guessed?

i am not sure how it works anyway.