Any full time traders?

zawoo86

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Any full time traders here?

Assume that you are a profitable trader (jus go with it) in Singapore and that you have a stable "income".

This income is not subjected to tax or CPF.

How do you go about taking bank loans, say for HDB mortgage?

Can I put money into CPF voluntarily to prove that I have steady cash flow?
 

alexchia01

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Any full time traders here?

Assume that you are a profitable trader (jus go with it) in Singapore and that you have a stable "income".

This income is not subjected to tax or CPF.

How do you go about taking bank loans, say for HDB mortgage?

Can I put money into CPF voluntarily to prove that I have steady cash flow?

Yes, just put some money into your CPF voluntary and regularly.
 

kakaboo

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its the same as ppl who teach tuition full time, don't think too much abt it
 

kebinu

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There are more than a way to get loan.

For example, do a $160k fixed deposit for 4 years to get a $600k loan.

Don't declare and contribute to cpf.
 

focus1974

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Ya, example, $100k in deposit can loan you up to $1mil. Just ask those mobile mortgage bankers. You can find a lot of them in showrooms. Dont go ask those personal bankers in the branch, they are not knowledgeable one.
 
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Ya, example, $100k in deposit can loan you up to $1mil. Just ask those mobile mortgage bankers. You can find a lot of them in showrooms. Dont go ask those personal bankers in the branch, they are not knowledgeable one.

Is that not gearing? FX traders have to deal with that :o
 

focus1974

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Is that not gearing? FX traders have to deal with that :o

TS asking about loan for HDB without any income.
So a loan definitely is leverage. I am telling him how to do it based on previous experience.
 

zawoo86

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Thanks guy for the helpful replies.

Allow me to explain my situation more specifically and what I am planning to do. I have no idea how to go about it.

Im a Singapore PR. I paid off my HDB completely last year. I am planning to purchase a private condo in JB, Danga Bay Country Garden by the end of this year.

Currently not employed. I left my job in March as I feel I am profiting well on trading and I have substantial monthly dividends. I wanted more time during the day to do trading and monitoring rather than my boring job (Lab Technician).

Could you guys give me more specific details? Do local banks such as POSB/DBS have those kind of loans with initial deposit for say $1mil? I am looking at Maybank as they provide assistance to purchasing property in Malaysia. However they do look at CPF and I'm also guessing, my income statement. But it shouldn't be an issue right, since I can voluntarily contribute cpf to prove I have a stable income.

TIA!
 

sojournerr

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You are buying CG Danga bay for own stay and not investment I hope?
 

zawoo86

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You are buying CG Danga bay for own stay and not investment I hope?

yup. own stay. my fiancee is a malaysian. I thought CG DB is a good place as its near the custom and 1.5 hour journey to my house in SG. I stay in woodlands.:)
 
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3dfxplayer

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You don't need a mortgage or bank loans if you can make it as a trader. I bought my condo with cash 3 years ago, with more than enough cash left over to trade my own account.

Remember only 1% make good money trading, the other 99% will be better off with a regular day job because they will either be losing money or not making enough for it to be worth their time.
 

3dfxplayer

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There are more than a way to get loan.

For example, do a $160k fixed deposit for 4 years to get a $600k loan.

Don't declare and contribute to cpf.

I don't think you can do that anymore, TDSR dictates that you must have taxable income before you can borrow from banks, you can't even reverse mortgage your property if you have no proof of income.
 

zawoo86

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You don't need a mortgage or bank loans if you can make it as a trader. I bought my condo with cash 3 years ago, with more than enough cash left over to trade my own account.

Remember only 1% make good money trading, the other 99% will be better off with a regular day job because they will either be losing money or not making enough for it to be worth their time.


While I do have a healthy amount of cash at hand, it is not so much to the point I can purchase a S$400,000 property right of the bat :( . I have been trading for almost only 2 years. I have a business back in my home country for passive income in case of loss in trading.

And this property will also be my retirement home, so I wouldn't mind a 20-25 years mortgage loan. I have 0 credit cards and 0 other outstanding loan, which I think will improve my chance of getting a loan. :o
 

3dfxplayer

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Thanks guy for the helpful replies.

Allow me to explain my situation more specifically and what I am planning to do. I have no idea how to go about it.

Im a Singapore PR. I paid off my HDB completely last year. I am planning to purchase a private condo in JB, Danga Bay Country Garden by the end of this year.

Currently not employed. I left my job in March as I feel I am profiting well on trading and I have substantial monthly dividends. I wanted more time during the day to do trading and monitoring rather than my boring job (Lab Technician).

Could you guys give me more specific details? Do local banks such as POSB/DBS have those kind of loans with initial deposit for say $1mil? I am looking at Maybank as they provide assistance to purchasing property in Malaysia. However they do look at CPF and I'm also guessing, my income statement. But it shouldn't be an issue right, since I can voluntarily contribute cpf to prove I have a stable income.

TIA!

Voluntary contribution to CPF isn't proof of income, you need to set up a sole proprietorship, get IRAS to determine your net trade income then contribute to CPF before you can get a loan from a bank. Bear in mind that your income will then be subject to taxation if you go down this route.
 

3dfxplayer

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While I do have a healthy amount of cash at hand, it is not so much to the point I can purchase a S$400,000 property right of the bat :( . I have been trading for almost only 2 years. I have a business back in my home country for passive income in case of loss in trading.

And this property will also be my retirement home, so I wouldn't mind a 20-25 years mortgage loan. I have 0 credit cards and 0 other outstanding loan, which I think will improve my chance of getting a loan. :o

Its impossible to get a loan with no proof of income now, it was only possible before TDSR kicked in. When I got my apartment my RM offered a 60% loan on it, because I had a substantial amount of money with them, now with TDSR this isn't possible anymore, the bank would have to flout rules to lend you money.
 

zawoo86

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Its impossible to get a loan with no proof of income now, it was only possible before TDSR kicked in. When I got my apartment my RM offered a 60% loan on it, because I had a substantial amount of money with them, now with TDSR this isn't possible anymore, the bank would have to flout rules to lend you money.


Hmm, that was insightful, thank you. So I am guessing there is no way get a loan without an income, and the only way is to cash out the entire cost of the property or get a job for a loan?
 

3dfxplayer

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Hmm, that was insightful, thank you. So I am guessing there is no way get a loan without an income, and the only way is to cash out the entire cost of the property or get a job for a loan?

Mostly, but don't take my word for it, I've only talked to 2 bankers from UOB and Standchart, I've not called up every single bank in Singapore. It could be different with other banks, though I doubt it...
 

zawoo86

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Mostly, but don't take my word for it, I've only talked to 2 bankers from UOB and Standchart, I've not called up every single bank in Singapore. It could be different with other banks, though I doubt it...

Thank you for the info.

On the side note, out of curiosity, how long have you been trading :D . To be able to buy condo with cash from trading, thats bloody impressive and is my aspiration :s12:
 

3dfxplayer

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Thank you for the info.

On the side note, out of curiosity, how long have you been trading :D . To be able to buy condo with cash from trading, thats bloody impressive and is my aspiration :s12:

My pleasure.

Been trading for about 8 years, but I made ~80% of my money from 2008-2011, where 2000 point intra day swings on the HSI and 300 pt gap downs on the Dow were common, ah those were the days of easy money for skilled traders.

Its a lot harder to make that kind of obscene money now, volatility is down huge... but I adapt. :)
 
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