HDB Question

[Tschuus]

Most people think housing loan below 2.6% are good debts. But it really depends on how confident you are to use the cash to generate more returns .

i fully paid my house . Lazy to use the cash to generate more.

 

[iam7377]

Second property or sell and buy? If second property then you would qualify for a bigger loan if you clear your current.

If sell and buy then again probably no point.

Upgrade to EC or Condo...

 

[iam7377]

not much point to clear loan

Any reason?

 

[iam7377]

tats wat i m doing actually... i still got like ard 100over k left le... wanna do nx lumpsum payment soon

Jiayou Jiayou, after that lei? Upgrading or?

 

[ribena.bing]

where u get interest on cash 3-4%?

errr. maribank. gxs. uob one. uob stash. ocbc.

brother. can few hundred k and get at least 3%. if u dw fulfil the criteriae, can always throw in fixed d. i think still more than 2.6 la

alot of ppl complain cant take out money from cpf. but who ask them pay full payment upfront and their cpf now bursting?

 

[iam7377]

Bro recently nearing 40. More of my frens became retrenched. I myself division this year May 25 looking to close down and my boss told me the 3 of us in our team better start looking out.

Thankfully our hse almost fully paid n we have more than FRS n BHS in our acct.

I told my wife I am finding job now but likely in 2 years we try fr BTO again and unlock 700k frm our current place as buffer fr any job losses down the road.

I advise you to be as debt free as possible as the market is really changing fast with AI , RBA and more foreigners come in. You see the budget for so much support for retrenchment and employment gir reason one.

Thos with condo even worst. Imagine have to wait 18 months to buy hdb. 30 months then can apply BTO. Nv include building timeline

Advise to clear debt asap.

Ok, good advise...

 

[iam7377]

Upgrade to private la... There's no benefits regardless paying off or keeping in CPF. Cash out your BTO and use the $500,000 profit to upgrade to a condo at the expense of the PR who bought from you because he cannot buy BTO.

My area I think can sell high, as there will be building a mall and MRT nearby...

 

[iam7377]

Use $20K OA to invest some stocks with at least 6% dividend,not only to cover 2.6% HDB interest and 2.5% annual interest but also to tide you over retrenchment

Not all in to the property?

 

[AcquiT]

Monthly

If sell 1 day u pay off accrued interest with cash proceed day the amount pay off initial with interest can be v big

Compound interest if cpf base big overcome loan amount easily and earned more

Home insurance kicked in touch wood and house if free and cpf got cash to draw out

These 3 reasons why even i can fully paid off i also dont

 

[iam7377]

depends, you using HDB Loan or Bank loan now?

HDB loan...

 

[iam7377]

Second property or sell and buy? If second property then you would qualify for a bigger loan if you clear your current.

If sell and buy then again probably no point.

Sell.and buy

 

[1982-1994]

Not all in to the property?

No right or wrong
Just standby another $20k cash in case you kena retrenched

 

[iam7377]

Monthly

If sell 1 day u pay off accrued interest with cash proceed day the amount pay off initial with interest can be v big

Compound interest if cpf base big overcome loan amount easily and earned more

Home insurance kicked in touch wood and house if free and cpf got cash to draw out

These 3 reasons why even i can fully paid off i also dont

Dun understand, can explain?

 

[coyote]

My area I think can sell high, as there will be building a mall and MRT nearby...

Just take $500,000 profit after mop and change to condo. Do it fast while you are young and employed so that you can get loan.

 

[Balian]

Any reason?

Why clear away your cpf + cash in hand to clear a loan that would be cleared once you sell away?

 

[kaputzzz]

If you use your OA to pay off the loan early, there's Accrued Interest that you need to pay on that amount. That means instead of earning from the 2.5% OA interest to pay off the HDB loan 2.6% interest, CPF is going to charge you 2.5% Accrued Interest on the money that you used to pay the HDB Loan and add it to your "debt" that you need to pay back to CPF. That means when you decide to sell, you could get back much lesser because you need to pay back the Accrued Interest over the years.

If it was me, i wouldnt pay off early. Rather leave it in CPF and keep it liquid and let HDB slowly deduct. The difference is not much, but there is a difference.

 

[jericho75]

errr. maribank. gxs. uob one. uob stash. ocbc.

brother. can few hundred k and get at least 3%. if u dw fulfil the criteriae, can always throw in fixed d. i think still more than 2.6 la

alot of ppl complain cant take out money from cpf. but who ask them pay full payment upfront and their cpf now bursting?

got criteria one lor. is not u put in do nothing will have more than 2.6%

now fd interest dropping liao

 

[wongminmin]

cash is king. for emergencies or investment.
then bank interest alone able to cover the 2.6% housing loan.

 

[ribena.bing]

got criteria one lor. is not u put in do nothing will have more than 2.6%

now fd interest dropping liao

too simple to meet if u have bills and giro-ed salary... can get 4% on 150k.

ocbc quite similar.

then uob stash throw in 100k dont touch. another 3%

very difficult criteria? i think those that say cannot meet are just plain lazy to plan their expenses

im not even mentioning investments. got 90k u put in low risk etf also can get more than 2.6%. so i can't understand why need to pay upfront early with cash. to me, its a foolish decision

so even if i can, i wont unless hdb increases loan interest insanely

 

[hachi]

Some people say if want upgrade, dun clear all, keep some CPF and Cash on hand...

Yes if you want. I did that... Now don't need, can whack frs