Optimal loan period

[mummy1234]

so you are staying in the property that is meant for investment and renting out the property that you want to stay in.

For the moment, yes...you finally got it....

 

[dork32]

For the moment, yes...you finally got it....

your reply really reminds me of this clip i watched when i was much younger

see it from 1.55 onwards

https://www.youtube.com/watch?v=-4vqntGieeY

 

[Bedokian]

For me having some loan ensure I be more prudent with money, think twice before spending on any yolo stuff. Lol
It's more psychological I guess.

It depends on the nature of loan. I am adverse to debt, but for loans such as property I would have to accept it, after all one cannot pay off in one shot (unless I win one of the Toto top prize within these 2 weeks ).

Besides property and car loans, I would not see myself going for others, even for using leveraging to invest.

 

[doody_]

I would stretch my home loans as long as possible. Get one that has no penalty if you want to do partial redemption. Stretching the home loan gives me more cash which I can use to put as downpayment when upgrading, or maybe even for a second property. If I don't intend to upgrade or buy another property, then I can simply do a partial redemption and reduce the principal amount.

 

[microtek]

If say you applied for a homeloan at a tenure of 10 years. Then a few years later you want to change the tenure to 25 years instead, would it be difficult to do so? Otherwise it makes more sense to stretch it as long as possible and then make lump sum payments along the way if you get a huge bonus / strike toto etc...

 

[starfish.starfish]

It depends on the nature of loan. I am adverse to debt, but for loans such as property I would have to accept it, after all one cannot pay off in one shot (unless I win one of the Toto top prize within these 2 weeks ).

Besides property and car loans, I would not see myself going for others, even for using leveraging to invest.

I try to have only one loan at a time, no parallel loans.
So if I ever intend to get a 2nd property I will make sure my first one is paid off first.

And strangely for myself too, I cannot see myself leverage for other investments such as stock though it shouldn't be too much different from taking loans for properties, just different investment tools.

 

[starfish.starfish]

My guess is starfish.starfish is younger than me and Bedokian

I am always happy when ppl say I am young. Lol
Though it's a bit delusional now

 

[starfish.starfish]

If say you applied for a homeloan at a tenure of 10 years. Then a few years later you want to change the tenure to 25 years instead, would it be difficult to do so? Otherwise it makes more sense to stretch it as long as possible and then make lump sum payments along the way if you get a huge bonus / strike toto etc...

You just need to refinance your loan, which is usually recommended.