repay or continue with hdb loan ?

[T-Mobile]

After 1 1/2 years . I am asking myself the same old question again .

Total 2 kids now
Next year April will reach 5 years MOP of current hdb

Current outstanding mortgage loan : $206,000

Liquid cash this year total : $380k
Shares gold silver market value $150k
Ssb 50k

Cpf total approx 10k only

Wife combine assest less than 30k

Should I fully repay ?

No intention of getting private property yet . Maybe if got chance will go for EC next year .

 

[GenuineSeller]

After 1 1/2 years . I am asking myself the same old question again .

Total 2 kids now
Next year April will reach 5 years MOP of current hdb

Current outstanding mortgage loan : $206,000

Liquid cash this year total : $380k
Shares gold silver market value $150k
Ssb 50k

Cpf total approx 10k only

Wife combine assest less than 30k

Should I fully repay ?

No intention of getting private property yet . Maybe if got chance will go for EC next year .

Why do you want to repay all?
Use your cash to earn a return of 3% or more is better....isn't it?

 

[Tiger9119]

Why do you want to repay all?
Use your cash to earn a return of 3% or more is better....isn't it?

Can you recommend any investment with 3% return per annum?

 

[BBCWatcher]

Can you recommend any investment with 3% return per annum?

The CPF Special and Medisave Accounts are currently yielding 5% for T-Mobile and T-Mobile's spouse, since they both have total CPF savings under $60K. Above $60K it's a 4% yield. That's not even including tax relief, which boosts the effective yield.

Should I fully repay ?

What's the interest rate on your mortgage? If it's a current market rate, or lower, no, you shouldn't. It's still cheap money, and you'd put it in prudent, age appropriate, well diversified investments. By the way, silver and gold are not that.

However, if you're sitting on a pile of cash (and silver and gold) and cannot possibly imagine doing anything else, and if that pile of cash is yielding 0.8% (or something like that), then sure, accelerating repayment of your mortgage makes some financial sense, provided still that there's no prepayment penalty.

 

[gld998]

After 1 1/2 years . I am asking myself the same old question again .

Total 2 kids now
Next year April will reach 5 years MOP of current hdb

Current outstanding mortgage loan : $206,000

Liquid cash this year total : $380k
Shares gold silver market value $150k
Ssb 50k

Cpf total approx 10k only

Wife combine assest less than 30k

Should I fully repay ?

No intention of getting private property yet . Maybe if got chance will go for EC next year .

Well done!! U doing very well !! I jelly.

 

[GenuineSeller]

Can you recommend any investment with 3% return per annum?

Not sure about your risk appetite so it's difficult to recommend you anything.

I will just list some possible ways:-

OCBC 360 could earn 3% on your $70K......risk free.
Structured Investment could earn 8% coupon for 6mths etc.... involves risk.

Note also that interest rates are moving up....

 

[Tiger9119]

Not sure about your risk appetite so it's difficult to recommend you anything.

I will just list some possible ways:-

OCBC 360 could earn 3% on your $70K......risk free.
Structured Investment could earn 8% coupon for 6mths etc.... involves risk.

Note also that interest rates are moving up....

OCBC 360 limit is only S$70k and I don't have salary credit and giro payments.

I already have USD structured note with OCBC and I find it too risky. 2 out of 3 stocks are above trigger level if there is no stock market crash tonight.

I am thinking whether should I use CPF OA or cash for HDB BTO?
At least CPF OA is capital guaranteed with 2.5% interest.

 

[GenuineSeller]

OCBC 360 limit is only S$70k and I don't have salary credit and giro payments.

I already have USD structured note with OCBC and I find it too risky. 2 out of 3 stocks are above trigger level if there is no stock market crash tonight.

I am thinking whether should I use CPF OA or cash for HDB BTO?
At least CPF OA is capital guaranteed with 2.5% interest.

2 out of 3 stocks are above trigger level if there is no stock market crash tonight...
What does that mean? You mean you are forecasting a market crash?

 

[Tiger9119]

2 out of 3 stocks are above trigger level if there is no stock market crash tonight...
What does that mean? You mean you are forecasting a market crash?

I am not forecasting market crash tonight, my structured note will be valued after market closed on 30Aug. My structured note is based on 3 stocks.

 

[GenuineSeller]

I am not forecasting market crash tonight, my structured note will be valued after market closed on 30Aug. My structured note is based on 3 stocks.

IC. 2 out of 3 stocks above KO still ok what.....

 

[LexusIS]

After 1 1/2 years . I am asking myself the same old question again .

Total 2 kids now
Next year April will reach 5 years MOP of current hdb

Current outstanding mortgage loan : $206,000

Liquid cash this year total : $380k
Shares gold silver market value $150k
Ssb 50k

Cpf total approx 10k only

Wife combine assest less than 30k

Should I fully repay ?

No intention of getting private property yet . Maybe if got chance will go for EC next year .

Really depend on your plans for the money

Housing interest is Low, so no urgency to repay. But can do some repayment if you are really certain no major usage of funds. But always have standby funds for emergency etc

if you are considering to upgrade to EC, good to keep some additional cash too.


Some other alternative
1) Interest rates are going up so can consider some of the banks promos - Current account TOP up, FD promo etc

2) Can consider topping up your SA account to get 4% interest and tax rebate.

3) Depending on your income, you can also consider topping up SRS for more tax saving and you can use the funds to invest and save for future

4) Put more into SSB

5) Others (shares, unit trust reits etc) but must consider risk

 

[Tiger9119]

IC. 2 out of 3 stocks above KO still ok what.....

But 1 is about 20% from knock in.

 

[GenuineSeller]

But 1 is about 20% from knock in.

I believe you will be fine.....

 

[Tiger9119]

I believe you will be fine.....

Hopefully, 5 more months to go.

 

[namdlo]

With $300+k liquid cash, you can get bonds for $250k which returns 4-5% per annum. Go check with your banks RMs or if you trade online, many platforms offer bonds but min sum is $250k lah.

This will be much better than paying off your mortgage. Let your money work for you.

 

[GenuineSeller]

Your chance of KO will be higher....

Hopefully, 5 more months to go.

 

[Tiger9119]

With $300+k liquid cash, you can get bonds for $250k which returns 4-5% per annum. Go check with your banks RMs or if you trade online, many platforms offer bonds but min sum is $250k lah.

This will be much better than paying off your mortgage. Let your money work for you.

Bonds are not 100% safe. Swiber, Hyflux???

 

[namdlo]

Bonds are not 100% safe. Swiber, Hyflux???

Nothing's 100% safe when it comes to investment.
You can opt for the investment grade bonds but yields will be lower. I see lots of banks offer bonds for about 4% yield.

 

[T-Mobile]

Nothing's 100% safe when it comes to investment.
You can opt for the investment grade bonds but yields will be lower. I see lots of banks offer bonds for about 4% yield.

Thank you all for the suggestions and recommendation .

Not very incline to bonds . I am slowly accumulating sti etf . But still etf yields less than 3% .
Waiting for market to crash since 2015 .
Warchest rusty Liao Haha ..

Divested some REITs . Over the past few years . Gonna be quite passive in share market due to more other commitments.

I am very risk adversed right

My loan is hdb loan 2.6% .
Maybe I shall take 100k . Top up till 60k in OA + SA . The rest do a partial payment

Regarding those liquid cash .
I have some in maxigain . Rest in standchart alternating between my wife and my account .

Together with my dividends / distributions from shares

I only managed to acheieve 2.8% yield on my total wealth .

 

[hachi]

Wow so many got war Crest. I also standby a good amount to whack. Currently inside FD. Always ready.

What it is not liquid, is not yours. No point repaying.

I left 80k of hdb loan, don't even think of paying it full even I have the means.