View Full Version : Loans: Pay more upfront or loan maximum and invest the cash: Stocks? Fixed D? ETF?
LaFiestaOwner
30-06-13, 08:21
Option 1 to 4: Which one us best? I think this is a question that we all face. Are we only going to be left with a roof after we die? In theory, it seems it is always best to borrow as little as possible and pay back as quickly as possible to get out of debt. However, this may not be the best method. Currently, floating rate is abt 1.4%. Many investment instruments are available, ETFs, stocks, fixed Deposits. What is the best?
1.)Fixed D: For me, I put all in fixed deposits but they give very little money. Maybank if you put $60000 and above for 3 years, 1.6% interest rate.
2.) ETFs: But banks always take a cut.
3.) Stocks: Buy what is safe? US is stopping QE soon, will stocks be safe? I do not have any stocks, anyone that can give constant dividend ones?
4.) Pay as much as possible and be debt free.
I choose option 1 but I think that one barely covers the loan interest.
princess_morbucks
30-06-13, 09:23
I will choose 4 1 2 3.
Option 4 being my 1st option.
Why do u say for ETF , banks take a cut?
ETF can be traded on the sgx like any stock.
How about option 5) accumulate cash and wait for stock crash...haha I will go for tis
Pay more upfront is best...
FD is a waste of time...
ETF... dunoo how well-versed u are or what risk appetite
Stocks... constant dividends are the blue-chips, REITs and Telcos
LaFiestaOwner
30-06-13, 10:24
ETFs on our stock market is very thinly traded. Stocks got risk. If i need the cash n it dropped a lot, i won't be able to sell and may make a loss.
Brudder, a simple new rule... U panick until so jialat....
You want to play etf, stocks, etc.... You better stay clear....
Can u afford to lose????? If cannot, this is not for you.....
Relax.... Take a deep breath and decide your risk appetitie.... All advise to you by people are irrelevant if u cannot understand your own appetite.
Cheers
;)
(Not)LaFiestaowner is not so simple.
We only live once..... As long can make $, property and stocks we must cheong
(Not)LaFiestaowner is not so simple.
Aiya bro... Anyone come to this forum all not so simple lah.... We are all here to tcss and idle our time away lar.... So relak lah brudder...
:cool1: :cheers4:
If FD rate is higher than mortgage rate, loan max, put cash in FD.
Aiya bro... Anyone come to this forum all not so simple lah.... We are all here to tcss and idle our time away lar.... So relak lah brudder...
:cool1: :cheers4:
Yes yes hahaha I'm lazing around in my pool now.
Yes yes hahaha I'm lazing around in my pool now.
Cool dude... As for me, going to take my afternoon nap now.... Brain needs to cool down... Cheers
How about option 5) accumulate cash and wait for stock crash...haha I will go for tis
I second this.
LaFiesta, you should be pulling out your hair now trying to make a super tough decision. Just wonder why spending time asking this question instead focusing on making your decision? How does it relates to your decision making?
You will MTB if you still indecisive. Go with you heart...no wrong or right ...just do it :D .
You will MTB if you still indecisive. Go with you heart...no wrong or right ...just do it :D .
Brudder, I just woke up and saw this.... Please go with head... Never with heart...
Head will get you out of trouble, if u ever get into one.... Heart will get you into trouble if you want one.
Cheers
:cheers2:
LaFiestaOwner
30-06-13, 14:38
Brudder, I just woke up and saw this.... Please go with head... Never with heart...
Head will get you out of trouble, if u ever get into one.... Heart will get you into trouble if you want one.
Cheers
:cheers2:
I am looking at the loan aspect to see whether to sign the SnP. Currently rate v low and if I can generate cash to match the higher rate, even if 8% for 10 years also can. I mean this may not be the government's last measure, although I don't remember any condo has as much hype as J Gateway. So this could be the peak peak. I am thinking whether developer will drop price below launch price. I had some friends who started renting in 2010 because they say will crash will crash, now 2013, still renting. That's almost $100000..
I am looking at the loan aspect to see whether to sign the SnP. Currently rate v low and if I can generate cash to match the higher rate, even if 8% for 10 years also can. I mean this may not be the government's last measure, although I don't remember any condo has as much hype as J Gateway. So this could be the peak peak. I am thinking whether developer will drop price below launch price. I had some friends who started renting in 2010 because they say will crash will crash, now 2013, still renting. That's almost $100000..
Ok, today good mood....
1. This will be your foray into the world of investment... Dude, if it were so easy to make money... There will be many rich dudes here today..... They will tell u, close eye surely make one lah.... No such thing ....
2. I have a unit at anchorage, tenant rented from me 5 years.... Waiting for price to drop.... They shifted out sometime in March this year.... My unit is 3 bedder @1,500sf. Calculate how much rental they paid....
I have another unit @ clover rented to a Singaporean couple as well.... Coming 2 years in sept.
3. If u are renting, please do a spreadsheet to see which is more worth it????
4. We were in 1 of this worst recession in history and u think we going into 1 within this 2 years????
5. The economy may tank a bit in Singapore because of immigration policy changes - hahahaha.... But it won't be a big recession lar...
6. Think with your head, not your heart.... This is about your future, not your girlfriend. Hahahahahaha
Read more about the economy and it will guide you.....
Cheers
;) ;) ;)
Read and you will be rewarded..... From your own reasoning and then challenge it....
Oh by the way, what triggers a crash in housing???? An event.... What event? go find out...
i will go for option 1 and 4 combined. SCB loan account with offset feature. put all excess cash in the account. it is as good as paying off the loan and yet you have spare cash for sudden emergencies. and u earn interest rate at the same rate as your home loan.
You get all the points and exchange with free food vouchers.
i will go for option 1 and 4 combined. SCB loan account with offset feature. put all excess cash in the account. it is as good as paying off the loan and yet you have spare cash for sudden emergencies. and u earn interest rate at the same rate as your home loan.
Waaah haven t ask finish. By the time finish asking war over liao...zzzzzz
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