View Full Version : assume a drastic fall in prices
As above, what happens to your bank loan?
Say property bought for 1mil, paid 20% deposit. Bank loan 800k.
If price fall 30% and now worth 700k.. thus there's a diff of 100k.
What will the bank do? Top up 100k? Put that 100k into the principal?
As long as u service loan on time in full, no worries
As above, what happens to your bank loan?
Say property bought for 1mil, paid 20% deposit. Bank loan 800k.
If price fall 30% and now worth 700k.. thus there's a diff of 100k.
What will the bank do? Top up 100k? Put that 100k into the principal?
Negative equity. Think bank will usually take action only if owner default on mortgage payment, there should be some guide from regulator MAS. Most apparent in 97-98 Asian Financial Crisis, did not hear of owners having to top up. Perhaps others can share.
Nowadays jungle law liao.
GS recall full loan without asking for margin. Notice given: 90 minutes.
the bank wun ask u to top up meh?
my fwen ppty appreciated n bank told her tat she can effectively borrow more.
proud owner
01-12-13, 20:54
the bank wun ask u to top up meh?
my fwen ppty appreciated n bank told her tat she can effectively borrow more.
banks are loaded with cash .... dun know where to invest ... kana controlled by govt not to expand housing loan portfolio ..
so they hold tight tight to existing loans as long as borrower don't default on payment ...
if valuation increase ... of course they encourage you to take more cos your rating better now with the improved valuation ..
As above, what happens to your bank loan?
Say property bought for 1mil, paid 20% deposit. Bank loan 800k.
If price fall 30% and now worth 700k.. thus there's a diff of 100k.
What will the bank do? Top up 100k? Put that 100k into the principal?
Own stay 1 unit unlikely as long u service ur loan. Investment now currently with ABSD and TDSR. unlikely u will fall below.
unless black swan no JOB.. then all bets are off have to talk to band to restructure before miss payment.
Thus it better to have cash flow to tong the rough times if sway.
the bank wun ask u to top up meh?
my fwen ppty appreciated n bank told her tat she can effectively borrow more.
bank are also worry a domino effect. As long as the loanee continue to pay the loan negative equity they will still not rock the boat. Imagine force sell the unit and that impact valuation which could pull other unit further down negative. can cause all loan to crash.
The most important rule in lending $. u can beat up the loanee. but don't kill him. A dead Loanee can't pay back a single cent.
As above, what happens to your bank loan?
Say property bought for 1mil, paid 20% deposit. Bank loan 800k.
If price fall 30% and now worth 700k.. thus there's a diff of 100k.
What will the bank do? Top up 100k? Put that 100k into the principal?
Bad doggy, how can you use my computer while I am out. Later dont feed you, then you know:D
banks are loaded with cash .... dun know where to invest ... kana controlled by govt not to expand housing loan portfolio ..
so they hold tight tight to existing loans as long as borrower don't default on payment ...
if valuation increase ... of course they encourage you to take more cos your rating better now with the improved valuation ..
but now valuation increase oso no use. gena hindered by tdsr, how to borrow more?
but now valuation increase oso no use. gena hindered by tdsr, how to borrow more?
Effectively "break" up the loan into 2 or 3 parts ? :rolleyes::D
Effectively "break" up the loan into 2 or 3 parts ? :rolleyes::D
huh? means wat? explain properly leh. now trying hard to find ways for bank to lend me $ :D
but now valuation increase oso no use. gena hindered by tdsr, how to borrow more?
during the 97 crash. many people die becoz of buy property and then take a reverse mortgage and then buy another unit and so on. when the music stop. many people die.
This round TDSR will put a stop to these madness...
huh? means wat? explain properly leh. now trying hard to find ways for bank to lend me $ :D
Never tried before also
let the banker go and think about it :D
but if they know what I am thinking about...workable :ashamed1::D
during the 97 crash. many people die becoz of buy property and then take a reverse mortgage and then buy another unit and so on. when the music stop. many people die.
This round TDSR will put a stop to these madness...
banks will soon find a way to lend, else their bottomline suffer.
banks will soon find a way to lend, else their bottomline suffer.
slowly slowly raise interest rates. TDSR. many cannot just happy happy refinance liao. esp those over leverage one Kiap tiao.
But cannot raise too fast hor.. must boil the frog slowly….
So don't happy happy go buy House then go cheong a Car or…. coz 2-3 yrs later want to refinance realized kana kiap! Who to blame.. blame oneself never earn enough or never plan properly. Car is a waste of $ anyway.
As above, what happens to your bank loan?
Say property bought for 1mil, paid 20% deposit. Bank loan 800k.
If price fall 30% and now worth 700k.. thus there's a diff of 100k.
What will the bank do? Top up 100k? Put that 100k into the principal?
Not sure what the practice is now, but back in AFC one of my direct reports got call from bank to top up. Not sure if it's because he miss payment, CPF cut did happen then so if he calculated so tight then that could have affected him - along with the high interest rate.
When planning to buy it's wise to go through what-if scenarios rather than just the future is rosy outlook.
Golden rule.
Never trust a banker - they will lend you an umbrella when the sun is shining and demand it back when it starts to rain.
slowly slowly raise interest rates. TDSR. many cannot just happy happy refinance liao. esp those over leverage one Kiap tiao.
But cannot raise too fast hor.. must boil the frog slowly….
So don't happy happy go buy House then go cheong a Car or…. coz 2-3 yrs later want to refinance realized kana kiap! Who to blame.. blame oneself never earn enough or never plan properly. Car is a waste of $ anyway.
hit tdsr limit not necc over leverage leh ...
they intervene too much liao. they even wanna hv a say on how i use my salary by imposing tdsr on my credit limit! :doh:
hit tdsr limit not necc over leverage leh ...
they intervene too much liao. they even wanna hv a say on how i use my salary by imposing tdsr on my credit limit! :doh:
Well when people Kana burn they will KPKB why ah gong never warn them. look at the gold bullion investors… must go protest ask government must help then. even question why MAS never regulate.
So wats the moral of the story? when make $ all happy danny why ah kong block the way. when loose $ all KPKB say ah kong never stop them.
Maybe this is one reason why LTA regulates that car loans can only be capped at 50%. If crash happens, the buyer would have already paid for the losses and banks won't be impacted even if buyer walks away.
Same for houses I guess. Buyers would have paid up 20-40% or more, so there is lots of buffer to lose if a crash happens.
Unless we are talking about crashes beyond 40 or 50%.
Maybe this is one reason why LTA regulates that car loans can only be capped at 50%. If crash happens, the buyer would have already paid for the losses and banks won't be impacted even if buyer walks away.
Same for houses I guess. Buyers would have paid up 20-40% or more, so there is lots of buffer to lose if a crash happens.
Unless we are talking about crashes beyond 40 or 50%.
its fine as to how they wanna specify the extent of down pymt; 20%, 30% 50% ... at least u r fair to everyone. but they shd not interfere how I allocate my resources mah. if a person earns $20k per mth, clearly he can easily afford a tdsr of 70%!
however, if he only earn $2.5k per mth, setting a tdsr of 60% is clearly giving the person a wrong direction!
its fine as to how they wanna specify the extent of down pymt; 20%, 30% 50% ... at least u r fair to everyone. but they shd not interfere how I allocate my resources mah. if a person earns $20k per mth, clearly he can easily afford a tdsr of 70%!
however, if he only earn $2.5k per mth, setting a tdsr of 60% is clearly giving the person a wrong direction!
Just save a few years more and down payment more lor...
Unless you are so near retirement age. But to banks the risks are high if you are old too.
The main thing is to match the earnings with the prices. Else the system is in trouble.
its fine as to how they wanna specify the extent of down pymt; 20%, 30% 50% ... at least u r fair to everyone. but they shd not interfere how I allocate my resources mah. if a person earns $20k per mth, clearly he can easily afford a tdsr of 70%!
however, if he only earn $2.5k per mth, setting a tdsr of 60% is clearly giving the person a wrong direction!
Its fair wat. u have more $ u can afford more and u have less $ u can afford less. a 2.5K person looses his job or kana a margin call or if interest move up against him. Its the same a up in interest on say a 1M prop can be $300-500. which for a 2.5K person after servicing loan.. is very chuan.
If u have a lot of income u can play more also loose more. its a fair world.
Just save a few years more and down payment more lor...
Unless you are so near retirement age. But to banks the risks are high if you are old too.
The main thing is to match the earnings with the prices. Else the system is in trouble.
if cannot get a loan, save a few more yrs will not solve the problem at all :47: unless one save for 20 or 30 yrs more, haha :doh:
Just save a few years more and down payment more lor...
Unless you are so near retirement age. But to banks the risks are high if you are old too.
The main thing is to match the earnings with the prices. Else the system is in trouble.
perhaps the current prices are deep too high n peaked. a sharp 20-30% can put some people currently in negative equity very fast. and couple with a job lost. n interest rate hike.
Die Cxxk stand.
Its fair wat. u have more $ u can afford more and u have less $ u can afford less. a 2.5K person looses his job or kana a margin call or if interest move up against him. Its the same a up in interest on say a 1M prop can be $300-500. which for a 2.5K person after servicing loan.. is very chuan.
If u have a lot of income u can play more also loose more. its a fair world.
the moment they implement a blanket rate across the board, they hv alrdy failed to recognise the absolute income tat is available to each person.
precisely when a person earns more, he has more $, hence he dun nid such a small percentage of tdsr limit.
the 20k earner with a tdsr of 75% has more liquidity as compared to someone who earns $2.5k wif a tdsr of 60%!
the moment they implement a blanket rate across the board, they hv alrdy failed to recognise the absolute income tat is available to each person.
precisely when a person earns more, he has more $, hence he dun nid such a small percentage of tdsr limit.
the 20k earner with a tdsr of 75% has more liquidity as compared to someone who earns $2.5k wif a tdsr of 60%!
Well its a blunt tool. There are savvy people and not savvy people. it cannot be implemented only for low pay scale folks who have higher risk only coz it would not be deem fair.
Also maybe they are seeing a possible drop when interest spike. Some who over leverage with interest spike can easily hit their limit.
But remember the intention is to take the demand out of the market. basically is stoping people from using leverage to over do it. once that demand is take out should see price drop and throw in interest rate hike. Can get guys for some.
Also don't mean the cash rich are savvy also. I have seen people who make a 5 6 digit salary who leverage to the hilt and do reverse mortgage. So if die can be very ugly.
The gahmen has no choice...
Short of ration-ing the number of properties one can buy or a complete ban on the number of properties one can buy, they have to use ABSD, TDSR to prevent people from buying...
There are just too much cash sitting around that they cannot build enough properties to satisfy the demand... hence they just use a blunt too...
I totally agree TDSR shouldnt apply to high income bracket, but they cannot be seen as being unfair to lower / middle income residents...
This just shows me one thing, with china, India and Indonesia rising, and singapore being a calm oasis in this region, prices will not drop unless there is a global crisis....
This just makes me more determined to own more properties in singapore to keep and rent out...
We are just too small a country, so just a trickle coming in to buy our properties and we will have a shortage of supply
But remember the intention is to take the demand out of the market. basically is stoping people from using leverage to over do it. once that demand is take out should see price drop and throw in interest rate hike. Can get guys for some.
Also don't mean the cash rich are savvy also. I have seen people who make a 5 6 digit salary who leverage to the hilt and do reverse mortgage. So if die can be very ugly.
aiya, cash rich hv high & low spenders; like wise low earner hv both thrifty n big spenders.
my point is the limit they set can only deter demand, but it doesn't really reduce the probability of a default borrower.
There are just too much cash sitting around that they cannot build enough properties to satisfy the demand... hence they just use a blunt too...
This just shows me one thing, with china, India and Indonesia rising, and singapore being a calm oasis in this region, prices will not drop unless there is a global crisis....
This just makes me more determined to own more properties in singapore to keep and rent out...
We are just too small a country, so just a trickle coming in to buy our properties and we will have a shortage of supply
precisely land is scarce n population is set to increase, even a drop in $ will not be too significant and long lasting.
its not worth the trouble to expense to keep flipping properties, only sell when you think your LH is getting old or you are repositioning your portfolio...
If you already got a gem, must keep and collect rental...
aiya, cash rich hv high & low spenders; like wise low earner hv both thrifty n big spenders.
my point is the limit they set can only deter demand, but it doesn't really reduce the probability of a default borrower.
Absolutely Correct....
That is why they are using TDSR to stifle demand, or else SG properties will be going up 20% a year lol
thomastansb
02-12-13, 10:02
If you earn 2.5k a month, then you should buy a HDB. I think the direction is right.
its fine as to how they wanna specify the extent of down pymt; 20%, 30% 50% ... at least u r fair to everyone. but they shd not interfere how I allocate my resources mah. if a person earns $20k per mth, clearly he can easily afford a tdsr of 70%!
however, if he only earn $2.5k per mth, setting a tdsr of 60% is clearly giving the person a wrong direction!
If you already got a gem, must keep and collect rental...
yeah, precisely. there r some forummers here who kept saying how gd ppty in a particular area is, yet they r trying to sell them.
to a potential buyer, they will feel, if it is really so gd, y do u still wan to sell it? :47:
thomastansb
02-12-13, 10:04
Absolute income is subjective. If I earn 30k a month, I need a yacht and BMW 740i. My available income could be < someone who earn 5k a month. Or someone who earn 5k and drive a BMW 318 is worse off than someone who earn 2.5k and take public transport.
the moment they implement a blanket rate across the board, they hv alrdy failed to recognise the absolute income tat is available to each person.
precisely when a person earns more, he has more $, hence he dun nid such a small percentage of tdsr limit.
the 20k earner with a tdsr of 75% has more liquidity as compared to someone who earns $2.5k wif a tdsr of 60%!
If you earn 2.5k a month, then you should buy a HDB. I think the direction is right.
in yr opinion, how much shd one be earning b4 they consider pc?
I beg to differ.
a thrifty 2.5k earner can easily save $200k after a period of 15 yrs. he has every means to buy a pc.
Absolute income is subjective. If I earn 30k a month, I need a yacht and BMW 740i. My available income could be < someone who earn 5k a month. Or someone who earn 5k and drive a BMW 318 is worse off than someone who earn 2.5k and take public transport.
I dun rule out the possibility. u can hv all kinda earners wif all possible spending habits. hence a blanket rate is like not so gd.
or r u trying to say tat since it is impossible to fix a rate which is suitable for all, may as well use a default tdsr rate? :D
its fine as to how they wanna specify the extent of down pymt; 20%, 30% 50% ... at least u r fair to everyone. but they shd not interfere how I allocate my resources mah. if a person earns $20k per mth, clearly he can easily afford a tdsr of 70%!
however, if he only earn $2.5k per mth, setting a tdsr of 60% is clearly giving the person a wrong direction!
If I am the bank, or in this case govt - I will understand that person earning 20k per month can also starting earning $0 per month.
Whole idea tdsr seems to be to stop people being hero's
and more importantly protect banks from themselves.
thomastansb
02-12-13, 10:21
I think 60% to 70% TDSR is good.
I dun rule out the possibility. u can hv all kinda earners wif all possible spending habits. hence a blanket rate is like not so gd.
or r u trying to say tat since it is impossible to fix a rate which is suitable for all, may as well use a default tdsr rate? :D
thomastansb
02-12-13, 10:24
Of course he can. Just buy a small studio at some ulu places like sembawang or pasir ris. If he wants a bigger house, it is obvious he should get a HDB and not a PC.
in yr opinion, how much shd one be earning b4 they consider pc?
I beg to differ.
a thrifty 2.5k earner can easily save $200k after a period of 15 yrs. he has every means to buy a pc.
in yr opinion, how much shd one be earning b4 they consider pc?
I beg to differ.
a thrifty 2.5k earner can easily save $200k after a period of 15 yrs. he has every means to buy a pc.
after 15yrs the 200K no more = to 200K today.. u never consider inflation. rule of thumb 20yrs divide by half. So save 15yrs end up = to ~100K today money. still very hard. at 2.5K I will advice the guy go buy a HDB.
If I am the bank, or in this case govt - I will understand that person earning 20k per month can also starting earning $0 per month.
Whole idea tdsr seems to be to stop people being hero's
and more importantly protect banks from themselves.
Thats why u have credit default swaps.!
thomastansb
02-12-13, 11:44
Must buy within your own means. That is the message of the 60% TDSR. I think it is a pretty good measure.
after 15yrs the 200K no more = to 200K today.. u never consider inflation. rule of thumb 20yrs divide by half. So save 15yrs end up = to ~100K today money. still very hard. at 2.5K I will advice the guy go buy a HDB.
Thats why u have credit default swaps.!
Yup - but if things go really bad & your swap partner may also go up the lorry?
Bottom line in all this seems to be protect banks.
Borrower can go die.
Anyhow - TDSR probably a good thing.
Yup - but if things go really bad & your swap partner may also go up the lorry?
Bottom line in all this seems to be protect banks.
Borrower can go die.
Anyhow - TDSR probably a good thing.
its a symbiotic relationship… lender die. bank die. bank die lender also die. so can't say who more useless etc.
after 15yrs the 200K no more = to 200K today.. u never consider inflation. rule of thumb 20yrs divide by half. So save 15yrs end up = to ~100K today money. still very hard. at 2.5K I will advice the guy go buy a HDB.
yr theory of time value of money dun make sense to my point here.
eg a person earns 2.5k per mth from 1997-2013 and managed to save $200k as at 2013.
no doubt tat the 200k is prob equiv to the worth of only 100k IN 1997 but tat is still 200k face value in 2013. He will still be able to afford a 0.5mil of condo.
in yr opinion, how much shd one be earning b4 they consider pc?
govt already set it for u. To qualify for EC gross household income needs to be no more than $12k a month. So more than that go for private condo and so on.
govt already set it for u. To qualify for EC gross household income needs to be no more than $12k a month. So more than that go for private condo and so on.
govt is setting the upper ceiling.
since thomas is advocating tat 2.5k earner shd guai guai buy hdb, Im curious as to wat shd be the min recommended salary level to enter the pc market ...
thomastansb
02-12-13, 13:08
He can afford a 0.5M condo. 400 sq ft in woodlands or punggol. Why not? But is it feasible? That one he has to decide for himself.
For someone earning 2.5k, he can use 1.5k on loans.
If that guy is already using 1k on car, do you think he can afford to spend another 1.5k on house? Without the TDSR, he would have over committed himself by spending 1k on car and 1.5k on house - leaving him with almost nothing every month.
yr theory of time value of money dun make sense to my point here.
eg a person earns 2.5k per mth from 1997-2013 and managed to save $200k as at 2013.
no doubt tat the 200k is prob equiv to the worth of only 100k IN 1997 but tat is still 200k face value in 2013. He will still be able to afford a 0.5mil of condo.
yr theory of time value of money dun make sense to my point here.
eg a person earns 2.5k per mth from 1997-2013 and managed to save $200k as at 2013.
no doubt tat the 200k is prob equiv to the worth of only 100k IN 1997 but tat is still 200k face value in 2013. He will still be able to afford a 0.5mil of condo.
ehh… u mix up liao 200K saved at 2013 is = to $100K 2013 worth value. in 1997 kopi 50c. today $1. for example. Its what u can buy with the 200K. yes face value. is face value. wat u can buy is another thing. inflation.
u are taking very simple view.. so in 1997 a $2.5K is a 2 yrs experience grad pay.
so today a fresh grad u still pay $2.5K? bo mah.. coz kopi already $1 liao.
actually with 200K saved since 1997 he can buy a EC! $1M 20% down only mah. have to ask people to pay legal and stamp though.
but at 800K loan at today interest rate of 1.5% that is $2500 a mth installment. not considering mthy maintenance leh?
he can go buy a 500K condo like u say. but 1st find me a 500K condo these days. 300K loan sure… $2500 pm pay after CPF ~2K pay loan $1K and then maintenance $300.. left $700…
if he can survive on $700 just to own a condo then by all means..
but if he have a spouse ! ah.. then the calculation is not the same liao. but we are talking abt 1 guy right.
thomastansb
02-12-13, 13:12
He is just better off getting a HDB IMO. At 2.5k, he can only buy a cheap small ulu studio. I will rather get a 3 bedroom HDB. Spacious 700 sq ft.
I mean, some people like small studio then I can't say he shouldn't buy. But rather limited condos are selling below 500k.
govt is setting the upper ceiling.
since thomas is advocating tat 2.5k earner shd guai guai buy hdb, Im curious as to wat shd be the min recommended salary level to enter the pc market ...
He can afford a 0.5M condo. 400 sq ft in woodlands or punggol. Why not? But is it feasible? That one he has to decide for himself.
y not feasible?
it is a matter of yr priority.
for some ppl, they die die wanna live in condo & mix wif rich ppl. so they would rather buy studio in the lousiest loc den to buy a 5rm hdb in the best district.
For someone earning 2.5k, he can use 1.5k on loans.
If that guy is already using 1k on car, do you think he can afford to spend another 1.5k on house? Without the TDSR, he would have over committed himself by spending 1k on car and 1.5k on house - leaving him with almost nothing every month.
in the 1st place, if a 2.5k earner alrdy hv a 1k car loan, would he even consider financing a hdb? let alone a condo! :doh:
thomastansb
02-12-13, 13:14
Got 500k studio. Those super ulu one lor. 400 sqft kind. But I rather get HDB if I am earning 2.5k. Cheaper and bigger. I believe in head not so big, don't wear such big hat.
ehh… u mix up liao 200K saved at 2013 is = to $100K 2013 worth value. in 1997 kopi 50c. today $1. for example. Its what u can buy with the 200K. yes face value. is face value. wat u can buy is another thing. inflation.
u are taking very simple view.. so in 1997 a $2.5K is a 2 yrs experience grad pay.
so today a fresh grad u still pay $2.5K? bo mah.. coz kopi already $1 liao.
actually with 200K saved since 1997 he can buy a EC! $1M 20% down only mah. have to ask people to pay legal and stamp though.
but at 800K loan at today interest rate of 1.5% that is $2500 a mth installment. not considering mthy maintenance leh?
he can go buy a 500K condo like u say. but 1st find me a 500K condo these days. 300K loan sure… $2500 pm pay after CPF ~2K pay loan $1K and then maintenance $300.. left $700…
if he can survive on $700 just to own a condo then by all means..
but if he have a spouse ! ah.. then the calculation is not the same liao. but we are talking abt 1 guy right.
Got 500k studio. Those super ulu one lor. 400 sqft kind. But I rather get HDB if I am earning 2.5k. Cheaper and bigger. I believe in head not so big, don't wear such big hat.
u still haven answer my qn leh.
since u objected strongly to 2.5k earner buying pc, perhaps u can recommend a gd salary level to attain b4 one hv such ambitious dream?
thomastansb
02-12-13, 13:17
I am just answering your question of why TDSR is set at 60% and why the need for it.
And yes, you are right about earning 2.5k and spending 1k on car. He won't be able to afford a condo. That is when TDSR comes in, right???? Got my point? He should get a HDB.
y not feasible?
it is a matter of yr priority.
for some ppl, they die die wanna live in condo & mix wif rich ppl. so they would rather buy studio in the lousiest loc den to buy a 5rm hdb in the best district.
in the 1st place, if a 2.5k earner alrdy hv a 1k car loan, would he even consider financing a hdb? let alone a condo! :doh:
He is just better off getting a HDB IMO. At 2.5k, he can only buy a cheap small ulu studio. I will rather get a 3 bedroom HDB. Spacious 700 sq ft.
I mean, some people like small studio then I can't say he shouldn't buy. But rather limited condos are selling below 500k.
ok can lah.. the guy can go buy geylang or jurong.
http://www.propertyguru.com.sg/listing/15395838/for-sale-grandview-suites-geylang
500K.. but can survive on $700 a mth? and if interest move up to 3.5% ? then left wat? $400 a mth? i think better go find a spouse n share buy HDB or if not no need to squeeze like that. just to buy a condo.
no job leh? coz assuming fresh grad… in 97. now ~40+ yrs old liao. loan max 25 yrs and 40s yrs old very easy to loose job. if still getting $2.5K per mth.. then I think its below national avg iiao. of $3750.
my take is still HDB or singles HDB. better bet. no so stressful. any tong gua dao hu… kpkb no 1 can help.
thomastansb
02-12-13, 13:19
There is no good salary level. Just buy within your means. But with 2.5k, I would go for HDB. More cash and more space.
u still haven answer my qn leh.
since u objected strongly to 2.5k earner buying pc, perhaps u can recommend a gd salary level to attain b4 one hv such ambitious dream?
thomastansb
02-12-13, 13:21
Fully agree. Buy HDB, can earn also. 2 bedroom so cheap nowadays anyway. Just buy 1, stay 5 years, value will appreciate a lot.
That is why TDSR is very important.
ok can lah.. the guy can go buy geylang or jurong.
http://www.propertyguru.com.sg/listing/15395838/for-sale-grandview-suites-geylang
500K.. but can survive on $700 a mth? and if interest move up to 3.5% ? then left wat? $400 a mth? i think better go find a spouse n share buy HDB or if not no need to squeeze like that. just to buy a condo.
no job leh? coz assuming fresh grad… in 97. now ~40+ yrs old liao. loan max 25 yrs and 40s yrs old very easy to loose job. if still getting $2.5K per mth.. then I think its below national avg iiao. of $3750.
my take is still HDB or singles HDB. better bet. no so stressful. any tong gua dao hu… kpkb no 1 can help.
but if he have a spouse ! ah.. then the calculation is not the same liao. but we are talking abt 1 guy right.
yup, Im talking abt 1 person financing. dun bring in new variables to further complicate our discussion :hell-hath-no-fury:
actually with 200K saved since 1997 he can buy a EC! $1M 20% down only mah. have to ask people to pay legal and stamp though.
but at 800K loan at today interest rate of 1.5% that is $2500 a mth installment. not considering mthy maintenance leh?
ec not suka suka simi lang oso can apply one leh. wat if he is a single?
he can go buy a 500K condo like u say. but 1st find me a 500K condo these days. 300K loan sure… $2500 pm pay after CPF ~2K pay loan $1K and then maintenance $300.. left $700…
still hv la, inflora in changi & dnest in pasir ris still selling ard 500k.
ehh… u mix up liao 200K saved at 2013 is = to $100K 2013 worth value. in 1997 kopi 50c. today $1. for example. Its what u can buy with the 200K. yes face value. is face value. wat u can buy is another thing. inflation.
u are taking very simple view.. so in 1997 a $2.5K is a 2 yrs experience grad pay.
so today a fresh grad u still pay $2.5K? bo mah.. coz kopi already $1 liao.
aiyo! y u kept changing my story sia?! :hell-hath-no-fury:
the person alrdy worked for 15 yrs, how could he possibly be a fresh grad sia? :doh:
now the scenario is like tis:
imagine the person is a typical earner wif average earning of 2.5k nia. he alrdy saved up till $200k as at now having been worked for 15 yrs. I dun see why he is unable to afford a $500k cheap pc in today's context.
I am just answering your question of why TDSR is set at 60% and why the need for it.
And yes, you are right about earning 2.5k and spending 1k on car. He won't be able to afford a condo. That is when TDSR comes in, right???? Got my point? He should get a HDB.
actually hor, if I earn 2.5k & hv an existing car loan of 1k, I am still able to finance a hdb.
Pay : 2.5k
contribution to cpf ordinary : $500.
take home pay = $2k.
after lessing off car loan, still hv $1k.
buy a 3 rm hdb at $350k.
use the $200k to pay off the loan.
take up a 20 yr loan for bal $150k, mthly repymt abt $700.
pay off $500 from OA mthly contribution, $200 fm cash.
still left $800 for daily expenses :D
sng nang sng nang still can pass by.
but with tdsr, dreams of owning a ppty shattered.
yup, Im talking abt 1 person financing. dun bring in new variables to further complicate our discussion :hell-hath-no-fury:
ec not suka suka simi lang oso can apply one leh. wat if he is a single?
still hv la, inflora in changi & dnest in pasir ris still selling ard 500k.
aiyo! y u kept changing my story sia?! :hell-hath-no-fury:
the person alrdy worked for 15 yrs, how could he possibly be a fresh grad sia? :doh:
now the scenario is like tis:
imagine the person is a typical earner wif average earning of 2.5k nia. he alrdy saved up till $200k as at now having been worked for 15 yrs. I dun see why he is unable to afford a $500k cheap pc in today's context.
wah lan… then u need to set all the basic variable right.
97 fresh grad. $2.5K pm.
2013 old man. PAY pm is how much? I assume all flat easy to calculate. so pay still $2.5K wat. or u want to assume national avg $3750 pm? so 2013 pm pay how much 1st?
before we say can buy cannot buy..
ur info is 1 male keep $ from 97-2013 $2.5K pm pay. save $200K today $.
base on this is buy a $500K condo is c bay siong. interest up, loose job, sick.. then will HK liao.
thomastansb
02-12-13, 13:40
Don't say until dream shattered la. Talk cock leh. Buy 2 bedroom from HDB only 50k leh.
OR
Find a cheaper HDB lor. Instead of 350k, find one that is 300k. Why die die must 350k?
OR
Use part of the 200k to pay the car fully. So your TDSR of 60% go back up to 1.5k. You can buy the 350k (or even 400k or 450k now) HDB and use the remaining of 200k savings less the car to down pay.
So down to individual ambition level and objectives.
So I still think TDSR is good. It forces you to ensure that you have at least 40% of your salary left after loans.
actually hor, if I earn 2.5k & hv an existing car loan of 1k, I am still able to finance a hdb.
Pay : 2.5k
contribution to cpf ordinary : $500.
take home pay = $2k.
after lessing off car loan, still hv $1k.
buy a 3 rm hdb at $350k.
use the $200k to pay off the loan.
take up a 20 yr loan for bal $150k, mthly repymt abt $700.
pay off $500 from OA mthly contribution, $200 fm cash.
still left $800 for daily expenses :D
sng nang sng nang still can pass by.
but with tdsr, dreams of owning a ppty shattered.
then u need to set all the basic variable right.
97 fresh grad. $2.5K pm.
2013 old man. PAY pm is how much? I assume all flat easy to calculate. so pay still $2.5K wat. or u want to assume national avg $3750 pm? so 2013 pm pay how much 1st?
before we say can buy cannot buy..
ur info is 1 male keep $ from 97-2013 $2.5K pm pay. save $200K today $.
base on this is buy a $500K condo is c bay siong. interest up, loose job, sick.. then will HK liao.
assume he hv stagnant pay & in constant employment.
work for 15 yrs where got become old man? ard 40yo nia mah
save from 1997 till 2013. now hv $200k sitting in the bank.
no siong la, haha :D see my calculation in #61
actually hor, if I earn 2.5k & hv an existing car loan of 1k, I am still able to finance a hdb.
Pay : 2.5k
contribution to cpf ordinary : $500.
take home pay = $2k.
after lessing off car loan, still hv $1k.
buy a 3 rm hdb at $350k.
use the $200k to pay off the loan.
take up a 20 yr loan for bal $150k, mthly repymt abt $700.
pay off $500 from OA mthly contribution, $200 fm cash.
still left $800 for daily expenses :D
sng nang sng nang still can pass by.
but with tdsr, dreams of owning a ppty shattered.
u very funny leh. where got shattered. who ask ufo buy car 1st? go buy house 1st lah. then go buy car.
ur computation is like my friend in the 90s. buy car with a $1200 pm pay.. after CPF left $950.. pump petrol left $500 then no need to eat ah? no need to go sian char bor…
always by week 3 always eat bread and borrow $ to tie over.
anyway ur left $1K no count petrol? insurance? ERP? Road tax? Food? etc? take the car away then all is ok.
Don't say until dream shattered la. Talk cock leh. Buy 2 bedroom from HDB only 50k leh.
OR
Find a cheaper HDB lor. Instead of 350k, find one that is 300k. Why die die must 350k?
OR
Use part of the 200k to pay the car fully. So your TDSR of 60% go back up to 1.5k. You can buy the 350k (or even 400k or 450k now) HDB and use the remaining of 200k savings less the car to down pay.
So down to individual ambition level and objectives.
So I still think TDSR is good. It forces you to ensure that you have at least 40% of your salary left after loans.
is not gd in the sense tat prudent borrower r forced to settle for something not as gd.
eg
1. nid to choose $300k iso $350k which he can afford the better one in the 1st place.
2. succumb to buy 2 rm shoebox.
shattered in the sense tat by right he wan & can afford a bigger hdb, but tdsr kiap his choices.
thomastansb
02-12-13, 14:08
Too bad lor. You earn 2.5k, you want to stay Orchard meh? Or high floor with seaview? Or a condo penthouse?
So which is better?
1) Buy a good house but not enough cash
2) Buy a not so good house but with enough cash
I think I will die if I earn 2.5k, take home 2k and I spend 1k on car. This is dumb. And I still have an expensive house to pay.
If I earn 2.5k, I won't buy a car. I will buy a 3 bedroom resale in some ulu places without little or no COV or buy a smaller 2 bedroom BTO. I should have at minimum 1.5k cash every month and I can save and still buy an iPhone every 2 years. Pushing pass 60% TDSR is good for your dream but your dream will be shattered if you cannot afford it.
is not gd in the sense tat prudent borrower r forced to settle for something not as gd.
eg
1. nid to choose $300k iso $350k which he can afford the better one in the 1st place.
2. succumb to buy 2 rm shoebox.
shattered in the sense tat by right he wan & can afford a bigger hdb, but tdsr kiap his choices.
Too bad lor. You earn 2.5k, you want to stay Orchard meh? Or high floor with seaview? Or a condo penthouse?
u r missing my point liao. nobody say wanna live in orchard wif 2.5k pay wor.
I am stressing on the fact tat by rite, wif the 200k savings I dun nid to settle for the lousiest choice, but wif tdsr, I hv no choice but to go for the lousiest ppty.
I think I will die if I earn 2.5k, take home 2k and I spend 1k on car. This is dumb. And I still have an expensive house to pay.
If I earn 2.5k, I won't buy a car.
depends on how impt a car is to the person. some ppl uni days alrdy buy car liao. taking own loans hor.
u very funny leh. where got shattered. who ask ufo buy car 1st? go buy house 1st lah. then go buy car.
some ppl buy car 1st becos it is more affordable.
anyway Im not the person who said got a 1k car loan. is thomas who changed my story to incorporate a 1k car debt.
ur computation is like my friend in the 90s. buy car with a $1200 pm pay.. after CPF left $950.. pump petrol left $500 then no need to eat ah? no need to go sian char bor…
always by week 3 always eat bread and borrow $ to tie over.
anyway ur left $1K no count petrol? insurance? ERP? Road tax? Food? etc? take the car away then all is ok.
$800 enuff for petrol & expenses for me :47:
thomastansb
02-12-13, 14:21
You are missing my point also. My point is the TDSR of 60% restrict people from over committing.
Anyway, I already say you use your 200k to pay off the car loan and you can buy your 350k HDB. I don't see an issue here.
u r missing my point liao. nobody say wanna live in orchard wif 2.5k pay wor.
I am stressing on the fact tat by rite, wif the 200k savings I dun nid to settle for the lousiest choice, but wif tdsr, I hv no choice but to go for the lousiest ppty.
depends on how impt a car is to the person. some ppl uni days alrdy buy car liao. taking own loans hor.
thomastansb
02-12-13, 14:24
I am just illustrating if someone who earn 2.5k should be allowed to over-leveraged.
Buy car 1st because it is more affordable? More affordable than what? Then a house? Can we compare a house and a car?
some ppl buy car 1st becos it is more affordable.
anyway Im not the person who said got a 1k car loan. is thomas who changed my story to incorporate a 1k car debt.
$800 enuff for petrol & expenses for me :47:
You are missing my point also. My point is the TDSR of 60% restrict people from over committing.
Anyway, I already say you use your 200k to pay off the car loan and you can buy your 350k HDB. I don't see an issue here.
tat 2.5k scenario is merely an illustration tat I borrowed fm the previous discussion.
in real life Im a victim of tdsr.
by rite, Im comfortable in buying another ppty with a decent loan if no tdsr exist. wif tdsr, I totally cannot take loan :simmering:
Buy car 1st because it is more affordable? More affordable than what? Then a house? Can we compare a house and a car?
more affordable (den ppty) as in it will be easier for them to fork out the down pymt.
the burdened wif a 1k car loan is brought up by u leh, not me.
thomastansb
02-12-13, 14:54
I am also. Now, I am hit by ABSD and crappy LTV but this is life. When property is down, I got DPS.
But when you have a population of 5 million people, I don't think you will dare to take chances when it comes to over committing. You might earn 100k and TDSR stop you at 60k and you are saying 40k is still a lot left and I use only 1k a month leaving 39k untouched.
But hey, 80% of the people are earning between 1 to 5k. So if you are the policy maker, will you say a TDSR of 60%? Or you will say, just buy lah. You earn 2.5k, you pay 3k housing loan, that is your problem?
tat 2.5k scenario is merely an illustration tat I borrowed fm the previous discussion.
in real life Im a victim of tdsr.
by rite, Im comfortable in buying another ppty with a decent loan if no tdsr exist. wif tdsr, I totally cannot take loan :simmering:
I am also. Now, I am hit by ABSD and crappy LTV but this is life. When property is down, I got DPS.
But when you have a population of 5 million people, I don't think you will dare to take chances when it comes to over committing. You might earn 100k and TDSR stop you at 60k and you are saying 40k is still a lot left and I use only 1k a month leaving 39k untouched.
But hey, 80% of the people are earning between 1 to 5k. So if you are the policy maker, will you say a TDSR of 60%? Or you will say, just buy lah. You earn 2.5k, you pay 3k housing loan, that is your problem?
yala, they cannot afford to risk the bulk of the ppl.
anyway it is their intention to prevent the middle class from entering the mkt.
hopefully when the demand stabilises, they can finetune the tdsr.
thomastansb
02-12-13, 15:23
No la. Middle class still ok. If husband earn 4k, wife earn 3k, can get a 1M property easily within the 60% TDSR cap.
If I calculate backwards, 60% TDSR of 7k = 4.2k. 4.2k can get you a property of 1.5M based on 1.2% interest. Unless you want to buy Orchard, if not, 1.5M can buy a lot of places and the size is pretty good already. Even if I use 2% interest, the couple who earn 7k can still buy a 1.4M property within the 60% TDSR.
If you tell me husband earn 1k, wife earn 800, then you know what is my answer already.
yala, they cannot afford to risk the bulk of the ppl.
anyway it is their intention to prevent the middle class from entering the mkt.
hopefully when the demand stabilises, they can finetune the tdsr.
TDSR is here to stay and was somewhat been in place before then. It might be fine tuned, e.g. a less draconian haircut on variable income.
Now, 500k Home Value @ 80% LTV @ 30yrs 3.5% = 1.8k Mthly
This will need 3k monthly income. Since a new PC (studio) is approx 750k and above, mthly salary should be at least $4.5k per mth. Someone who is making $4.5k is likely to stay in his purchase. If thats the case, the wiser solution will be the subsidized HDB BTO.
No la. Middle class still ok. If husband earn 4k, wife earn 3k, can get a 1M property easily within the 60% TDSR cap.
If I calculate backwards, 60% TDSR of 7k = 4.2k. 4.2k can get you a property of 1.5M based on 1.2% interest. Unless you want to buy Orchard, if not, 1.5M can buy a lot of places and the size is pretty good already. Even if I use 2% interest, the couple who earn 7k can still buy a 1.4M property within the 60% TDSR.
If you tell me husband earn 1k, wife earn 800, then you know what is my answer already.
2 ppl financing of cos it will be easier.
but nowadays many ppl decoupling liao wor, isn't it harder to buy?
No la. Middle class still ok. If husband earn 4k, wife earn 3k, can get a 1M property easily within the 60% TDSR cap.
If I calculate backwards, 60% TDSR of 7k = 4.2k. 4.2k can get you a property of 1.5M based on 1.2% interest. Unless you want to buy Orchard, if not, 1.5M can buy a lot of places and the size is pretty good already. Even if I use 2% interest, the couple who earn 7k can still buy a 1.4M property within the 60% TDSR.
If you tell me husband earn 1k, wife earn 800, then you know what is my answer already.
TDSR use 3.5% as interest rate.
assume he hv stagnant pay & in constant employment.
work for 15 yrs where got become old man? ard 40yo nia mah
save from 1997 till 2013. now hv $200k sitting in the bank.
no siong la, haha :D see my calculation in #61
Here is what I will do. After working for 15 yr Cpf should have ard 90k. U say 500 to Cpf. So should be avg 750 per mth contribution to Cpf. So ordinary acct inside have 500 pm.
15 yr is 90k.
I will use that $$ go apply hdb 2 bed room for singles. 90-110k. Take a 30k loan at most.
Or just pay the 30k cash!
Still left 170k if die die must buy car pay in full a 2nd car say 70k.
Still have 100k in pocket Reno zeng the house etc. no loan. Song song.
Why must stretch until neck break to buy a PC. A PC mm even smaller than the 2 bed room some more maintained ex pls property tax. N once a yr ah kong give rebate don't get Anything.
I also don't understand a single at 40 why need car. Unless in sales job, or have children or do handicapped or just need a car to Ali Sia.
But spend all the $$$ don't keep $ for retirement ? N leverage like u say 350k hdb or condo. No waving how to retire?
TDSR is to stop people doing this. It's financial disaster . Zero planning.
thomastansb
02-12-13, 15:29
Ok, then 1.2M for a 7k salary.
TDSR use 3.5% as interest rate.
2 ppl financing of cos it will be easier.
but nowadays many ppl decoupling liao wor, isn't it harder to buy?
Who ask them decouple. Backside itchy. No $$ play property better to play stocks.
TDSR is here to stay and was somewhat been in place before then. It might be fine tuned, e.g. a less draconian haircut on variable income.
Now, 500k Home Value @ 80% LTV @ 30yrs 3.5% = 1.8k Mthly
This will need 3k monthly income. Since a new PC (studio) is approx 750k and above, mthly salary should be at least $4.5k per mth. Someone who is making only $4.5k is likely to stay in his purchase. If thats the case, the wiser solution will be the subsidized HDB BTO.
so u beat such a big round juz to tell us tat u recommend ppl to enter pc market if the total income > 4.5k huh? :D
using salary oso not very zhun, cos some ppl big spender some not.
I tink MAS shd review on a case by case basis la, hahaha :cheers1:
No la. Middle class still ok. If husband earn 4k, wife earn 3k, can get a 1M property easily within the 60% TDSR cap.
If I calculate backwards, 60% TDSR of 7k = 4.2k. 4.2k can get you a property of 1.5M based on 1.2% interest. Unless you want to buy Orchard, if not, 1.5M can buy a lot of places and the size is pretty good already. Even if I use 2% interest, the couple who earn 7k can still buy a 1.4M property within the 60% TDSR.
If you tell me husband earn 1k, wife earn 800, then you know what is my answer already.
Go get ec lah. Couple.
thomastansb
02-12-13, 15:31
That is the dangerous part, isn't it? That is when TDSR is here to ensure people don't over-commit. But husband and wife can still buy a studio each. No issue. But if you want 2 houses, then be prepared to spend within your means lor.
2 ppl financing of cos it will be easier.
but nowadays many ppl decoupling liao wor, isn't it harder to buy?
thomastansb
02-12-13, 15:32
Yup. I believe MAS should do it. They will boost our employment rate since they will need 50,000 new employees just to do that.
so u beat such a big round juz to tell us tat u recommend ppl to enter pc market if the total income > 4.5k huh? :D
using salary oso not very zhun, cos some ppl big spender some not.
I tink MAS shd review on a case by case basis la, hahaha :cheers1:
so u beat such a big round juz to tell us tat u recommend ppl to enter pc market if the total income > 4.5k huh? :D
using salary oso not very zhun, cos some ppl big spender some not.
I tink MAS shd review on a case by case basis la, hahaha :cheers1:
Now better go buy bto. Or ec or single studio. Unless got cash to burn .
Who ask them decouple. Backside itchy. No $$ play property better to play stocks.
to scrimp on absd lor :D
stocks will run the risk of becoming toilet paper overnite.
oni good for ppl whose backside r always itchy :tongue3:
thomastansb
02-12-13, 15:33
Yup, that is the best option actually. Cheap condo + much more appreciation potential after 5 years.
Go get ec lah. Couple.
That is the dangerous part, isn't it? That is when TDSR is here to ensure people don't over-commit. But husband and wife can still buy a studio each. No issue. But if you want 2 houses, then be prepared to spend within your means lor.
Everyday eat bread n butter. Worth it meh? N loan say 30yr. Can live like dat for how long?
thomastansb
02-12-13, 15:35
The complaints will not end one la. I can also say, my body is very healthy. I won't fall sick one. Why the Government force me to put money in Medisave and force me to buy Medishield? I can use the money to invest.
You get my point?
to scrimp on absd lor :D
stocks will run the risk of becoming toilet paper overnite.
oni good for ppl whose backside r always itchy :tongue3:
That is the dangerous part, isn't it? That is when TDSR is here to ensure people don't over-commit. But husband and wife can still buy a studio each. No issue. But if you want 2 houses, then be prepared to spend within your means lor.
ok la, to be fair, ppl will only appreciate tdsr when they lost their jobs & losing sleep over it.
thomastansb
02-12-13, 15:36
Haha. Ya man. Some prefer to drive a flashy car than to eat properly. What to do....
Everyday eat bread n butter. Worth it meh? N loan say 30yr. Can live like dat for how long?
so u beat such a big round juz to tell us tat u recommend ppl to enter pc market if the total income > 4.5k huh? :D
using salary oso not very zhun, cos some ppl big spender some not.
I tink MAS shd review on a case by case basis la, hahaha :cheers1:
If MAS is to review on a case by case basis, they might err on the conservative side for the people who earn less. You want a number, I gave u a number. If one makes more than $4.5k (by 35yo), TDSR allows you to go for it! As mentioned earlier, a wiser decision is to go for a subsidized housing.
Here is what I will do. After working for 15 yr Cpf should have ard 90k. U say 500 to Cpf. So should be avg 750 per mth contribution to Cpf. So ordinary acct inside have 500 pm.
15 yr is 90k.
I will use that $$ go apply hdb 2 bed room for singles. 90-110k. Take a 30k loan at most.
aiyo! buy 2rm bto is even more disasterous leh!
save $200k on purchase price, forgo 3 yrs of rental income if compared to resale.
if compare to pte, there is an opportunity cost of min 8 yrs lost.
8 yrs I can flip 2 pc liao leh :47:
so u tell me, buy 2 rm bto worth bo?
tink oni gd for the lower class cos anyway they dun hv $ to buy pte.
Why must stretch until neck break to buy a PC. A PC mm even smaller than the 2 bed room some more maintained ex pls property tax. N once a yr ah kong give rebate don't get Anything.
pc got more growth potential den hdb, gg fwd.
Everyday eat bread n butter. Worth it meh? N loan say 30yr. Can live like dat for how long?
Haha. Ya man. Some prefer to drive a flashy car than to eat properly. What to do....
tis is very true.
some drives n wear until very glam but owe lotsa cr card debt n cannot even afford to eat a decent meal outside! :doh:
If MAS is to review on a case by case basis, they might err on the conservative side for the people who earn less. You want a number, I gave u a number. If one makes more than $4.5k (by 35yo), TDSR allows you to go for it! As mentioned earlier, a wiser decision is to go for a subsidized housing.
case by case as in dun juz implement a 60% blindly.
eg can finetune it such tat :
borrower A
tdsr oni 50% but totally no cash or cpf buffet. shd not be allowed to borrow further.
borrower B
tdsr aldy hit 60% but hv cash or cpf buffet equiv to say 50% of the target ppty. shd be allowed to borrow the remaining 50% as risk is substantially reduced den in the case of borrower A.
aiyo! buy 2rm bto is even more disasterous leh!
save $200k on purchase price, forgo 3 yrs of rental income if compared to resale.
if compare to pte, there is an opportunity cost of min 8 yrs lost.
8 yrs I can flip 2 pc liao leh :47:
so u tell me, buy 2 rm bto worth bo?
tink oni gd for the lower class cos anyway they dun hv $ to buy pte.
pc got more growth potential den hdb, gg fwd.
Crash, lost job, fall sick then get ready to sell backside.
Crash, lost job, fall sick then get ready to sell backside.
yr backside still valuable but mine dun hv mkt value leh!
hahaha :D
to scrimp on absd lor :D
stocks will run the risk of becoming toilet paper overnite.
oni good for ppl whose backside r always itchy :tongue3:
Scrims on absd. But loan take more. Int move up makan ur absd saving. If default n force to sell. Becoz it's less than 4 yrs knn ssd. Large jia lat.
If a couple buy. One no job the other can still be able take loan or go bank ask for restructure.
Frankly. I think the reason should just go get a studio hdb pend the $$ upgrade himself get a better paying job then come back n play.
Don't have such big head don't die die want to wear a big hat.
case by case as in dun juz implement a 60% blindly.
eg can finetune it such tat :
borrower A
tdsr oni 50% but totally no cash or cpf buffet. shd not be allowed to borrow further.
borrower B
tdsr aldy hit 60% but hv cash or cpf buffet equiv to say 50% of the target ppty. shd be allowed to borrow the remaining 50% as risk is substantially reduced den in the case of borrower A.
No need to go to MAS. One can pledge yield generating assets to qualify for higher loan under the TDSR (e.g. rental income, fixed income etc). Again, a haircut may be imposed on these assets. One can borrow 60% TDSR (inclusive of financial yield generating assets). As for pure CPF buffer, it may be better to directly reduce the loan amount and thus directly buying a larger property.
to scrimp on absd lor :D
stocks will run the risk of becoming toilet paper overnite.
oni good for ppl whose backside r always itchy :tongue3:
Scrims on absd. But loan take more. Int move up makan ur absd saving. If default n force to sell. Becoz it's less than 4 yrs knn ssd. Large jia lat.
If a couple buy. One no job the other can still be able take loan or go bank ask for restructure.
Frankly. I think the reason should just go get a studio hdb pend the $$ upgrade himself get a better paying job then come back n play.
Don't have such big head don't die die want to wear a big hat.
Frankly high risk high gain but also high lost.
aiyo! buy 2rm bto is even more disasterous leh!
save $200k on purchase price, forgo 3 yrs of rental income if compared to resale.
if compare to pte, there is an opportunity cost of min 8 yrs lost.
8 yrs I can flip 2 pc liao leh :47:
so u tell me, buy 2 rm bto worth bo?
tink oni gd for the lower class cos anyway they dun hv $ to buy pte.
pc got more growth potential den hdb, gg fwd.
PC crash also very fast 1. Question if can the person accept it. Don't miss a payment n kana margin call. Shit in pants every mth scare miss.
PC crash also very fast 1. Question if can the person accept it. Don't miss a payment n kana margin call. Shit in pants every mth scare miss.
if u hv buffer, crash will not impact u.
but if u r every mth du du ho nia, den better be careful liao.
This thread sure moves fast.
So the bank rarely margin call, unless miss repayment.. From what I gathered
A fren kept warning that bank will ask you to top up the negative equity portion...
This thread sure moves fast.
So the bank rarely margin call, unless miss repayment.. From what I gathered
A fren kept warning that bank will ask you to top up the negative equity portion...
even during lehmen time they didn't margin call. unless the bank have liquidity issues I guess.
The complaints will not end one la. I can also say, my body is very healthy. I won't fall sick one. Why the Government force me to put money in Medisave and force me to buy Medishield? I can use the money to invest.
You get my point?
You can never know what will happen to you out of the blue. Many critical illnesses befall younger people these days. I have seen some cases of lung cancer in 30+/40+ year old non-smokers recently. The medical costs are escalating ahead of inflation, even in restructured hospitals. If you do not have insurance, one critical illness can wipe out a big chunk of your cash. You can say go C class. But the quality of care in C class is not that good. Restructured hospital CEOs have been know to scold their doctors for spending too much time on C class patients. Some of the newer drugs are not covered by subsidies.
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