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Thread: 900K cash + cpf, 800K+550K loan, shall I clear my loan first?

  1. #1
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    Default 900K cash + cpf, 800K+550K loan, shall I clear my loan first?

    New to this forum...I would like to seek advice from all the property gurus in this forum - shall I clear my loan first?

    A brief profile as follows:

    1 HDB: fully paid, rental at $2600
    1 pt for own stay: 800K loan
    1 2 bedder pt for investment: 550K, TOP this year

    I have about 700K cash + 200K cpf on hand. combine mthly income > 20K. shall i keep cpf for high interest rate, but put 700K to clear off my 800K home loan for my own stay PC? let the 2 bedder rental pays for mortgage?

    Your advices are highly appreciated!

  2. #2
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    Quote Originally Posted by lucky new new
    New to this forum...I would like to seek advice from all the property gurus in this forum - shall I clear my loan first?

    A brief profile as follows:

    1 HDB: fully paid, rental at $2600
    1 pt for own stay: 800K loan
    1 2 bedder pt for investment: 550K, TOP this year

    I have about 700K cash + 200K cpf on hand. combine mthly income > 20K. shall i keep cpf for high interest rate, but put 700K to clear off my 800K home loan for my own stay PC? let the 2 bedder rental pays for mortgage?

    Your advices are highly appreciated!
    700k + 200k can loan to purchase another 2.25mil property

  3. #3
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    Quote Originally Posted by lucky new new
    New to this forum...I would like to seek advice from all the property gurus in this forum - shall I clear my loan first?

    A brief profile as follows:

    1 HDB: fully paid, rental at $2600
    1 pt for own stay: 800K loan
    1 2 bedder pt for investment: 550K, TOP this year

    I have about 700K cash + 200K cpf on hand. combine mthly income > 20K. shall i keep cpf for high interest rate, but put 700K to clear off my 800K home loan for my own stay PC? let the 2 bedder rental pays for mortgage?

    Your advices are highly appreciated!
    well done bro! gd ppty portfolio and gd cash on hand!

    i will use the 200k cpf to service the installment.....

    duno whr to park ur cash? refinance to stanchart mortgage1 sibor and temp park cash there while waiting for opportunities.....who knows 6mths later ppty px drop by 20% firesale and u can buy one more!!!!!

  4. #4
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    i am not property guru..
    but i wonder what are you worry about to make you want to pay off the loan so fast since the rate gonna be low for at least 2 years..

    your cash get standby to grab firesale property later on..
    this is what i think la..

  5. #5
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    Quote Originally Posted by price
    700k + 200k can loan to purchase another 2.25mil property
    and incur 3% ABSD?

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    Quote Originally Posted by devilplate
    well done bro! gd ppty portfolio and gd cash on hand!

    i will use the 200k cpf to service the installment.....

    duno whr to park ur cash? refinance to stanchart mortgage1 sibor and temp park cash there while waiting for opportunities.....who knows 6mths later ppty px drop by 20% firesale and u can buy one more!!!!!
    thank you... will it be a waste to use cpf to pay the installment since cpf has 2.5% interest, my loan is only at 1%?

    Yes, where to park? Shall i go for 6mth fixed deposit?

  7. #7
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    Quote Originally Posted by roly8
    i am not property guru..
    but i wonder what are you worry about to make you want to pay off the loan so fast since the rate gonna be low for at least 2 years..

    your cash get standby to grab firesale property later on..
    this is what i think la..
    i don't know how to fully utilize the cash... the property is getting higher and higher, i just can't commite to buy another one.... and i don't know when will the real firesales come... so thinking if i payoff my current property, i will have peace of mind...

    luckily i found this forum, and so many gurus here

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    Quote Originally Posted by august
    and incur 3% ABSD?
    isnt it 10% ABSD? ok lar 2mil+ 200k+ SD for the Govt to develop Singapore. Not bad wat?

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    Quote Originally Posted by lucky new new
    thank you... will it be a waste to use cpf to pay the installment since cpf has 2.5% interest, my loan is only at 1%?

    Yes, where to park? Shall i go for 6mth fixed deposit?
    can refinance ur own stay ppty anot? clawback period over liao? if over liao, try stanchart or uob home plus whereby u can park ur cash there

    if not maybank 1yr FD at 1.18% (break into many contracts....like 100k each....u nvr noe when u noe break it and use the cash)

    i dun really believe in leaving cash in cpf.....later on aso force u to buy annuity.....the $$ u like can see no touch like dat.....might as well use it to service loan

  10. #10
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    Quote Originally Posted by price
    700k + 200k can loan to purchase another 2.25mil property
    Quote Originally Posted by august
    and incur 3% ABSD?
    i don't feel it's the right time to buy, and don't know when will be the right time to buy....

  11. #11
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    Quote Originally Posted by lucky new new
    i don't feel it's the right time to buy, and don't know when will be the right time to buy....
    dun buy now.....drop 20% den enter again!!!

    if u fully redeem ur loan now....later ppty px drop by 20% how? of coz u can remortgage ur ppty to get some cash but will incur legal fees blah blah

  12. #12
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    I would nto do partial capital repayment given the low interest. Will use 700k cash as a standby if interest rate shoots up. The monthly repayment of the outstanding mortgage balance of the 800k loan after deducting rental income from HDB can use either CPF or cash. Use CPF if cash in bank is less than 2.5% ROI. Like dp said, can go for std chartered mortgage one.
    Quote Originally Posted by lucky new new
    New to this forum...I would like to seek advice from all the property gurus in this forum - shall I clear my loan first?

    A brief profile as follows:

    1 HDB: fully paid, rental at $2600
    1 pt for own stay: 800K loan
    1 2 bedder pt for investment: 550K, TOP this year

    I have about 700K cash + 200K cpf on hand. combine mthly income > 20K. shall i keep cpf for high interest rate, but put 700K to clear off my 800K home loan for my own stay PC? let the 2 bedder rental pays for mortgage?

    Your advices are highly appreciated!

  13. #13
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    Quote Originally Posted by devilplate
    can refinance ur own stay ppty anot? clawback period over liao? if over liao, try stanchart or uob home plus whereby u can park ur cash there

    if not maybank 1yr FD at 1.18% (break into many contracts....like 100k each....u nvr noe when u noe break it and use the cash)
    can't refinance yet...

    yes, i like your idea of breaking into many contracts.... at least we can have some flexibility to react

    So nobody supports my idea of paying off my current ppty?

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    Quote Originally Posted by lucky new new
    i don't feel it's the right time to buy, and don't know when will be the right time to buy....
    If you think this way, then pay up with everything you have and have a peace of mind.
    However if you think of investing in another one, then you should read in detail what the others have advised you.

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    Quote Originally Posted by devilplate

    if not maybank 1yr FD at 1.18% (break into many contracts....like 100k each....u nvr noe when u noe break it and use the cash)
    Is that the best FD rates? Thought some china banks offer 1.5 or 1.65

  16. #16
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    How about overseas property? Looking at some.
    Quote Originally Posted by devilplate
    dun buy now.....drop 20% den enter again!!!

    if u fully redeem ur loan now....later ppty px drop by 20% how? of coz u can remortgage ur ppty to get some cash but will incur legal fees blah blah

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    Quote Originally Posted by lucky new new
    can't refinance yet...

    yes, i like your idea of breaking into many contracts.... at least we can have some flexibility to react

    So nobody supports my idea of paying off my current ppty?
    Actually many uncles and aunties i know have fully paid of their loans. I think most of em dont like the idea of owing $$. Car loans Housing loan etc are all fully paid.

  18. #18
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    Do check with your banker? You can consider Eastspring(formerly prudential monthly payout "M" class) to give you 5% return. You can purchase at blocks of $250k. &750 is not alot.
    Quote Originally Posted by lucky new new
    can't refinance yet...

    yes, i like your idea of breaking into many contracts.... at least we can have some flexibility to react

    So nobody supports my idea of paying off my current ppty?

  19. #19
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    oh ya forget about the age factor.....if above 50yo oredi......den mabe can consider partial redeem own stay ppty later if int rate shoots up....

    anyway old or yng now, dont redeem ur loan now.....wakaka

    redeem only when int rate rise to let say 2.5%++

  20. #20
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    Quote Originally Posted by price
    Is that the best FD rates? Thought some china banks offer 1.5 or 1.65
    which banks? BOC???

    i want!!!

  21. #21
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    Quote Originally Posted by DC33_2008
    How about overseas property? Looking at some.
    i went to usa....din buy any.....san fran din drop at all lor....so sad...in fact good cities in usa px din drop and are actually creeping up

    den where else? msia? i rather just keep RM and earn FD 3%

  22. #22
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    Quote Originally Posted by devilplate
    which banks? BOC???

    i want!!!
    Yes BOC and ICIC lor. Today i saw ICIC on newspaper.

    http://www.icicibank.com.sg/pb_fd.htm

    http://www.bankofchina.com/sg/pbserv...20_955819.html

  23. #23
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    Quote Originally Posted by devilplate
    i went to usa....din buy any.....san fran din drop at all lor....so sad...in fact good cities in usa px din drop and are actually creeping up

    den where else? msia? i rather just keep RM and earn FD 3%
    Why not AUD Time deposit? best payout % now right?

  24. #24
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    Quote Originally Posted by DC33_2008
    I would nto do partial capital repayment given the low interest. Will use 700k cash as a standby if interest rate shoots up. The monthly repayment of the outstanding mortgage balance of the 800k loan after deducting rental income from HDB can use either CPF or cash. Use CPF if cash in bank is less than 2.5% ROI. Like dp said, can go for std chartered mortgage one.
    hi expert, can you please elaborate a bit on this? don't really understand...

    if i just put cash into bank, and wait for property to drop, should i or shouldn't i use $200K cpf to reduce my current $800K loan?

  25. #25
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    or use this as a expenditure account. Charge ur giro payments to this:

    http://www.standardchartered.com.sg/...ver/index.html

    and get 1.88%

  26. #26
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    Quote Originally Posted by lucky new new
    hi expert, can you please elaborate a bit on this? don't really understand...

    if i just put cash into bank, and wait for property to drop, should i or shouldn't i use $200K cpf to reduce my current $800K loan?
    Because the fact i hate monies stuck in CPF, i'll exhaust it if i were you

  27. #27
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    Quote Originally Posted by price
    wah piang icic 3yrs fixed!! too long liao.....1yr same same

  28. #28
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    Quote Originally Posted by price
    Why not AUD Time deposit? best payout % now right?
    AUD exchange rate all time high now leh....

    1.1x den can consider rite?

  29. #29
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    Quote Originally Posted by lucky new new
    i don't know how to fully utilize the cash... the property is getting higher and higher, i just can't commite to buy another one.... and i don't know when will the real firesales come... so thinking if i payoff my current property, i will have peace of mind...

    luckily i found this forum, and so many gurus here
    Why dont u do wat one of the forumer say? park in a Standchart or Citi interest offset loan acct? gives u the flexibility. If opportunity calls u can invest. if you suddenly feel squeezed u can redeem ur loan.

    Have case flow is the best option in case opportunity or u suddenly (touch wood) need $$

  30. #30
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    Quote Originally Posted by devilplate
    AUD exchange rate all time high now leh....

    1.1x den can consider rite?
    I remember 3 years ago i told my dad to return me my $ so i can buy AUD FD at 0.96 to SGD 1. He told me to stop bothering him and said dont be mad

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