I love my Bank.

[Arcachon]

Own 5 Room HDB val at 595k, 2 Bedroom val at 1.5m, 3 Bedroom PH at 1,305,800. Outstanding loan at 1.8m.
net assets = 1.6mil
still okay wat.

2BR by bank A, 3BR by bank B, perhap Bank C not willing to lend since they dont have first charge to the other properties.
perhaps if all the loans by the same bank then the bank would feel more safe.

CPF and only one bank

[carbuncle]

Werther, you the only Original.

[buttercarp]

Werther, you are so sweet!

[Werther]

Hi bros & sis

Just called my banker to check on new mortgage payment:

Oh dear, I doubt I can afford it now,

$3m
40% dp- $1.2m
Loan - $1.8m over 20 years
Additional 3% stamp duty for 3rd pty
Monthly instal: $8k per month

How to afford?

Think need to shelve plan Liao....

Anyway to go around it?

[buttercarp]

Hi Werther, has this unit TOP yet?
If so then your other 2 properties rental plus your salary, can it pay off the loan?
I assume you took the 20 year tenure as you will turn 65 years old in 20 years time? If not, then may be can stretch the loan further.

Did you take fixed loan or Sibor loan?
Since Sibor is low now, you may consider sibor now.
All these I am sure your banker has gone through with you lah.

Btw, care to share what type of property you bought and location?

[hopeful]

Hi bros & sis

Just called my banker to check on new mortgage payment:
Oh dear, I doubt I can afford it now,
$3m
40% dp- $1.2m
Loan - $1.8m over 20 years
Additional 3% stamp duty for 3rd pty
Monthly instal: $8k per month
How to afford?
Think need to shelve plan Liao....
Anyway to go around it?

which part of affordability is the problem?
A)40% dp?
B)absd 3%?
C)monthly instal $8k/month?

for B, if u used solely my name to purchase, you will save ABSD 3%.
for C, if u used solely my name to purchase, i will top up difference between rental received and monthly instalment.
for A, hmm that's trickier.

[chestnut]

Honest suggestion:
Senario 1
Down 60%
Loan 40% 30 yr.

Senario 2
Sell 1 property
Then buy next property
You can choose down 40% w 20 yr loan or
Down 60% w 30 yr loan. Because u would have excess cash w the sale of the house and at the same time u save on absd.

If you die die want 3 properties, I cannot dwell into it as I do not have detailed information into your finance, neither do I intend to know.


Now, after serious advise, we need some humor.
I will better hopeful offer. I will pay 50% of down. You put my name.

Hi bros & sis

Just called my banker to check on new mortgage payment:

Oh dear, I doubt I can afford it now,

$3m
40% dp- $1.2m
Loan - $1.8m over 20 years
Additional 3% stamp duty for 3rd pty
Monthly instal: $8k per month

How to afford?

Think need to shelve plan Liao....

Anyway to go around it?

[kane]

CPF and only one bank

Your debt to income ratio is your biggest obstacle.

[chestnut]

Your debt to income ratio is your biggest obstacle.

Actually, I already amazed he managed to do this with his salary. This is pure compliment. To me, it is a major achievement, give this man a tiger.

[kane]

Actually, I already amazed he managed to do this with his salary. This is pure compliment. To me, it is a major achievement, give this man a tiger.

His rental income probably gave him a lift but it can only lift him that far.

[chestnut]

His rental income probably gave him a lift but it can only lift him that far.

But many people with that income only go 3 storey. He went 12 storey. That's why I respect his achievement.

It is like an officer with say diploma, He can only climb to captain or major max. But he climb to ltc.

[kane]

But many people with that income only go 3 storey. He went 12 storey. That's why I respect his achievement.

It is like an officer with say diploma, He can only climb to captain or major max. But he climb to ltc.

If i remember correctly, the game changer for him was southbank.

[chiaberry]

But many people with that income only go 3 storey. He went 12 storey. That's why I respect his achievement.

It is like an officer with say diploma, He can only climb to captain or major max. But he climb to ltc.

His cola is more than his salary. And his overseas housing is probably subsidised.

While he is abroad he is collecting rent from his hdb and PCs (if that is so his rental should be higher than what he states - maybe the contracts were from 2 y ago).

He did well by adding to his property portfolio while he was abroad.

Maybe his retirement age in his job is 55 that's why bank is only offering him 6 year tenure. Some army officers have such early retirement age.

[chestnut]

His cola is more than his salary. And his overseas housing is probably subsidised.

While he is abroad he is collecting rent from his hdb and PCs (if that is so his rental should be higher than what he states - maybe the contracts were from 2 y ago).

He did well by adding to his property portfolio while he was abroad.

Maybe his retirement age in his job is 55 that's why bank is only offering him 6 year tenure. Some army officers have such early retirement age.

Sis, the coke in Europe is a killer. Very expensive. So when I go Europe for holiday, I try to stay in Hilton because I gold member. Pay a bit more, but free breakfast and drinks are free all day round with snacks. After shopping, I go back to rest - old man already.

When it comes to loan, passive income from rental also included in income. Because you need to file income tax. The issue is with age. The older u are, the shorter the tenure.

Army officer were supposed to retire @ 45 but raised to 50 In 2009. I know because we had an alumni gathering before 09. One of my batch, a regular today is a BG. Btw, I was only an ns officer many years ago. Now, no more reservist also because finished my cycle early.

Enough said. What is important is people who took the risk and were rewarded. Some took risk and were punished. This were the people in 97. I was one of them for both instances. That's why it's important to learn.

[Werther]

Hi buttercup

Currently staying in east. The property I am eyeing also in east, old but big apt ard 1800 sq ft. I doubt think will sell any of my holdings cos in future, buy back or getting loan may b tough....

Thanks hopeful and chestnut for you brilliant suggestion in putting someone name but guess too risky. But down 60% cash is really a headache...guess I need to borrow from ah long.

[condolisa]

I am not sure if 40% downpayment means:
(a) 5% upon booking unit and balance 35% upon exercising option, or
(b) 5% upon booking unit and 15% upon exercising option, balance 20% follow building payment schedule, and then bank loan kicks in.

Any kind soul can confirm which is correct?

[chestnut]

I am not sure if 40% downpayment means:
(a) 5% upon booking unit and balance 35% upon exercising option, or
(b) 5% upon booking unit and 15% upon exercising option, balance 20% follow building payment schedule, and then bank loan kicks in.

Any kind soul can confirm which is correct?

B. confirm. I am in. So u can take your time w bank loan because legal subsidy also zero. But u need to Cather for absd if you kana, when you meet lawyer.

[condolisa]

B. confirm. I am in.

Double confirm?

[chestnut]

Hi buttercup

Currently staying in east. The property I am eyeing also in east, old but big apt ard 1800 sq ft. I doubt think will sell any of my holdings cos in future, buy back or getting loan may b tough....

Thanks hopeful and chestnut for you brilliant suggestion in putting someone name but guess too risky. But down 60% cash is really a headache...guess I need to borrow from ah long.

Werther, that part I only joking wat. I tot I gave you 2 options. If u really want option 3, I really cannot advise u because I do not know you pr financials and neither do I want to know. Your best bet is to work with a banker and sort this out. After u meet with the banker and look at all options, sit down with your spouse to discuss. If either of you have doubts or issues, back off.

Are u buying to stay or investment? If investment, what's your rush?

[condolisa]

B. confirm. I am in. So u can take your time w bank loan because legal subsidy also zero. But u need to Cather for absd if you kana, when you meet lawyer.

Thanks Chestnut You're in good and serious mood today

[chestnut]

Double confirm?

Sis, if I singing song, you will know. I will write an essay. I just got back from the lawyer office last week and gave him balance 15% and buyer stamp duty plus absd. The absd very painful. But I believe Iras will appreciate me more.

[chestnut]

Thanks Chestnut You're in good and serious mood today

You are welcome. Another thing. If you need a banker, get them to see you at your convenience and at your location. You do not need to go and meet them. Let them come to u. U are the customer.

[DC33_2008]

Can up your southbank rental if you are renewing now. There is demand there.

I almost fall off my chair when I read my banker reply.

I was looking at a 1 Bedroom Sky green for my retirement home.

There was also a Shophouse selling for 750k, valuation 800k.

Just celebrated my 12th birthday.

Own 5 Room HDB val at 595k, 2 Bedroom val at 1.5m, 3 Bedroom PH at 1,305,800. Outstanding loan at 1.8m.

Salary 44k a year, rental income 78k, cola 4k a month, housing 200 euro.

BMW 5 series 4k euro, SMART car 4k euro.

Son going NS.

Wife stay at home watch series everyday.

[phantom_opera]

Up interest of loan to 4pc, see that 1.8m loan causing stress or not

[phantom_opera]

Sis, if I singing song, you will know. I will write an essay. I just got back from the lawyer office last week and gave him balance 15% and buyer stamp duty plus absd. The absd very painful. But I believe Iras will appreciate me more.

What did u buy with equity loan uncle chestnut?

[chestnut]

Up interest of loan to 4pc, see that 1.8m loan causing stress or not

Bro, if interest up and cannot handle sell lor. I have sold many things at losses. What is important is at the end of the year, must get overall profit. Hahaha.

Oops, sometimes, end of the year also negative then Bo pian. Swallow the pill.

[phantom_opera]

Bro, if interest up and cannot handle sell lor. I have sold many things at losses. What is important is at the end of the year, must get overall profit. Hahaha.

Oops, sometimes, end of the year also negative then Bo pian. Swallow the pill.

What I dun like about property is liquidity, cannot throw in seconds like stocks and bonds

[chestnut]

What did u buy with equity loan uncle chestnut?

Bro, I don't need equity loan. My problem is trying to make my spare cash work man. But I was looking at it for 1 reason. Now I tell u. U don't laugh.

Example I have 500k cash. I want to buy 5 year or 10 year bond. I scared interest rate go up after 3 year and higher then bond return. Then I siong right.

So equity loan @1.5% say example. Bond 4%.
I put the loan in deposit and get 1%. I can get, but don't ask me how ok.
I use my 500k put in bond at 4%.
Total earned 5%.
Net earned = 5-1.5 = 3.5%.

Interest rate on equity loan shoot up to a life
I feel not worth it, I take out deposit and pay back the loan. So net still 4% per annum. Right.

Please feel free to tear down my theory. I play very safe in life. My expenses are way below my earnings. So when I retire. Swee swee no problem. My only vice is car and I pay full, so sales agent damn hate me.
Hahaha

[chestnut]

What I dun like about property is liquidity, cannot throw in seconds like stocks and bonds

Bro, I understand. But if you caught the way, I tell u, you make like nobody biz.
I going work liao. Talk to u when I free. I really did learn a lot from you. You are very cheem and you will do well. Timing is the key. Your time will come soon. And when it comes, you must seize every opportunity on it. If not you need to wait 7-12 years before it comes again.

[Werther]

Up interest of loan to 4pc, see that 1.8m loan causing stress or not

Hi phantom
Tks for coming in.

Exactly, I m fearful if interest goes up... So far this current interest rate is the lowest in my entire property mortgage payment, thought want to capitalise on it till 2015, on the other hand with all these cm, need to think very hard how to go ard it otherwise cash eat up by inflation.

So now is buy die, don't buy also die.

Bro, what's yr take. Shd wait or buy now? Le to hear yr view.