I am trying to do a straw poll on how most private property buyers come up with the 5% cash downpayment as well as the remaining 15%.
Myself -
5% cash from life savings
15% from CPF, liquidate investments
Newbie
I am trying to do a straw poll on how most private property buyers come up with the 5% cash downpayment as well as the remaining 15%.
Myself -
5% cash from life savings
15% from CPF, liquidate investments
Newbie
Mine 20% was all in cash
Newbie
For me, I paid almost full 20% cash cos I dont have much CPF left for use after meeting the minimum sum.
Junior
Hmm.. referring to 1st or 2nd & subsequent properties?
Managed to use CPF for the 15%, after MSS, so cash is 5% for 1st property. Now, no more cash or CPF for 2nd property.
BE CENTRED BY ALL AT THE FRINGE OF THE CITY @
Newbie
10% cpf, 10% cash
Newbie
35% cash Downpayment.
Junior
25%, cash downpay
Exalted
seems like mostly taking 20% loan?
safest is to take only 50-60% loan with 30-35yrs loan tenure...SUPER STRONG HOLDING POWER!
practically, rental shd be able to cover ur installment even during the downturn.
Newbie
50 - 60% of downpayment? for sure this fellar can hold during crisis...Originally Posted by devilplate
seems like mostly taking 20% loan?
safest is to take only 50-60% loan with 30-35yrs loan tenure...SUPER STRONG HOLDING POWER!
practically, rental shd be able to cover ur installment even during the downturn.
CPF for 1st property and cash for the rest...
Junior
30 to 50% down
Junior
30 to 50% down for 40+ properties!
Property_Owner must be overflowing with cash!
No wonder can afford to contribute one Aston Martin to Marina Bay Sands!
Newbie
Hi Property Owner:
Wow! With 40+ properties with increased valuation and rental returns......
Do you have a book for sale at major stores? It will be really interesting to read.
Newbie
55% down on first property (just got married, still young and not much savings)
100% down on second and third property (now)
F01 N54 Sheer Driving Pleasure
Residence: 100% Cash+CPF30 to 50% down for 40+ properties!
Property_Owner must be overflowing with cash!
No wonder can afford to contribute one Aston Martin to Marina Bay Sands!
Investment: 30% Cash
So downpayments are cash except residence.
Hey "jlrx", you never tell us how you do it leh.
Junior
Mostly 20% to 30% Cash + CPF, but also have 20% to 100% Cash.
Newbie
In such low loan interest period, one should max out his credit and take maximum amount of loan even if he has the cash to downpay more. Cost of debt lower than cost of capital => use your cash to invest in something else that fetches more returns than to reduce loan interest! One good example is property investment!
Exalted
but usually nid to submit income slip blah blah...
no choice lor...goto take only 60 % or less for instant approval lor
Uob getting aggressive...can accept 70%+some cash without seeing payslip...
东方
for first property back in 2006 only can afford down of 10% consisting of cash cpf personal loans balance transfer and credit card funds transfer!
Newbie
5% cash -- that by law
out of 15%, 10% from cash...5% from CPF
CPF locked up due to min sum cash component of the HDB I bought..
a more interesting question is how the loan to valuation ,LTV, of the property purchased ...my view is that a safe margin probably 40-45% LTV. below 40% will be very resilent to recessions..
Junior
1st property CPF + cash for COV
2rd ppty cash (20%)
Junior
Sometimes I wonder whether we have these "gurus" in our mist...
1) Mr Getty Goh of byebyeproperties fame
2) Mr David Yuen of 10 properties for the price of 1 fame
3) Mr Rayney Wong of Secret of Properties Millionaire fame
4) Mr Dennis Ng of Secrets to Making Money in Properties
Disclaimer : I'm not doubting their achievements. Just use "gurus" in case some disagree.
Cover my own backside in case they are in the forum..keke
Newbie
Just a question, how hard is it to secure 80% loan for your second and subsequent properties? Income declared has to be very high?
Junior
Usually bank will look at your liabilities eg, car loan, unseacured loan and credit card loan. Should avoid bad credit record filed by Banks for not paying membership fee.
Junior
For some of us, bank just looked at our assets 'coz we don't have income.
Newbie
20%-30% is in cash (sometimes need to liquidate equities to plough into property, but I see this as reclassification of investment category).
no point touching the CPF, except for a minimum lump sum of $25-$50 to set up the legal documentation for flexibility to increase CPF usage in the future. CPF is earning returns of 2.6% (even higher for CPFIS account), which is higher (and more guaranteed than any FD rate which banks can quote).
No point paying more than 20-30% down when cash can work harder than the cheap mortgage rates (cash and cash equivalent is king, no matter which way economy turns). But must always keep enough liquidatable assets in case of cash top up. I don't pay more than $960k for each of my non-landed investment property (FH and 3-bedders minimally) so far, so hopefully the exposure of 70-80% to banks is not too high.
Last edited by new2mondrian; 15-07-10 at 09:15.
Newbie
I asked my citibanker the same question...she advised me not to pay more than 20% for the loan for the first property (for many of the reasons stated above). This also helps in the 2nd property loan, if they cannot give you another 80% loan...
So that's what I did...
BTW, any citigold members here? They're asking whether I am keen to join. Any idea of the benefits e.g. preferential home loan rates?
Junior
think they are the only one to give 1 mth sibor ... that was sometime ago, dont know whether other banks have this now.
Newbie
Just managed to secure a 3mth SIBOR + 0.5%, 3mth SIBOR +0.6% and 3mth SIBOR + 0.7% with a min interest rate of 1%, two year lock in from them.
No more 1mth SIBOR from Citibank. (was on 1 mth SIBOR few mths back but didn't read the fine print of min interest rate of 1.25%...)
Junior
Checked before, no preferential loan rates ... but that was some time back.
Newbie
Guru no.1 is on my facebook...didn't know he was a guru
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