|Home > Let's Buzz > IM$avvy Buzz Lucky Draw [JOIN LUCKY DRAW HERE] > Week 2: 12/4/2010 - 18/4/2010|
|Actually I always keep some spare $ in the ordinary account of my CPF just in case when I am out of job.look for another job. The spare $ would last for about 3 years before it dried up. The spare $ in the ordinary account would enable to service the loan from HDB while I have some time (3 years) to look for another job. Even though we need to pay interest for the loan taken from HDB, however it is only 0.1 % more than the interest we are earning. So I would advise that even we have extra $ in our ordinary account we should not use it to pay upfront for our loan. |
Quote: lowpp - 2010-04-14 2:09 PM
My family is living in a 5-room HDB flat. It is not my dream house but it is definitely something that we can afford. I took a loan from HDB and have been paying for the flat using my CPF funds for the last 10 years. There is still a remaining loan period for another 15 years. I now agree that owning a house is a liability and not an asset.
When we decide to buy the flat, we did not work any plan, we just head down to HDB, pay for the registration fee and submit the application form. We were told that we will get our flat within 5 years. A year after moving in, we encounter financial difficulty. My husband’s business was ceased due to bad debts. Before that, we have depleted our savings and chalked up huge credit card debts. Then a double blow to us, I was made redundant in my company and was jobless for almost 3 months. We have no savings and piles of debts to pay.
The difficulties we met were unforeseen. We did not make plans financially. Luckily for us, we had help from friends and family and we were finally able to repay our debts.
I would like to share with you that buying a HDB flat instead of a private property and using my CPF funds to service our mortgage payments was our best decision.
My advice to all future home-owners is to work a financial plan before you decide on the house you want – be it a flat, a condo or a landed property. IMHO, a house is just a roof over your head, buy what you can afford.
|My first residential house is financed partially by my first house which I bought and rented out. I was financing then $1850 mthly for it off a bank loan of 30 years with a rental income of $2400. My 2nd property is serviced monthly at $1770 for our family stay. Looking at option of releasing the property should the time be right. With prices sky high, there's an opportunity but plan well|
|We are looking forward to building our love nest early however we could not fork out so much cash for 2nd hand HDB. BTO is our only choice for me n my partner. Thankfully Punggol project came by and we successfully got a BTO after only two applications. From the waterfront and many activities of the future Punggol, we are convinced that it will be a very nice place to live in and we look forward to our new home there in another 2 years time. =)|
|I bought a resale 3-room flat on 10 years loan based on 3-month SIBOR rate. It is a blessing in disguise as I have been enjoying rates way below the HDB loan rates. But I am planning to re-finance soon as SIBOR rate should be on its way up soon.|
|I hv leased 99yrs household last year mortgaged with Bank Loan. |
But frankly I have peace of mind no one to ask to leave the house giving false reason's to get higher rent. After a stressful day at office its good have a peaceful sleep at home.
Sometimes I am worried abt the liability but if I would have not taken bold decision I would have paying somewhere between 1500 to 2000$ monthly rentals not getting anything back.
|I'm only 23 years old is worried about the current property market. But there are still alternatives for affordable and good public housing. For example, enjoying discount by staying near with my parents and getting married earlier (provided you found you loved ones) are ways to save some costs.|
|I'm currently a NSF, serving the nation. I have a dream to live in a landed property. I save up at least 30% of what I earn. Even though I am an NSF and don't earn much, I give tuition on weekends to supplement my income. Whenever possible, I will save and not splurge on food and all the unneccessities.|
|Thanks all for your participation! This thread is now closed. Please join in our discussion on Insurance to take part in our Week 3 Lucky Draw contest. =)|