Comments on: Should You Take Housing Loan or Pay Your HDB House In Full If You Got The Money?

By: samuel sapp

samuel sapp — Sun, 10 Jan 2010 18:17:37 +0000

This information is very useful ,thank you for sharing!

By: lchunl

lchunl — Sun, 30 Aug 2009 02:07:39 +0000

though i agree that the money instead of paying off the housing can be used for investment purposes, but is the money invested “guarantee” to earn more than the 2.6% ? As no investment returns is ever guaranteed, it is caveat emptor. The realization of HDB housing loan interest being the lowest is not uncommon, and being so, how come people are still not earning buckets of money utilizing these “common sense” finding? I believe in my own opinion is because it looks nice on theory but never in real life.

By: Ben

Ben — Mon, 06 Jul 2009 05:16:12 +0000

Your second option is better esp. since this is a clear recession and you can almost throw a stone at almost any investment portfolio and have it give better than 3% return over a period of say 10 years.

By: GCY

GCY — Mon, 06 Jul 2009 01:05:01 +0000

If your concern is whether there will be a flat for your loved ones to live in when you passes on, I think having sufficient home insurance coverage is better than repaying the loans with all your cash.

As for the comparisons on the loan rates, I think you should also compare against the current home loan rates too rather than just stating the other kind of loan rates. Nevertheless, I agree HDB loan is probably the cheapest around.

By: wiseinvestor

wiseinvestor — Sun, 05 Jul 2009 09:51:12 +0000

I would say depends on one level of financial intelligence and personal risk.
Personal risk – This is like buy term insurance instead of life and then invest the difference. Some people spend the difference such that it is better for him to buy life insurance to have the forced savings.

Financial intelligence – The danger of not paying off for housing is that one may ends up investing in structured products and Sunshine Empire.

As a result, it is very hard to say whether one should pay off completely or not, at least for the case of primary residence.

But for the case of second house for investment, one must use leverage as in mortgages, even Li Ka Shing do not put in $1 millions in cash for a property for rental purposes even if he got the cash.

Anyway, download famous author of Rich Dad Poor Dad latest book for free at his own website, conspiracyoftherich.com, by 07 July 2007.

Free reading of book ends on 07 July 2009, after which it will be published as hardcopy and selling for more than $20.

It is very informative and readable, like Rich Dad Poor Dad.