Advantages of 30 Years Fixed Rate Housing Mortgage?

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#1
“My best idea isn't even related to ETFs. I think you should look into taking out a 30-year fixed-rate mortgage and buying property (at a reasonable price, of course). Warren Buffett says the dumbest investment right now is the long-term government bond. If that's the case, then the smartest investment is shorting it--borrowing lots of money at a fixed-rate for a long time. I first urged subscribers buy a house back in December, assuming the need and ability to do so without overextending one's balance sheet. My advice still stands.
A 30-year fixed-rate mortgage has several appealing qualities. First, after expected inflation and the mortgage-interest tax subsidy, the expected real interest rate on the loan is close to zero and may even be negative. Second, it's a natural inflation hedge and to a lesser extent a hedge against rising real interest rates. Third, it's not callable. There's no need to stump up a ton of cash at a moment's notice (usually the worst time possible) to satisfy a lender's margin calls. In this respect, it's a lot safer than traditional forms of leverage, because you can ride out mark-to-market losses without having to liquidate assets at fire sale prices.
If you already have a mortgage, take your sweet time paying it off. If you have young-adult children with decent credit and stable jobs, and you intend to leave a bequest, help them with a home down payment instead. And whatever you do, please don't extend Uncle Sam too many fixed-rate loans.”
Unquote:-
Can the advice be applied in Singapore? Can we still leverage to 30 years fixed rate for housing loans? Are there really advantages? What about the disadvantages?
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#2
in singapore can get 30 year fixed loan meh?
I thought max like first 5 years fixed only.. after that is floating already, which could be risky considering that rates will go up
I'm not very knowledgeable in this area, hope other VB pros can help thanks
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#3
(22-07-2013, 09:58 AM)felixleong Wrote: in singapore can get 30 year fixed loan meh?
I thought max like first 5 years fixed only.. after that is floating already, which could be risky considering that rates will go up
I'm not very knowledgeable in this area, hope other VB pros can help thanks

no fixed rate 30y loans in Sg

http://www.smartloans.sg/pages/types-of-...d-features

the only one is HDB's loan with tenor the lesser of (65-buyers age, 30) and set @ 0.1% + OA
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#4
http://www.posb.com.sg/personal/loans/hd...fault.page

POSB HDB loan. The rate is capped at CPF interest rate for ten years.
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#5
I took my loan (3M SIBOR floating) in 2008 and now long past lock-in period with a spread of 1% above 3M SIBOR going forward. Wondering when will 3M SIBOR hit 1.5%...
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#6
On top of the 1% spread I am having, I took on a loan with an interest offset account, just in case the interest get too high, then I can put my spare cash in the account. If Sibor hit 1.5%, the account will pay me 1.7% to offset the loan. Hurt, but not that painful...
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#7
If 30 year fixed mortgage loan was avail in sing sub 5pct i will take it. But i think its not avail.
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#8
(22-07-2013, 10:21 PM)godjira1 Wrote: If 30 year fixed mortgage loan was avail in sing sub 5pct i will take it. But i think its not avail.

godjira1, did you try approaching your banker to ask for it?
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#9
(23-07-2013, 11:06 AM)egghead Wrote:
(22-07-2013, 10:21 PM)godjira1 Wrote: If 30 year fixed mortgage loan was avail in sing sub 5pct i will take it. But i think its not avail.

godjira1, did you try approaching your banker to ask for it?

funnily his reply was that it's much easier to short 30 year treasuries if I just wanted to go short duration/rates. he's probably right as well.
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#10
LOL - somehow bankers think in terms of long/short, call/put; unlike layman like me - still grappling with the concept "money is fungible".
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