Home loan repayment can now stretch to 50 years

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#31
(06-08-2012, 12:42 PM)Temperament Wrote: "CAT crying over Mouse" by MR. COW.
Ha! Ha!

Was wondering what you were trying to tell us but after a while think you're referring to this story. Smile

Quote:A little mouse was wandering on the ground in a large field in the winter. It was so cold the mouse nearly froze up. While it was lying there, a cow came by and dropped some dung on it. As the frozen mouse lay there in the pile of cow dung, it began to realize how warm it was. The dung was actually thawing him out! He lay there all warm and happy, and soon began to squeak for joy.

A passing cat heard the mouse squeaking and came to investigate. Following the sound, the cat discovered the mouse under the pile of cow dung, and promptly dug him out and ate him!


The morals of this story are:

Not everyone who drops Sh** on you is your enemy.
Not everyone who gets you out of Sh** is your friend.
And when you're in deep Sh**, keep your mouth shut!
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#32
(06-08-2012, 05:37 PM)Stocker Wrote: Believe not many can outlive this 50 years loan.

The idea is your children will take over the loan because by that time likely a number of them cannot afford to have their own.

Just my Diary
corylogics.blogspot.com/


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#33
(06-08-2012, 06:21 PM)corydorus Wrote:
(06-08-2012, 05:37 PM)Stocker Wrote: Believe not many can outlive this 50 years loan.

The idea is your children will take over the loan because by that time likely a number of them cannot afford to have their own.
Aka-Japan.

(06-08-2012, 06:02 PM)swakoo Wrote:
(06-08-2012, 12:42 PM)Temperament Wrote: "CAT crying over Mouse" by MR. COW.
Ha! Ha!

Was wondering what you were trying to tell us but after a while think you're referring to this story. Smile

Quote:A little mouse was wandering on the ground in a large field in the winter. It was so cold the mouse nearly froze up. While it was lying there, a cow came by and dropped some dung on it. As the frozen mouse lay there in the pile of cow dung, it began to realize how warm it was. The dung was actually thawing him out! He lay there all warm and happy, and soon began to squeak for joy.

A passing cat heard the mouse squeaking and came to investigate. Following the sound, the cat discovered the mouse under the pile of cow dung, and promptly dug him out and ate him!


The morals of this story are:

Not everyone who drops Sh** on you is your enemy.
Not everyone who gets you out of Sh** is your friend.
And when you're in deep Sh**, keep your mouth shut!

Very close meaning.
But what Chinese like to say is the "CAT crying over the Mouse" means very close like the English saying, "Shedding crocodile tears."
Aka-crocodile tears definition: insincere tears or a hypocritical show of grief: from an old belief that crocodiles shed tears while eating their prey...

So the Cat will do the same to the Mouse.
Sorry for confusing about the COW.
But the COW has become more like the CAT, you see.
As if MR. COW is not one of the PAPYs but one of the Mouse (like all of us).
Actually Mr COW has become the CAT.
Ha! Ha!TongueBig Grin
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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#34
He implied to his fellow citizens he cared , he concerned and has a heart for them. A people minister.
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#35
*For the full article, please refer to the website.

The Straits Times
www.straitstimes.com
Published on Aug 07, 2012
50-year home loan not advisable: Experts

Reasons include substantial total interest paid, danger of overspending

By Daryl Chin

WHILE a 50-year home loan helps ease the cash flow for young couples, the interest paid on it will eventually reduce the potential profit that can be made on a property, said most financial advisers yesterday.

Such long-term loans, with their lower monthly payments, may also lure couples to spend beyond their means in the meantime, they added.

What they should do when starting out is to buy a smaller flat within their means and upgrade later when they can afford it, said chief executive M. Salim of First Principal Financial, which advises on home loans and investments.

He was among 10 financial planning experts interviewed yesterday who unanimously advised against taking a 50-year home loan.

United Overseas Bank (UOB) introduced such a mortgage recently and on Sunday, National Development Minister Khaw Boon Wan cautioned would-be home buyers against it.

Calling such loans gimmicks, he urged especially fresh school- leavers eyeing a five-room flat not to fall for them. "It doesn't make sense," he said.

Financial adviser Damian Pang, however, argues that for people buying a property for investment rather than to reside in, a 50-year loan could be a boon.

The reason? "The cash burden is less heavy and should interest rates rise, the monthly payments would still be manageable," he said.

Home loans typically range between 20 and 40 years.

While longer-term loans are alluring for their lower monthly payments, the interest paid to the bank by the end of the loan period can be substantial, said director Timothy Kua of SmartLoans.sg, which advises home buyers on the suitable mortgages available.

"This will eat into your capital gains when you sell your property, and you would not have made as much profit," he added.

Say, at the current 2 per cent interest rate, the monthly payment for an $800,000 loan is about $2,100 for a 50-year loan, and about $3,000 for a 30-year loan.

At the end of the loan period, the interest paid will be about $466,000 and $264,000, respectively.

Mr Kua said that about 90 per cent of his company's 50,000 customers opt for loans of 30 to 35 years.

Mr Salim noted that part of the bait in coaxing people to buy pricier homes is the success stories in recent years of home owners making huge profits from buying and selling residential property.

"With this mindset, many young people look at resale value rather than their financial capability. They over-commit, thinking the market will always stay buoyant and never crash," he said.

UOB's head of secured loans, Ms Chia Siew Cheng, reiterated yesterday that its offer is aimed at young executives who are "serious about buying a home".
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#36
if it is fixed interest then it is attractive. but if it is not fixed interest then Within 50 years one has to ask if there is a chance interest rates can go up to 5% what about 10% what about 20% Big Grin

siao, although 50yr look to pay less but I think can buy 2 or maybe 3 of the same house if added up all the payments at the end of 50yrs.
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#37
Interest rate went up to 11/12% in 1980/81 before the crash of the stock market..
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#38
Just curious. Since MAS uses exchange rate to control SGD. What's use to determine our local interest rate now ?

Just my Diary
corylogics.blogspot.com/


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#39
They usually follow moves by US federal reserve.

But I read some years ago, sometimes if there is a US recession asian economies may try to help out in the US recovery by raising their own interest rates which will result in their currencies gaining against USD making american exports cheaper.
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#40
From CNA website:-

http://www.channelnewsasia.com/stories/s...01/1/.html

Home buyers urged to do homework before taking up loans
By Sim Ping Khuan | Posted: 06 August 2012 2223 hrs


SINGAPORE: Home buyers should consider their financial situation carefully before committing to a home loan in the market.

This, according to experts who warn buyers against being swayed by new loan offerings.

United Overseas Bank (UOB) drew controversy recently when it introduced a new home loan spanning 50 years, the longest available in the market - which it said is geared towards young executives.

On Sunday, National Development Minister Khaw Boon Wan referred to this initiative as "gimmicks", and advised Singaporeans to buy a home within their means, instead of opting for long-term loans.

In a reply to Channel NewsAsia, the bank said the majority of its home loan customers, at present, apply for loans of between 20 and 35 years.

Still, industry experts said home buyers should assess their financial situation before choosing the appropriate loan products.

Timothy Kua, director, SmartLoans, said: "I would caution home buyers to do their homework and compare (one bank's loan packages) with multiple banks' offerings... compare their interest rates, what the features are of the packages, before making their decision."

Channel NewsAsia Singapore's Facebook page saw participants comment that the government should take greater action in making housing more affordable and low-interest housing loans more readily accessible to Singaporeans.

According to the Housing and Development Board (HDB), its housing loan rates are fixed at 2.6 per cent.

HDB said bank loan rates are now at low levels because of unique macroeconomic conditions.

It added that potential home buyers are best advised not to assume housing loan rates will be kept low in the long-term, as most housing loan rates have a variable component pegged to the country's interbank lending rate.

- CNA/cc
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