Posts: 3,474
Threads: 95
Joined: Jul 2011
Reputation:
17
If you think you want to park your money in SGS Bonds, what's better than parking it in CPF Board? But Sorry, it's only for those who has reached 55 years old.
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.
Posts: 348
Threads: 5
Joined: Apr 2013
Reputation:
7
(07-01-2014, 07:51 AM)chialc88 Wrote: Tigger,
Thanks for teaching me.
Thank you.
(07-01-2014, 01:12 AM)Tiggerbee Wrote: You can refer to this link for the yield rend.
http://www.tradingeconomics.com/singapor...bond-yield
You're welcome. We all learn from each other in this forum.
Posts: 785
Threads: 9
Joined: Aug 2013
Reputation:
12
Just a question, currently serving a bank mortgage loan at 1.65% (1.95% effective May 2014, then 2.25% after May 2015) with outstanding principal approx 330k and another 39 years to serve. The existing package is variable based on the bank's board rate, which could be changed from time to time at the bank's discretion.
Am considering to refinance to another bank with 3 years fixed at 1.38% but come with a maximum tenor of only 25 years.
My aim is to stretch my loan for as long tenors as possible so that I can make use of the extra cash for better returns, even keep with CPF which can earns 2.5% income. But I do concern about the interest rate increase and board rate adjustment, I foreseen that a lot of cooling measures will be taken out by the government within the next 3 years and I just want to find a safe shelter for this short period of time. But if I refinanced now, I am worry that I will not get back 35/40 years tenors again 3 years later.
So, question is, should I refinance or not? Please share your thought, many thanks.
Posts: 2,743
Threads: 23
Joined: Mar 2013
Reputation:
25
(08-01-2014, 12:14 PM)valuebuddies Wrote: Just a question, currently serving a bank mortgage loan at 1.65% (1.95% effective May 2014, then 2.25% after May 2015) with outstanding principal approx 330k and another 39 years to serve. The existing package is variable based on the bank's board rate, which could be changed from time to time at the bank's discretion.
Am considering to refinance to another bank with 3 years fixed at 1.38% but come with a maximum tenor of only 25 years.
My aim is to stretch my loan for as long tenors as possible so that I can make use of the extra cash for better returns, even keep with CPF which can earns 2.5% income. But I do concern about the interest rate increase and board rate adjustment, I foreseen that a lot of cooling measures will be taken out by the government within the next 3 years and I just want to find a safe shelter for this short period of time. But if I refinanced now, I am worry that I will not get back 35/40 years tenors again 3 years later.
So, question is, should I refinance or not? Please share your thought, many thanks.
IF home loan rate is at 4-5% pa in the future, you still want to take 35/40 years term loan???
normalised home loan rate is 3-5% pa. something some 30somethings never seen before.
If can lock at 1.98% p.a. for 5 years or longer, quite good. No need to worry about interest rates rises.
when interest rates rises, all the fixed rate loans will disappear.
http://www.smartloans.sg/mortgage/dbs
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
Posts: 348
Threads: 5
Joined: Apr 2013
Reputation:
7
08-01-2014, 12:43 PM
(This post was last modified: 08-01-2014, 12:46 PM by Tiggerbee.)
The worst kind of loan to get is those offered at board rate. You will be at the mercy of the banks. Before the financial crisis, my friend was paying about 3.5 or 4% interest rate for a board rate loan. The bank only drop it to about 2.5 or 3% after the financial crisis in 2009. MY friend refinanced his loan in 2009 so I don't know what follows after.
In the first place, one should never get a loan tenure with more than 30 years. If you cant afford a 30 year loan, that means you're financially over leveraged. You must be able to afford a mortgage loan at about 2.5-3.5% interest rate for a 30 year loan tenure.
You might want to read this.
http://www.propertyguru.com.sg/experts-m...year-for-s
Posts: 2,743
Threads: 23
Joined: Mar 2013
Reputation:
25
look at 5 years SGS vs 5Y Fixed DBS home, DBS willing to lend you at 90 bps spread above SG Govt.
dont look right. home loan borrower vs SG Govt. 90 bps spread nia.
http://www.smartloans.sg/mortgage/dbs
https://secure.sgs.gov.sg/fdanet/SgsBenc...rices.aspx
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
Posts: 3,474
Threads: 95
Joined: Jul 2011
Reputation:
17
My sympathy to all of you(my son's generation 25+ years old). 25 to 30 years loan to pay for a necessity( HDB 99's lease) But is that's the idea of OUR GOV? You have to work your whole life for most of your Generation. Unless you are successful in "passive investing" Or got lucky, "老 爸 扶 你 一 马".
My sympathy.
Shalom.
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.
Posts: 2,743
Threads: 23
Joined: Mar 2013
Reputation:
25
(08-01-2014, 01:16 PM)Temperament Wrote: My sympathy to all of you(my son's generation 25+ years old). 25 to 30 years loan to pay for a necessity( HDB 99's lease) But is that's the idea of OUR GOV? You have to work your whole life for most of your Generation. Unless you are successful in "passive investing" Or got lucky, "老 爸 扶 你 一 马".
My sympathy.
Shalom.
3rm flat BTO not very expensive. $600 monthly installment.
Quite good for a roof over head for 96 years.
In many Asian countries, want also don't have.
So no need to sympathize
"... but quitting while you're ahead is not the same as quitting." - Quote from the movie American Gangster
Posts: 1,733
Threads: 21
Joined: Sep 2010
Reputation:
31
(08-01-2014, 01:44 PM)opmi Wrote: (08-01-2014, 01:16 PM)Temperament Wrote: My sympathy to all of you(my son's generation 25+ years old). 25 to 30 years loan to pay for a necessity( HDB 99's lease) But is that's the idea of OUR GOV? You have to work your whole life for most of your Generation. Unless you are successful in "passive investing" Or got lucky, "老 爸 扶 你 一 马".
My sympathy.
Shalom.
3rm flat BTO not very expensive. $600 monthly installment.
Quite good for a roof over head for 96 years.
In many Asian countries, want also don't have.
So no need to sympathize
I lived in 3 rm flat with my family for more than 25 years since 70s. I didn't know that my family and I deserved sympathy.
Got donations a not??
Posts: 785
Threads: 9
Joined: Aug 2013
Reputation:
12
08-01-2014, 02:27 PM
(This post was last modified: 08-01-2014, 02:28 PM by valuebuddies.)
Well I bought at one of the peak price, offset by history low interest rate, so I have seriously no idea what is the average mortgage interest rate for the past decade. I have been paying 1.25% then 1.65% which I feel comfortable with, so any increase in rate in painful but not a disaster. With my household income, there is no problem to undertake a 20 years tenor, but it just doesn't make sense for us to go for it in the current cheap borrowing market. And yes if my loan interest rate is high, I would choose a shortest possible tenor which I can afford.
Hard to make up my mind, if I take new loan, I am afraid that I could not get back to 35/40 years tenor again (if the interest rate remains low); and if I don't take new loan, I am paying more. 
|
Homepage
PR Newswire
