Many Singaporeans are tight down with household debts. Among all others are housing. With skyrocketed housing prices nowadays, many will be more struggling to pay off the housing loans as compared to last time. Moreover, the loan tenure will be longer than last time.
A few days ago, I met a friend who we chatted for a while. He told me that he had already paid off the big ticket item - HDB Loan. Next, I asked him how many years did he use to pay off the loan. He told me 7 years. Not bad isn't it?
I was pondering how did he manage to clear his loan so fast. He told that he and his wife had already paid off half the purchase price through their CPF when they first bought the flat. The remaining half will still be financed through their monthly CPF; and this took them 7 years to settle the balance.
Both of them are earning an average of $5k++ salary. Their monthly CPF contributions are around $1k for each of them. It is possible to pay off the housing loan as long as you are not buying it at skyrocketed prices.
My friend gotten a good deal for his 4 rooms flat in the central area for only $220k 7 years ago. Now his flat has appreciated to close to $500k.
He is a happy man now as he is debt free. Now his money can be channelled for the family, consumption purchases, hobby, etc. No need to set aside money for housing loan anymore.
Have you paid off the housing loan?