Borrowing money to show off and support an unsustainable life style

[armadillo]

Word of advise... the interest rate for my 30yrs loan is really punishing... I may be paying very low monthly installments (low $400+) a month... but I only found out that they are charging me almost $2000 ($1970) a year...
I loan only about $90K++... but at $2K a year for 30 years... that's almost $60K !! 2/3 of my loan is returned as interest !!

is this a bank loan or thru hdb?
my loan also around $90K+, for 19 years, total interest paid around $24K, based on effective interest of 2.6%

 

[airfins]

My loan is 290k, after paying about 11 years still own then 230k.... Scary !!

 

[Sion]

Y U say that?? Have evidence/proof to show that that we are instilled with such values.

I have proofs.

But you can only viewed the proofs from the prospective of another life.

Only that can give you detachment and distance from a floating world.

 

[cardina]

Ask yourself..do i have my birth rights ? Born debt to parent and grave debt to children.
Let's photography and forget about this.....

 

[Turbonetics]

You'll be surprise... I also never thought it was possible for me to repay my loan (hopefully) in less than 20yrs... but it did happened... I don't earn alot as a Public Transportation Sector worker... but I don't spent what little I already have on things like Car or Motorcycle... don't even have license for it... the amount saved is incredible...

this is very good.

 

[Turbonetics]

Word of advise... the interest rate for my 30yrs loan is really punishing... I may be paying very low monthly installments (low $400+) a month... but I only found out that they are charging me almost $2000 ($1970) a year...

I loan only about $90K++... but at $2K a year for 30 years... that's almost $60K !! 2/3 of my loan is returned as interest !!

exactly,the interest rate for 30 years is 78% based on HDB rate @ 2.6/annum.
if u are buying a flat at $100k,after 30 years u are actually paying $178k.
i had also cut short my installment by dumping in a lump sum from my CPF which i will also be clearing by then early 40s which should be about 15 years of loan in total.

 

[Turbonetics]

Some SG folks look rich but owe the bank a lot. Singapore debt levels 'among highest in Asia'

this is very common in Singapore.
most people are influenced by their peers.
the most common mistake people made is to judge a person's wealth by the type of car he/she drives.
this is one of the reasons why we have so many "rich" people buying new cars.

 

[diver-hloc]

Else why you think anyone will give you a loan?

Of course... but nevertheless, if no one is willing to lend... then most of us won't ever be able to pay up this kind of amount in pure CASH. Therefore... it is still kind of a Win Win situation... just top up more cash or increase monthly installment when you have a pay rise. The sooner you done paying... the better.

is this a bank loan or thru hdb?
my loan also around $90K+, for 19 years, total interest paid around $24K, based on effective interest of 2.6%

Its HDB loan... taken in 1999... not sure what's the interest rate was. Cause at that time... you have no other type of loan beside HDB...

 

[Jedi]

My friend bought a 4-room HDB flat in central area for $230k++ 5 years ago. Now his outstanding loan with HDB is left with $40k. He told me that he cam clear it within 1-2 years. After which, he is debt free. As such, he will buy a 2nd property for investment purposes. He praying that property prices will crash so that he can buy it at lelong price.

I am impressed that he can clear his HDB loan within 7 years. He is driving, so have car loan too.

 

[kei1309]

My friend bought a 4-room HDB flat in central area for $230k++ 5 years ago. Now his outstanding loan with HDB is left with $40k. He told me that he cam clear it within 1-2 years. After which, he is debt free. As such, he will buy a 2nd property for investment purposes. He praying that property prices will crash so that he can buy it at lelong price.

I am impressed that he can clear his HDB loan within 7 years. He is driving, so have car loan too.

he can forget about that with the new measures.

it's amazing how people keep insisting that it's the foreigners buying up HDBs when...

it's actually locals doing it.

:think:

 

[Jedi]

he can forget about that with the new measures

At first, I thought so too. But he told me otherwise.

Once he finished his remaining HDB loan, he is considered non-debt obligation. With the new measure of not exceeding 40% of your income, he can still afford it.

By the way, he bought his car when price was cheap last time. $70k with COE. Now outstanding loan is around $20k. This will not affect his purchase of his 2nd property.

However, the only "sour" is that he needs to pay additional 7% stamp duty. Therefore, he is hoping that the prices will collapse more than 7% to offset the stamp duty. I think that prices will drop more than 10% once global interest rate rise next year.

 

[Jedi]

he can forget about that with the new measures.

it's amazing how people keep insisting that it's the foreigners buying up HDBs when...

it's actually locals doing it.

:think:

You are right. The foreigners are buying high end properties while locals are buying the mass market.

In fact, almost of my ex-colleagues own more than 1 property. This is how people use money to work for them. Last tme buying a 2nd property can simply close one eye.

We always hear complaints about high property prices but do we always hear that people make a killing from properties? Most of us do not share their success stories with the outside world.

 

[Jedi]

Based on my observation, if you want to be debt free at early age, you have to buy a house which is less than $300k. You can settle the loan within 10 years assuming no other heavy debts. If both husband and wife are working, you can even clear it faster and also enjoy other lifestyles.

 

[kei1309]

simply greed. and keeping quiet when others are getting the blame for it.

tsk tsk.

 

[ed9119]

post deleted

do not re-direct the thread towards your agenda Sion. Please refrain from stealth sh*t stirring thanks