Ask yourself these questions:
1. Are you in a secure job, ie do you see career longevity in your current job?
2. Will you be able handle a financial emergency? Such as expensive medical emergency? This requires at least 6 months of salary on standby all the time.
3. If you own 2 properties and have to handle two housing loans or even just one big loan, will you be able to hack the monthly mortgage payment if there is no rental income for an extended period of time say 2 to 6 months?
4. Will you be ale to handle the mortgage payment on a single salary should your wife decides to take a break to look after your kids?
I am putting out these questions because I have walked the path before, and survived! My wife and I have 2 properties after 10 years of our marriage till today - different properties but always 2. One to stay, one to earn rental.
By the way, we dare go into this because we are both civil servants and already worked 35 years!
Quote:
Originally Posted by tchen003
Thanks. This is my option 1 actually.
Detail plan:
year 2018: my small condo worth 750k, my housing loan 600k
year 2024: my small condo worth 900k (assume only), my housing loan 500k.
If I take home equity loan, which is 80% of market price-existing loan- CPF used for payment, I can cash out 900kx80%-500k=220k.
Together with my future wife, we might probably afford downpayment of 500k for a 3rm new condo in OCR area.
But the catch is: we will be on debit of 1.2million....for 30 years...... |