Don't be stupid. Don't take the loan. What you should be doing is to pay down your mortgage as fast as possible. You could also downgrade to a cheaper property and pay off the mortgage and live in a fully paid home. Don't be too happy with your hubby's salary. He can be retrenched anytime and you will go from $500k pa to zero. He can also lose his ability to work to due ill health, accident or even die. Life is unpredictable. You have made money from your property investment, what you need to do is build up your cash reserve for rainy days. If you take the loan, and then we hit a crisis and your hubby lose his job, and the property market crash, you can lose everything and will be begging on the streets. Don't act tough. Sorry for being harsh, but I care, especially since not many people in this forum understand finance and investments.
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Originally Posted by SAHM
Firstly, I am very impressed by some of the investment talk in here. I used to work as. Finance professional before I left the workforce to be a sahm. My husband is a legal professional who is working toward that one million dollar salary but is currently at only half that level. I was rather hesitant about spilling my financial details here but would love so much to obtain advice from the multimillionaires, as I aspire towards financial independence but am nowhere there yet. I am in my early thirties and my husband is in his mid thirties. I made a million sgd through property from 2004-2010 but has invested it in a landed property in 2011. I am 60 percent leveraged in this property which is also my primary residence.
Recently the bank from which I had obtained the loan, offered me cash of 1.3m since my property has risen 1m in value over the past two years and it is willing to gear me up to 80 percent. This would be our only loan because we have paid off our student loans and have no other property. My husband makes 500k sgd base salary a year. We have additional 300k in cash.
I am thinking that this 1.3m loan will come in handy in US equities now. I know I am nt very diversified like many of you here, and my investment strategies would be considered very aggressive by most of you as I put heavily in one or two stocks. I do consider a lot - both fundamentally and technically before I put in the buy. Would you recommend I take up this funds into equities? Should I even take up this offer to further leverage my home?
Thank you lots for your replies.
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