I heard of people leveraging heavily, and I guess you are one of them. For a couple with just $12k income to take on $1.5m loan is quite an eye opener for a conservative person like myself.
You belong to the vulnerable group that our gahmen is trying to stop from growing too big to prevent them from financial meltdown should the economy tank and / or interest rates shoot up. Do you sleep well at night I wonder? Your $5k per month savings is really not much buffer should interest rates creep up. What happens when you cannot get tenants?
IMO, I would suggest diversifying. Sell one of the condos and use the profit to go into equities which have declined from its peak.
We only bought our 2nd condo after we fully paid for our first condo which we are staying in. And then we only took 50% loan. And our combined income is $22k pm. We also have $1m in equities earning about $60k dividends pa.
Quote:
Originally Posted by Unregistered
I have 2 condos rented out and choose to live in our HDB with my wife. We are easily contented and wants to simply, just not to simply live. We are between 35 to 40 yrs old.
No kids yet but planning for one.
Total property valued at $3 mil
Outstanding loan $1.5 mil
Net worth including cash and CPF about $2.2 mil
Gross Rental Income $7k
Monthly Housing Loan Instalment $5k
Working Household Income $12k
Monthly Expenditure $9k
Monthly Savings $5k
We bought the typical term insurance and critical illness coverage, medishield plus and riders.
Is our retirement plan secure say around 50 yrs old? Given that we keep the properties for passive income? Really sincere in hearing from wise people who have walked the path before. Thanks! |