Quote:
Originally Posted by Unregistered
Since the HDB market is going to collapse, as predicted by many analysts, it is better for you to sell your HDB flat. Then use the sales proceeds to pay down the loan on your two condos. Live in one condo and rent out the other one. Don't be greedy. As mentioned by other forumers, you are highly overleveraged, you are one of the overleveraged families mentioned in the papers. You risk losing all your properties if market collapses. Don't feel hurt by our harsh comments. The truth hurts. |
Have those who walked the path before also been at a similar risk position at one time or another during your journey?
I calculated I have 200k buffer to meet any increase in interest rates and since we are still working and all rental excesses are saved, if rental market soften, we have no issues renting on the cheap since my breakeven rent is pretty low. I think we can be very very competitive in rental rate if that happens as we bought the properties before the period of escalating prices.
I think if the following happens we can get caught out:
Interest Rates to be above 5% from current
Rental drop by more than 50%
Property price remaining for long sustained period of time (say > 5 years)
Otherwise should not we take this manageable risk and build our wealth?