Quote:
Originally Posted by Unregistered
800k loan for a 120 p.a. salary is very reasonable. About 36k of instalments a year, meaning it's just 30% of their annual income.(And they have no loans to service depreciating assets like cars.)
He's maximising leverage and I think it might pay off yet, given that interest rates are so low at the moment. It's also a good hedge against future inflation.
I am assuming he still has some cash at hand for emergencies.
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Agree. I know many friends who are making 60-80k taking up loans to buy condos as well. Property is the safest way to riches in Singapore, any people have retired in mid 40s through property.