Quote:
Originally Posted by Unregistered
I actually like his advise.
Most of our fears in life (90% of it) would never appear. If it does appear, you will find a way to counter measure it. Ultimately high risk high return.
Myself, i bought condo and renting my HDB to offset the installment. The only difference is my loan tenure is longer (earning lesser as i'm still in the early 30), hence i can still play a calculated risk game here.
Also why do you want to sell a HDB when the price is dropping and the interest rate is low now? |
I am another one who agrees with the advice given. I will be buying a condo soon and renting out
HDB. (There are certain hoops we need to jump through given the current cooling measures.)
The worst of the worst that can happen is that property prices fall drastically by 20% or more. In this scenario, we can either (1) sell the condo at a loss, break tenancy agreement for a fee and move back to the
HDB (or temporarily rent a place until tenancy is up); OR (2) bear with it and top up the loan with our cash savings should the bank do a margin call, and continue servicing the condo loan. But this is a worst case scenario. A lot of people will be worse off than us, especially those who over-leveraged themselves.
Of course, we all know full well that we all should do our own homework based on our own circumstances (financial, family preference, pressures, etc). Do your sums.