Dont anyhow advise lah.
For people with the money to fully pay for the home, there is no need to pay up in full. With a housing loan interest of below 1.5%, it is idiotic to pay up in full.
Even keeping your money in
CPF earns you 2.5%! Supposed you just pay 30% of a $1m property, the $700k left in the
CPF will earn you a net gain of 1% every year or $7K pa.
And if put in blue chips stocks, you can derive 5% returns (counting only dividends, and not including capital gains)
But never mind, thats why we will always have people who asked why people are so rich, or how people get so rich?
Quote:
Originally Posted by Unregistered
Indeed, many families become rich from flipping their property. We bought a landed house in 2006 at the bottom of the property cycle and sold at the peak in 2013. We then downgraded to a 3 bedroom condo in the Bukit Timah area and paid it in full. On top of that we still have cash in hand. With this cash, we renovated our new home nicely and also bought a new car, also paid in cash. We do not have to take any loan at all and we don't need to use any of our cash savings. We are also DEBT FREE at the age of 43. All this is made possible courtesy of the property market. However, this flipping is now no longer possible. The property bull market is OVER.
Since we have fully paid our condo, we now don't care what will happen to property prices. However those who bought their condo with only 20% downpayment will need to worry as they may face negative equity if prices crash more than 20%. The banks may ask them to top up and if they can't they have to sell at a big loss. That is why I always advice people around me to buy a property (even for their first property) with a 60% downpayment. Better still, is to buy with full cash.
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