Quote:
Originally Posted by Unregistered
30% LTV??? U are v kiasi...
Even our gov stopped at 50% LTV for second housing loan, and in the old days it was 80%LTV no matter how many properties an individual buys.
In general, banks will allow us to keep the property as long as we can still service the monthly loan, it does not matter to the bank by how much the property value crashes as long as the individual can still service the loan.
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Actually my own personal guideline is, for your own home you are living in, you should clear your mortgage as fast as you can. Pay in full if you can, if not buy a home with LTV of 30% or lower. We are lucky that we Singaporeans enjoy very cheap BTO flats, which only cost $150k plus for a 3 room flat. I'm sure you can pay off this mortgage within a few years.
For 2nd property for investment, forget about it. With the huge oversupply of new condos coming and restriction on foreign labour, there is a big risk for your condo to be empty. There are simply not enough tenants. So this will create panic and we will see fire sales everywhere. Best is to keep cash savings to prepare for emergency such as retrenchment, which is very real especially for those in their 40s, 50s and 60s. That is why I say clear your home mortgage by the time you are 40. Then save lots of cash.
Can you guarantee you always have a job? No guarantee even if you think your job is solid. Nothing is for sure. Better be safe than sorry.