You guys seem fixated on the need to pay off your home loans. That may not be the wisest thing to do.
Private property home loans come with one of the lowest, if not the lowest, loan interest rates. For first home loans, the rates can be as low as 1.1%. Would you want to rush to pay off the loan when:
1. You can put money in your
CPF OA to earn 2.5% pa compounded
2. You can top up your
CPF SA to earn 4 - 5 % pa compounded
3. You can Invest in shares for an average of 5% dividends returns (more if you count capital gain)
4. You can invest in another property for rental income
Many property owners chose not to pay off home loans to leverage on the low interest rates to generate better returns from other investments. Don't be mistaken that they cannot pay up. They are making their money work hard for them rather than tying them up by paying up for their property fully.
Remember, a fully paid up property doesn't generate income for you when you are using it for a home.
Quote:
Originally Posted by Unregistered
There seem to be no data on wealth by age group so we can't do peer comparison. However you could compare yourself against the whole Singapore population. I think about 18% lives in condos, many are still paying their mortgage. Let's assume only 20% of those living in condos have cleared their mortgage loan. This means only the top 3.6% (i.e. 0.18 x 0.2 = 0.036 or 3.6%) of the population lives in a fully paid condo and you are one of them. So, you are among the top 3.6% in Singapore in terms of economic standing. This is awesome!
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