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Old 02-04-2015, 08:25 AM
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You are overleveraged. At your age, you should already own a fully paid home. You have a huge $900k mortgage which depends on your salary to pay. In a worst case scenario of (1) you lose your job (those earning $100k pa and above 40 are at higher risk), (2) property market crash due to high interest rates and massive oversupply and (3) no rental income due to no tenant as flow of expats may drop significantly. If property market crash, the value of both your condos will plunge but your mortgage remains high plus your mortgage rates are high. Property is a very risky thing.

What you should do is to sell your investment property and use the net proceeds of $450k to pay down on your home mortgage. You can then use your savings to pay down further your home mortgage and clear it off fast. Then you build up you and your wife's CPF SA so that you can choose the best option to get $1750 pm each when you retire at 65.

Don't get caught in your desire to get rich but risking losing everything. Worse still, if you become jobless as you are the sole breadwinner. Don't listen to those people who say don't clear your mortgage but take more loan to buy investment property. These people will just paint a rosy picture but fail to advise the big downside. Our property market is dangerously oversupplied and mortgage rates are rising high.


Quote:
Originally Posted by Unregistered View Post
39/37, wife is homemaker, self earning $200k in 2014
1 condo in singapore, loan 900k left, worth $1.5m
1 condo in singapore, rental income, loan 400k left, worth $850k
cpf OA barely anything left, cash position $500k.
2 kids, 1 dog, no car.

Am I doing fine?
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