Quote:
Originally Posted by Unregistered
Well yes I do expect my income to grow albeit at a slower trajectory, and presumably my spouse will rejoin the workforce after our 3rd child is born (unless we strike TOTO before then! :P). Her expected income would be around 50-60K pa though.
We have considered selling and upgrading, but the market is down right now. Moreover our current place should be easy to rent out as it is near MRT and in the central area. Our thinking is that if in the event we lose our income streams, we could still come back and stay in the smaller apartment, and sell or rent out the bigger one (assuming rent can cover mortgage).
I have gotten advice that "because I am getting older, it would be increasingly difficult to qualify for house loans. So I should try to take as large a loan as possible (with the caveat of not being over-leveraged) while still young." Is there any truth in that advice? Thanks for your advice, it is sound but it seems a bit too risk-adversed? |
Well the notion of maximizing your loan stems from the fact that housing loans have one of the lowest interest rates, thus as long as your other investment instruments generate better yield, then it is considered "good debt". So in your case it is more about whether your cash flow will be sufficient to maintain your lifestyle, and whether it will be stable. What if in the event your income stream stopped? A mortgage payment of 7-8K is no laughing matter. Your expenses will likely go up after moving to a condo and remember you are having a new baby.