Quote:
Originally Posted by Unregistered
Good observation. In Singapore, if you own BOTH a condo and a car, you could probably be considered as in the top 5% or 6% financially. If both your condo and car are fully paid up, you can even be in the top 1% or 2% since there are people who own both condo and car but they are still in debt.
|
It is best to clear your debt as fast as possible. If you clear your mortgage, you can sleep peacefully at night. So even if you lose your job, you still have a roof over your head. Some more, you have the option to downgrade to a cheaper home and get some cash.
For instance, if you are a banker and got retrenched, you can sell your fully paid D9 condo for $2m and downgrade to a $500k five room
HDB flat. You can invest the $1.5m cash balance in a basket of dividend stocks giving you $75k pa in dividends assuming a 5% dividend yield. You can still live comfortably with $75k pa income provided you don't drive and employ a maid.