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20-04-2015, 10:21 AM
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Sahm
Quote:
Originally Posted by Unregistered
Well done. It is good to be free of debt on your home. You can sleep in peace.
May I know whether you are both grads and what work do you both do?
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I think living in a debt free home and being pleased about it depends on your age.
If you are in your 20-30s and living in a set free hdb home doesn't quite cut it.
If you have a $2m house with a $1m debt, and the house value will probably increase to $2.5m or $3m in twenty years when you retire or during the boom of the property market
(Which may come sooner than in 20 years), then you will be able to sell your house at a tidy profit, be loan free and still be able to afford a hdb flat with no mortgage or even better, a condo with no mortgage, when you retire.
The appreciation of property, is something that you failed to account for.
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20-04-2015, 10:24 AM
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Sahm
Quote:
Originally Posted by Unregistered
This is the right attitude to have in life. Be contented with what you have. Be happy. Happiness is not about material wealth nor status. It is about being good to others, having meaningful relationships with your family members and being a responsible son, father and husband. If you are rich but abandon your old parents, you are a lousy son. If you earn lots of money but have no time for you children to nurture them with high moral values, you are a failure as a father. Money and status are meaningless if you have not been a responsible son, father and husband.
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I didn't realize it but money does help you to help other people.
Because we are high income earners and have amassed a bit during the last property boom (by leveraging, no less), we are able to do the following,
1) bought a house for my parents in law overseas (price of a three room flat here) - paid in full
2) paid for my parents hdb renovations here ($20k)
3) donated $10k usd to charity
And still enjoy my Birkin bags!
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20-04-2015, 10:29 AM
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Sahm
Quote:
Originally Posted by Unregistered
I didn't realize it but money does help you to help other people.
Because we are high income earners and have amassed a bit during the last property boom (by leveraging, no less), we are able to do the following,
1) bought a house for my parents in law overseas (price of a three room flat here) - paid in full
2) paid for my parents hdb renovations here ($20k)
3) donated $10k usd to charity
And still enjoy my Birkin bags!
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And I forgot to mention that we did all these but still have a big loan on our big house.
We sleep very well at night because we really don't mind downgrading to a small condo and not have to climb up and down the stairs in our big house, should we ever have to default on our big loan and have the bank take away our big house.
More importantly, we know how to use the right loans (housing loans only), mind you we have no other loans, to fund our purchases and help the people we love and then more.
We don't believe in buying the house that we can afford to pay in full or the loan off very quickly and not be able to do these things for our loved ones and for charity.
I think we live life to the fullest rather worry worry worry all day about not paying off our housing loan.
It's the rich dad , poor dad mindset.
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20-04-2015, 12:52 PM
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Sahm,
Since you are not working and your hubby is the sole breadwinner, I suggest you don't overleverage. What if he lost his job? It is better for you to buy a property whether a hdb flat or an OCR condo, paid in full. Better be safe than sorry. Just because you have profited from property in the past does not mean property will do the same in the future. Nothing is guaranteed.
Quote:
Originally Posted by Unregistered
I think living in a debt free home and being pleased about it depends on your age.
If you are in your 20-30s and living in a set free hdb home doesn't quite cut it.
If you have a $2m house with a $1m debt, and the house value will probably increase to $2.5m or $3m in twenty years when you retire or during the boom of the property market
(Which may come sooner than in 20 years), then you will be able to sell your house at a tidy profit, be loan free and still be able to afford a hdb flat with no mortgage or even better, a condo with no mortgage, when you retire.
The appreciation of property, is something that you failed to account for.
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02-05-2015, 12:43 AM
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Couple 45,46. Both SAHM/D. 3 kids - 1 in JC, 2 in Sec. Net worth $8m. Of which, prop $4.0m, cash $2.5m, equities $3m. Mortgage o/s $1.5m.
Thinking if I should pay off the mortgage or hold cash since we are both unemployed.
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05-05-2015, 10:24 AM
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Quote:
Originally Posted by Unregistered
Couple 45,46. Both SAHM/D. 3 kids - 1 in JC, 2 in Sec. Net worth $8m. Of which, prop $4.0m, cash $2.5m, equities $3m. Mortgage o/s $1.5m.
Thinking if I should pay off the mortgage or hold cash since we are both unemployed.
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Reduce Mortage by 1 M , don't need to pay off.
cash 1.5M invest fix income yield 4%.
Interest should be more than sufficient to cover the loan payment and some.
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05-05-2015, 11:23 AM
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42,40
Annual:140k, 80k
Passive p.a:85k
Property Debt: $1.15mil (vs equity of maybe $2.1 mil, conservatively)
No car loans at the mo.
Cash + stocks+ OA CPF: around 400k
Realised in my 30s that counting just on employment income is a big risk. Started to work on getting a passive income stream. Involves making some decisions to delay gratification.
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05-05-2015, 12:06 PM
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What's your combined net worth with your wife?
Quote:
Originally Posted by Unregistered
42,40
Annual:140k, 80k
Passive p.a:85k
Property Debt: $1.15mil (vs equity of maybe $2.1 mil, conservatively)
No car loans at the mo.
Cash + stocks+ OA CPF: around 400k
Realised in my 30s that counting just on employment income is a big risk. Started to work on getting a passive income stream. Involves making some decisions to delay gratification.
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04-07-2015, 11:18 PM
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Quote:
Originally Posted by Unregistered
Well done. It is good to be free of debt on your home. You can sleep in peace.
May I know whether you are both grads and what work do you both do?
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I'm impressed. managed to accumulate $600k at a relatively young age and on $130k/pa income
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