As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Sunday, 22 January 2017

Why I DIDN'T chose a 30 year bank loan but a much shorter one???

Read more on ? Housing Loan

A few questions to be seriously answered before we know whether we ARE LIKELY to be right in the future.

(1) You seriously think that you won't get married and have kids.

(2) You don't REALLY have any dependents counting on you alone.

(3) You don't foresee you will be forced into unexpected early retirement

If the answer is all YES!

You can go ahead with your 30 year bank loan!

Uncle8888's  past conversations with those who have been retrenched. 

Those who said Heng Ah and felt so relieved! are those who have fully paid up their housing loan!

You will know whether you have made that right or wrong decision regarding your housing loan when you are retrenched in your 50s!


  1. Ha! Ha!

    CW are you saying that's why our Friend SMOL can afford to take 30 years loan.......Hmmm...

    i very stupid one, if i can't purchase a thing in cash i won't buy.

    Maybe i am a born 4Ks lol.

    Look at the property market now, what happens?

    You will notice properties for rentals getting fewer & fewer but for sale getting more & more.

    Does that means more people are buying and less people are renting?

    It looks a kind of strange the way things are happening in the property market.

    Or is it normal happening?

    How 's that comparing to the Stock market?

  2. CW,

    That's better!

    Newer readers may have misunderstood we are a tag team. Choy!

    This is the real us - OPPOSITE sides of the SAME coin :)

    We have a strong competitive edge when they jio us out for kopi - they get to hear BOTH sides of the argument ;)

    1. Sometime even in Tag team; they also hit each other.

  3. I took middle route. 25 years loan :( retrench then jia lat

    1. Thought you are on yr way to become househusband?

      Why scare of retrenchment?

    2. later retrench wife also jia lat.

  4. I bought a BTO and took a 4 yr loan. It gives me peace of mind.

  5. The longer loan gives better cashflow and theoretically help to increase our investment funding. The problem is because the amount is lesser monthly, people tend to overpaid or buy beyond their means on property as they seems affordable. Another possible issue is that they are not using or not capable of tapping the cash free up with longer loan.

  6. The bank loses real income when we borrow as inflation rate is higher than the interest on housing loan.

    Different strokes for different people but as a broad strokes ..Stretch it to the max and more

    1. In term of monetary gains; it is true for max loan period; but in term of peace of mind for our dependents and the state of financial security when something seriously bad happen to us; outstanding loans still have to be paid on time. Can we count on our dependents to have that right level of competency to manage financial crisis and investment portfolio?

      Paying for the premiums for having a Peace of Mind with one major thing off our life journey and especially when we still have quite number of dependents. We may value financial security and certainty more than future monetary gains.

    2. CW,

      If its HDB, there's such a thing call Home Protection Scheme (HPS).

      Pay in full early, then go sell salted egg, dependents only get HDB. CPF little.

      Drag the loan to max 30 years, sell salted egg early, dependents now got "free" HDB and our CPF that's "bigger" since not used up for property ;)

      But you are right. Not everything is dollars and cents.

      Our psychology matters a lot too.

      Everyone's pain threshold are different.

      Or like football - some play like Brazil, some play like Italy ;)

    3. Dead body can worth lots of $$$ but dying body in nursing home is dragging our dependents down to long kang!

  7. I have read your blog,its very useful ,Thank you very much
    Stock trading tips

  8. I also re-financed with a shorter loan period few years back. It's more of a financial reason. Will post more on my blog soon.


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