I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com



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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!
Posted by Createwealth8888 at 16:50
Labels:

14 comments:

  1. Singapore Man of Leisure22 January 2017 at 19:33:00 GMT+8

    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 ;)

    ReplyDelete
    Replies
    1. Createwealth888822 January 2017 at 21:43:00 GMT+8

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

      Delete
  2. Createwealth888822 January 2017 at 21:44:00 GMT+8

    Paying in cash is another form of blessing.

    ReplyDelete
  3. OT8323 January 2017 at 08:17:00 GMT+8

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

    ReplyDelete
    Replies
    1. Createwealth888823 January 2017 at 10:09:00 GMT+8

      Thought you are on yr way to become househusband?

      Why scare of retrenchment?

      Delete
    2. OT8323 January 2017 at 11:58:00 GMT+8

      later retrench wife also jia lat.

      Delete
  4. Betta man23 January 2017 at 10:59:00 GMT+8

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

    ReplyDelete
  5. Cory23 January 2017 at 13:08:00 GMT+8

    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.

    ReplyDelete
  6. SGDividends23 January 2017 at 20:23:00 GMT+8

    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

    ReplyDelete
    Replies
    1. Createwealth888823 January 2017 at 21:13:00 GMT+8

      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.



      Delete
    2. Singapore Man of Leisure23 January 2017 at 22:28:00 GMT+8

      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 ;)

      Delete
    3. Createwealth888823 January 2017 at 22:35:00 GMT+8

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

      Delete
  7. JustASingaporeanSon24 January 2017 at 15:43:00 GMT+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.

    ReplyDelete

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