The main reason most people want to pay off their flat is psychological: It might give you peace of mind to know that your home – a major debt – is paid up. But what if we told you that peace of mind can easily be shattered, and turned into a prolonged nightmare?
1. You cannot easily convert your flat to cash during emergencies
2. You may not be making sufficient preparations for retirement
3. You could be paying off your debts in the wrong order
Walau! When Uncle8888 read this article in the cyber world. KNS!
Uncle8888 paid off his housing loan in five years after working for more than ten years i.e. at least 15 years worth of CPF OA money to clear his housing loan. His cash saving is unused for his housing loan! Uncle8888 is not a dumb saver or dumb investor.
The writer just assumed that those could afford to fully pay up their housing loan early are either dumb saver or dumb investor.
Some writers don't write educational articles based on real people, real life experience; but they write on concept and theory. How useful and practical can it be?
What Uncle8888's experience on real people, real story on the ground on their housing loan is different.
Quote : It might give you peace of mind to know that your home – a major debt – is paid up. But what if we told you that peace of mind can easily be shattered, and turned into a prolonged nightmare?
On retrenchment: Anybody can be sure that they don't be the next one to be retrenched!
The FACT on real people on the ground: When those who have significant outstanding housing loan; their dream and peace of mind is shattered and prolonged nightmare may be waiting if they are in their late 40s or 50s.
But; for those who have cleared their housing loan; they said heng ah!
Read? Will You Try To Pay Off Your Housing Loan ASAP If You Have One? (7)
Read? Home for Living and not for profit taking - Part 2
Read? debt-free — and that, to me, is richness enough