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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Saturday, 8 July 2017

Why there are few advantages to paying off your flat early???


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

Read more?


  1. Well, I'm both a dumb saver & dumb investor ... that's why I cleared my HDB loan in 3 years and accept that Mr Market is always right whether bull, bear, bubble or crash, so I simply go with the flow ... taichi style hahahaha!!!!

    Anyway in today's S'pore reality, better to clear big debts by 45. Unless you're a doctor or lawyer or Minister. I bet many youngsters getting $7K or $10K salary today may get a hard truth how durable their career or job may be in the next big recession.

    Each generation's "danger age" seems to be getting younger & younger. Today 35 is the new 40 or 45. Many in their late-30s who got retrenched after GFC often had to settle for 50% or even 70% pay cuts just to get another full-time job, even if they got NUS/NTU 2nd Upper honours degrees.

  2. I never believe in OPM unless I am going to start a company. In that case nobody will lend me any money unless I have collaterals.

    Fortunately during my time, most average workers's CPF OA CAN PAY completely the HDB flat price - no loan needed .

    Now - Chiat luck without parental help lol!

    What's the Fxxx is happenings?

    1. Huge difference between Company's debts and Personal's debts.

  3. CW,

    Wah! So worked-up!?

    Calm down. Have a cha shao bao ;)

    Before start article, on top already says (in fine print) the author is from that loans website.

    Then in the middle of the article reveals the reason WHY the article is written - an advertorial for that loans website so readers who took the "bait" can apply for loans on their existing paid-up houses ;)

    What you expect? Author fulltime vested interest mah. He beat us in one thing - he gets PAID to write.

    We? We ownself eat ownself :(


    P.S. I take the opposide side of your position as I prefer to stretch my housing loan to as long as its legally possible. I sleep better knowing my HDB appreciates while I am paying the bank back with "inflated" dollars.

    It's the reverse of CPF Life ;)

    Of course the main difference my style and the snake-oil author is that I can pay back my housing loan anytime I want. I merely using my housing loan as a "cheaper" margin account.

    Different strokes for different folks :)


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