tag:blogger.com,1999:blog-8345069859964317097.post8104240761973685258..comments2024-01-04T18:56:47.125+08:00Comments on Financial Freedom: Absolute Cost of My HouseUnknownnoreply@blogger.comBlogger11125tag:blogger.com,1999:blog-8345069859964317097.post-30971027844027311042010-07-07T16:22:21.228+08:002010-07-07T16:22:21.228+08:00Hi XnSdVd,
That is indeed useful advice especiall...Hi XnSdVd,<br /><br />That is indeed useful advice especially about dropping the money off in CPF OA which earns 3.5% pa (at least until the end of this year). <br /><br />However, after 2010, it might be at the floor rate of 2.5% again.FFnoreply@blogger.comtag:blogger.com,1999:blog-8345069859964317097.post-29125574063760571712010-07-07T06:26:58.698+08:002010-07-07T06:26:58.698+08:00Here's a little advice I give all my clients: ...Here's a little advice I give all my clients: <br />If the interest rate of your loan is LOWER than the average inflation rate, take the LONGEST loan possible. There's 2 reasons for this: <br /><br />First, the real value of the money your repayments decreases every year.<br /><br />Secondly, it's nearly impossible for a majority of investments to have an ROI lower than the inflation rate. This is especially true for commodities. So the money you save from the loan can earn you more income in an investment. <br /><br />Finally, if 2.6% is beyond your ability, you could just drop the money off in your CPF OA which makes you 3.5%. Easy profits with no effort.XnS dVdnoreply@blogger.comtag:blogger.com,1999:blog-8345069859964317097.post-55333915869328319622010-07-04T17:01:34.061+08:002010-07-04T17:01:34.061+08:00Thanks for the inputs.
I don't really keep tr...Thanks for the inputs.<br /><br />I don't really keep track of whether I am able to get a 2.6% return on my investments yoy. And besides, I still have cash sitting in the bank which is earning a paltry rate of interest.<br /><br />The need to have spare cash of course outweighs the benefits of paying off the house loan early.FFnoreply@blogger.comtag:blogger.com,1999:blog-8345069859964317097.post-73441685305081709142010-07-03T16:14:34.999+08:002010-07-03T16:14:34.999+08:00I mean housing loan for residential home.I mean housing loan for residential home.Createwealth8888https://www.blogger.com/profile/08563834016250153049noreply@blogger.comtag:blogger.com,1999:blog-8345069859964317097.post-33976312945165955942010-07-03T16:12:47.281+08:002010-07-03T16:12:47.281+08:00We have Asian Financial crisis and then Sub-prime ...We have Asian Financial crisis and then Sub-prime crisis, and what will be the next big one coming? It will certainly come. <br /><br />Guess who will be damn worry of getting retrenched and everyday praying hard? Those with housing loan or those without?Createwealth8888https://www.blogger.com/profile/08563834016250153049noreply@blogger.comtag:blogger.com,1999:blog-8345069859964317097.post-53014150989329112602010-07-02T09:14:50.068+08:002010-07-02T09:14:50.068+08:00Can visit this blog - "6 Reasons Why You Shou...Can visit this blog - "6 Reasons Why You Should NOT Repay Your Housing Loan Early"<br /><br />http://www.bigfatpurse.com/2009/01/6-reasons-why-you-should-not-repay-your-housing-loan-early/kaifongleehttps://www.blogger.com/profile/00924733640576848426noreply@blogger.comtag:blogger.com,1999:blog-8345069859964317097.post-52717780759934170372010-06-30T23:29:13.826+08:002010-06-30T23:29:13.826+08:00Housing loan is the cheapest loan you can find.
...Housing loan is the cheapest loan you can find. <br /><br />If you are in it for 30 years, then you better invest well and don't lose money or else you become so jialiat as you can't even beat 2.6%Createwealth8888https://www.blogger.com/profile/08563834016250153049noreply@blogger.comtag:blogger.com,1999:blog-8345069859964317097.post-80158172961559977362010-06-30T19:25:05.951+08:002010-06-30T19:25:05.951+08:00Spare cash is useful when u would like to take adv...Spare cash is useful when u would like to take advantage of opportunities presented by the market. And opportunities are presented from time to time! :-)<br /><br />Actually if you think about it, while it may be difficult to get risk free returns of 2.6%, it's also difficult to get a loan at only 2.6% when u need it in a hurry.MisterGhttps://www.blogger.com/profile/06824944572589918119noreply@blogger.comtag:blogger.com,1999:blog-8345069859964317097.post-62856555312283000482010-06-29T14:35:44.079+08:002010-06-29T14:35:44.079+08:00periodically use your extra spare cash to pay off ...periodically use your extra spare cash to pay off part of the loan if you can't generate more 2.6% returns with it.Createwealth8888https://www.blogger.com/profile/08563834016250153049noreply@blogger.comtag:blogger.com,1999:blog-8345069859964317097.post-17358353302437131092010-06-29T00:14:26.165+08:002010-06-29T00:14:26.165+08:00however, spare cash are there for a purpose. to us...however, spare cash are there for a purpose. to use in emergency.<br /><br />ahhh.. the difficulties on managing cost of carrying cash.[cz]https://www.blogger.com/profile/04126596498421472154noreply@blogger.comtag:blogger.com,1999:blog-8345069859964317097.post-90590390425028673242010-06-28T23:37:21.881+08:002010-06-28T23:37:21.881+08:00Hi FF,
If your spare cash is not making more than...Hi FF,<br /><br />If your spare cash is not making more than what your housing loan costs you in interest, paying down the loan makes a lot of sense. :)AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.com