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Hi Gurus, I wish to sell my unit and buy a resale HDB. Is it wise to get a bank loan even if I am eligible to get a second HDB loan? Reason being, if get another HDB loan, HDB will take half of my sales proceed. I intend to use the sales proceeds for other investments like commercial (gain rental income) and after 5 years can reuse the sales proceed (selling the commercial) to buy a condo unit for stay after MOP for the new resale flat and rent the resale HDB unit to service the bank loan. Kindly advice on pros and cons. Thanks.
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1 Answer

Mike Lim
Replied
Afternoon SG,

That's the very common concern that all my clients have. It's good to utilize bank loan now as the interest rate is low. You can also have the flexibility on your cash proceed from the sales. Be it purchase of commercial or investment in equitities, it's definitely better than having it locked up somewhere else. But do note that for bank loan, lapses on monthly repayment is not advised. The interest may also flucutate after your lock-in period ends but you can always refinance in time to come.

Do feel free to contact me for further assistance.

Regards
Mike Lim
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