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Hi gurus, supposing that one has a HDB loan of 110K left, and about 240K in combined cash and CPF savings, after leaving half of the minimum sum in CPF. If one wishes to purchase a second property for investment, does it make more sense to settle CPF loan and opt for 20% private loan, or to save up to see what options are available in a few years' time?

If a project TOP date is 3-4 years down the road, how is the payment schedule like? Looking for a private property in the west.
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1 Answer

William Choo
Replied
Hi Rob, this depends on your plans. For instance, if you intend to stay in the condo and rent out your HDB, the interest on your HDB mortgage loan can be used to reduce the rental income you receive. On the other hand, current mortgage rates are at a all-time low. If you borrow at current rates, about 2/3 of your monthly installments will go towards paying your principal. A 1% incease in interest rates will reduce the principal payments to about 1/2.The amount you save on interest expenses payments can be significant. You can find the payment schedule at the link below. Do drop me a message if you have any other enquiry. Cheers!

http://www.ura.gov.sg/lad/HBG/progressPayments.htm

http://www.propertyguru.com.sg/listing/8728053/for-sale-nottinghill-suites Read More
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  • RS
    Replied
    Hi,

    Thanks for explaining in detail.

    Maybe I will save up a while more to see what options are available. Thanks.

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