Comments on: Know what your neighbour is doing, but don’t do what he’s doing! http://fivecentstencents.com/blog/2009/04/22/know-what-your-neighbour-is-doing-but-dont-do-what-hes-doing/ Financial freedom, one realistic step at a time. Mon, 16 Apr 2012 07:27:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Joe http://fivecentstencents.com/blog/2009/04/22/know-what-your-neighbour-is-doing-but-dont-do-what-hes-doing/comment-page-1/#comment-698 Joe Tue, 21 Jul 2009 09:37:42 +0000 http://fivecentstencents.com/blog/?p=645#comment-698 I think housing loan is a good debt. In particular, I'm on the HDB loan - 2.6pa interest. I intentionally took a 30yr loan so that I can have as much cash and cpf for investment as possible. So long as my investments can do more than 2.6pa, I won't consider complete repayment of my loan. I think housing loan is a good debt. In particular, I’m on the HDB loan – 2.6pa interest. I intentionally took a 30yr loan so that I can have as much cash and cpf for investment as possible.

So long as my investments can do more than 2.6pa, I won’t consider complete repayment of my loan.

]]> By: Personal loans online: faster way to access finance for personal needs (US based) | Banking Loans http://fivecentstencents.com/blog/2009/04/22/know-what-your-neighbour-is-doing-but-dont-do-what-hes-doing/comment-page-1/#comment-556 Personal loans online: faster way to access finance for personal needs (US based) | Banking Loans Fri, 19 Jun 2009 06:32:02 +0000 http://fivecentstencents.com/blog/?p=645#comment-556 [...] Know what your neighbour is doing, but don’t do what he’s doing! (fivecentstencents.com) [...] [...] Know what your neighbour is doing, but don’t do what he’s doing! (fivecentstencents.com) [...]

]]> By: Panzer http://fivecentstencents.com/blog/2009/04/22/know-what-your-neighbour-is-doing-but-dont-do-what-hes-doing/comment-page-1/#comment-402 Panzer Fri, 24 Apr 2009 01:14:25 +0000 http://fivecentstencents.com/blog/?p=645#comment-402 Hi Foundation Yes, some people could be highly geared because the mortgage is for their investment property but not for their own owner-occupied property. But I believe those are the exception rather than the norm. Investing in property is one way of achieving capital gains and rental income but it comes with its risks as well. If the rental income is insufficient to cover the interest costs and if one's earned income is affected by unforseen circumstances, it will be challenging. Thanks for sharing! :-) Be well and prosper. <abbr><em>Panzer’s last blog post..<a href="http://singapore-fixed-deposits.com/wordpress/2009/04/22/cimb-fixed-deposits-promotion-terms-and-conditions/" rel="nofollow">CIMB Fixed Deposits Promotion - Terms and Conditions</a></abbr></em> Hi Foundation

Yes, some people could be highly geared because the mortgage is for their investment property but not for their own owner-occupied property. But I believe those are the exception rather than the norm.

Investing in property is one way of achieving capital gains and rental income but it comes with its risks as well. If the rental income is insufficient to cover the interest costs and if one’s earned income is affected by unforseen circumstances, it will be challenging.

Thanks for sharing! :-)

Be well and prosper.

Panzer’s last blog post..CIMB Fixed Deposits Promotion – Terms and Conditions

]]> By: Foundation http://fivecentstencents.com/blog/2009/04/22/know-what-your-neighbour-is-doing-but-dont-do-what-hes-doing/comment-page-1/#comment-401 Foundation Thu, 23 Apr 2009 10:06:14 +0000 http://fivecentstencents.com/blog/?p=645#comment-401 Hello Both, I am in the 30-34 years age group, initially wanted to post the statistics for people in our age group but accidentally deleted my credit report, so sorry about it.. Regarding the discussion on mortgage balances, maybe it isn't really a bad idea to be in the highest category as long as your rental incomes can pay for it!! Just some alternative food for thought.. Hello Both,

I am in the 30-34 years age group, initially wanted to post the statistics for people in our age group but accidentally deleted my credit report, so sorry about it..

Regarding the discussion on mortgage balances, maybe it isn’t really a bad idea to be in the highest category as long as your rental incomes can pay for it!!

Just some alternative food for thought..

]]> By: panzer http://fivecentstencents.com/blog/2009/04/22/know-what-your-neighbour-is-doing-but-dont-do-what-hes-doing/comment-page-1/#comment-397 panzer Thu, 23 Apr 2009 03:32:39 +0000 http://fivecentstencents.com/blog/?p=645#comment-397 Hi Musicwhiz Thanks for your comments. The figures were also surprising to me as I knew that most Singapore residents were still paying off their mortgages before the age of 40 but I was still amazed to see that the average was $222k! The interest on that is still quite high and to pay that off in the next 20 years means many years of interest to the banks/financial institutions. I think the situation will only become worse over time as Singapore is a very consumeristic place. If you don't live an unconventional life, you end up spending on what other people also spend and end up with the situation of money no enough for retirement! :-P Be well and prosper. Hi Musicwhiz

Thanks for your comments.

The figures were also surprising to me as I knew that most Singapore residents were still paying off their mortgages before the age of 40 but I was still amazed to see that the average was $222k!

The interest on that is still quite high and to pay that off in the next 20 years means many years of interest to the banks/financial institutions.

I think the situation will only become worse over time as Singapore is a very consumeristic place. If you don’t live an unconventional life, you end up spending on what other people also spend and end up with the situation of money no enough for retirement! :-P

Be well and prosper.

]]> By: musicwhiz http://fivecentstencents.com/blog/2009/04/22/know-what-your-neighbour-is-doing-but-dont-do-what-hes-doing/comment-page-1/#comment-396 musicwhiz Thu, 23 Apr 2009 02:30:53 +0000 http://fivecentstencents.com/blog/?p=645#comment-396 Hi Panzer, Very useful post indeed ! It's insightful to see the % distribution for the 4 categories for 35-39 years old. For me, I am in the 30-34 years age group. This is how I fare for each category:- 1) Housing Loan Balance - S$100,000-S$199,999 group (but by 35-39 I hope to be in the S$0-S$49,999 group) 2) Motor Vehicle Loan - S$0 3) Personal Loan - S$0 (I would assume this refers to unsecured loans which charge a whopping 18% per annum ?) 4) Credit Card Balances - S$0-S$999 (this may increase, of course, when I have a child) So I guess I'm not doing too badly for my age group ? You've made me curious enough to consider getting a credit report to see "where I stand" in my own age group too. Haha. Looking at the averages, I am quite stunned by the credit card average of S$4K+ and housing loan average of S$222K. I certainly hope to keep those down by the time I hit 35-39. Regards, Musicwhiz Hi Panzer,

Very useful post indeed ! It’s insightful to see the % distribution for the 4 categories for 35-39 years old.

For me, I am in the 30-34 years age group. This is how I fare for each category:-

1) Housing Loan Balance – S$100,000-S$199,999 group (but by 35-39 I hope to be in the S$0-S$49,999 group)
2) Motor Vehicle Loan – S$0
3) Personal Loan – S$0 (I would assume this refers to unsecured loans which charge a whopping 18% per annum ?)
4) Credit Card Balances – S$0-S$999 (this may increase, of course, when I have a child)

So I guess I’m not doing too badly for my age group ? You’ve made me curious enough to consider getting a credit report to see “where I stand” in my own age group too. Haha.

Looking at the averages, I am quite stunned by the credit card average of S$4K+ and housing loan average of S$222K. I certainly hope to keep those down by the time I hit 35-39.

Regards,
Musicwhiz

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