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A roof above your head or more?


1,145 Questions Answered





What are the penalties if I missed the date to pay my housing loan?
If you're on a HDB loan: The computation of the late payment charge is based on 2% above the Ministry of Finance's average prime lending rate (PLR). The current late payment rate is 7.5% (average PLR of 5.5% + 2%) per annum. The late payment rate is reviewed annually and fixed on 1 April. Late payment charges will be imposed on the outstanding instalment as at the end of every month, rounded up to the nearest $0.05. Do note that for now, late payment charges are not in effect due to COVID until 31 March 2021. If you're on a bank loan: It would depend on your bank, but usually there will be late repayment charges, that will increase if you do not pay it off. Some banks do have certain relief schemes if you are unable to pay due to involuntary job loss to ease the burden. Do check with your bank to confirm the details.


Is private property still a good investment today with loan rate at all time low?
When you ask something if it's good, it's always come backs to the question on what are you comparing pte ppty investments with? If you compare it with commercial property, it has it's pros and cons too. 99 vs freehold both has it's pro's and con's. But i don't think that's an impt point of view you should be looking at. If you're looking for investments, consider the location that you're buying. See where are all the tenants that will be coming from. Look into the master plan and see what's coming up next. Will it spur future growth? Consider the rental yield and how much you need to top up. Good to consider investments near MRT as it has a higher take-up rate compared to the rest. If you need help, let me know Whatsapp me:)


How do I pay HDB cash for my resale flat?
During the endorsement period, you can indicate how much cash you want to use. But since u use HDB loan, all your CPF will be wipe out or left 20k each in your OA depending on the option you choose during submission. The part where you need to pay cash is at the completion stage where HDB will get you to prepare "Cashiers Order" Cheque to be given to them during the completion stage.


How should we plan our financials when downgrading from EC to HDB?
The answer if you can buy first is that if you have the CPF/Cash / Bank Loan to fund the purchase. Most people's CPF is tied up into their current home. So if you add up your current OA + Cash + Bank Loan, which can match the purchase price, then u can buy first then sell later. If you add all these up, yet don't have sufficient then have to sell first and buy later.


Why should I buy HDB when I can buy condo?
There are no right or wrong options here if you can afford both. But, do know that there is an opportunity cost in buying a condo as the money you have left over (if you had bought a HDB) could have been invested. And while yes, your condo is likely to appreciate much more than your HDB (even better if freehold), if you're staying in your condo and with no intention to downgrade to a HDB in future then the value in your condo is "locked up" in it.


Any Malaysians here? Do you plan to buy a property in SG? Or save enough money and go back to Malaysia and buy?
Not a malaysian, but if i could, i will prefer to buy a property and live in malaysia. because my perspection is that property is generally cheaper in malaysia. and i can choose whether i want to live in a city, or other district. no such luxury in singapore, almost everywhere is crowded and expensive.


How do I start investing in properties if I’m below 30?
Consider buying quality reits. Lower entry barrier compared to hefty down payment required for physical properties.


How quickly should a young couple repay our HDB loan? Which is more important - avoiding debt or having a cash buffer?


Level 5. Genius

Answered 2d ago

All are important. 1. Need at least 6 - 12 months of household expenses. Track all expenses to have a feel of it. 2. Are you considering to have a kid soon? Factor in expenses and think about how you want to care for the kids. Possibly maybe a maid, childcare or someone not working. All these need $. 3. Do you invest? If you do not, better learn but do not do it for the sake of doing it. Otherwise you might lose sleep or money. HDB loan interest is actually very low. 4. One possible way is contribute to SA $7000 per year for tax relief and earn 4% inside but this money can only be used when you reach 65 and assume no change in interest rate.


How can I avoid DBS home loan's compulsory home insurance?
Read the contract that you have signed carefully. Altogether, it should contain legal information about the home insurance and whether it is really compulsory, and if it entails an admin fee. If yes, then you will need to negotiate with your loan manager on the next course of action. If not, then you are not legally required to take on their insurance, nor to pay any admin fee.