Sj Oh

04 Mar 2020

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Is it better to pay off the mortgage as quick as possible or leave the cash to investment and compound enough to buy a second property?

Scenario: just bought a 3 room BTO; thinking of a private condo for second condo in the Long-term. Which would be a better option in this scenario?

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Davin

04 Mar 2020

First of all, you are not eligible for 2nd property until MOP (min 5 years later).

After 5 years, you are subjected to 7% ABSD for your 2nd property.

IMO, this is not worth it once you need to pay the 7%.

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If a person has got enough cash to pay for a private property in full, is it advisable to do so? Or will it be better to still get a loan?

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