Get out of debts

[Runifyouhaveto]

Debts are just a kind of lure. Before every economic crash, they are always preceded by a period of easy money (eg. weimar republic) or cheap interest rates (subprime). Hahaaa, today, we have both; easing + low rates and bubbled leveraged asset prices. This is how how each generation gets wiped-out.

In one way or another, I have been trying to encourage you to get out of debts now. There are no such things as good debts or bad debts when interest rates are rising - these are just sales talk by loan salesmen.

Read what you read carefully, people share with you about superior yields without exposing the hidden capital losses. I have also received unhappy pm from people who bluntly call me a fearmonger. Look, there is a big group of sellers here who want to encourage you to buy things from them to bail them out.

Yes, defaulting multi-millions is a glamorous defeat because such people usually have some spare bullets hidden somewhere, but most of us don't. 2 members in my extended family are bankrupted and they never recovered. Unlike computer games, there is no way to restart for most of us.
There are still 101 things out there for you to invest or buy, but maybe, just avoid things that are highly geared.

Thread carefully.

 

[halsey02]

Don't buy HDB flats..... ha ha ha ha

 

[nutbush]

i have zero debt and zero savings...:o

 

[zhihau]

still believe in simple logic:
income - (savings + investments) = expenditure
don't spend more than what you earn. can't go wrong that much, try it

 

[rushifa666]

i have zero debt and zero savings...:o

You are still in a better position than those cocksuckers with 30year loan. If they lose their job or get a illness they will simply jump off a building

 

[Runifyouhaveto]

still believe in simple logic:
income - (savings + investments) = expenditure
don't spend more than what you earn. can't go wrong that much, try it

TDSR not applicable for singaporean buying malaysian properties. All you have to do is to loan with malaysia banks, eg. OCBC Malaysia will ignore your loans with OCBC Singapore. A working Sg couple can loan max. 90% in malaysian residential properties for about 5-6%pa loan, if both sign on the line. Many seminars teach you how to hold 5, 7, 10 or 30 properties in the world with loans. But really, in the end, you are just making yourself so busy for the bankers.

If you understand the financing-mechanics of our massive property-loan sector, margin-calls/forced-sellings will be triggered like a domino for each 10-15% drop, for those who loan 70-80% for investment property because these clients can never cover the slightest increment in interest rates. Yes, the less-geared individuals can easily survive such short-term 30% meltdown.

However, if the downturn is prolonged, those who loan more than 50% will face a slow death, eg. market drops appx 5-10%pa going forward.

The financial sector can prepare for any scenario so long it doesn't catch them by surprise, but not the clients. Evil bankers can draw up master plans to swallow prime assets of the mid-leveraged. Prolonged period of asset price weakness and surging interest rates offer the best opportunity for banks to squeeze every juice out of weak clients.

 

[Runifyouhaveto]

Debt is modern slavery. At least, do not roll over your credit card dues or use unsecured personal credit lines.

 

[extramarital]

2 members in my extended family are bankrupted and they never recovered. Unlike computer games, there is no way to restart for most of us.Thread carefully.

An easy way out for those who can't restart is by jumping off from HDB.

 

[winnipegjets]

Debts are just a kind of lure. Before every economic crash, they are always preceded by a period of easy money (eg. weimar republic) or cheap interest rates (subprime). Hahaaa, today, we have both; easing + low rates and bubbled leveraged asset prices. This is how how each generation gets wiped-out.

In one way or another, I have been trying to encourage you to get out of debts now. There are no such things as good debts or bad debts when interest rates are rising - these are just sales talk by loan salesmen.

Read what you read carefully, people share with you about superior yields without exposing the hidden capital losses. I have also received unhappy pm from people who bluntly call me a fearmonger. Look, there is a big group of sellers here who want to encourage you to buy things from them to bail them out.

Yes, defaulting multi-millions is a glamorous defeat because such people usually have some spare bullets hidden somewhere, but most of us don't. 2 members in my extended family are bankrupted and they never recovered. Unlike computer games, there is no way to restart for most of us.
There are still 101 things out there for you to invest or buy, but maybe, just avoid things that are highly geared.

Thread carefully.

There is good debt and bad debt.

 

[chonburifc]

Never allow debts to control your mind. Sinkees are mind fucked daily by the PAPPIES becos of the pigeonhold, car and credit card debts. If really want to be in debt, then go for big one until the bank scare you.

Because of these cheapo debts, Sinkees become balless and continue to vote pappies into power. Worry big change will lose jobs cannot pay debts.

Get out of debts! And vote out pappies for the next generation! This generation already screwed beyond repair liaoz.

 

[kaipoh]

Buy the biggest HDB flat, no money to pay ask Minister for help lah, any way the house is not yours.

Don't buy HDB flats..... ha ha ha ha

 

[scoobydoo]

i have zero debt and zero savings...:o

haha....Same same for me.

zero plus zero equals Zero.

zero minus zero also equals Zero.

 

[shctaw]

good can become bad overnight.

There is good debt and bad debt.

 

[borom]

Debt is modern slavery......

.....Sinkees are mind fucked daily by the PAPPIES becos of the pigeonhold...balless and continue to vote pappies into power. Worry big change will lose jobs cannot pay debts....... vote out pappies for the next generation!......

Agree.

The ever escalating housing prices is a trap and the higher the prices (and longer you take to pay off your mortgage),the more you become enslaved to the HDB and indirectly the pappy.
You are truly free when you have paid off your housing mortgage and it used to be age 45 but now the pappy is pushing it for 65 -meaning for most, they will never be free.

 

[palden]

Go JB buy petrol.

 

[chonburifc]

Agree.

The ever escalating housing prices is a trap and the higher the prices (and longer you take to pay off your mortgage),the more you become enslaved to the HDB and indirectly the pappy.
You are truly free when you have paid off your housing mortgage and it used to be age 45 but now the pappy is pushing it for 65 -meaning for most, they will never be free.

Thanks Borom and many others who contributed to this thread which I feel is very important, as being debt free did changed my life. I fully paid up my humble 3-room HDB pigeonhole using CPF and cash within 8 years of purchase during the late 90s.

Initially, I opted for the maximum 30 years load period. But after calculating the interests, I was determined to shorten it to 10 years but did it in 8 years! Nothing magical or fantastic. I used all my CPF to paid them off and the rest paid with cash.

And why I did it? Remembered receiving the HDB statements during the first few years of purchase. And looking at the statements make me very upset and demoralised. KNN, every month deduct and deduct. still owe so much, almost like never move like that.

BUT, Now, this pigeonhole is a profit centre and also my private room money. If continue to rent out for another 4 years, all my capital cover back plus interest plus upgrading cost.

 

[chonburifc]

Thanks Borom and many others who contributed to this thread which I feel is very important, as being debt free did changed my life. I fully paid up my humble 3-room HDB pigeonhole using CPF and cash within 8 years of purchase during the late 90s.

Initially, I opted for the maximum 30 years load period. But after calculating the interests, I was determined to shorten it to 10 years but did it in 8 years! Nothing magical or fantastic. I used all my CPF to paid them off and the rest paid with cash.

And why I did it? Remembered receiving the HDB statements during the first few years of purchase. And looking at the statements make me very upset and demoralised. KNN, every month deduct and deduct. still owe so much, almost like never move like that.

BUT, Now, this pigeonhole is a profit centre and also my private room money. If continue to rent out for another 4 years, all my capital cover back plus interest plus upgrading cost.

Sorry forgot to add something important, cover back in cold hard cash, not CPF statements.

 

[Runifyouhaveto]

There is good debt and bad debt.

paiseh, no offense. Those are sales talk by housing loan sales man. The tide turns against you when SIBOR surges. Historically, you enjoy the best prices in property when SIBOR exceeds 3%. So do you wanna buy-cheap or buy-expensive with cheap loans that are meant to trap you? If you wanna buy-cheap, then we should save our bullets.

 

[Runifyouhaveto]

Sorry forgot to add something important, cover back in cold hard cash, not CPF statements.

Excellent example. Please let me simplify it, with the risk of oversimplifying:

HDB loan = 2.6%
Reimbursement back to OA account when you sell HDB = 2.5%
Effectively, your cost of financing is 5.1% for HDB
Excellent example. Please let me simplify it, with the risk of oversimplifying:


Now let's go one-step further:
Many PMET got spare cash and choose to use them to invest in shares/equities (nothing wrong).
Assuming you got enough cash, if you use the cash for the HDB loan-payment and use your OA $$$ for shares and unit trusts instead,
effectively, you will reduce your HDB loan quantum (save on 2.6%) and you don't have to reimburse your OA account 2.5% when you offload your shares/unit trusts.
Note: this is just an simplified example


HDB costs you 5.1% in terms of overall-financing Very outstanding example. deserve +1

 

[chonburifc]

Excellent example. Please let me simplify it, with the risk of oversimplifying:

HDB loan = 2.6%
Reimbursement back to OA account when you sell HDB = 2.5%
Effectively, your cost of financing is 5.1% for HDB
Excellent example. Please let me simplify it, with the risk of oversimplifying:


Now let's go one-step further:
Many PMET got spare cash and choose to use them to invest in shares/equities (nothing wrong).
Assuming you got enough cash, if you use the cash for the HDB loan-payment and use your OA $$$ for shares and unit trusts instead,
effectively, you will reduce your HDB loan quantum (save on 2.6%) and you don't have to reimburse your OA account 2.5% when you offload your shares/unit trusts.
Note: this is just an simplified example


HDB costs you 5.1% in terms of overall-financing Very outstanding example. deserve +1

Hahaha. Thanks Bro, but seriously, I not so clever lah. That time, feel so stressful to owe HDB money and also buay song that public housing loans can cost so much.

I worry more about the next generations. The first 3 decades is purely working like slaves for the HDB.