Home loan stretch to 50 years?
- Thread starter BMWM3
- Start date
wt_know
Well-Known Member
Re: Home loan stretch to 50 years?
it's no rocket science .... the whole idea to stretch the loan is to make it "artificially" affordable
ie: 25 years loan monthly mortgage is $5,000 & 50 years loan monthly mortgage is $2,500 (just for simplicity calculation)
out of a sudden, million dollar property has become sibei cheap. any young chap would want to own million dollar property.
ah long O$P$ already know the trick thousand years ago ... once loan is out ... the loan is payback lifetime
it's no rocket science .... the whole idea to stretch the loan is to make it "artificially" affordable
ie: 25 years loan monthly mortgage is $5,000 & 50 years loan monthly mortgage is $2,500 (just for simplicity calculation)
out of a sudden, million dollar property has become sibei cheap. any young chap would want to own million dollar property.
ah long O$P$ already know the trick thousand years ago ... once loan is out ... the loan is payback lifetime
BMWM3;856311 said:
C3P0;856317 said:
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wobbles
Well-Known Member
Re: Home loan stretch to 50 years?
Your insinuation is unwarranted and a blatant show of contempt for the indisputable, undeniable, sanctity of the courts, the purity and incorruptible nature of the Garhmen and plain jealousy because you didn't think of this money-milking scheme first yourself
zorro;856330 said:
Your insinuation is unwarranted and a blatant show of contempt for the indisputable, undeniable, sanctity of the courts, the purity and incorruptible nature of the Garhmen and plain jealousy because you didn't think of this money-milking scheme first yourself
Slow_poke_driver
Well-Known Member
Re: Home loan stretch to 50 years?
At 30 years old take 50 years loan=fully repaid by age 80.
BUT I don't foresee myself and many others being able to live till age 80.
So it means housing loan need 2 generations to pay off?
At 30 years old take 50 years loan=fully repaid by age 80.
BUT I don't foresee myself and many others being able to live till age 80.
So it means housing loan need 2 generations to pay off?
wt_know
Well-Known Member
Re: Home loan stretch to 50 years?
similarly, why govt allow bad practices in car deal (i treat it car is the 2nd biggest ticket item purchase after property)
a. overtrade ... car price at $180k give overtrade $20k (final selling price is $160k) and loan is based on $180k
b. $0 driveaway and 100% loan
c. drive new car and got paid somemore (cashback)
the govt wants the financial to flourish just like in the usa .. the kings are in the wall street
similarly, why govt allow bad practices in car deal (i treat it car is the 2nd biggest ticket item purchase after property)
a. overtrade ... car price at $180k give overtrade $20k (final selling price is $160k) and loan is based on $180k
b. $0 driveaway and 100% loan
c. drive new car and got paid somemore (cashback)
the govt wants the financial to flourish just like in the usa .. the kings are in the wall street
zorro;856330 said:
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wt_know
Well-Known Member
Re: Home loan stretch to 50 years?
don't think so ... loan defaulted, will take back the property and resell it to make profit again
as we all know ... when servicing the loan ... more or less 70% paying interest, 30% paying principal
before you die ... the loaner already recover the cost + profit liao ... somemore the property is under the bank name hor
don't think so ... loan defaulted, will take back the property and resell it to make profit again
as we all know ... when servicing the loan ... more or less 70% paying interest, 30% paying principal
before you die ... the loaner already recover the cost + profit liao ... somemore the property is under the bank name hor
Slow_poke_driver;856339 said:
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Re: Home loan stretch to 50 years?
You will hear from my lawyer soon for your defamatory remarks about me...I will check with MW if he is willing to act for me.
I never say our gahmen or any gahmen offiicial is corrupted...Our gahmen is the most honest one hor..
You will hear from my lawyer soon for your defamatory remarks about me...I will check with MW if he is willing to act for me.
I never say our gahmen or any gahmen offiicial is corrupted...Our gahmen is the most honest one hor..
wobbles;856336 said:Your insinuation is unwarranted and a blatant show of contempt for the indisputable, undeniable, sanctity of the courts, the purity and incorruptible nature of the Garhmen and plain jealousy because you didn't think of this money-milking scheme first yourself
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Re: Home loan stretch to 50 years?
Singaporeans are a funny bunch of "investors"....
When buying assets or investments with positive carry/yield, they typically want fast return and redemption. So you tell them Temasek has a 30-year bond issue, they said too long tenure. You tell them Mapletree (100% owned by Temasek) issued a 5.125% perps, non call 5, they said too long.
But when taking loans, they wanna stretch as long as possible.
Perhaps they should study the concept of immunisation. One gotta learn how to match the durations of assets and liabilities.
Singaporeans are a funny bunch of "investors"....
When buying assets or investments with positive carry/yield, they typically want fast return and redemption. So you tell them Temasek has a 30-year bond issue, they said too long tenure. You tell them Mapletree (100% owned by Temasek) issued a 5.125% perps, non call 5, they said too long.
But when taking loans, they wanna stretch as long as possible.
Perhaps they should study the concept of immunisation. One gotta learn how to match the durations of assets and liabilities.
DrK
Well-Known Member
Re: Home loan stretch to 50 years?
This is the dilemma of a receiver and a payer. Everyone wants to receive more but pay less. At the end of the day, they are just abitraging which make sense if you are a shrewd investor. But they tend to forget that interest rate is a floating mechanism. Lock in 5 year here and lock in 30 year there.. it is all about the tenors and risks.
Now on this 30 year loan, what is the interest rate? Fixed? I'll be stupid not to take this loan if rate is favourable. Note that we are at an interest rate world of all time low near zero. Did I say it will go negative? Yes.. negative. Akang datang. So if UOB is offering at 4% fixed 30y tenor, then ppl who take this loan is highly screwed.
kenntona;856460 said:
This is the dilemma of a receiver and a payer. Everyone wants to receive more but pay less. At the end of the day, they are just abitraging which make sense if you are a shrewd investor. But they tend to forget that interest rate is a floating mechanism. Lock in 5 year here and lock in 30 year there.. it is all about the tenors and risks.
Now on this 30 year loan, what is the interest rate? Fixed? I'll be stupid not to take this loan if rate is favourable. Note that we are at an interest rate world of all time low near zero. Did I say it will go negative? Yes.. negative. Akang datang. So if UOB is offering at 4% fixed 30y tenor, then ppl who take this loan is highly screwed.
Re: Home loan stretch to 50 years?
This idea is good for only the super rich. Yes sounds ironic but true becos only high value properties like Sentosa Cove can jump from 11M to 36M in a year or so n thus profits vs interest rates are real. Mass housing condos n apmts would be like wt-know said...perpetually renting house from banks
This idea is good for only the super rich. Yes sounds ironic but true becos only high value properties like Sentosa Cove can jump from 11M to 36M in a year or so n thus profits vs interest rates are real. Mass housing condos n apmts would be like wt-know said...perpetually renting house from banks
