If U Have A Choice Would U Fully Pay Ur Hdb Or Loan It ?

[maverlim889 0]

hi just wondering if u guys would fully paid ur HDB or loan it from HDB and invest with ur cash?

Please state ur reasons

[Lauer 15]

If you could invest and generate a return that is higher than the mortgage rate, then invest lo.

Cheers!

[bepgof 20]

The issue revolves around:

- opportunity cost. If the outstanding mortgage amount could be used to generate return higher than interest (of the outstanding amount) that charged by HDB then 'you win'.

- peace of mind,or risk appetite related.

- Cash flow issue

- Competencies

- Asset allocation

I redeemed fully my present resale one year after the lock-in period. For:

- I have cash/cpf allow me to make this decision. No cashflow issue.

- I know how finance works.

- My wife loves 'peace of mind' - I obliged her

- I cannot guaranteed every year, my investment returns better than the 2.6%. Actually mine was 0.75%+3monthSOR

Any more question?