Buying two properties and give one away?

Pattern Trader Guest

Don't be stupid by buying two apartments and giving the bank one! « on: December 16, 2009, 01:58:56 AM » 0   Quote For example, let’s say you bought a $300,000 apartment and took a $270,000 mortgage at 3.55%, i.e. BLR-2.0% stretched over 30 years. If you just paid the minimum installment payments every month, how much would you have paid in total interest? The answer: Using a financial calculator, you can see that you will pay $1,220 in monthly installments for 30 years. That’s a total of $439,200 in installment payments! You would have paid a total of 169,200 in interest to the bank. If interest rate increases to 5.3%, that’s like buying two apartments and giving the bank one! Useful Mortgage Calculator with Amortization Graph, Repayment Chart & Balance Graph for better visualization http://www.mortgagecalculator.org

jollybee Associate Posts: 743 You got a telephone!

Re: Don't be stupid by buying two apartments and giving the bank one! « Reply #5 on: October 26, 2010, 09:26:29 PM » 0 Quote Dude, we have arrived a time called massive inflation.  The cash money that we hold reflects lesser value.  Groceries, sundry goods, household items, food all asking for a higher price. Lets say the 2010 lending rate is 4%.  Do you think that inflation for 2010 is lesser than 4%? Even if I am cash rich, I would think getting a loan from the bank worth more.  Loan is a privilege that only a person who is financially sound and good credit history gets it.

Stock market vs. Property investment

605	Alternative Investment Vehicles / Real Estate / Re: Property or Stocks?	on: October 26, 2010, 08:48:21 PM
Stock is a faster place to make money.  Without money, even the banks won't lend us to buy property.  There is a local saying goes like this;  you buy a property after you have earned the money. In general, property is more stable because it is for people who is financially sound. However in mainland or HK, people speculates on real estate property just like the share market.  With 10% of downpayment, the bank would easily lend you remaining balance to purchase a new property that is selling few times more expensive than market price.  After buying, if the 'overall value' of the same property fell, the purchaser have to compensate the bank for the loss, just like having a Margin call to top up the Trust account. Shanghai real estate property already experienced a crash in late 2005 and early 2006.  It is nothing new esp when RMB is forced to trade higher, the national exports deterioriate.  Malaysian Ringgit see herself enjoying in between the RMB and USD based currencies like SGD & HKD margin.