Dennis Warned about Stock Market Correction on 21 Jan 2010!
Keep Your Housing Loan, Grow Your Money Instead to Become Rich
In some internet forums, I still see people arguing that one should try to pay off one's Housing Loan as soon as possible, which I find it quite amusing.
Back in year 2003, I had S$250,000 and a Housing Loan of S$200,000, if I had paid off my Housing Loan then, I would be left with S$50,000....even adding the S$200,0000 I saved from year 2003 to year 2008, I would have about S$250,000 by end year 2008.
However, I did not pay off my Housing Loan, invested the S$200,000 instead and keep S$50,000 as Contingency fund, enough to pay for 1 year of my expenses if I lose my income......
By doing so, I rode the Bull market in Stocks and Property and turned the S$200,000 into over S$800,000 by year 2008, that's how I became a Millionaire in year 2008.
I became financially free in year 2008, since if I earn 5% on S$1 million, that would be S$50,000 a year and enough to pay for all my expenses.
Here's How You Can Make Sense of Housing Loans
Sat, Jul 11, 2009 The Business Times
Making sense of housing loans
written By DENNIS NG, http://www.HousingLoanSG.com - FREE Unbiased Comparison of All Housing Loans in Singapore
SENTIMENT seems to have made a 180-degree turn in the property market in recent months with buyers coming out in force as the economic outlook stabilises. Sellers have been known to up asking prices by 10 per cent or more. Some home buyers who were taking a wait and see attitude a few months ago rushed in to buy properties.
But before you join the rush, remember that buying a property is a long-term commitment. Make sure you can comfortably service your mortgage by capping your debt-service ratio at 35 per cent of your gross income. On top of that you should set aside enough funds to service at least six months of your housing loan instalments. This would provide some buffer should you suffer a pay cut or job loss.