Your main objective is to get people to get into more housing debts with you profiting from buy, sell and rent. So long there are activities irregardless the owners are or aren't making money or survive. Salesman still has the business.
As an economist, let me tell you that there's no such thing as "good debt" Melvin. I understand your salesmanship in trying to convince your audience to transact their properties on the ASSUMPTION that property prices in Singapore will rise above inflation rates, INDEFINITELY . LET us not forget those years when property prices stagnated or even dipped. Those times were exacerbated by "double-edged" high leverage and the lost of income. Hence the Government's prudent "cooling measures" and loan cap. Last but not least, the word MORTGAGE comes from Old French morgage, literally “dead pledge,” from mort (dead) and gage (pledge). According to the online etymology dictionary, it is so called because the deal dies when the debt is paid or when payment fails. GO FIGURE??
Your main objective is to get people to get into more housing debts with you profiting from buy, sell and rent. So long there are activities irregardless the owners are or aren't making money or survive. Salesmen still has the business.
I usually find good advice here. But as an investment banker working in the private equity industry, this is the most inaccurate topic you have said. HDB: True, do not pay down debt as you cannot have your equity released through Refinancing, only through a sale. Definitely not recommended if you intend to stay for a long time. All other private housing: you should pay down no matter what, to reduce your effective interest rates
No, the mortgage will boost your returns ONLY IF your property appreciates at a higher rate than your mortgage interest. If you buy some cui property that appreciate at only 1% a year but you are taking on a mortgage with interest at 4% a year, it will lose you money!
The assumption is that you can use the cash to invest in something that gives higher return than mortgage interest rate. The higher interest return is not guaranteed.
Hi @MrBluehorizonsugar Thank you for watching our content! We hope you enjoyed it :) To answer your question, A decent appreciation rate is anything above 3%. Do let us know if you have any further questions, we would be more than happy to answer them! Cheers!😊
I think u had not seen or witnessed the 1997 asian financial crisis , when property prices can drop by 40% and many buyers are caught by bank asking them to top up their loans or go bankrupt. Once u went through such crisis , u fear of property when it always fetch new high price Same as once u bitten by a snake u fear of snakes .
The argument is flawed. If the rental yield is less than mortgage interest rate, the argument does not hold water. This is even worst, if the property losing money (market valuation is less than purchase price).
Why are you telling people to remain in debt? You are a simple profiteer at others expense? Stop spreading this which affects people's lifes. It's simply irresponsible and greed.
Your main objective is to get people to get into more housing debts with you profiting from buy, sell and rent. So long there are activities irregardless the owners are or aren't making money or survive. Salesman still has the business.
As an economist, let me tell you that there's no such thing as "good debt" Melvin. I understand your salesmanship in trying to convince your audience to transact their properties on the ASSUMPTION that property prices in Singapore will rise above inflation rates, INDEFINITELY .
LET us not forget those years when property prices stagnated or even dipped. Those times were exacerbated by "double-edged" high leverage and the lost of income. Hence the Government's prudent "cooling measures" and loan cap.
Last but not least, the word MORTGAGE comes from Old French morgage, literally “dead pledge,” from mort (dead) and gage (pledge). According to the online etymology dictionary, it is so called because the deal dies when the debt is paid or when payment fails.
GO FIGURE??
🤡
Your main objective is to get people to get into more housing debts with you profiting from buy, sell and rent. So long there are activities irregardless the owners are or aren't making money or survive. Salesmen still has the business.
yeah PLB doesnt know what they are talking about and the 'facts' given are inaccurate , 1st year economics student can easily beat their argument
I am pleased that so many smart people in the comment section giving totally different opinion with Melvin.
I usually find good advice here. But as an investment banker working in the private equity industry, this is the most inaccurate topic you have said.
HDB: True, do not pay down debt as you cannot have your equity released through Refinancing, only through a sale. Definitely not recommended if you intend to stay for a long time.
All other private housing: you should pay down no matter what, to reduce your effective interest rates
No, the mortgage will boost your returns ONLY IF your property appreciates at a higher rate than your mortgage interest. If you buy some cui property that appreciate at only 1% a year but you are taking on a mortgage with interest at 4% a year, it will lose you money!
yeah PLB doesnt know what they are talking about and the 'facts' given are inaccurate , 1st year economics student can easily beat their argument
Yeah, you will lose more than that because of LEVERAGE, 3% × 4 = 12% PER annum. Even a Prison Salesman would know it... but chose to tell half truths.
That is based on assumption that property prices appreciated substantially!!
I bought all my 3 properties, without loan.
This video is brought to you by DBS, OCBC and UOB.
Btw, the insurance shouldn't be in the picture as buying or not, people can still buy a term insurance and leave 1m to the family.
Not all entirely correct info. Surprised you haven’t taken down this video by now.
yeah PLB doesnt know what they are talking about and the 'facts' given are inaccurate , 1st year economics student can easily beat their argument
The assumption is that you can use the cash to invest in something that gives higher return than mortgage interest rate. The higher interest return is not guaranteed.
What about those 60 and above? Should they pay down their loan?
bro, you dont know what you are talking about and the 'facts' you give are inaccurate , 1st year economics student can easily beat your argument
There’s quite good debate going on here, gives us viewers different perspectives
What's the safe appreciation rate for a resale condo? 3%, 4%?
Hi @MrBluehorizonsugar
Thank you for watching our content! We hope you enjoyed it :) To answer your question, A decent appreciation rate is anything above 3%. Do let us know if you have any further questions, we would be more than happy to answer them!
Cheers!😊
Reason 5 is flawed. It’s a comparison between having term insurance vs none, and not about paying down with cash
I think u had not seen or witnessed the 1997 asian financial crisis , when property prices can drop by 40% and many buyers are caught by bank asking them to top up their loans or go bankrupt.
Once u went through such crisis , u fear of property when it always fetch new high price
Same as once u bitten by a snake u fear of snakes .
It’s better to just be sales men than give unhelpful or potentially detrimental advice if you don’t have the expertise to be a consultant….
maybe the lighting setup can be better.. green light behind you .. else you look like hulk. :>
Hello! 😊
Thank you for the feedback! We really appreciate the support and are always happy to value add :)
Cheers!
Surely no laundering
The argument is flawed. If the rental yield is less than mortgage interest rate, the argument does not hold water. This is even worst, if the property losing money (market valuation is less than purchase price).
Why are you telling people to remain in debt? You are a simple profiteer at others expense? Stop spreading this which affects people's lifes. It's simply irresponsible and greed.