View Full Version : Should I take up a Loan

31st December 2009, 10:33 AM
Hi all, I would like to seek advice whether to take or not to take up home loan now. Months back, I have sold off my condo and gained some profit out of it. At the moment, I do not have any property.

A few days back, I have just brought a $500K private property. I thought of taking loan as I treated this property as my investment (Rental) unit. In view of the weak property market, I have planned to buy another condo for my own stay within this few months. I was told that banks have tightened their loan criteria will not grant loan like before due to the recent economic downturn. For sure the bank will grant loan for my 1st property and I am uncertain whether the banks will grant me for a 2nd property loan.

My wife and I is enjoying a stable income and were not affected by the economic crisis. Pl advice and I am confused to take or not to take up loan.

31st December 2009, 11:25 AM
just show your cash. banks will lend u money especially when you dont need it. Take a loan. Take a mortgage offset loan. interest earned in linked current account can partially offset the mortgage interest.

Mortgage interest on investment property can be deductible for rental income. This is impt since you are working.rental income will be taxed at marginal tax rate. When need money urgently, can withdraw $ on linked current acct. no need to remortgage property to get loan

with above benefits, best to take mortgage offset loan. ask HSBC, UOB for such loan.

8th March 2010, 07:58 AM
i agree with ashmaton. even if you have th cash still go for loan. use your cash for other investments again.