I'm going to clear my mortgage for my HDB by this year 2025. I have an outstanding loan of $30k+ which i estimate with the monthly installments and the capital repayment that i will be doing over the next few months. I am counting down towards end of Oct 2025 whereby the loan will become $0. After that what is next. As i ponder along, i come across the book for Mortgage Free in 6 years. That book opens up my mind on the possibilities. Firstly is how do i monetize my HDB. Last i check my HDB is valued at $700k which is almost 90% gain from the purchase price i did back in 10 years ago. Yeah you read that right, it has come to 10 years before i have a fully paid up HDB.
Some possibilities float to me as i think. With the equity unlock at $700k, mi and my wife can buy 2 private properties with each paying the 25% downpayment for $350k. Assuming we buy 1 property at $500k and 1 property at $1.3m. We will rent out the $500k property which will probably yield about $3k per month with $36k per year rental income. The other property we will stay in it. i'm looking at a property that can have 4 rooms. As i check the property pages on property guru, i could not find a property with 4 rooms at that kind of price and also the 1 property at $500k. I guess the property market is heating really up. I guess this option is off the table.
The alternative that i can think of is the Mortgage free from 6 years. Using the 700k to purchase a condo that have 4 rooms but the price out there is huge disparity. The amount is a staggering $3.5m. Assuming i used the 700k, i still have $2.8m loan to handle. If i go for the 3 bedroom, the amount is $2.4m. That means i will have $1.7m loan to handle. After considering these, i guess will stick to new BTO instead and i can get a fresh lease of 99 years. I'm looking at a 5 room flat so that i can accommodate my family of 6-7 people.
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