An honorable member of the Coffee Shop Has Just Posted the Following:
A friend of mine kpkb on the recent interest rate rise. Told me his bank, not local, increase his rate to almost 2.4%. His is the type that is pegged to sibor. It's his third property though. Told me the loan he took is 1..5kkfor a 1800sqft place. Second property still has about 600k loan. First property fully paid. Both husband and wife are professional. Income estimated at 200k/year. Excluding rental income. Both property are rented out.
Previously rate was 1% or less, now has risen to 2.4. That's almost like borrowing 2.4kk at 1%.
Anyway, not sure if his finance is very stretch, but he seems very stressed. Could be the recent stock market downturn has also impacted on his finance. Double blow and he is hoping the market turn around soon.
I hope he is not trading on margin though.
Maybe can suggest to him to offload one property, not need so stress.....
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19-09-2015, 09:50 PM
Rising interest rate.....property owner headache????
