Repaying the housing loan (Part II)

I pared down a small chunk of the amount outstanding on the CPF housing loan. While not as much as the previous amount in March, it is nonetheless a significant amount and would otherwise mean that the hitting the investment target of setting aside 50k for the year would likely be out of reach.

This was not an easy decision to arrive to, as it would thus make the following year’s target of 75k that much harder to achieve. Also, there is still another small sum required to fund the SA top up for the year. These two put together would mean the likely investment amount set aside for the year end would stand closer to the 40k mark instead of 50k.

On the flip side, this would mean I have repaid almost 2/3 of the amount borrowed on the house. If everything goes according to plan, I calculated that we stand to save more than 40k over the life of the loan. Also, the 5% in paid up home equity will allow more cash to be returned should we want to move or sell our place in future.

It’s never easy to make tradeoffs. But I know that a dollar saved is a dollar earned. Given the poor outlook for the year, valuations still look rich. I’ve narrowed my sights to a few counters which I think can bring genuine return over the long term and would be hoping to add more if the opportunity presents itself.

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