I am currently looking for ways to come up with an initial investment to start my first property investment
There is an offer when I go through the 3 day training of Tigrent. They mentioned about a bridging loan before you can officially apply for a mortgage.
Bridging Loan
Normally, this is what is on offer
2% in (drawing down the loan)
1.25% per month (normally you would need 6 - 8 months )
2 % out ( returning the loan)
For example say a HKD 200,000 loan
you will pay
2% in = 4000
1.25 % per month, say 8 months = 200,000 x 1.25% x 8 =20,000
2% out = 4000
Total interest pay = 28,000
I would usually take the total interest paid divided by the loan to evaluate the interest to loan ratio
= 28,000 / 200,000
= 14% ( for 8 months repayment period)
I m also applying different personal loans to get myself started. I applied both HSBC and Bank of East Asia:
HSBC
HSBC offered me a 200,000 Personal Loan combining interest. I will repay 230,004
Loan Amount = 200,000
Monthly Payment = 3833.4
Repayment Period = 5 years - 60 Installments
Total Repayment Amount = 3833.4 x 60 Installments = 230,004
Interest to loan ratio
Interest / Loan = 30,004 / 200,000
= 15% ( for 5 years repayment period)
Bank of East Asia
Loan Amount = 200,000
Monthly Repayment = 3973
Repayment Period = 5 years - 60 Installments
Total Repayment Amount = 3973 x 60 Installments = 238,380
Interest to loan ratio
Interest / Loan = 38380 / 200,000
= 19% ( for 5 years repayment period)
Bank of China
Loan Amount = 400,000
Repayment Period = 5 years - 60 installments
Total Repayment Amount = 458,360
Interest to loan ratio
Interest / Loan = 58,360/400,000
=14.6% ( for 5 year repayment period)
Reader might be thinking how we could compare a bridging loan of a 8 month period to a personal loan of 5 years
I would view it like this, say we compare Bridging Loan to HSBC Personal Loan
I will put this Personal Loan scenario in my next post.
Stay Tuned!
There is an offer when I go through the 3 day training of Tigrent. They mentioned about a bridging loan before you can officially apply for a mortgage.
Bridging Loan
Normally, this is what is on offer
2% in (drawing down the loan)
1.25% per month (normally you would need 6 - 8 months )
2 % out ( returning the loan)
For example say a HKD 200,000 loan
you will pay
2% in = 4000
1.25 % per month, say 8 months = 200,000 x 1.25% x 8 =20,000
2% out = 4000
Total interest pay = 28,000
I would usually take the total interest paid divided by the loan to evaluate the interest to loan ratio
= 28,000 / 200,000
= 14% ( for 8 months repayment period)
I m also applying different personal loans to get myself started. I applied both HSBC and Bank of East Asia:
HSBC
HSBC offered me a 200,000 Personal Loan combining interest. I will repay 230,004
Loan Amount = 200,000
Monthly Payment = 3833.4
Repayment Period = 5 years - 60 Installments
Total Repayment Amount = 3833.4 x 60 Installments = 230,004
Interest to loan ratio
Interest / Loan = 30,004 / 200,000
= 15% ( for 5 years repayment period)
Bank of East Asia
Loan Amount = 200,000
Monthly Repayment = 3973
Repayment Period = 5 years - 60 Installments
Total Repayment Amount = 3973 x 60 Installments = 238,380
Interest to loan ratio
Interest / Loan = 38380 / 200,000
= 19% ( for 5 years repayment period)
Bank of China
Loan Amount = 400,000
Repayment Period = 5 years - 60 installments
Total Repayment Amount = 458,360
Interest to loan ratio
Interest / Loan = 58,360/400,000
=14.6% ( for 5 year repayment period)
Reader might be thinking how we could compare a bridging loan of a 8 month period to a personal loan of 5 years
I would view it like this, say we compare Bridging Loan to HSBC Personal Loan
- Bridging Loan = 14% ( for 8 months repayment period)
- HSBC = 15% ( for 5 years repayment period), we could also divide the ratio by 5, so we can get the amount of Interest / Loan ratio per year, i.e. 3%
I will put this Personal Loan scenario in my next post.
Stay Tuned!