Following are some important points to take note when buying your property in Singapore
– Your investment objective
– Buying for your own stay or for property investment – Use fixed bank loan rate. So that your bank loan interest will not be volatile.
– Buying for property investment – A Bank loan without penalty, as you will need to sell your property when there is a profit to be made. When loan interest rate rises.
– Review your bank loan regularly. And also discuss with your banker or financial advisor to get the latest housing loan details.
– Remember to have a backup fund of approx. min 1 year, in-case there are financial crisis, job lost, lost of tenant, injury, etc. Current expenses in Singapore is very high. Other than your monthly housing loan. You will also need to take care of your family’s financial needs (E.g. Daily expenses, children school fees, food, car/transports, etc). A family of four in Singapore will approximately require $1000 per month (+/-). Therefore, a year’s backup funds either in the form of cash or fixed deposits will help you buy time to find alternate source(s) of income.
Mistakes which property investors made
Normally, group think or the herd instinct drive condo project sale. Do not deep dive into purchasing a condo unit when everyone are rushing to purchase a particular project. Think and do your own financial calculation first then consider. Not every project will be a golden goose. Think of your backup funds, are they already established? Do you have sufficient funds after you purchased your next investment property?
Therefore, do not over stretch yourself and put yourself and your family into financial risks.
Another important factor to remember is remember to cost in your MCST charges which you will need to pay over and above your mortgage payments. And any late interest levied on your MCST contributions as well.
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