Wednesday, October 31, 2012

Buying a property to stay

Here are some tips about buying a property to stay for the long term.

Things to avoid:
1. Never buy a property and hope to become rich due to appreciation. You can also be poor
2. Never buy a property to rent out as an investment, unless you do not need to take a loan.
3. Never buy a property more than 5 years of your income. It will be a burden to service it.

Remember, making an investment on borrowed money in very risky, and that includes buying a property. The only exception is a home that you intend to stay and the mortgage payment is within your budget. Do allow for the possibility of loss of your job.


yujuan said...

Allow me the liberty to add,
buy a property as an investment to rent out on a mortgage loan at the right time in a good location.
You only come across a blue chip property at a time when an economic disaster strikes like when Lehman Bros bankruptcy plunged the world into chaos.
Mortgage interest could be offset against rental income, allowing you to pay less chargeable income tax.
Just mortgage enough to pay for instalments and property taxes, with some spare money in bank account for emergencies.
A good example of a shrewd investment at a time of disaster,
CEO Francis Yeo of public listed YTL, bought the Power Station from the jittery Temasek Holdings at the height of the Lehman saga.
When even our SWF panics, that's the time to buy property.
You could undercut other owners by offering enticingly lower rents.

michael13 said...

Singapore high property prices are mainly supported by the government's non-sensible immigration policies over the past decade. When the demand factor of this nature is being withdrawn by way of electorates' unhappiness and support in the handling of overall health of our economy, the deep correction in prices will become imminent sometime before the next GE 2015/2016. Do not forget that the ruling PAP will have to find ways and means to win the election which is expected to be a very tough fight for them since independence.

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