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25-03-22, 11:47
Rising interest rates and benchmark prices loom over the housing market this year
EdgeProp Singapore
March 25, 2022
SINGAPORE (EDGEPROP) - Two issues that may concern home buyers this year will be the increase in interest rates over the next few months, as well as higher benchmark prices for upcoming new launch private residential projects in Singapore.
Multiple rounds of property cooling measures introduced by the government over the past few years have raised minimum capital requirements for aspiring property investors in Singapore. The government says that the cooling measures were rolled out to match property price growth with economic fundamentals.
Given these prevailing market conditions, HDB and private residential homeowners who plan to upgrade this year may find it more challenging to move up the property ladder or invest in residential real estate.
Sell one, buy two
A common investment strategy that was pitched to many homeowners a few years ago was the “sell one, buy two” approach. This called on owners to sell their existing property and take advantage of a spike in residential property prices at that time and realise capital gains from the sale.
These gains would then be reallocated to a replacement home, with a portion sunk into an investment property for rental income. Ray Teo, advisory branch district director at PropNex Realty, considers it a risky investment strategy.
“This type of investment approach works best for people who are generally under-invested, such as those who are sitting on a fully paid property and have no other investments. This type of investment approach is also best framed as a portfolio restructuring,” he says.
Read more at: https://www.edgeprop.sg/property-news/rising-interest-rates-and-benchmark-prices-loom-over-housing-market-year
EdgeProp Singapore
March 25, 2022
SINGAPORE (EDGEPROP) - Two issues that may concern home buyers this year will be the increase in interest rates over the next few months, as well as higher benchmark prices for upcoming new launch private residential projects in Singapore.
Multiple rounds of property cooling measures introduced by the government over the past few years have raised minimum capital requirements for aspiring property investors in Singapore. The government says that the cooling measures were rolled out to match property price growth with economic fundamentals.
Given these prevailing market conditions, HDB and private residential homeowners who plan to upgrade this year may find it more challenging to move up the property ladder or invest in residential real estate.
Sell one, buy two
A common investment strategy that was pitched to many homeowners a few years ago was the “sell one, buy two” approach. This called on owners to sell their existing property and take advantage of a spike in residential property prices at that time and realise capital gains from the sale.
These gains would then be reallocated to a replacement home, with a portion sunk into an investment property for rental income. Ray Teo, advisory branch district director at PropNex Realty, considers it a risky investment strategy.
“This type of investment approach works best for people who are generally under-invested, such as those who are sitting on a fully paid property and have no other investments. This type of investment approach is also best framed as a portfolio restructuring,” he says.
Read more at: https://www.edgeprop.sg/property-news/rising-interest-rates-and-benchmark-prices-loom-over-housing-market-year