Property frenzy: Watch your housing loan commitments
July 10, 2007
Property frenzy: Watch your housing loan commitments
IT IS timely that the Government steps in to cool down the current property fever that has been gripping the country.
It is not unlike the 1995-96 property boom when people were all chasing after housing units. Prices bordered on the ridiculous and there were scenarios in which people queued up not to view the houses but just to give their downpayment cheques to the sellers.
I remember HDB executive flats were being sold for close to $700,000 in Bishan and Toa Payoh during that period. And as prices plummeted, buyers regret. They stand to lose around $200,000 if they sell at current property valuation.
Worse still, many lost all their hard-earned CPF monies when they disposed of their property when they could not finance mortgage loans, especially during the Asian economic crisis in 1997-98. Some property developers also went bust during that period. It was a nightmarish experience for many then.
I urge Singaporeans not to chase after property as, with equities, they do fall when the economy goes down. If possible, look for a property that is within your means and always have a mortgage repayment plan that does not exceed one quarter of your combined household salary. Anything more will be a burden if one is laid off or has to work with a reduced pay cheque.
I remember a friend of mine having to sell off his private property when both he and his wife were retrenched within a one-month period in 1997. They got into financial difficulties and later divorced. Both were professionals and their lesson was always etched in my memory as it was difficult to see a happy family fall apart due to a huge mortgage loan.
As Singapore goes into another economic upswing, let us be mindful of the way we commit to loans. Let us be prudent and always frugal as financial difficulties will affect the harmony of a family. Better to have a happy family with a simple roof than a big house that is laced with potential financial risks.
Gilbert Goh Keow Wah
Re: Property frenzy: Watch your housing loan commitments
Quote:
Originally Posted by mr funny
July 10, 2007
Property frenzy: Watch your housing loan commitments
IT IS timely that the Government steps in to cool down the current property fever that has been gripping the country.
It is not unlike the 1995-96 property boom when people were all chasing after housing units. Prices bordered on the ridiculous and there were scenarios in which people queued up not to view the houses but just to give their downpayment cheques to the sellers.
I remember HDB executive flats were being sold for close to $700,000 in Bishan and Toa Payoh during that period. And as prices plummeted, buyers regret. They stand to lose around $200,000 if they sell at current property valuation.
Worse still, many lost all their hard-earned CPF monies when they disposed of their property when they could not finance mortgage loans, especially during the Asian economic crisis in 1997-98. Some property developers also went bust during that period. It was a nightmarish experience for many then.
I urge Singaporeans not to chase after property as, with equities, they do fall when the economy goes down. If possible, look for a property that is within your means and always have a mortgage repayment plan that does not exceed one quarter of your combined household salary. Anything more will be a burden if one is laid off or has to work with a reduced pay cheque.
I remember a friend of mine having to sell off his private property when both he and his wife were retrenched within a one-month period in 1997. They got into financial difficulties and later divorced. Both were professionals and their lesson was always etched in my memory as it was difficult to see a happy family fall apart due to a huge mortgage loan.
As Singapore goes into another economic upswing, let us be mindful of the way we commit to loans. Let us be prudent and always frugal as financial difficulties will affect the harmony of a family. Better to have a happy family with a simple roof than a big house that is laced with potential financial risks.
Gilbert Goh Keow Wah
No need to panice. Alot of supply. Don't pay over the board. Anything above 10% from launched price is too high.
Re: Property frenzy: Watch your housing loan commitments
Quote:
Originally Posted by Unregistered
No need to panice. Alot of supply. Don't pay over the board. Anything above 10% from launched price is too high.
u saying 10% from current launches? so u think property prices will at most go up another 10% more? the situation isn't that bad lah...
