There seems to be 2 schools of thoughts here! The hard-core optimist and the doomsayers...... I can't help but sense the doomsayers are the older lot who have seen booms in the past and optimists.... maybe the younger lot ... no offence.
me....I'm neutral....I was burnt in 1995 boom market.
I remember then....no different from now. Buying frenzy....I also remember when Goh Chok Tong implemented speculation controls to cool the market ... It was of course the currency crisis that ended it all.... Double whammy. The price I paid was holding on to 3 luxury apts for 12 years... I don't even dare to imagine the equivalent cost at today's prices.....
I agree with a comment made....property is not liquid!!! You guys must remember that. No one can tell how long the up trend lasts. The down can be a 1 way ticket to bankruptcy if you're not liquid enough to hold.
I only advice that you play with what u can comfortably afford. Interest rates are not the nice 3.25% the bank advertises, installments can double with little notice.
Interesting note: Banks only up interest rates. They never ever lower it for you voluntarily. You'll have to pay them fees and legal cost each time you want them to lower it......
If you have done your numbers....by all means take the plunge. If not...please exercise caution.
I was burnt and some of you can say I'm dumb. Maybe just my luck. I don't wish the same for anyone out there. I recently sold the last of my luxury apt in Tg Rhu at record high price..... My friends adviced me to hang-on for 2 more years... I told him I'm servicing a loan of close to 10k a month. In 2 years time I would have paid an adiitional 240k. Would the increase be more than 240k? Maybe? who knows. I just won't gamble another 12 years of my hard earned money..... 10k a month is a nice Europe holiday every month.... I'm free of all loans now and looking forward to my fully paid condo.
Back in 1995, we had to pay 20% down, maybe that's why the up-trend was more muted. I paid close to 300k down for my $1.25million property incl stamp duty. Now, with deferred payment 5% down seems a paltry amount. And many are taking risks far greater. Even scarier is every property in 9, 10,11,21,15.....are all above a million, way above. wow!
Just a little advice from me... for the seasoned players, I wish u good luck.
For the young, executive, pmeb, employee type.... doin your numbers and cutting it fine... think carefully.