I thinkI think the risk factors, namely, interest risk and property price risk, the first one can be hedged or diminished anyway, since the interest rate goes up, it's always a good deal to get a relatively lower rate mortage, in the case interest rate falls, it generally indicate a good state of the economy, so the price for rental will be higher, the money collected on monthly rental fee will compensate the loss of a higher mortage payment.
The only investment desicion should hence base on your expectation of the future real estate market and your financial plans, if as many analysts predict, there would be a rise in the real estate market, it might be a soundy choice to buy some properties, as long as you can afford. Carefully choose the location and the environment.
really depend on your own financial balance and investment objective.
becz you are not buying houses for long-term life plan comparing to people who decide to settle down here. The house is an investment rather than living necessity for you. In this case, the decision shall depend on your own financial balance and investment objective. Your asset size, monthly cash flow, current cash balance, your risk tolerance (long-term and mid-term) need to be considered.
It's belived that wealthier people are able to bear higher risk to achieve better return than most people do. If you have 1M cash/asset, an investment on an 400K house won't hurt much becz a 10% depreication only causes few perecent of your asset. But for most people with 100K, that 10% could means a lot.
YOu should bear in mind that you are using leverage becz the 80%-90% amortization portion is supported by banks. A property surge can benefit you a lot and a bubble can cost you much also.
I agree with Elephan's option (prefer rental than purchase) and keep cautious toward SG property investment becz the down payment will dry out my cash and the potential gain (monthly cash flow, potential upside in property) doesn't justify the risk (property downside risk, opportunity cost, interest risk and liquidity risk). For people who has larger cash asset and are bearable with larger risk, they can go ahead and buy.
To clarify one thing, the interest rate is more directly related to the money supply and demand than to economic prosperity. In recession, demand is weak and this usually makes interest rate down. and when ecomomics peak, strong demand will stimulate interest hike.
It's belived that wealthier people are able to bear higher risk to achieve better return than most people do. If you have 1M cash/asset, an investment on an 400K house won't hurt much becz a 10% depreication only causes few perecent of your asset. But for most people with 100K, that 10% could means a lot.
YOu should bear in mind that you are using leverage becz the 80%-90% amortization portion is supported by banks. A property surge can benefit you a lot and a bubble can cost you much also.
I agree with Elephan's option (prefer rental than purchase) and keep cautious toward SG property investment becz the down payment will dry out my cash and the potential gain (monthly cash flow, potential upside in property) doesn't justify the risk (property downside risk, opportunity cost, interest risk and liquidity risk). For people who has larger cash asset and are bearable with larger risk, they can go ahead and buy.
To clarify one thing, the interest rate is more directly related to the money supply and demand than to economic prosperity. In recession, demand is weak and this usually makes interest rate down. and when ecomomics peak, strong demand will stimulate interest hike.
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