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Thread: Property Prices Are Going Up. What should I do?

  1. #1
    Join Date
    Jan 2008
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    190

    Default Property Prices Are Going Up. What should I do?

    I am looking to buy my first house. I am open to both (resale) HDB and private....but obviously prices are at all-time high. Should I wait until 2009 and continue renting (am going to get married soon)? My rental is around $800, so I was thinking that I may as well as start paying mortgage.

    Any advice?

    Evel

  2. #2
    Join Date
    Jan 2008
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    219

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    Hi Evel,

    Firstly, I think no one can predict when the prices will start to dip.

    I bought a HDB resale 5 room flat in 1995. The price went up another 35% before it reached the peak in 1997, then prices crashed and it ever dipped to 10% below my purchase price. However, as I can comfortably afford the monthly instalments, I would not "sweat" even if prices dropped more than 10% below my purchase price.

    Therefore, I suggest that your total Monthly Debt repayments including Housing Loan, Car Loan and all other loans should not exceed 35% of your Gross Income.

    Just my five cents worth of thoughts. Hope it help.

    Cheers!

    hear the LION roar

  3. #3
    Join Date
    Jan 2008
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    23

    Question

    Generally, I think prices are at their all time high since 4th qtr last year till now...and I am also watching the market to see if when is the best time to buy another property for investment. However, by the look of it, I am really not sure.

    Even with the stock market crash, last evening it already start to pick up and also with the government effort to bring in foreign talents into Singapore, I am sure the law of demand and supply will still apply. Another thing to watch is probably the supply of private from developers.

    Evel: You already renting? Just a thought, not sure how it sounds to you. Why don't you just buy a flat (might not be your ideal flat, impt thing is that it can be rented out), not too expensive, CPF enough to service monthly installment so no cash outlay for you. Then you rent that place out and with that money you can pay for your current rent. Does it make sense?

  4. #4
    Join Date
    Jan 2008
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    Thanks Shekkie33 for your suggestions.

    Yar, $800 is not cheap. However I also concern of making a lost if I buy too high now. This morning I heard from radio that there is a private property launching and HDB is giving $30,000 grant. I hope i did not hear it wrongly. Will continue to hunt around.

    Hey not forgeting Lion for sharing your thoughts as well.

    Regards.
    Evel

  5. #5
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    Jan 2008
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    huh? hdb giving grant to private property? This is really news to me ! You better check it out ! Don't quite make sense le...


    Actually not advisable to buy HDB resale now, cause you will not be allowed to sell within 3 yrs rite ? So if you buy high, you cannot sell high. Then 3 yrs later, sekali market not so happening then you will be stuck with that property and either have difficulty selling or sell it at a loss. Not advisable ! Unless you buy from ballot, first hand from govt then okay lah ..price should be manageable..... and can get HDB loan so still not too bad....

    think about it .....

  6. #6
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    Jan 2008
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    Yes i heard it that morning but after that no one so not sure if it's true. Anyway, I kinda of tired now after some searching. House hunting is really tidious. I just going to take it slow now.

    Thanks people....

    Regards.
    Evel.

  7. #7
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    Jan 2008
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    Hi Evel,

    I can understand your agony. I went thru similar suitation when I get my first flat but like I mentioned earlier, take it at your own leisure don't let buying house to be a hassel to you. Make it a enjoyable shopping experience with your partner. Most important of all don't get strained with the monthly installment, discuss with your partner and allocate a comfortable amount of money for the home loan, in this way even when one of you are out of work temporary, you will not be burdened with the loans.

    Another five cents worth of thoughts.

    Cheers.

    Hear the lion roar!!!

  8. #8
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    Jan 2008
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    totally agreed. Worst is those newly wed couple, so expensive the property now (be it hdb or private), where got $ to buy? *sigh* Married also no place to stay. Heard that some want to speak to MP about it ! hahaa

  9. #9
    Join Date
    Jan 2008
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    190

    Default Thanks

    Thanks for all the advices and encouragements.

    Lion, seems like you are good and financial management huh...

    Shrekkie, how about yourself? What was your experience when getting a house?

    Evel

  10. #10
    Join Date
    Jan 2008
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    219

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    Hi Evel,

    Well i do keep track on the financial issues in Singapore and Asia as I'm into investments. So know abit here and there lor.

    Hear the Lion roar...

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