atans1

Property: Be careful, really careful

In Hong Kong, Property on 08/12/2021 at 4:26 am

Our central bank

urges homebuyers to exercise prudence, as housing loans drive increase in household debt

https://www.todayonline.com/singapore/mas-urges-homebuyers-exercise-prudence-housing-loans-drive-increase-household-debt

And well it should

And at the high end, things don’t look that good.

Having said that one of my neighbours is talking of selling and downgrading because he is cash poor. Terrace houses in the neighbourhood are priced at S$3-3.6m each, with corner houses going for S$5.2m. Another neighbour says, why sell unless cash is needed. He’s an ex-SIA pilot who turned 65 last July: great timing his drop-dead gorgeous wife (SIA auntie) says. He’s now a trainer for Boeing.

  1. PAPpy’s concern is the inevitable rise of interest rates, which may be aggressive in the next 2-3 years.

    Mortgagors who have maxed out their TDSR to get that instagramable property may be sweating if monthly payments increase 50% or more.

    Remember, S’pore doesn’t really have “fixed” mortgages, unlike some other developed countries where you can lock in the current rate for 15 or 30 years.

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