Is all about properties!

Lately I have been visiting showflats, to view some of the latest launches. Most of the showflats I visited were packed with people. Anyway, just to clear the air, I was there not to buy, just tag-along with my friends to find out more about properties and its surroundings. After all, properties are somehow "linked" with fengshui in my own opinion. Without these properties, there is nothing to talk about Yang Fengshui.

Okay, let's put Fengshui aside, let's talk about properties. But before we move on, first I have to state that I am not a Property Analyst neither I am a Property Agent. Therefore, if you choose to continue to read, please read it at your own discretion!

One of the factors when comes to buying a property is location. If you are buying for investment purpose, location, in my own opinion, is an important factor! Usually tenants would choose to rent a place that is convenient, for example near to city, near to workplace or even near to MRT station. However, I have to agree that there are still handful of tenants would choose a place that is secluded.

Talking about seclusion, last year I visited one showflat, that place was like out of nowhere. And I remember that there is no amenities around, the nearest MRT is like close to 1km away or more and not many bus services go to that location. That place really requires you to own your transportation. Despite having all these factors, that project was 100% sold out on the first day! The point here is that location may be a consideration factor but if you are buying it for own stay and transportation is not an issue. You can still go ahead with what you like!

The next thing that you want to consider is whether that project is a Leasehold or Freehold. There are people that I know, will only opt for latter as they feel that is value for money. However, there are some, who are buying for investment purpose will not be bothered by that. But you may want to pay attention to the pricetag between the Leasehold and Freehold.

When comes to buying a property, the question that you need to ask yourself is how much loan to get? And how many years of loan? At this point of writing, mortgage loan interest rate for 3 months SIBOR is at 0.5% and 3 months SOR is at 0.292%. With such a low current interest rate, no wonder it looks attractive to buy a property now. But bear in mind, low interest rate is not here for forever especially if you are planning to get 40years of loan. So when you do your sums, please take that factor into consideration.

As on how much loan to get, this depend on your commitment. Whether you have existing car loan, mortgage loan, study loan or other expense to take care of? Assuming that you do not have any loan to service, a general guideline will be 35% of your salary to set aside for your mortgage loan. And not to forget, with our last cooling measure, if you have existing mortgage loan, you will be eligible for 60% loan only.

So is this a good time to buy a property now? Well, is all depending on your needs! Whether you need a roof over your head? Or if you are buying for investment purpose? In the case of investment, then you really need to understand the supply and demand factor!

To wrap it up, buying a property is a long term commitment. So if you are planning to look for one, do your sums first. Good luck!

Disclaimer : Readers should read it at your own discretion.