tag:blogger.com,1999:blog-3276688108456391559.post4877807639204720444..comments2024-02-27T13:41:46.698+08:00Comments on SG Young Investment: 10 Terms to Know Before Taking Out a Mortgage LoanSGYIhttp://www.blogger.com/profile/09445517891969740960noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3276688108456391559.post-81355764797384372142015-08-07T11:16:15.632+08:002015-08-07T11:16:15.632+08:00Hi Tacomob,
There are advantages of owning a priv...Hi Tacomob,<br /><br />There are advantages of owning a private condo. If we get a freehold private property, then it makes sense when we compare it to a 99 year leasehold HDB flat. Also, private property can be mortgaged out for us to get a term loan which is a form of cashing out. This allows us to have extra money at very low interests rates when we need it. It is not possible to do that with a HDB flat. <br /><br />On interest rates, the average rates in Singapore were around 3-4%. I do jot think interest rates will go up to a very high level as compared to the past anymore. The reason why interest rates were high in the past was because Singapore had very high growth rates and high inflation as well. The growth rate will not be that high any more as we progress as a developed nation. SGYIhttps://www.blogger.com/profile/09445517891969740960noreply@blogger.comtag:blogger.com,1999:blog-3276688108456391559.post-87481822866961077782015-08-06T15:33:25.699+08:002015-08-06T15:33:25.699+08:00Good to know those terms.
What might be helpful a...Good to know those terms.<br /><br />What might be helpful as well is to have a look back at the historic interest rates in Singapore. There were periods of 8 to 9% as well! And then to compute your monthly mortgage payment based on an average rate of, let's say, 5% to see whether you can still afford it. Regression to the mean applies to mortgage rates too.<br /><br />In the case of condos one might want to consider these questions:<br />Is it worth to pay almost double of the HDB-price for security guards that are not really required in safe Singapore, facilities that I hardly use, smaller room sizes, and bragging rights of having a private condo address?Tacomobhttps://www.blogger.com/profile/00984034091151711523noreply@blogger.com