City View

Now Is the Perfect Time to Get a Property Loan in Singapore

Getting a property loan Singapore may not be out of reach if you dream of owning your home or if you want to invest in real estate If you think property ownership is out of reach, think again. Now is the perfect time to obtain a property loan in Singapore for several reasons.

Worldwide Economy

The global economy seems to be trending downward with fears of Chinese factories selling less of their products, Great Britain pulling out of the European Union, oil prices remaining flat and currency markets fluctuating with the news. The slight economic downturn has kept interest rates low because central banks do not want to cause any financial upsets by raising rates just yet.

One steady investment that banks and lenders rely on during slow times is home ownership and property loans. Low-interest rates and government programs make this a perfect opportunity for you to secure a property loan.

Low-Interest Rates

Interest rates on a property loan in Singapore remain low. When the Brexit vote happened in the summer of 2016, OCBC announced the group would not take any new measures to raise interest rates because the real estate market shows to be a stable investment at present.

Private residential home prices are down nearly 10 percent from highs in the summer of 2013, and analysts predict the market should bottom out soon. Further, properties become a better choice for professional investors if the British pound loses value in worldwide markets.

Singapore’s TDSR rules are designed to make sure no one spends too much income on obtaining a home loan. The rules say a property loan in Singapore, and all debt in general, cannot exceed 60 percent of your income. However, lower interest rates and affordable home prices make the current market an excellent time to obtain a property loan in Singapore even with the TDSR cooling measures in place.

If you want to buy a home for the first time, you should take advantage of the buyer’s market now before property prices go up, and interest rates rise. You get more for your money, and it may be hard to resist trying to get a property loan in Singapore. Act now before Singapore’s property marketing starts to rebound.

Later Rate Hikes

At the beginning of 2016, Singapore anticipated four interest rate hikes from the U.S. Federal Reserve. That action may not happen in 2016 at all with questions surrounding the economy and the Brexit vote.

Investors should look into buying now before money becomes more expensive to loan. Rates will go back up eventually, but you should take advantage of the buyer’s market for your personal home or for an investment property that makes money in the future. For now, home loan sellers are in the middle of a price war, and people who buy properties come out as the winners.

Investment Income

Not only can you afford your home, but now is the time to purchase an investment property that earns you income. Lower prices on a property loan in Singapore, coupled with low private home prices, shows that you can afford to keep rent low for potential tenants. When rent remains low, your residents are more likely to pay your monthly mortgage. Any money you earn on top of that means a profit for you along with a positive cash flow.

In the future when property prices rebound, you should consider selling your property for a profit. That type of investment may take a few years versus renting, but you can still make a decent profit after paying off your inexpensive loan. You might even examine bumping up to another class of real estate after your initial purchase at a lower price. Whether you decide to rent or simply flip a home when the market rebounds, you earn cash sooner rather than later in the current market.

More Transactions

Bankers, mortgage lenders and real estate salespeople like staying busy, even when prices remain low for a property loan in Singapore. All of these entities compete for business, which lowers costs of services even further.

Real estate transactions increased from 2014 to 2015 for PropNex alone. Those numbers indicate properties continue to turn over for higher prices than in previous years. Again, buyers win in this type of market because profits happen faster on low-end and high-end real estate.

Real Estate Salesperson

There are plenty of properties in the higher-end condo for sale where prices continue to come down. However, you need to be selective. It is a buyer’s market, and with property prices coming down you need a good real estate salesperson on your side to help determine if any properties are worth your investment. A professional can look at the market and compare the property to others on that have sold recently.

A real estate salesperson knows the ins and outs of what people want in the housing market in Singapore, and he can point you towards trends in the market that can make your investment pay off quickly. Earning a profit on your property has never been easier with the limit on your loan, lower prices for houses and the help of a professional who knows the industry and who knows the ins and outs of getting a property loan in Singapore.

Dylan Tan, a seasoned real estate salesperson, can help you with all of your property loan needs in Singapore. Contact him through email or by calling 9456-7022.