What to do amidst Singapore’s ailing property market
The Singaporean property market is not without quandaries. The government has implemented a series of cooling measures to patch things up and appease the anxiety of its nation’s property owners and renters. The regulations imposed by the URA, MND, IRAS, and MAS are seen as somewhat effective in restraining the provisional predicaments in the countries’ entire property market. However, many experts still fervidly believe that these regulations imposed to bring the underlying demand to a standstill remain undoubtedly futile.
In a nutshell, every Singaporeans nowadays are looking for the best deal they could ever get – be it a cheaper interest rate, or a better option to cure their ailing housing condition.
What’s bothering Singaporean purchasers?
Singaporean purchasers are concerned that a more outrageous deposit for property purchase would take longer time for them to break even. This is the reason why a big percentage of would-be buyers remain worried about local residential purchases.
On the other hand, many are still unfamiliar with the investment and purchase rules for commercial property purchases. This is a thing that makes many investors anxious of starting up a new business in the country. Add to it the fact that the rulings and guidelines for such still have many loopholes.
What Singaporean buyers ask today…
As it seems unsolvable, many have resorted to ask a more personal question instead: “What is the best interest rate for housing loan?”
The answer is none. Or perhaps the better response is “it depends.” However, given the country’s problem on the property market, considering the following suggestions might help you get the best deal available:
- Consider fixed rate home loans
Today, as Singaporeans fear of imminent increase in interest rates, they are now opting to fixed loan rates.
Five or six years back, the strategy of obtaining loan packages were not really as popular as it is today, as these often entail floating rates. Today, by getting a fixed rate that typically spans to three to five years, Singaporeans can obtain fixed (or unchanging) interest rate until 2018. Finding the right bank, can give one extra cost of a fixed rate as little as 0.2% to 0.3%.
Getting fixed rate home loans, according to experts, is a perfect way to plan ahead and remain secure in the midst of the ongoing property market crisis.
- Avoid Exotic features
Experts warn purchasers not to get impressed immediately with exotic home loan features being offered by many fraudulent home financiers. However, features such as Interest Offset Loans, Hybrid loans based on the average of both SOR and SIBOR, and Internal Board Rate are not bad at all, but a good loan provider would not use this to force the buyer to partner with them, but rather present it only as an option.
The greatest answer to all these predicaments
Evidently, solving such a nationwide problem is no easy feat, and always, doing such is not in the capacity of regular home purchasers. But it doesn’t mean that they should remain hopeless. It’s always good to ask trusted financial institutions, referrers, and banks on which loan programs with the best interest might fit you, your needs, and predilections, as partnering with an honest organisation is still the best way to get the deal one dreams of having, especially in this difficult time.
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