The global financial crisis has created consequential effects on Singaporean property-buyers. Economic crunch has put those who bought properties last year on a risky situation.
People might lose lots of money trying to sell their properties in this declining market. Those who are stuck with properties they bought under the deferred payment scheme, with the intention to dispose them when price went up may further be in risky situation.
It is expected that prices of properties will increase as the economy goes well, but, the economic situation poses a great threat to the market as it might cause its collapse.
Lots of people are unconscious to affordability when buying a long-term asset like property, with a hope to obtain a good bargain. Since prices in the market are unstable, buyers tend to jump into decisions hoping to get a great deal.
This situation calls for the need of government intervention in the fact-finding process to help and assist potential home buyers. According to the Financial Advisers Act/Financial Advisers Regulations, it is mandatory to have a fact-finding process before the consumer buy any investment piece. This aims to guarantee customers to buy what they can afford, while considering their needs and risk profile.
Acquiring a property involves a critical decision making process since it incorporates a significant amount of financial resources. These properties can later on be a burden for them.
Property owners can suffer tremendous financial losses when their mortgage loans exceed the market value of their property. This becomes the reason why a careful regulatory system should assist the buyers in their decisions which involve a great amount of money.