Questions about buying or investing in property often get asked during family gatherings.
The Lunar New Year is nearing, and along with the red packets and food come inquisitive relatives. Between fielding questions about when you will marry / reproduce / find a proper job, you will also have to impress them somehow. Here are three things you can say to make yourself look like a property guru.
1) “Location is everything…but not for the reasons you think.”
Everyone has heard the phrase “location, location, location” countless times. But show you know more than the average Joe by telling your relatives it’s not just about living in popular areas like Bukit Timah, East Coast, Siglap or Holland Village. For instance, living near the sea may offer great views, but will also incur higher costs as such homes need protection against saltwater. It’s also not enough to live in prime districts; if a home faces the main road, for instance, its occupants will have to put up with constant noise, traffic and even pollution.
2) “Why first, then what and how.”
If any of your relatives are looking to buy property, they would do well to pinpoint their purpose in doing so. Are they looking to rent it, live in it, or both? Determining their use for the property can then help them to decide what type of property they should buy, and whether they want to hold on to it for the long term, or sell it for profit within the next few years. If they intend to buy HDB flats (including ECs), they must fulfil the five-year Minimum Occupation Period (MOP) before they can sell or rent it out.
3) “Don’t worry about banks; they have one major concern.”
Your relatives who are considering investing in property may worry about the factors affecting their chances of getting their loan applications approved. Many people mistakenly believe that their property buying history plays a part, especially if they have bought HDB flats with the help of grants and subsidies. But in truth, banks are mostly concerned with whether or not loan applicants can clear their instalments on time; as such, their credit history and monthly income are more important factors.
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This article was first published in the print version PropertyGuru News & Views. Download PDFs of full print issues or read more stories now! | ||