Easier for people to buy house
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http://www.jproperty.info/images/Easier%20to%20buy%20property.JPG
Click the above for those who have not seen the ST today.
Question is, does raising the loan limit from 80% to 90% of the valuation going to help at all? In fact even the MPs say that this move is not to boost the economy. Look deeper....
When it was 80% of valuation limit, many already find it hard to buy a house using bank loans due to the way the banks calculate debt ratio. Meaning, the monthly instalment shall not be more than a certain percentage of your monthly income. At 90% wouldn't that raise the instalment amount and thus make it even harder for the man on the street to buy a property?
Not to mention the always present checks with Credit Bureau that already makes it very hard to get loans from bank when you just default on one of your many credit cards.
For those who are rushing to buy a property now? My advice to you is wait out this 1 to 2 years. Let those who stretch their finances too thinly to buy a property now, fail to contribute to the monthly instalments and end up in mortgagee sales. In the mean time, use these 2 years to save up more... then take up a loan of 60% of the mortgage value to buy these defaulter's properties...
Its a bit sick I know... -
Remember what Goh Chok Tong had said in his previous erection or election? PAP had promised everyone to own a house. But not a car. I think Pap have already forgotten what they had promised.Originally posted by ndsef:http://www.jproperty.info/images/Easier%20to%20buy%20property.JPG
Click the above for those who have not seen the ST today.
Question is, does raising the loan limit from 80% to 90% of the valuation going to help at all? In fact even the MPs say that this move is not to boost the economy. Look deeper....
When it was 80% of valuation limit, many already find it hard to buy a house using bank loans due to the way the banks calculate debt ratio. Meaning, the monthly instalment shall not be more than a certain percentage of your monthly income. At 90% wouldn't that raise the instalment amount and thus make it even harder for the man on the street to buy a property?
Not to mention the always present checks with Credit Bureau that already makes it very hard to get loans from bank when you just default on one of your many credit cards.
For those who are rushing to buy a property now? My advice to you is wait out this 1 to 2 years. Let those who stretch their finances too thinly to buy a property now, fail to contribute to the monthly instalments and end up in mortgagee sales. In the mean time, use these 2 years to save up more... then take up a loan of 60% of the mortgage value to buy these defaulter's properties... Its a bit sick I know... 
