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If you’re a card player, you know what it means to “cash out.” It’s when you collect your winnings and exit the game. OK, so maybe there’s a bit more to it than that. Cashing out usually comes after your pride has been shattered and your wallet has been drained completely.
According to a Straits Times report, the number of people who have been able to get a home loan since the implementation of the Total Debt Servicing Ratio (TDSR) regulations last year has dropped dramatically. How badly are people affected? And do you really want to take a gamble on your home purchase when it comes to applying for a home loan?
It’s always good news to hear about a nation that’s finally recovering from a long economic slump right? Sure, unless the recovering nation in question is the United States of America. Well, politics aside, people all over the world have a strong interest in seeing the U.S. Federal Reserve in economic recovery mode – including Singaporeans.
When it comes to buying property, size always matters. After all, property isn’t exactly something you can “return” if you decide a few months later that it isn’t spacious enough. Unfortunately, HDB doesn’t have a 100-day return or exchange policy like IKEA.
Since 2008, HDB flat owners have been enjoying steadily rising resale and Cash-over-Valuation (COV) prices. The rise and fall of flat prices is a lot like being on a roller coaster. No, I’m not talking about some “kiddie coaster” like the Shrek ride at Universal Studios Singapore – I’m talking about one of those huge coasters that has a terrifying drop.
Yesterday’s announcement by the Monetary Authority of Singapore (MAS) that it would exempt owner-occupiers of residential properties from the current TDSR rules was an interesting move – especially when you consider how quick MAS moved to contest a Forbes article about a potential housing debt and credit bubble in Singapore.
Rejection is one of the worst feelings in the world, especially when you dedicate yourself to accomplishing one of your dreams. You might be working up the courage to ask a girl out, putting in extra hours of study to get into NUS, or spending years saving up for your dream home… just to see your efforts go down in flames, Hindenburg-style.
The days when property was affordable and home loan applications were easy are long gone. Home buyers now have to deal with increasingly complex property financing regulations, tighter borrowing restrictions, and massive amounts of paperwork.
You can approach the new year in two ways: You can have the depressed feeling that nothing will change, or the uplifting feeling that nothing will change. It mostly depends on how many properties you own. If the answer is “none”, or “I failed to rob sufficient banks to buy a one room apartment in this country”, then your mood is probably down. Here are seven resolutions you can make, so you can join the money wagon in the coming year:
The HDB concessionary loan is supposed to make housing affordable – an objective it fulfilled until interest rates plunged. Then suddenly, the interest on a HDB loan rose way above that of a bank loan. It’s a flaw that needs correcting, and it probably shouldn’t have carried on for almost 10 years. Here’s our opinion on the tweaks needed: