Hi experts,
Any kind advice on whether I should proceed to buy a condo/resale flat now?
I am a 35yr old single will no immediate need for housing.
Or should I wait for expected correction in 2013/14.
Any opinions with reasons is greatly appreciated.
Thanks very much!
I don't have much experience or expert knowledge in the property sector but since you have no immediate need for housing and given prices have not yet corrected that much, it's quite obvious you should wait for the correction.
Buying a house as a shelter need or as an investment?
It is more as a housing need. I am afraid that it will rise further and be out of my reach.
Any advice from the experts? Thank!
To me I feel that as long as it's a housing need, you should just get it. There'll always be a chance that it'll rise beyond your reach, but you should also weigh the downsides of it. So as long as you're prepared, the risks of losing your roof is rather low.
Personally, I'd calculate out the mortgage payments based on 3.5 - 4% interest rates. See if I could afford the mortgage if interests goes up, also see the income you need to fetch. Assuming you get out of job, would u be able to find freelance work or odd jobs to tide through the payments? Remember to factor in additional monthly costs from utilities, conservancy/maintenance, property tax etc. Other than being able to afford the monthly upkeep, I'd also factor in a drop in valuation. Assuming you take on 80% loan, an excessive drop in valuation would lead to banks asking you to top up the difference. Reckon a 10% or 20% standby money should be enough? Perhaps more experienced people here have a better idea.
Made a quick excel sheet for calculating the cost of ownership.