Buying and selling of property in Singapore is not very difficult if you are fulfilling the criteria of the government. Choosing the style and type of home for your lifestyle (or altering it to fit) is a huge incentive for many people to become homeowners. In rented premises, time, money and effort spent on decoration and gardening will not return to you beyond the length of your lease and in most cases, the landlord will be very particular about any modifications you make in the first place. Owning your own home not only provides the freedom to change and improve your house as you like, but the process can become a productive hobby which may increase the value of your property at the same time.
If you purchase a property for investment purposes, the interest on your mortgage payments is tax deductible. Likewise, an investor who lets their property to tenants can take advantage of the tax benefits of negative gearing.
As long as your home is appreciating or maintaining value, you are growing equity (ownership) in your home. In a sense, making repayments is like a type of forced savings strategy. The more you pay off, the more of your home you will own. Furthermore, once you have paid off your mortgage, you will free up a large portion of your returns, which will lighten your economic responsibilities.
There seems to be a natural desire in most of us to sooner or later 'nest' and make our home somewhere. This habitually means that buying a home is more desirable than renting and brings a sense of fulfillment and security that cannot be matched. Regrettably, the rapid increase of values in the property market in recent years has pushed home ownership out of reach for some would-be first time buyers. However affordability does not necessarily equate with having a high income. Home ownership is a long-term goal, and requires planning, tight budgeting and saving strategies..
Owning your own home brings a sense of satisfaction, security and stability. There are no lease conditions to be troubled about and you are no longer subject to the whims of a property-owner who has control over the length of your tenancy and the cost of rent.
Home-ownership can be more expensive than renting because you are responsible for the maintenance and repairs of the property, insurance, paying council rates, plus any improvements you want to make. If you have a bulky mortgage you may find more than half of your income going into repayments - a huge financial commitment. There is a risk in any venture that its value will depreciate. If this happens to your property you stand to make a loss in the event you decide to sell.
Depending on the market you are hoping to buy in, getting a deposit together can take several years of saving every spare cent of your income and changing your view of 'essential' spending quite severely. It can mean a lot more than taking cheap holidays, or giving up expensive habits
So whenever you are thinking of buying or selling a property, you should always keep an eye on your circumstances and finances, and what to come of it in cases or huge mortgages at least 15years down the lane!
Mindy Yong 杨雯诗
CEA Registration Number : R021232Z
(+65) 91002985
mindy@mindyyong.com
KF Property Network Pte Ltd
CEA Licence Number : L3008430D
