Buying now or later?

[KC76]

Hi guys, just wanted to get some general opinons. If one is currently staying in a hdb and waiting for about 4 yrs to fulfil MOP before he can get a pte pty. Would it make more sense to just wait for MOP to be over before getting a pte pty or get a pte pty using say parents' name 1st and do a transfer to own name upon end of MOP.

1st option can be bad cos by end of MOP, prices may have soared much compared to now. 2nd option also has its drawbacks as in he would have to pay for the stamp duties to transfer the pty back to his name from his parents' after MOP.

Asking for my good friend. Pls advise.

[med80009]

I suppose you are asking this because of the 30% downpayment required for a second property mortgage ? hence, using you parents name to circumvent this.

If you use your parents name, it would depend whether you parents quality for a 80% loan. If your parents are loaded, can use their properties, stocks, FD etc to secure the loan. But if they are older, nearing retirement age, limited leverage for securing loan then this may not be an option. (go talk to your banker)

As for waiting it out, i think this would be a personal decision. You can argue that prices might chiong through the roof in a couple of years (but seriously, if it does, the economy is in trouble). But one can also argue the other way around that price may have corrected by then, you may have struck a big promotion or 4D and money would no longer be an issue...

Buy within your means if it's for own stay. If you are buying for investment then you would have to do your own risk management assessment.

My two cents.

[KC76]

I suppose you are asking this because of the 30% downpayment required for a second property mortgage ? hence, using you parents name to circumvent this.

If you use your parents name, it would depend whether you parents quality for a 80% loan. If your parents are loaded, can use their properties, stocks, FD etc to secure the loan. But if they are older, nearing retirement age, limited leverage for securing loan then this may not be an option. (go talk to your banker)

As for waiting it out, i think this would be a personal decision. You can argue that prices might chiong through the roof in a couple of years (but seriously, if it does, the economy is in trouble). But one can also argue the other way around that price may have corrected by then, you may have struck a big promotion or 4D and money would no longer be an issue...

Buy within your means if it's for own stay. If you are buying for investment then you would have to do your own risk management assessment.

My two cents.

20 or 30% dnpayment is not a consideration here as the HDB is paid up. It is more of whether which option makes better financial sense.

[Geylang OKT]

Hi guys, just wanted to get some general opinons. If one is currently staying in a hdb and waiting for about 4 yrs to fulfil MOP before he can get a pte pty. Would it make more sense to just wait for MOP to be over before getting a pte pty or get a pte pty using say parents' name 1st and do a transfer to own name upon end of MOP.

1st option can be bad cos by end of MOP, prices may have soared much compared to now. 2nd option also has its drawbacks as in he would have to pay for the stamp duties to transfer the pty back to his name from his parents' after MOP.

Asking for my good friend. Pls advise.

On the flip side, prices may have corrected downwards by 20% to 30%. Nothing goes up forever you know

[KC76]

On the flip side, prices may have corrected downwards by 20% to 30%. Nothing goes up forever you know

Wah, the wise one has spoken!

[peterng8]

On the flip side, prices may have corrected downwards by 20% to 30%. Nothing goes up forever you know

The question is WHEN will this be happening?

And what are the chances?

[amk]

I'm sorry, but one should not do this kind of thing. Parents are not the tools to use for financial gain. One should make his investment decisions based on his own constraints and capabilities.

[shauntanzs]

I did the same. I bought the property under my parent's name during my MOP. My dad had retired so i secure the loan as the financer. I do not intend to transfer the property back under me after my MOP. Just leave it as it is since we are one family. Just collect some rental or sell it when price is price. Unless u intend to stay in this pte pty, den thats a different story.

[devilplate]

I did the same. I bought the property under my parent's name during my MOP. My dad had retired so i secure the loan as the financer. I do not intend to transfer the property back under me after my MOP. Just leave it as it is since we are one family. Just collect some rental or sell it when price is price. Unless u intend to stay in this pte pty, den thats a different story.

u r the only child den ok la(1 family)....if u got other siblings and ur parents nvr write a Will....den tats it...shared among ur siblings next time...be careful

[Wild Falcon]

Doesn't make any sense to me. I don't believe in future-proofing your life. Why would you buy something that you think you MIGHT need 5 years later? Maybe 5 years later, your taste have changed. Worst still, using your parent's name and financing for that to circumvent some "loophole" in the rules. Looking at the way the government tries to cool the market, the probability of property cheonging through the roof is close to zero. Why not you just live through your MOP and decide where you want to move later?

It makes no common sense - let alone financial sense.

20 or 30% dnpayment is not a consideration here as the HDB is paid up. It is more of whether which option makes better financial sense.

[mcmlxxvi]

Tell your "good friend" not to risk it in today's age where parents sue their children due to increased life span and escalating costs of living and not having planned enough to provide for themselves.

They had it good buying at 30k and selling it at 600k today after say merely 20 to 30 years only due to the high speed of development of the country. Saturation has been reached, how more 'advanced' can this society grow?

How certain can you be that Singapore will see 20000psf in 30 years time.

Open your eyes - see which age group are the ones hoarding the casinos...

[alvinkoh1818]

Hi there,

the most burning question now is whether have you shortlisted one or few ideal units you want to invest in?

next, consider the price and your affordability

Buy/invest within your means is paramount

Just my personal view

[Geylang OKT]

IMHO if you have other siblings... sooner or later things will sour if your parents had bought properties on your behalf (without their knowledge).

When one's parents go to heaven, siblings (maybe egged on by their other half) may scrutinise every single financial detail.

You may find your bros and sisters all clamouring and insisting that that your parents' properties be shared equally among all the children instead

[2824]

So sad but guess this is the reality today even with the reduced family size....

IMHO if you have other siblings... sooner or later things will sour if your parents had bought properties on your behalf (without their knowledge).

When one's parents go to heaven, siblings (maybe egged on by their other half) may scrutinise every single financial detail.

You may find your bros and sisters all clamouring and insisting that that your parents' properties be shared equally among all the children instead

[vip]

You have the urgency to buy now because you are afraid that prices will climb higher if you wait longer.

You know when I ask people why they bought properties during the peak of 1996 Q2. Their answer is often "afraid of missing the boat" and they believed at that time that "prices will go higher soon".

Many of them, till today (i.e. 14 years later), still haven't break-even yet.

[CLOVERLUV]

Buy now or later verse sell now or later???Who do you think he will make a right move?

[devilplate]

You have the urgency to buy now because you are afraid that prices will climb higher if you wait longer.

You know when I ask people why they bought properties during the peak of 1996 Q2. Their answer is often "afraid of missing the boat" and they believed at that time that "prices will go higher soon".

Many of them, till today (i.e. 14 years later), still haven't break-even yet.

in the 80s, ppty prices was at record high....if u nvr buy, u really miss the 80s-97 super bull run...

nothing is for sure...

[Concours]

Lets see how markets will move:

US printing $$$ so they run to Asia to seek better returns. Property will go up.

Singapore govt frowns on property rise as it will affect cost of everything including business. So property will deflate.

So which will come true? Use your blain...use your blain.....

[rattydrama]

The more the government curb, it stablises the property price and more people will want to go in and buy once they have the money. Property hedges against inflation.

Government will not let the property price drop 30% and will try their very best to curb.

Asians are getting richer and richer by the days, our property price will go in tandem as SG land supply is limited.

Major price correction may happen if something like SARS alike affecting Singapore or all the Asia countries.

Got money buy lor. Dont balme if get stuck so make sure you can hold on to it.

Lets see how markets will move:

US printing $$$ so they run to Asia to seek better returns. Property will go up.

Singapore govt frowns on property rise as it will affect cost of everything including business. So property will deflate.

So which will come true? Use your blain...use your blain.....

[Komo]

I suppose in the Singapore mkt it's not so much of when to buy, but more on what you can afford.

[roly8]

TS, i feel you buy under your parent's name 1st.

but what time to buy property..? maybe not now? now is like at the peak..

[Komo]

Though buying now may be higher price, but interest rates is low. In fact as a total price may not necessarily be worse off or much different than those who bought eariler where interest rate was higher. Going forward even if price come down, interest rate may have increased then. So the best buy is catch it when price had come down from peak and interest rate is also dropping. Is this the current scenario?

[rattydrama]

and most likely you get to fish out some choice unit where you could have paid a premium price during good times.

Though buying now may be higher price, but interest rates is low. In fact as a total price may not necessarily be worse off or much different than those who bought eariler where interest rate was higher. Going forward even if price come down, interest rate may have increased then. So the best buy is catch it when price had come down from peak and interest rate is also dropping. Is this the current scenario?

[OLY99]

On the flip side, prices may have corrected downwards by 20% to 30%. Nothing goes up forever you know

don believe this will happen!!! the price has more or less stabalise by now. my view is property prise will continue to rise moderately for the next 2,3 years. US still being the big brother (thou technically bankrupt) will impact global economy. now US is still in trouble but price still go up as asia is leading the growth. when US recover in the next few years, isnt asia going to benefit again from US recovery?

[patricia]

don believe this will happen!!! the price has more or less stabalise by now. my view is property prise will continue to rise moderately for the next 2,3 years. US still being the big brother (thou technically bankrupt) will impact global economy. now US is still in trouble but price still go up as asia is leading the growth. when US recover in the next few years, isnt asia going to benefit again from US recovery?

When US on the way to recover, interest rate will go up and property will be hit hard!!!

[med80009]

Only if you have calculated your servicing capacity based on the current ridiculously low interest rates, which the banks are doing and which the Gahmen is trying to prevent. That's why raise LTV to 30%, if can pay 30% usually no problem holding it out.

[jwong71]

don believe this will happen!!! the price has more or less stabalise by now. my view is property prise will continue to rise moderately for the next 2,3 years. US still being the big brother (thou technically bankrupt) will impact global economy. now US is still in trouble but price still go up as asia is leading the growth. when US recover in the next few years, isnt asia going to benefit again from US recovery?

now funds from over world are coming into Asia. when the us recovery,whr do u think the funds will go to? Reversal way or stay put In Asia

[jwong71]

When US on the way to recover, interest rate will go up and property will be hit hard!!!

good. Got money can afford to wait on sideline. Only those can merely afford the 10-20% through squeezing their bank acct dry are rushing in.

Quote from PL; I do not have alot of money but I have alot of time.

[sh]

US is smart. They can't get china to lower their currency exchange rate. So they print more money. The extra money goes to pay china for the treasuries they bought to keep their currency low. So US dollars are going to be weaker....

All other exporting countries follow by lowering their currency too, to protect their exporters.

Singapore government even smarter.... While everyone is rushing to lower their currency exchange rate, singapore did the opposite, we increased our exchange rate. That is a stroke of genius... (at expense of exporters but great for banking industry)

Where do you think the whole world is going to park their money? In country will increasing or decreasing currency rate?

Where do you think all the money is going to go into... potentially property!

It's true that the government will not let property prices rise too fast, but they will not let it crash either(that will be disastrous for the economy). They will add or remove measures to keep the prices more or less stable, with slight upward bias. There's plenty of ammunition in the government's arsenal.

With the US keeping interest rates at almost zero, singapore rates can't go much higher. When the US rates go higher, it means that the economy has improved and with that property prices. By the time you can't afford to higher rates, sell lor!

In short, prices are not going to crash....

[rattydrama]

or I do not have a lot of time but I have the $ right now?

good. Got money can afford to wait on sideline. Only those can merely afford the 10-20% through squeezing their bank acct dry are rushing in.

Quote from PL; I do not have alot of money but I have alot of time.