24 July 2013
(photo from Flickr.com)
Today, I read an article in PropertyGuru regarding latest market news.
Monetary Authority of Singapore (MAS) worries about the risk of rising household debts to its financial system. In a surging market price trend nowadays, a lot of Singaporean households over-borrowed in their mortgages due to banks lower rates and longer repayment terms. It was stated that 5 to 10% of Singaporean mortgagors may have borrowed more than what they can afford. They worries that those who over-borrowed, especially those household with low-income or savings may struggle to repay their mortgage if interest rates rise.
Therefore, Singaporeans needs to be very careful in taking up mortgage loans. There are a lot of things to consider. Banks also may need to practice responsible lending as well.
Owning/Buying a property is a very good investment, of course if you have the mean$. But its not the money, on how much you will earn that always matters, you need to be wise in making decision especially in taking up mortgage loan. Happy Investing!