There are many factors to consider when buying a property in singapore or renting one. If you are a foreigner, you may be tempted to buy a house.

For own stay, you need to first like the place then you are buying. You need to be emotional and you need the house to “talk to you”, you need to feel good about the place. If you are buying for investment, you need to be as unemotional as possible. It’s all about safety, yield and capital appreciation.

Everyone needs a roof over their heads. Hence a residential home is first and foremost a consumption.

There are benefits of buying your own property in singapore   . Because you are the ready tenant. Under-utilisation is not an issue at all.

When you rent a house

When you rent a house, you pay rent, rental stamping fee and some routine maintenance.

When you buy a house

When you buy a house, you pay interest costs for the housing loan, property tax, maintenance and repairs and many other associated costs.

Should you buy a house or Rent a house?

Let us examine the cost of renting a house versus that of owning a house.

There are of course price considerations. Timing is quite important as well as negotiation skills. Most people are disadvantaged when they deal with property agents alone. Property Buyer mortgage consultants at (65) 9782 8606 can help you negotiate with the agents as well as source for your home loans.

RENTING COST IN SINGAPORE

As the cost of renting a house will also change over time, we have factored in a +/- 30% renting cost so that you can compare the relative cost and hence savings. You can go to the article section in Property Buyer articles section to see the chart. www.propertybuyer.com.sg/articles

WILL YOU SAVE MONEY THROUGH BUYING A HOUSE IN SINGAPORE?

Assume you will now buy a house at Park Infinia at Wee Nam say at $1666 per square feet. How much will you save?

We worked out a few interest rates scenario and it’s various yearly housing cost.

We also worked out the rental costs over a 3 years period on both high, low and current scenario.

Rental Cost over 3 years (Ignoring time-value of money)

If you have a 3 to 5 years horizon, let’s say you sit out of the market for 3 years, this will be your cost over 3 years.

Current: 3 x $67,142 = $201,426

+30% : 3 x $85,844 = $257,532

-30%: 3 x $48,439 = $145,317

How must does it cost to buy a property in Singapore – over 3 years? 

If you are buying a house, let’s assume a 3 year horizon. Based on repayment, the amount will be almost the same as renting a place.

The cost over 3 years using various interest rates: -

Based on 1.5%: 3 x $31,278 = $ 93,834

Based on 2.5%: 3 x $44,622 = $134,064

Based on 3.5%: 3 x $57,966 = $173,898

Savings From buying a property  versus renting (3 year horizon)

Rental cost Current price: 3 x $67,142 = $201,426

Housing loan cost

Based on 1.5%: 3 x $31,278 = $ 93,834

Based on 2.5%: 3 x $44,622 = $134,064

Based on 3.5%: 3 x $57,966 = $173,898

Savings from buying a place ranges from $27,528 to $107,592.

Based on 1.5%: $201,426 – $93,834 = $107,592

Based on 2.5%: $201,426 – $134,064 = $ 67,362

Based on 3.5%: $201,426 – $173,898 = $ 27,528

So it would seem that there will definitely be savings from buying a house compared to renting. Is that really the case?

If only things were so simple. Property prices tend to swing with the sentiments and can stay under-valued or over-valued for pro-longed period of time. Rationality always prevail, but it still takes time. During this time, a lot of people can get trapped. 

As you can see from the above chart that, if you buy at a wrong time, the difference can be easily a $321 psf difference within a 1 year period.

In other words, a 1001 sq feet condo would cost you $321,321 more.

Your savings ranging from $27,528 to $107,592 would be cleaned  out by getting in at a wrong price by overpaying $321,321.

Therefore, when property agents tell you it’s cheaper to buy a house than renting, it’s only half the story.

Buying a property at the right price is still very important as any potential savings cannot offset the losses from buying at too high a price. 

Please note:

Calculations ignore time-value of money as well as the opportunity cost of sum of money repaid through principle repayment.

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But the main issue is many a time you lack the amount needed and then you ponder as how to fulfill your trance. Here, the first item that smack your mind is of home loans. Home Equity loans are very much in vogue as nowadays it has made easy for you to fulfill of having a nice domicile. If you see than the process of a home loan from a bank or a financer is long and wants diverse documents. Thus, after seeing the want and growth for housing loans assorted easy process of loans have come out.

Thus, to get rid of the difficult home loan process now you can approach some money lender who provides a decent way to get adequate money. Thus, these kinds of abode money lenders are easy to manage and the development is not that complex and time consuming. Therefore, there are also a choice of pieces which you are taken into consequence as it is based on your salary and other aspects. If these state of affairs are fulfilled then you are allotted an amount to build your reverie house. On the other hand even here you need to fulfill few rules and regulations but than they are not as vital as the one taken from banks. Another positive point is that it doesn’t demand any interest, which has made it more well-liked among people who are looking for legitimate habitat loans. Thus, now taking such loans in equity you can fulfill the delusion of having a gorgeous dwelling of your own.

Why should you think about availing of a Mortgage Loan refinance plan? What can you get out of it?

Many homeowners believe that Renegotiation is such a feasible plan to get through with. It is by applying a second loan that the previous debts can be paid off. While it is true that Refinancing is quite as easy as reciting the alphabet for those people with good credit standing, the opposite happens to the ones with bad credit scores.  They are faced with the challenge of finding the right Mortgage lenders and the difficulty of higher interest payments.

There is a myriad of reasons on why homeowners decide to refinance their current Home owners Loan. Their principal aim is obviously to solve their problems on their very expensive monthly payments. Most of the times the loan comes with a high interest charge which makes it harder for the borrower to pay it off. With today’s economic recession, don’t you think it is high time for you to think about Refinancing your home?

Renegotiation the Homeowner’s Loan and Your Advantages

One of the many advantages of Refinancing a Mortgage Loan loan is that you can opt to reduce or increase the term of the loan. If what you want is to be able to save more money and you have grown tired of paying for higher interest rates, better consider Renegotiation. You can avail of this at such a lower rate. If you shorten your supposed to be 30-year-loan into a 15-year-loan, you can forget about spending too much to compensate for all those monthly interest payments. Thus, you will be relieved because you get to settle your debt at a much shorter time. However, this scheme may require you to pay a larger principal amount but the great piece of news is that you can save more on the interest charges.

Renegotiation is best to do if you have a solid plan of living in your home for a longer time. It is an advisable move if the present Home Loan interest payment is visibly lower to as much as 2% as compared to the original rate that you are paying.

Another pleasant benefit of Renegotiation is that you may consolidate your entire debts into your home Homeowner’s Loan.

If you have previously applied for an adjustable rate Mortgage, you can now prefer to change it into the lock-in or fixed rate Homeowners Loan. This will secure that your monthly terms are not going to change whatever happens in the Home Loan rates in the market.

Through the years, your home must have acquired its equity. That means that you may avail of the cash out refinance. This option allows you to receive some additional cash if you increase your loan compared to its actual amount. Of course, doing so has its own advantages and disadvantages. When the amount that you have applied for is more than 80% of the total value of your home, then, you need to secure the private Mortgage insurance. This means an additional expense on your part. But then again, the cash out fund may be used to settle your other debts.

You see, the Mortgage refinance plan can actually make things easier for you. When you think of it though, you should be aware of the pros and cons so that you will not make any wrong decisions.

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Are you 100% sure about Homeowners Loan Refinancing? 

Even though a lot of people nowadays are doing it, it does not necessarily mean that it is the right option for you. Refinancing is a huge step, and there are instances where it does not apply, even though it seems like a good idea the first time you hear it.

Think twice about Home owners Loan Refinancing if you can relate to one of these people:

Mr. A’s home equity value has dropped.
Mr. A. is thinking hard about the status of his home’s value. Property values across the nation has gone down, so in most cases it does not make much sense to refinance. 

Say that Mr. A gets to refinance up to 75% of his property’s new value, he should check to see if his original Home Loan is less than that. If it’s higher, chances are he won’t be able to pay the existing loan with his new terms. Mortgage Loan Refinancing wouldn’t be helping him at all, if you think about it.

Mr. B will be paying his first loan for a long time.  
Let’s say Mr. B has an existing Mortgage that he has agreed to pay for 30 years. He has been paying that for 20 years now. Good. So he should think really hard before getting another 30-year loan. 

For him, another thirty years would mean another reaping of interests. Add to that the obvious costs of closing up a new loan. Once he has done the numbers, it will be clear that he would be paying more in total if he decides to go with it.

Mr. C. only has a few years to go on his existing loan.
Sure, Mr. C may need the cash now, but is it really that grave for him that he needs to get another loan for it? If he only has a few years left in his current one, might as well bear it out and be done with it. Remember, a new loan means he’ll be paying a lot more money in the end.

Mr. C should think of other cash flow alternatives that will not put his home at risk and put him in a money losing deal in the long run. 

Mr. D has already used enough equity on your first loan.
Lets’ say that Mr. D took out a home equity loan of 90% of his home value. Homeowners Loan Renegotiation might not be for him right now, because good rates for lower loans that that is rare to nonexistent.

When he refinances a 90% or higher loan, he probably needs a loan equal to it or higher. This is now almost a 100% financing option and the rates will be noticeably higher. 100% loans are pretty much hard to find these days anyway.

The lowdown is this: Refinancing less than 90% will yield him bad rates, while over 90% will give him higher rates or none at all. Either way is shaky ground, so Mortgage Refinancing might not be the best option for Mr. D.

Under the right circumstances, Mortgage Refinancing is a good option. But if you find yourself in similar places as one or two of these people, it is better to re-assess and find other ways to get money and/or solve your Homeowners Loan concerns. In the end it is best to see, shop and compare what rates are out there, so you can decide for yourself what to do next.

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Is there really an effective way to save on a Homeowner’s Loan refinance loan? Take a look at the vital tips to consider so that you can maximize your savings.

If you are one of the hundreds of homeowners who are opting for a refinance loan package, then you can be assured that there are many options and benefits that you may avail of. The prime advantage of a Refinancing option is that you can save more money during the entire duration of the term of your loan. It is because the offer that you may avail of is basically a lot lower that the previous loan’s monthly dues. 

You are most likely to achieve this benefit when you avail of a Homeowners Loan Refinancing package when the interest rate in the market has plummeted. You can opt to shorten or lengthen the term of your loan depending on your desire to save more money on the interest rates. 

Many of today’s homeowners have once been overwhelmed by the so-called adjustable interest rates. The disadvantage of this term is that when the interest rates in the market are high, then one gets to pay a higher interest charge too. On the other hand, when the rates are low, the charges to be settled are also low. Generally, it works depending on the fluctuation in the financial market.

Thus, it is by Refinancing your current Home owners Loan that you are given the chance to convert your adjustable interest rates into the fixed rates. Yes, you may be thinking of its downside but just keep in mind that you will not go crazy because of the rise and fall of the rates in the ever changing economic situation.

Contemplating on Renegotiation your present Homeowner’s Loan relieves you of being under the mercy of the financial market. You are given a sense of security that no matter what happens; your fees will never change. Hence, you can get a better hold of your budgeting process. Refinancing will likewise open doors for you to renegotiate the terms and conditions with your lender.

By talking to your Home owners Loan broker, you will learn of one of the options about lowering the risk of the A.R.M. You can save more money by placing the so-called payment cap. This option actually lessens the risk in the increase of the interest rate. Another option is that of either reducing or increasing the span of the loan.

As you reduce the payment terms, you will be able to save more money on the interest rate that you have to pay for. However, as you increase the life of the loan term, you are able to give yourself some time to gather that money to cover for the payment. As always, it is best to discuss all possibilities with your broker.

Overtime, your home should have attained some equity. Thus, you may “cash out”. It signifies that the money that you may get can be used to settle some of your outstanding debts or save it for future use.

Consolidating your loan is one way of saving more money. It is wise to always shop around for the best Home Loan brokerage firms and trustworthy brokers before you finally sign any documents. Paying off the loans can be really tedious given the uncertain economic conditions.

Home owners Loan refinance is still one of the best options that a homeowner like you can resort to.

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Those who have had previous financial problems are often left with the worry that they can’t be granted the chance to avail of any Mortgage Loan refinance opportunities. Many homeowners attempt to use their houses as the collateral when they work on consolidating their existing debts. The problem arises when the Homeowners Loan lenders shut their doors due to the borrower’s stained credit records. Even some banks and other private Homeowner’s Loan brokers tend not to do any business with people who have the same problem. So, what can you do to solve your ordeal?

Refinancing Your Home Loan as a Solution

Anyone who wants to iron things out prefers to grab any opportunity to refinance a previous Mortgage. Homeowners are often overwhelmed by the lower rates that they may get as they consolidate their loans. But, what if you have a stained credit record?

Having a bad credit should not leave you entirely hopeless. If done the right way, the Renegotiation process can give you more savings. It is because you can cut back on the interest rate that you have to pay for every month. You should realize how important it is for you to take time to look for those Homeowner’s Loan lenders that accommodate borrowers with bad credit scores. The Mortgage brokerage market has a lot of lenders doing the business for the purpose of helping people who have big responsibilities.

Why Homeowners Need to Apply for Renegotiation

Why do several homeowners see the need to refinance their mortgages? It is a known fact that many homeowners encounter financial difficulties which become a main reason on why they are unable to settle their monthly payments. As a result, the interest rate that they have to pay for heightens. Another reason for Renegotiation is for them to get money out of their own homes. 

What to Remember when Looking for a Loan Company

It is vital that you deal with a loan company that specializes in granting Homeowners Loan Refinancing options for people with bad credit scores. You should know the terms and conditions being imposed by your lender. How much interest rate is your lender going to charge you? Will you need the collateral? How much monthly payment should you pay for? These are the basic questions that you must ask.

How You should Work Your Way towards Renegotiation

Some years ago, individuals who were after the bad credit loans had to look for the opportunities far and wide. The good news is that nowadays there are more lenders that operate for the sake of those folks with really big financial liabilities.

Here is a fact. There are bad credit Mortgage refinance loans meant for you. There are banks and other private lenders that can help you by offering a lot of refinance options. You may check out their online portals or visit their physical offices. You can also take advantage of the accessibility of the online Homeowners Loan calculators so that you will get the clear details of your payments.

Before doing anything else, it is necessary that you direct your full attention in learning the pros and cons being offered by a potential lender as well as the rates that come at hand. As you perfectly know, a lot of lenders out there are fond of capitalizing on mere campaigns but the truth is that they only think of their own welfare.

Thus, shop around for only the most trustworthy and credible Mortgage brokers.

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Homeowner’s Loan Refinancing has several great benefits if used properly. But if you made just a lapse of judgment, you might be in for a costly mistake and may place your entire house at risk. Here are 5 costly Home Loan Renegotiation mistakes you must avoid. 

Mistake #1: Not locking in your rate

Rates are very erratic. It can change while your loan is being processed. So if you did not lock your interest rate in, you might be given a different rate from what you’ve expected. Ask your lender to lock in the rate you are satisfied with, place it into writing and confirm it when the processing of your loan is done. Take note: lenders will not lock in your rate without your request. 

Mistake #2: Not shopping around

There are hundreds of Home owners Loan companies out there. Each may provide the same service but they are unique from one another. This is why you have to shop around to get the best rates. It may sound like comparing apples to apples but the truth is, even apples are different from one another. Spend some time comparing different companies. Do not hesitate to ask for the best rates. And if you feel you are not getting what you deserve, then move on and go to another company.

Mistake #3: Renegotiation too often

While Refinancing is a good way to take advantage of lower rate and thus save money on monthly fees, it is not good to take it every time the rate falls down a notch. Remember that terminating your existing loan and buying a new one involve fees. Closing costs will pile up which really defeat the purpose of Renegotiation. 

Mistake #4: Not computing your break-even point

Again, there is a price to pay to terminate your existing loan and getting a new one, but far too many occasions where homeowners fail to recognize this. 

Computing your break even point is simple. For example, your monthly savings for Refinancing your Mortgage is $200 and your closing cost is $2000. Divide the closing cost by monthly savings and you will get the break even point ($2000/$200). In this example, it will take you 10 months to recoup the cost of Refinancing. In other words, you have to wait 10 month before realizing the savings. This is also connected to #3.

Before ‘re-Refinancing’ your Home owners Loan, you should know first if you have recoup the cost of your previous loan. Determining your break-even point will also determine how long you will have to stay in your home before starting to get savings.  

Mistake #5: Renegotiation just for the heck of it

Many homeowners believe that when the rate is low, it is time to refinance. This is wrong! There are other conditions to determine if it is the right time to refinance your home and not just by looking that the prevailing rate. Never refinance if you don’t plan to stay at your home after a year or two or before you reach the break-even point.

Never refinance if you have been paying for your current loan for several years or if you have only a few years left to pay for your home. Never refinance if you have a bad credit score or if the current market value of your home is low. And never refinance if you have already used up all the equity of your home.

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