SHOULD SINGAPORE PROPERTY OWNER BE WORRY ABOUT 2023?
As the end of the year draws near, we look forward to 2023. What are your own thoughts about how 2023 would go? We share some of Aaron's thoughts on which property owners in Singapore should be concerned and why, come 2023.
Who should be worried?
Buyers that have bought a new launch, looking to flip in the next 2-3 years and earn money. Examples include those units which TOP in and around 2026, buyers that have bought these new launches and hope to turn a profit by then, it would be hard.
However, if you are able to hold on to the unit for a longer period of time, say 6-8 years down the road, that would work better.
Those that have bought resale properties at high prices or record-setting current holders of a freehold property, it would be hard to sell for a profit in the coming years. The best hopes would be to hold for the longer term future and hope for a good upturn to see any profit.
For people that are looking forward to En Blocs in the future, there might not be light in the near future. There are some owners that have bought high for these old units who are actually consoling themselves that the projects would have opportunities to En Bloc in future.
As per how HDB leases last for 99 years, private units would also go back to the government after leases end.
People who are worried about the interest rate that they are getting. If your interest rate has gone up exceptionally high compared to the recent rise, there could be an issue with the package you are getting.
There are a few things you can do:
Check if you are still in lock-in period?
Find out what package you are having.
Check if you can change a package?
Check if there are penalties involved to change a package.
Find out these and call Aaron in order to get help regarding possibly refinancing or changing to other banks and packages.
Overall Sentiment for 2023
Aaron does not hold positive views for the market in 2023. There are many factors which have arrived but perhaps people in the market are not looking at them and acknowledging them.
Watch Aaron dissect the groups of property owners that ought to be concerned, if not worried, in 2023!