Interest rates are so high now. How do I purchase or invest in property?

Higher interest rates mean higher property values

- Interest rates have risen and fallen over the past two decades; but home prices continue to rise;

- Higher interest rates increase borrowing costs to developers. Developers then transfer this cost increase onto homebuyers;

- As a result, the rise of interest rates will lead to a rise in launch prices as well. Higher launch prices have also lifted resale prices (see below).

Interest rates vs median price

Higher ABSDs have led to a decline in new housing loans granted for investment properties (see below)

New housing loans limits granted

What have some property owners done after the implementation of cooling measures?

- Sell existing residential properties and clear their name for new launch property purchase;

- Give existing property to spouse and clear their name for new launch property purchase;

- Decoupling from existing private property and clearing one name for new launch property purchase;

- Pay ABSD for new launch property purchase;

- Buy new launch property under close relative’s name.

Disclaimer 

This information is provided solely on a goodwill basis and does not relieve parties of their responsibility to verify the information from the relevant sources and/or seek appropriate advice from relevant professionals such as valuers, financial advisers, bankers and lawyers.

For avoidance of doubt, ERA Realty Network and its salespersons accept no responsibility for the accuracy, reliability and/or completeness of the information provided. Copyright in this publication is owned by ERA and this publication may not be reproduced or transmitted in any form or by any means, in whole or in part, without prior written approval.