With all the recent talk about the new fake news law in Singapore, we have been inspired to share some fake news about the property industry and get rid of some common misconceptions.
Fake News #1: The loan with the lowest interest rate is the best loan
We have somehow been conditioned to look at numbers – the lowest price, the highest score, and more. It seems easy to deduce the superiority of an item just by looking at the value attached to it. And many people do the same when it comes to housing loans, casually opting for the mortgage loan with the lowest interest rate. But lo and behold, the mortgage loan with the lowest interest rate isn’t always the best. With so many factors to consider such as locked-in period and type of loan, interest rate is just one of the many contributing factors to how much more you will end up paying for your housing loan. Ultimately, no single loan is the best fit for all. As such, your personal situation will determine which is the best mortgage loan for you.
Fake News #2: You are entitled to subsidies for buying a BTO flat near your parents’ flat
Simply put, subsidies for buying a flat near your parents’, the Proximity Housing Grant, is only for the buying of resale flats, and does not cover BTO flats.
Fake News #3: Property prices will only go up
A common thing we hear is that you can never go wrong with buying property in Singapore. Well, let’s make it clear – a lot can go wrong. And if you have the assumption that property prices will only go up, let’s clear that up. Granted, assets including the prices of flats usually go up in the long run. However, there are periods of stagnation and falls. As such, it had a lot to do with when you buy your property and what kind of property you are looking at.
Fake News #4: A freehold property gives me ownership of my property forever
Freehold does not mean you can escape the clutches of the government, and most definitely does not mean the property will always be yours. In fact, once the government decides to use the land that your freehold property is on, you have no choice but to give up your property. Even if your freehold property does not get acquired by the government, it is very likely to undergo an en-bloc as the development gets older which is not exactly a bad thing seeing how much en-bloc sales are fetching these days.