By Romesh Navaratnarajah: Given the tough economic conditions, National Development Minister Khaw Boon Wan has advised Singaporean home buyers to be realistic about their finances.
Speaking at a National Day Observance Ceremony in Sembawang GRC yesterday, the Minister highlighted that Singaporeans should buy within their means, especially when it comes to housing.
He is satisfied with the progress of the property market over the last year, especially now that first-time buyers can easily apply for a Build-to-Order (BTO) flat in newer estates. He also reiterated that the government is committed to helping second-timers as well.
"This year, I'll be focusing on second-timers and improve their chances. So the recent BTO, I'm looking at the subscription rates day by day and it's quite healthy, but we will press on to build more to satisfy Singaporeans' demand to catch up on the deficit in the last few years," said Mr Khaw.
At the same time, he also encouraged buyers to be more careful when choosing financing.
"There're now some gimmicks coming along, some banks offering 50-years' (loan term) so please don't fall for that. It doesn't make sense."
Mr Khaw added: "If you want to immediately come out from school and get a five-room flat and think that a 50-year loan will help you achieve that, I don't think that is very wise. I've been checking how many people take up this 50-year loan, and as far as I gather, the number is very few, which I think is a good sign." Related Stories: BCA puts stop to demolition works at 5 Shenton Way
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