Is Borrowing To Invest In Real Estate Recommended?
7/22/2013 01:17:00 am
Bismillah.
Assalammualaikum!
In this blog post, I would like to bring upon the topic "Is Borrowing To Invest In Real Estate Recommended?", as promised in the previous post. Recently went for another seminar which helps answer to this blog post.
What is Total Debt Servicing Ratio (TDSR)?
Provide Financial Institutions a robust basis for assessing the debt servicing ability of borrowers applying for property loans, taking into consideration their other outstanding debt obligations. TDSR applies to loans for the purchase of all types of property, loans secured on property, and the refinancing of all such loans.
(Source: http://www.mas.gov.sg/news-and-publications/press-releases/2013/mas-introduces-debt-servicing-framework-for-property-loans.aspx)
With this TDSR, it is to make sure that loans such as study loan, credit card loan, any loans that you have taken, are all taken into account to make sure that it does not exceed 60% of the income.
First and foremost, property investment is a long-term commitment. Therefore, an individual have to do proper planning, research and also ask for professional help pertaining to acquiring properties. The current issue of the TDSR being introduced affects bank to standardize and limit your loans. By standardizing, an individual will be limited to the type of property they can actually purchased.
What is Refinancing of Loan?
It is an opportunity to replace your existing property loan with a new one that suits your current financial situation. With this, it helps lower your monthly payments.
With this, these are the only points that I can share here, as I find it is beneficial if all of you can actually go for the seminar and gain it better than I do.
Wassalam.
PS: If any of you out there are interested to know of any upcoming seminars, feel free to email me at nur.farhanah.jasni@gmail.com . And if any of you are interested in Property Investment, feel free to email me too. Insyaallah, I will try my best to network you with the specific professional. Thank you!
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