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I am presently owning mordgaged Condo and looking for refinancing. Additionally, I am eligibal for additional loan and I want to purchase residential/commercial freehold property. I presently have 60K as savings and expecting to add up 60K in next 6/8months. Since presen not enough for 20% down payment, Can I book futured property which expected to be TOP in 2013/2014/2015.I am looking for futured freehold condo 2BHK/3BHK and presently for investement and later after 5years for own stay. Location should be,near city,appreciable/high rental yield and near MRT. Pls suggest.
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1 Answer

William Choo
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Hi Raju, I'd say there are several possibilities.

1. Depending on how much you actually owe on the mortgage, it might make sense to pay off the outstanding loan first to be eligible for 80% LTV on your next purchase so you can save up for your next property.

2. Alternatively, again it depends on the appreciation in value of your condo since date of purchase, you could take out an equity loan to beef up your capita to 40% of the purchase price of your next residential unit.

Personally, I'd advise against doing the latter because of the probability of over leveraging with may have an adverse impact on your finances. But, if you are confident of saving up this amount within a yr or so, and that you just don't want to wait one year to save up, this is entirely workable.

Feel free to contact me if you have any enquiry.

Cheers.

Kind regards,
William Choo (朱文彬）
Senior Marketing Consultant, 
CEA Reg No: R044093D
Huttons Asia Pte Ltd (License no: L3008899K)
Mobile: 9721 8288 
Web site: www.facebook.com/PropertySGD Read More
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