Ed and I have been diligently saving towards getting a second property in Singapore. Property investment in Singapore is highly attractive as it offers lower risks (compared to other countries and investment options) due to the limited land coupled with the increasing population. In the short term, we see a second property as a supplementary source of income. In the longer term, we see it as a means to upgrade to a bigger property --- if need be, we will sell both properties in order to purchase a larger property.
Yesterday however the Singapore government once again introduced further measures to cool the overheating property market. Where previously we needed to pay 30 percent downpayment (up from 20 percent the preceding year), we now have to fork out 40 percent downpayment e.g. a property with a value of SGD1m will entail a downpayment of SGD400,000! PLUS owners who sell their property within the first 4 years (up from 3 years previously) will be subject to pay stamp duty (usually borne by the buyer).
We had hoped to purchase a second property at the end of this year but now, in light of the most recent measures, we will need to delay our plans. Naturally, we are both very disappointed and frustrated. It almost seems as though we were pursuing a moving goalpost. Still, I'm not giving up. I still believe that property investment is the way to go in the long run. We just need to continue saving and be patient.
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