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 Loan Compression, For Property Loan

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HereToLearn
post Jan 29 2021, 08:53 PM

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QUOTE(-CoupeFanatic- @ Jan 29 2021, 01:02 PM)
Actually these few years is good to accumulate some properties, prices now are so competitive especially in lelong market.

But don't la go do compression loan, the market can stay irrational longer than you can stay liquid. Baby steps, but one by one. compress also don't compress until so much, over by 1 or 2 units is enough.
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Yes I agree, next few years. For now, property prices are still high, the rental yield is still low, and might continue to trend lower if rental rate keeps dropping with oversupply.

Still can wait
HereToLearn
post Jan 29 2021, 10:37 PM

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QUOTE(-CoupeFanatic- @ Jan 29 2021, 09:14 PM)
Lelong market now seems to have many good deals, can see that the demand is strong too.

Well no one knows where the bottom is, but best is to capture some within your affordability to diversify your investment portfolio.

If you buy cheap in lelong with a big enough margin of safety (without loan compression), then should have enough holding power to hold through the next bull run if it ever comes  tongue.gif  tongue.gif  Worst come to worse, it's only a minimal negative gearing after renting the unit out.

Buy those that are in demand and low enough prices so that the exit is also easier.

Stay safe everyone.
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The next bull run can only come if the rental rate starts increasing. With the current downtrend, it is best to avoid, especially when buying a house requires leverage (debt)

 

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