Property cooling measures prompt last-minute deals

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http://www.todayonline.com/Hotnews/EDC121006-0000100/Property-cooling-measures-prompt-last-minute-deals

Latest measures to cool the property market announced on Friday have prompted some buyers to seal last-minute deals, before the new rules kick in.

From Saturday, buyers who opt for home loans over 30 years, or past the retirement age of 65, will have to fork out significantly more cash.

Older investors, like 60-year-old Madam Doris Lim, are the hardest-hit by the latest restrictions on home loans. "I heard the news (yesterday)... so I called my bankers. The manager came down to collect my documents," she said.

Madam Lim bought a condo in Sengkang for S$850,000.

If she had waited one more day, she would have had to pay 60 per cent of it in cash, instead of the usual 40 per cent. That is a S$170,000 difference.

With curbs on long mortgages, shorter loans also mean buyers have to pay higher monthly instalments.

Mr Lee Mun Teck, an engineer, said: "Even though the interest rate is low, people will look at affordability right now instead of just the interest rate."

But not everyone is affected.

Developers said there will be some impact, but they are expecting sales to stay healthy, as there are genuine buyers with sufficient cash in the market.