Anyway, a few friends of mine started asking people (I’m one of them) whether is it okay to buy property now? Most of them want to take advantage of the tax deduction incentive and, well, most of them are starting their own family soon. Here are some of the questions that they’ve asked.

Should I buy a property now, since there’s such a good incentive?

This is a very good opportunity to have your very own house/condo. But the main question here is, can you support the house during this economy crisis? How stable is your job or your monthly income? If you feel that you might lose your job in a few months time, then it could be risky to commit yourselves to another long-term loan.

I still want a property but I might not be able to pay the monthly interest, can I still get a property?

Yes. There are few property developers who managed to come out with certain promotions. I know that SPSETIA has this 5-95 plan which means you only need to pay for 5% down payment and the remaining 95% after the property has been completed (which is normally 2 years from now). And if you can’t find such plans, then don’t commit. It’s too risky. Also, beware of hidden charges since some of such promotions do have hidden costs.

Will the property price drop further?

I don’t think so. In my opinion, property developers will not be stupid to launch a housing project which is cheaper than their previous projects. This will decrease the market value of their properties and also make the previous buyers angry. They will either delay the launching date, or come out with more freebies and promotions. The property price drop might occur in the secondary market though since some buyers might not be able to pay off their housing loans.

Will the interest rate drop further?

It’s possible, seeing how our economy is turning from bad to worse. But I don’t see the impact as very big since most of the housing loans nowadays have flexi interest rates.

Then what should I do? To buy or not to buy?

I believe the best course of action now is to see whether your job is stable and how desperate you are in getting a property. If you’re not desperate, then wait for a few more months. I’m sure things will be clearer then, and there might also be more promotions.

You can also check this blog post from ChampDog – Tax Deduction Incentive for Property – Should I go for it?

Remember that during this difficult period, the best investment is property but provided you can support it.