Forum: Be mindful of factors that can affect ability to service mortgage loans

Straits Times associate editor Chua Mui Hoong wrote a very crisp article (What I wish I knew at 25 about buying property, Nov 19) on her experience in setting up a home.

A property, as a home, an investment or a means of accommodation, will be viewed differently by different people at different stages of their lives.

I wholeheartedly agree with most of Ms Chua's perspectives.

Prospective buyers of property should also consider the impact of the ongoing disruptions to the world supply chain and the rapid advancement of technology, as well as the impact of increasing regionalisation (superseding globalisation) which will consequently create excessive overlapping industrial capacities and service facilities in the near future.

All these factors will have an impact on the prospects of long-term gainful employment, and consequently affect the ability to service long-term mortgage obligations.

Moving forward, it does seems to be a rentier economy where people will rent and pay for what they actually need and on the basis of what they can afford, with minimal holding or recurring costs.

This point was further illustrated by writer Ng Wei Kai in his opinion piece, "Renting is no longer a dirty word to young Singaporeans" (Nov 19).

Should Singaporeans revalidate our perspectives and priorities on home ownership with its accompanying loan obligation, when the only constant in the world economy is constant, rapid change?

Sum Kam Weng

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