WHAT TO WATCH OUT FOR WHEN TAKING LOANS
When it comes to refinancing loans to help households ease inflation-induced monetary stresses, Mr Nelson Neo, head associated with home financing options at DBS Consumer Banking Group, said that while this is an option, home owners should know the costs involved, such as the legal fees and value costs.
“Regardless of interest rate styles or choice of home loan packages, we strongly advise borrowers to set aside sufficient money as a buffer in the event of further interest rate hikes or any unforeseen circumstances, ” said Mr Neo, adding this would ideally be a barrier for about two years.
While getting a loan might help youths tide via tough times of economic need, experts furthermore warned the need to exercise prudence.
Observing that taking up credit is a “significant monetary commitment” over a period of time, Mr Anthony Seow, head of payments and platforms with DBS Consumer Financial Group, said youths should ensure they have got the ability to repay their own loan, and if feasible, increase their loan repayments to lower their interest payable.
He mentioned they should also consider fees and costs, flexibility of loan repayments and the loan’s lock-in period, noting that some loans have penalties pertaining to paying it up earlier than agreed.
“Any late payment or repayment difficulties may be reflected in your credit score and records, plus adverse records may impact your future financing needs, ” stated Mr Seow.
IS IT A GOOD TIME TO TAKE A POSITION?
With an one-month-old infant, a housing loan to pay and 3 businesses under their belt, 32-year-old real estate agent and company leader Jonathan Ong offers stopped making risky investments in the stock exchange and crypto picture.
“I has been lucky enough to cash-out before the crypto crash and stock costs dropping, but at this time there’s too much danger in not having enough cash on hand, ” he said.
He runs cafe Daddy On Madras, a virtual tour company Metaspace, and it is working on a real estate application called Homee SG – all of which have seen profit margins shrink as people spend less and cost of goods rise.
As for 25-year-old business lead executive Jessica, who seem to declined to expose her surname, saving for further studies is becoming tougher due to pumpiing.
She added: “I had been contemplating taking up more long-term investment plans, using inflation, I don’t need to do it because they can not be easily seen or used should I need it for an crisis.
“The rates of interest for long-term investment plans also appear bad when compared to the present rate of pumpiing. ”
Nevertheless , experts said that it is important for youths to start investing for their upcoming, should they have enough savings on hand.
Mr Timothy Ho, co-founder and managing publisher of investing internet site Dollars and Feeling, said: “If pumpiing is high, choosing not to invest implies that any savings you might have will be losing its purchasing power over time.
“As a young person, our biggest advantage is age group. We can easily make investments today in great companies and hold for 20 as well as 30 years, without worrying about having to sell them as long as we have the emergency savings and manage our budget well. ”