Guide to Buying a Property

Where you are:

Benefits & Risks

Benefits
- Disciplined Savings Plan
  Making repayments on your mortgages is like a type of disciplined savings. The more you pay off, the more of your home you will own.
- Retirement Planning
  When your property appreciates in value, the equity is also growing in your property. This equity can later be used to secure further loans for your own uses (such as provision of education funds for your children) and will also provide security in retirement.
- Capital Gains
  A wise and calculated property purchase may yield unexpected capital gains.
- Tax Incentive
  Currently, there are no capital gains tax imposed on the sale of your property. Furthermore, if you purchase a property and rent it out for investment purposes, the interest on your mortgage payment is also tax deductible.
Risks
- High costs
  Home-ownership can be more expensive than renting because you are responsible for the mortgage, maintenance and repairs of the property, the insurance, paying maintenance charges plus any improvement you intend to make.
- High Capital Outlay
  There may be opportunity cost in the initial cash deposit that could be used for alternative investment class.
- Low Liquidity
  In case of asset disposal, property class may yield a lower liquidity. Typically, time is taken to market your property as well as to process the sale documents.
- Price Depreciation
  Like any investment, there is a possibility that the market will depreciate and the resale value may be lower than the purchase price.

What Can You Afford?

Is Your Dream Home Within Reach?

You have found your dream home and are thinking of making an offer. Try out our home loan calculator to get an idea of the budget needed for the monthly instalments and more.

Disclaimer: This computation is strictly for illustration purpose only. United Overseas Bank Limited ("UOB") and its employees make no representation or warranty, whether expressed or implied, and accept no responsibility for the completeness or accuracy of the computation. As such, UOB and its employees do not accept liability for any errors, inaccuracies, omissions or any consequences or any losses/damages howsoever suffered by any person, arising from any reliance by any person on the views express or information in this publication.

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IMPORTANT NOTICE AND DISCLAIMERS:

This publication is strictly for information purposes only and shall not be transmitted, disclosed, copied or relied upon by any person for whatever purpose.

This publication is not an offer, recommendation, solicitation or advice to buy or sell any investment product.

Any description of investment products is qualified in its entirety by the terms and conditions of the investment product and if applicable, the prospectus or constituting document of the investment product.

Nothing in this document constitutes accounting, legal, regulatory, tax, financial or other advice.

You should consult your own professional advisors about issues discussed herein.

The information contained in this publication, including any data, projections and underlying assumptions, are based on certain assumptions, management forecasts and analysis of known information as of the date of the article and reflects prevailing conditions as of the date of the article, all of which are accordingly subject to change at any time without notice.

Although every reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this publication, United Overseas Bank Limited ("UOB") and its employees make no representation or warranty, whether express or implied, and accepts no responsibility or reliability for its completeness or accuracy.

As such, UOB and its employees do not accept liability for any errors, inaccuracies, omissions or any consequences or any losses/damages howsoever suffered by any person, arising by any reliance by any person on the views expressed or information in this publication.

Loans

Guide to Buying a Property

Benefits & Risks

What Can You Afford?

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IMPORTANT NOTICE AND DISCLAIMERS:

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