To buy or not to buy

The market is heating up, so property pros agree that it's the right time to buy. But buy only within your means Don't worry if it is not your dream home, because there will be another opportunity, says Colin. Very few people actually end up staying in their first home for the long term.

"People tend to forget that property buying is a high-risk activity. That is why the returns are so great.. Buying for owner occupation means there is a confirmed 'tenant', and that lessens the risk considerably. But when you buy for the investment, there is no confirmed tenant," he says.

"In Singapore, rents cannot really stay sky-high for a long time, or else Singapore will be uncompetitive vis-a-vis other nations. Remember this," he warns.

Chua Chor Hoon, senior director and head of South-east Asian research at DTZ, echoes this sentiment. "If the economy continues to improve, prices are likely to keep increasing - but at a moderate rate as economic growth is projected to be slow. If the global economies grow sluggishly, as many experts have projected, this would have an impact on our economy and eventually on the property market as the exuberance dies down."

Be prepared for economic shocks that can bring down a property market very quickly. Do factor in a financial buffer to counter pessimistic scenarios such as losing your job and falling wages, rents or prices.

If you cannot find your dream home at a comfortable price now, don't despair. Home prices move in cycles of around 10 years, so there will be another down cycle to look forward to if you miss out on a good buy, reassures Colin. The most important thing to get right is affordability. Your home should be a pleasure to live in and enjoy, not a burden.

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