Renting could beat buying private property if home loan rates rise
Higher borrowing costs could weaken private-home buying demand and encourage some households to rent, potentially affecting transaction activity and buyer decisions.
Renting could be financially preferable to buying private property if home-loan rates rise, allowing equity otherwise committed to a residence to fund retirement investments.
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[SINGAPORE] Interest-rate movements in Singapore are not directly correlated with those in the US.
Still, could the US Federal Reserve’s hike of its benchmark overnight interest rate in mid-September with indications of further hikes in the coming months herald an era of higher interest rates over a prolonged period in many places including Singapore?
For sure, retirees here may welcome higher interest rates as they can get better returns from safe instruments such as Singapore-dollar fixed deposits or treasury bills.