How to protect yourself from the property bubble?

Some simple steps to protect yourself from the property bubble:

1.Switch from Base Lending Rate (BLR) to a fixed interest rate to protect yourself from fluctuating interest rates. So, your monthly mortgage payments will never ever change. 

 

2.Don’t buy a house simply because it is a good investment or you afraid that you will miss out the opportunity to buy before prices rise again if you cannot afford it. You can seek help from bank or any financial advisor to work out your budget and find out how large a mortgage payment you can afford to pay every month. You should not forget the associated housing expenses that might occur as well.

3.Buy your second, third or fourth property only if you have a positive cash flow. 

4.Don’t assume your house will keep on appreciate at the fast pace as it has in past years in the near future nor assume the house price is unlikely to decrease.

5.Try to avoid yourself from taking advantage of the home equity that you have built up over the years by getting a cash-out refinance to pay for your cars, credit cards or any other debts. You can get yourself into trouble if the property prices decline in the future.

6.Take a more conservative approach if you are involving in stock market investment or any other investments.

7.Rent instead of buy a house if you are uncertain whether how long you will be staying in the house.