OPR up 25 basis points

If you are cash rich, then your interest income from fixed deposits will go up.

If you are paying off loans, actually you won't feel much because your repayment amount stays the same but the interest portion is now slightly higher.

So what you should do, if you have some money in your EPF account 2, is to use that to pay down some of the principle of the loan to ensure your tenure is not extended unduly long.

From the human psychology perspective, the rate hike will make house buyers nervous for a while so sales will go down a bit. Eventually though, they will get over it.

This means that property prices will stabilise for a while then begin to pick up again because there will be housing pressure from a growing adult population.

I believe now is a good time to look for distressed sellers and pick up a good bargain. Some people were very aggressive in buying properties during the boom, with "no money down" using inflated sales agreements - well, think that is going to come back and haunt them very soon.

See, try and cheat?

Anyway, lets keep an eye out for good deals :)

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