The One Mistake Most Home Buyers Realise Too Late.

What are the usual considerations when buying a property?

• Pricing?

• Location?

• Timing?

These are the typical factors that come to mind when entering the property market. But there’s one crucial aspect that often flies under the radar — LOAN TENURE.

Today, we’re diving into why this lesser-known factor can make a huge difference in your property journey.

Looking at the median household income annual growth, we see that over a 10-year period between 2015 to 2024, the average growth is about 3%. 

Just in a short span of 5 years, a 3-bedroom unit in Treasure has grown by almost $500,000. 

Imagine someone who is 35 years old in 2020 earning $10,000 a month, and didn't buy the property at $1,300,000. Do you think in the present day, at the age of 40, even with a 3% annual income growth, he could secure 75% loan for $1,900,000?

With PropNex’s Concept Calculator, it's quick and easy for any of our consultants to help you determine your true affordability.

Let’s go back to the example from earlier:

At age 40, assuming an average annual income growth of 3%, he’d be earning $11,592. Despite the salary increment, his maximum property affordability caps at around $1.6 million — not even enough for a 3-bedroom upgrade.

Now imagine he waits until 2030, at age 45.

Where will home prices be by then?

And with a similar purchasing power to today’s, what kind of property will still be within reach?

The Impact of Delay

The older you get, the less you can borrow. And while your loan eligibility shrinks, property prices keep climbing.

Wait too long, and you’ll watch your dream home slip further and further away… until one day, it’s no longer an option — not because you didn’t want it, but because you simply can’t afford it anymore.

And don’t think this only affects first-time buyers, even upgraders will feel the pinch. Many assume they can just sell their current home and upgrade easily when the time comes. But the longer they wait, the tighter the gap gets. And soon, what they could have afforded becomes a downgrade instead of an upgrade.

Fast forward to retirement — and here's the nightmare:

No big sale. No cash-out. No real fallback.

All because you didn't build enough assets when you had the chance… and you waited too long to act.

Time is working against you. Start doing something now before you regret! 

Hear the full effects of how your loan tenure can affect you? Watch the Video below to find out now!