Mr. Mohamed Ismail, the CEO of PropNex, kicked off the seminar by shedding light about the outlook for the property sector here.

He predicted that mass market housing would continue to do well in the coming years because there is growing demand from permanent residents who are increasingly purchasing properties instead of renting them.

Mr. Ismail said that currently, demand for public housing is already in excess of supply, which is why the prices of HDB resale flats have done well this year and are now hovering very close to the all-time peak in the fourth quarter 1996. HDB resale prices have risen by about 8 per cent this year, after a 17 per cent gain last year.

On the other hand, the prices of private properties have stagnated this year after soaring 31 per cent last year. Mr. Ismail believes that for the high-end private properties in Singapore, there is still room for prices to dip further. Nevertheless, he feels that high-end prices here are still not excessive compared to other international cities and those who have the holding power can reap attractive returns in the longer term.

As for mass market private properties, which have seen good take-ups in recent launches, Mr. Ismail said that current prices are still reasonable and have not increased as much as the high-end segment.

He was also positive on the outlook for landed properties and expects this segment of the market to do well in the coming years as supply of landed homes is limited while constructions costs have doubled in recent years and could head higher.

Despite his sanguine outlook for the property sector here, Mr. Ismail warned against trying to “flip” properties for quick gains. He said that this is not advisable in today's volatile environment and those looking to buy a property should always have enough liquidity to sustain their mortgage payments.

He suggested that potential buyers should also speak to experienced real estate agents and mortgage specialists to ensure that they are make informed decisions.

If you've decided to buy a property and are looking for a home loan, you'll be faced with an array of choices. So how do you go about choosing the most appropriate one for your needs?

Mr. Gregory Chan, Head Consumer Secured Lending at OCBC Bank, who was the second speaker, offered some interesting insights.

He reiterated that owning a piece of property is often the biggest investment commitment most individuals will make in their lifetime, which means that adequate financial planning is very important.

Part of this involves finding the amount of loans you're eligible for before committing to a property, and choosing the best financing method suited for your needs. In addition to this, being aware of other possible expenses like stamp duties and cancellation and redemption penalties is also important.

With respect to financing method, Mr. Chan said that property buyers should bear in mind that there are three main types of interest rates available in Singapore presently. These are variable, fixed and market pegged rates.

A fixed rate package usually charges higher interest rates than a variable rate package (where rate changes are made at the discretion of the bank). However this premium is the price that one pays for greater certainty and peace of mind.

In the case of market-pegged packages, they are pegged to publicly available market rates, and require property buyers to take a view about the future direction of these rates.

Mr. Chan highlighted that the type of housing loan package that's eventually chosen depends on an individual's circumstances.

He suggested that buyers should seek the help experts who can guide them through the entire loan process and help them to pick a loan that is best suited to their financial abilities and needs.

Many have chosen to invest in properties because of the allure of making substantial gains. However, our third speaker, Ms. Anne Tay, Vice President for Group Wealth Management at OCBC Bank cautioned that property investments should not be viewed in isolation and should be seen as part of one's total investment portfolio.

Ms. Tay said that one reason why some property investors are able to grow their wealth significantly is because they can borrow up to 80 per cent of the value of their property to fund their purchases. However she warned that leverage can be a double-edged sword as it not only magnifies gains, but also losses.

To avoid the debt trap Ms. Tay suggested that those looking to invest in a property should ensure that the total combined sum of all their debts (including their mortgage) does not exceed 50 per cent of their total assets. Also, try to avoid having your income being consumed by debt payments. One should try to aim for a debt servicing ratio of no more than 35 per cent of your take-home income to avoid straining the ability to repay your loans.

Ms. Tay also cautioned against taking a housing loan that stretches into one's twilight years. Unless you expect to have a steady stream of income past retirement, it may not be a good idea to take up a mortgage that stretches beyond age 62.

To protect against unforeseen circumstances, Ms Tay highlighted the virtues of purchase mortgage insurance. This will help protect dependants and ensure that they are not saddled with debts in the event that the borrower passes on.

On variable rate loans, Ms. Tay said that those taking up such loans should understand the risks associated with them as affordability could be hampered if interest rates, which have been volatile, rise unexpectedly.

She also pointed out that property is a highly illiquid investment and those looking to dabble in it should be prepared to hold their investments for up to five years at least.

The good turnout at our recent seminar shows Singaporeans' penchant for properties. Clearly, the property market here continues to offer opportunities. But given that property can be a long-term commitment and usually involves substantial leverage, it is important for buyers to understand the financing options open to them and to protect their downside by ensuring that they are not overly geared, and have sufficient mortgage insurance to protect their loved ones.