Congratulations on your wind fall. You are the rare few that have enjoyed huge returns from your property as a result of the En-Bloc sale. The most important thing on your mind now would be to find a new roof over your head, be it a new property purchase or even renting for the time being till the property market falls to a more affordable level.

If you are planning to rent and wait out this high property market, you have to know that the rental market likewise is at an all time high. Industry experts have predicted that the rental boom would still have some time to run for our government has paved the road for Singapore to be a world class global economic and business centre. Singapore in recent years have been attracting global talents to meet the needs of our wealth management, manufacturing, oil & gas, and gaming industries. The rental market has been very tight due to the sudden hike in demand. Renting after an En-Bloc may not be ideal due to high rental prices. It would be better to own than to rent, better to contribute to your own property.

If you are planning to make another property purchase, the first thing on your mind would be to pay up for the new purchase in full and not to incur any debt. This again may not be a prudent approach for the interest rate market today is at its lowest point since 2004. With such low interest rates available, it would be advisable to take up a housing loan and to reinvest your excess cash into other stable investments that would earn a higher yield.

Our government has recently projected our inflation rate to be around 5%- 6% for 2008. Compared to our current 2.5% interest rate on housing loans, and 1.5% on bank deposits, anyone taking a housing loan is much better off than one who is parking his funds with the bank due to the shrinking value of money and inflation. Placing cash savings in bank deposits today may not be a good vehicle to hedge against growing inflation. A simplistic way of looking at this would be that you would be loosing approximately 3.5% a year should you decide to park your funds in bank deposits.

Instead of purchasing a property out right in cash to avoid paying interest rates of 2.5%, you may consider investing your excess funds in stable investments that have an established track record of low price fluctuations and yet offer higher returns as compared to 1.5% that is offered for fixed deposits. Like wise, you should also be able to find investments that can pay a yield higher than the present rate charged on housing loans too. By so doing, you would end up on a positive note when you balance your books.