Investing in a second property

A 50 year old person who has a fully paid up 5 room HDB flats wants to invest in a small condo. She intends to rent out the condo or the 5 room flat. She needs the rental income to help pay the mortgage on the condo. In the worse case, she will sell off the HDB flat and live in the condo. She asked for my views.

My reply:My general advice to consumers is:
a) Never invest with borrowed money, except for a property that you live in.
b) Be free of debt when you are 60 years old.
c) Do not invest in property when the price is high.

If you are prepared for the worse case scenario, then you should be meeting my guidelines. However, if you wish to look for a good investment, you should consider the index fund. Watch my videos here: http://www.tankinlian.com/learn.aspx