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Will the property mkt crashed?

Picanto

By Picanto,
in Lite & EZ

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Noobcar

Noobcar

Clutched

this fella is definitely not too rich.

 

he is simply sick.

 

but you are right, rich people got their problems too.

 

jia jia you ben nan nian de jing

 

I rather to be rich and have problems rather then poor and have problem [laugh] . At least money can help solve a lot of the problems.

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Throttle2

Throttle2

Supersonic

I rather to be rich and have problems rather then poor and have problem [laugh] . At least money can help solve a lot of the problems.

 

 

they are different kinds of problems.

not money problems.

 

my mum always say , any problem that can settle with money is not a real problem..... [:)]

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Wind30

Wind30

Turbocharged

Dude, you assume this person can borrow 30 yrs right?

so he must be not too old. Lets say 35yrs old. Fair?

 

OK.

This means that he should have been working for about 10yrs (considering singaporean finish Uni)

Fair right?

 

OK

this means he didnt earn $100k pa for the last 10 yrs.

say 1st 2 years earn $40k

3-4th yr earn $50k

5-6th yr earn $70k

7-8th yr earn $85k

9 and 10th yr earn $100kpa

 

Considering standard expenses + car + keeping up with the Joneses etc etc

He probably saves only 10% a year spread out over the 10 yrs.

So total savings is less than $100k, throw in usable CPF say another $100k

Total $200k

 

He downpays $200k to buy a $1mil property so the loan is $800k with no cash left except the asset.

if market cracks, his life can become naught.

Walking on thin ice , dont you think?

 

By the way, we are discussing probable scenarios which in this instance makes most sense.

Which ever part you feel the scenario is not fair painted, plse feel free to discuss.

 

Buy a $1mil condo only to live like a pauper, very few people like you (and me) around lah.

 

you scenario is wrong lah. you forgot the hdb super appreciation over the past 10 years. That is the MAJOR factor. Lets say he saves 10%. so he have 100k cash. Another 12-4% and cpf 10% goes into housing loan which comes up to 230k. So he paid of his hdb loan of 170k (minus grant) 100%. A 200k hdb new flat is probably worth 400k right now. So with 100k cash and 400k flat they have only need to take 500k loan for a new condo provided they sell the hdb.

 

U ask who here have done it, well I just sold off my EC for 0.9 mil to a young couple who have a pungol flat. I think their income does not look very high.

 

Seriously, I think it is easily done if you take into account the hdb appreciation over 10 years.

 

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Joseph22

Joseph22

Turbocharged
(edited)

Dude, you assume this person can borrow 30 yrs right?

so he must be not too old. Lets say 35yrs old. Fair?

 

OK.

This means that he should have been working for about 10yrs (considering singaporean finish Uni)

Fair right?

 

OK

this means he didnt earn $100k pa for the last 10 yrs.

say 1st 2 years earn $40k

3-4th yr earn $50k

5-6th yr earn $70k

7-8th yr earn $85k

9 and 10th yr earn $100kpa

 

Considering standard expenses + car + keeping up with the Joneses etc etc

He probably saves only 10% a year spread out over the 10 yrs.

So total savings is less than $100k, throw in usable CPF say another $100k

Total $200k

 

He downpays $200k to buy a $1mil property so the loan is $800k with no cash left except the asset.

if market cracks, his life can become naught.

Walking on thin ice , dont you think?

 

By the way, we are discussing probable scenarios which in this instance makes most sense.

Which ever part you feel the scenario is not fair painted, plse feel free to discuss.

 

Buy a $1mil condo only to live like a pauper, very few people like you (and me) around lah.

 

The propose income you post look reasonable at 1 glance, but the problem is that when you take a closer look, a lot of things is miss out. Firstly, with a combine incoming of 40K, the cpf contribution will already be 80K after 10 years even if you did have any increment at all. final sum is about 138K(but could be more due to the interest). Anothing is that, some of them. their starting pay could be higher than 40K. (not much different though). but the 10% of saving is abit low from what i see the trend that most of my friends have. they are saving almost 30~50% of their saving(hearsay though). furthermore, if they had already planned in earliers years to buy a 1Mil property, they could have actually saved even more along the way. furthermore, like another brother mention on the property, they might have a hdb flat that could fetch a high prices, these things are possible.

Edited by Joseph22
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Joseph22

Joseph22

Turbocharged

I wonder why such a pessimistic guy could end up so rich.... Born with a silver spoon? or married to a silver spoon?

 

When he have nothing, he got nothing to worry about so he was optimistic and can invest and work hard as he got no worry?? but when he have a lot, his lifestyle change and suddenly feel that he has a lot of important things. now he got so many thing impt to him he fear that he will loss them, hence become pessimistic.

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Hosaybo

Hosaybo

6th Gear

frankly speaking, i find no point (my opinion) debating or trying to make calculation on the affordability of 1 million dollar house based on 100K pa income......too many assumptions and its a waste of time becos those who think they can afford that will buydespite having these calculation right in front of them..... they probably won't think of the consequences. Gamblers mentality..... just like all gamblers walking right into a casino, everyone will think that luck is with them & they gonna make a pile in the casino. Nobody goes in thinking they will loose their money

 

 

 

 

 

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Tonyhawk

Tonyhawk

1st Gear

my mum always say , any problem that can settle with money is not a real problem..... [:)]

 

wah, my father says that all the time. but unfortunately for me, its easier said then done.

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Tonyhawk

Tonyhawk

1st Gear

frankly speaking, i find no point (my opinion) debating or trying to make calculation on the affordability of 1 million dollar house based on 100K pa income......too many assumptions and its a waste of time becos those who think they can afford that will buydespite having these calculation right in front of them..... they probably won't think of the consequences. Gamblers mentality..... just like all gamblers walking right into a casino, everyone will think that luck is with them & they gonna make a pile in the casino. Nobody goes in thinking they will loose their money

 

its a forum. everything we say/do here is a waste of time. :)

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Joseph22

Joseph22

Turbocharged

frankly speaking, i find no point (my opinion) debating or trying to make calculation on the affordability of 1 million dollar house based on 100K pa income......too many assumptions and its a waste of time becos those who think they can afford that will buydespite having these calculation right in front of them..... they probably won't think of the consequences. Gamblers mentality..... just like all gamblers walking right into a casino, everyone will think that luck is with them & they gonna make a pile in the casino. Nobody goes in thinking they will loose their money

 

we are all here passing time mah. nothing to do now due to slow economic.

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Freestylers09

Freestylers09

5th Gear

i went to a taiwan fengshui master talk b4..he helped people like top 3 richest in taiwan..

 

actually he say quite true la..rich is own defination for contentment and happiness

 

he say dont think the richest pple no worries..they are more worried and stress how to keep their empire and fortune everyday and every minute..satistify by the wealth but mentally not easy to cope with

 

hmm..this article seems quite make sense too.

 

maybe tio toto or big sweep one..can be more relax ..no things to worried about [laugh]

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Throttle2

Throttle2

Supersonic

you scenario is wrong lah. you forgot the hdb super appreciation over the past 10 years. That is the MAJOR factor. Lets say he saves 10%. so he have 100k cash. Another 12-4% and cpf 10% goes into housing loan which comes up to 230k. So he paid of his hdb loan of 170k (minus grant) 100%. A 200k hdb new flat is probably worth 400k right now. So with 100k cash and 400k flat they have only need to take 500k loan for a new condo provided they sell the hdb.

 

U ask who here have done it, well I just sold off my EC for 0.9 mil to a young couple who have a pungol flat. I think their income does not look very high.

 

Seriously, I think it is easily done if you take into account the hdb appreciation over 10 years.

 

To begin I dont disagree. my scenario is there as a base for forumers to add on.

I thought I made that quite clear.

 

but if assume he bot HDB 10 yrs ago means he got married at 25 and in debt since 10 yrs ago, have wife since 10 yrs ago. etc etc etc...maybe he cant even save a cent. and perhaps it is not a realistic scenario of someone who may earn $100pa by age of 33. or maybe such a person wont have such a risk profile that enables him to get where he is? we're looking for a most probable scenario, you see.

 

anyway if he is on leverage and geared up.

his car doesnt belong to him and his savings are not really there .

then it's about leverage

 

bottomline is once we start to discuss the matter largely on leverage factors, then no point already.

becos gearing is about risk profiles not some much about real affordability.

 

 

Therefore, we need a 'live' example of someone with a household income of $100k pa and have bot a condo of $1mil to stand out and then we can see how he did it and what his circumstances were. like a case study. Just for discussion purposes only. for fun, happy happy and also learn something maybe.

 

dont be too serious in MCf.

 

 

 

 

 

 

 

 

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Throttle2

Throttle2

Supersonic

Affordability means different things to different people.

 

The young couple who bot the 0.9mil EC from you wind30 may be sacrficing many things for it. and living a slaves life. or maybe parents help? we dont know.

just like how some people buy their cars.

through huge loans and miserable lifestyles....

if thats what affordability means, ok I zip up.

 

anyway, i just think many people here should watch "money no enough" again.

 

i reckon, no one is taking any offence here....just "forumming" ok

 

hahah

 

 

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