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sibor is getting phased out!


Wind30
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Talking about rentals I was told during the CB rentals for renewal actually went up because tenants can’t move and were held hostage!  Sibeh chek ark 

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41 minutes ago, Wind30 said:

 

unfortunately , time and time again history has shown when you reduce interest rate to so low, people will take on debt... its a no brainer once you work out the numbers. 

 

Haha bro, I'm too low socioeconomic status (SES), even loan sharks also don't want to lend me money.

How to have a debt :XD:

 

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(edited)
1 hour ago, Wind30 said:

 

unfortunately , time and time again history has shown when you reduce interest rate to so low, people will take on debt... its a no brainer once you work out the numbers. 

 

Time and time again, history has shown that people who get too far into debt during good times will suffer during the bad. 

And history has also shown that banks get bailed out by the people (tax money) but the reverse almost never happens - I believe it would take a violent revolution to make that happen. So the relationship between banks and common borrowers will always be asymmetrical in power and security.

Edited by Turboflat4
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50 minutes ago, Turboflat4 said:

Time and time again, history has shown that people who get too far into debt during good times will suffer during the bad. 

And history has also shown that banks get bailed out by the people (tax money) but the reverse almost never happens - I believe it would take a violent revolution to make that happen. So the relationship between banks and common borrowers will always be asymmetrical in power and security.

Under current solvency regime, the likelihood of bank bailout is low.

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Twincharged
(edited)
4 hours ago, Turboflat4 said:

Your guys are FT or locals? 

My rental property was tenanted by Koreans till they found the rental too ex and went to a smaller place also in D10. That actually happened a bit before COVID-19 was in full swing as such. It's now occupied by an SG family. 

My previous tenants have been Koreans till very recently. Interesting. I think something fundamental is changing (and will change even more drastically) and it doesn't bode well for rental demand, especially if it's mainly expat driven. Despite my own rental income being affected, I'm still able to accept the likelihood of what's to come.

There are also many ang moh downgrade.. That time I fetch one ang moh at marine parade, pickup point at hdb.. Its a multi-stop. So 1st stop I presume is fetch gf.. Then after 1st stop and along the way up expressway.. He told her gf that condo is I last time stay there.. 

Edited by Yewheng
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(edited)
1 hour ago, inlinesix said:

Under current solvency regime, the likelihood of bank bailout is low.

Sorry - just to understand your post, do you mean likelihood an sg bank will ever need a bailout is low? I agree. They're quite careful in general. 

But in the scenario that they actually do need help, I'm sure they'll get it. Gahmen won't turn their back on them. Imagine if DBS fails.

But I'm no economist, as I've said. I just go by historical precedent. Thankfully this has never been tested here.

Edited by Turboflat4
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3 hours ago, Turboflat4 said:

Your guys are FT or locals? 

My rental property was tenanted by Koreans till they found the rental too ex and went to a smaller place also in D10. That actually happened a bit before COVID-19 was in full swing as such. It's now occupied by an SG family. 

My previous tenants have been Koreans till very recently. Interesting. I think something fundamental is changing (and will change even more drastically) and it doesn't bode well for rental demand, especially if it's mainly expat driven. Despite my own rental income being affected, I'm still able to accept the likelihood of what's to come.

I never touch D9, D10 because I have always believed that in the worst of times, people tend to see the viability of downgrade to fringe or outskirts.

In good times, do build your buffer.

A huge number of Singaporeans are renting now, at least in part due to the effects of the cooling measures. The pent up demand together with the stranded Malaysians in SG will continue to push base rental demand. Remember I am talking base rental, not luxury rental.

If cater to entry level rental (SG, Malaysians and base foreigners), something like 1.8 to 3.5k per month, the demand is Super hot! I have agent friends and relatives cannot find unit. In fact, many potential tenants are coming through word of mouth.

But of course to the very rich, these may not even be considered money. 

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3 hours ago, Windwaver said:

It never will, it's amazing how I see so many people think it will go back to pre_COVID days.

For my age, I think I'm very adaptable but reality is no matter how many re-trainings or career coach I see will not change that number call age (which is still increasing).

Our country always full of young foreigners (SYT), where got need for old folks.

Oh, better not have any debt after 40 so no need to worry about what SIBOR, SORA, KOTEX, Laurier, Whisper, etc :grin:

 

If you strive to be stress free in 40s, then you gotta be stressed in your 70s.

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Twincharged
(edited)
3 hours ago, Windwaver said:

It never will, it's amazing how I see so many people think it will go back to pre_COVID days.

For my age, I think I'm very adaptable but reality is no matter how many re-trainings or career coach I see will not change that number call age (which is still increasing).

Our country always full of young foreigners (SYT), where got need for old folks.

Oh, better not have any debt after 40 so no need to worry about what SIBOR, SORA, KOTEX, Laurier, Whisper, etc :grin:

 

Come to think of it.. Elon musk is hiring full time AI programmer.. So he is accelerating towards AI.. Perhaps after covid-19.. The next big thing we need to watch out for is AI that soon to be in the mix. 

Edited by Yewheng
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Turbocharged
(edited)
9 hours ago, Turboflat4 said:

Time and time again, history has shown that people who get too far into debt during good times will suffer during the bad. 

And history has also shown that banks get bailed out by the people (tax money) but the reverse almost never happens - I believe it would take a violent revolution to make that happen. So the relationship between banks and common borrowers will always be asymmetrical in power and security.

that is why when I bought my 2nd property I was thinking what happens when interest rate spikes... I have post so many stuff about that scenario. 

To me, I was far more worried about interest rate spiking (USA doing really well but Singapore for one reason or another screwed up). Covid although bad at least affected the whole world and interest rate isn't going up anytime soon. 

I disagree about people not getting bailed out. In the last financial crisis, interest rate dropped to near zero in Singapore. That is eating into the profits of Banks and kind of bailing out the people with loans. Of course we are not talking about people who default on loans but there is LOTS of measures to help borrowers  

I hear rumors that SMEs flushed with singapore government bailout cash is buying property... If you look at the amount of money the government is pumping out, not all SMEs are equally affected and yet the government is just giving money across the board... Some companies even return money to government... I don't think most of them are that nice. 

Edited by Wind30
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8 hours ago, Turboflat4 said:

Sorry - just to understand your post, do you mean likelihood an sg bank will ever need a bailout is low? I agree. They're quite careful in general. 

But in the scenario that they actually do need help, I'm sure they'll get it. Gahmen won't turn their back on them. Imagine if DBS fails.

But I'm no economist, as I've said. I just go by historical precedent. Thankfully this has never been tested here.

Under currency solvency regime, there is a stress test that need to be done.

If the bank fail in 1 of the stress test, Board of Directors need to provide remedial plan.

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2 hours ago, Wind30 said:

that is why when I bought my 2nd property I was thinking what happens when interest rate spikes... I have post so many stuff about that scenario. 

To me, I was far more worried about interest rate spiking (USA doing really well but Singapore for one reason or another screwed up). Covid although bad at least affected the whole world and interest rate isn't going up anytime soon. 

I disagree about people not getting bailed out. In the last financial crisis, interest rate dropped to near zero in Singapore. That is eating into the profits of Banks and kind of bailing out the people with loans. Of course we are not talking about people who default on loans but there is LOTS of measures to help borrowers  

I hear rumors that SMEs flushed with singapore government bailout cash is buying property... If you look at the amount of money the government is pumping out, not all SMEs are equally affected and yet the government is just giving money across the board... Some companies even return money to government... I don't think most of them are that nice. 

You will never look back if you are able to differentiate between the words of those who really mean well and those that are just pure acid.

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Bit puzzled by this. 

After the lock-in period for 2 years, the bank can unilaterally change any agreement (and that is if they make a commitment to keep to the spread).
Whether it's the spread. Whether it's SIBOR or whatever, it can be changed. 

Do people think that lock-in means guaranteed interest rate for perpetuity? The average less educated average joe who only deals with HDB loans, sure...
 

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8 minutes ago, Lala81 said:

Bit puzzled by this. 

After the lock-in period for 2 years, the bank can unilaterally change any agreement (and that is if they make a commitment to keep to the spread).
Whether it's the spread. Whether it's SIBOR or whatever, it can be changed. 

Do people think that lock-in means guaranteed interest rate for perpetuity? The average less educated average joe who only deals with HDB loans, sure...

A lot of ppl moves out of HDB loan as it is cheaper outside.

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Bank wins. 
Refer to the loans factsheet if you still have it. 

Your FI may choose to revise the type of reference rate or spread or both only under the following circumstances:

if the reference rate in this contract is no longer available

So once Sibor is phase out, they can change to any other reference rates. Whether or not the all in rate would be same as your current rate, nobody knows

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If you are whining about interest rates on your mortgage, you are probably buying something you can't afford. Sorry, hard truth.

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1 minute ago, Weez911 said:

If you are whining about interest rates on your mortgage, you are probably buying something you can't afford. Sorry, hard truth.

Bro this is not true lah, I whine about my Kopi price go up 10 ct also .  

I get where @wind30 is coming from- it’s basically heads we win tail you lose for the   Banks.  My way to deal with it is to own bank stocks 😜

 

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5 minutes ago, Chongster said:

Bro this is not true lah, I whine about my Kopi price go up 10 ct also .  

I get where @wind30 is coming from- it’s basically heads we win tail you lose for the   Banks.  My way to deal with it is to own bank stocks 😜

 

I have never seen you creating thread on the 10c increase in kopi.

Edited by Weez911
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