Gendut 2nd Gear July 18, 2010 Share July 18, 2010 It dawned on me a few months back on how rapid and surreal the rise is property prices are in Singapore. Being an older citizen and someone who has undergone thru a few property cycles, I dread to look into my crystal ball. But I shall not say what I see in the crytal ball but instead I shall lay down some pitfalls our younger generation may get into. 1) Why are the prices rising? In the past, property rise wasn't as rapid as currently. If you think about it, past rises (before mid 80s) were very mild. Even back then the economy was doing well but prices didnt shoot thru the roof! There wasn't many FT importation. So the increase was mainly due to inflation, slowly growing number of citizens and HDB's supply of new units. Currently, the biggest factor leading to escalation is the welcoming of FT. You gotta house an additional 1+ million, there is no way prices wont move. 2) Is the number of FT import increasing? The ans is YES!. As long as we hit double digit growth. But the moment those numbers drop.....watch out! Because we are soplugged into the worlds economy that any little tremor in any market, we will get hit. China, India, Euro, US, SEA....any one of these can potentially devastate us. But the rise in FT number can also not be sustainable. Imaging importing until 10million resisdents? Our physical constarints can never be removed. But what will happen when we hit the limit.....say 6million then stop importing? What happens to property values? They will stagnate or slide just like the early 80s. Then what happens to our younger citizens who bought at inflated prices? They have tied up all their income into just paying the mortgage of 40+years. Once an inflation peak comes, interest rates bumps to 9% ( as it has happen previously) many will be unable to pay their interest, let alone the principal. Many will lose their roofs over their heads. Or if they lose their jobs. Or if theyre retrenched. Or if the get hit will long term illness. Then those who are just able to barely escape all these will find their CPF nestegg empty. All of which have been used up in paying interests. They will have nothing for retirement. The govt will then cajole them to rent, sell or give it to insurance co, just so they can have something to eat. 3) Conclusion? In the future there will be many an FT going back. They will liquidate, esp during a recession. I advise citizens to pay off their mortgage asap of take the least amount of loans possible. Save those bullets for a rainy day. Save it to buy back those property being sold cheap by the returning FTs. Take back your country. When the upturn comes, rent it back at ridiculous $$$. ↡ Advertisement Link to post Share on other sites More sharing options...
macrosszero Turbocharged July 18, 2010 Share July 18, 2010 So, what do you suggest the young of today do - those that are starting their own family unit? What would you do? Link to post Share on other sites More sharing options...
Babyckh 5th Gear July 18, 2010 Share July 18, 2010 Restart the system... vote out those pigs... get at least 2/3 opposition in to transparent them... Link to post Share on other sites More sharing options...
Maroon5 5th Gear July 18, 2010 Share July 18, 2010 restart the system sounds good.. Link to post Share on other sites More sharing options...
Maroon5 5th Gear July 18, 2010 Share July 18, 2010 anyw dun underestimate the lure of singapore in the eyes of the FT wannabes...yes 1million may go but easily another few million willing to take their place.... Link to post Share on other sites More sharing options...
The_Bear Turbocharged July 18, 2010 Share July 18, 2010 restart the system sounds good.. Philiphines rebooted after Marcos. Indonesia rebooted after Suharto. Beware of what you wish for. Link to post Share on other sites More sharing options...
Sdf5725 1st Gear July 18, 2010 Share July 18, 2010 I advise citizens to pay off their mortgage asap of take the least amount of loans possible. Save those bullets for a rainy day. Save it to buy back those property being sold cheap by the returning FTs. Take back your country. When the upturn comes, rent it back at ridiculous $$$. Can the ppl nowadays so easily pay off their mortgage? Can they easily save those bullets now? These two are contradiction. Most of the ppl even have a difficulties to save bullets, not to mention to pay off their mortgage. Link to post Share on other sites More sharing options...
Tigerwoods Turbocharged July 18, 2010 Share July 18, 2010 Whatever Appreciation you get for your HDB flat will be a fraction of the debt your children has to bear. Unless you are one of the millionaires in Spore. Link to post Share on other sites More sharing options...
Tigerwoods Turbocharged July 18, 2010 Share July 18, 2010 Philiphines rebooted after Marcos. Indonesia rebooted after Suharto. Beware of what you wish for. Singapore cleaned after a few Floods ? Link to post Share on other sites More sharing options...
Ssbcc 1st Gear July 18, 2010 Share July 18, 2010 Restart the system... vote out those pigs... get at least 2/3 opposition in to transparent them... Don't see this happening anytime soon... Link to post Share on other sites More sharing options...
Pufferfish1 Clutched July 18, 2010 Share July 18, 2010 just like animal farm.......the pigs install fear and threats to maintain control Link to post Share on other sites More sharing options...
Kb27 Supersonic July 18, 2010 Share July 18, 2010 I agree with your thoughts. However, the young who have just started out in the work force has not much choice. For those without even a hdb flat, they are suckered in with high price. For those who are able, they should think about getting a job elsewhere out of this country and make a possible 2nd home. Bail out now. Perhaps they can even come back when the bubble burst catch up with this country. Link to post Share on other sites More sharing options...
Kb27 Supersonic July 18, 2010 Share July 18, 2010 When the housing price bubble burst, PM can say the same thing. You can't expect no floods, neither can you expect no property downturn. Easy words to utter. Link to post Share on other sites More sharing options...
SimonTan 2nd Gear July 18, 2010 Share July 18, 2010 The fact that the population is still increasing towards 6 million, so the property market will still rise. Want to make money, best to do it before the 6million is reached. Once its reached, maybe by 2015, the plateau of demand will be reached. The housing will then be sustained by the newborn population. We can argue that a huge base of 6millions will also have more % of babies each year to sustain the demand for properties. I still think that if I had money, I would buy a private property NOW, and let go for profit when the gov announced the 6milliong figure is reached! Make some money now while the population is still growing. Link to post Share on other sites More sharing options...
The_Bear Turbocharged July 18, 2010 Share July 18, 2010 I agree with your thoughts. However, the young who have just started out in the work force has not much choice. For those without even a hdb flat, they are suckered in with high price. For those who are able, they should think about getting a job elsewhere out of this country and make a possible 2nd home. Bail out now. Perhaps they can even come back when the bubble burst catch up with this country. Japan, especially the urban areas will be a good guide on what is going to happen in the near future. Link to post Share on other sites More sharing options...
Yuan 6th Gear July 18, 2010 Share July 18, 2010 (edited) Singapore cleaned after a few Floods ? The floods are still on-going. Edited July 18, 2010 by Yuan Link to post Share on other sites More sharing options...
The_Bear Turbocharged July 18, 2010 Share July 18, 2010 The floods are still on-going. strange, right? We have not had such floods for many years. Ever since the Bt Timah drains were done. Something we screwed up or its just the monsoon this year especially heavy? Link to post Share on other sites More sharing options...
Tigerwoods Turbocharged July 18, 2010 Share July 18, 2010 The fact that the population is still increasing towards 6 million, so the property market will still rise. Want to make money, best to do it before the 6million is reached. Once its reached, maybe by 2015, the plateau of demand will be reached. The housing will then be sustained by the newborn population. We can argue that a huge base of 6millions will also have more % of babies each year to sustain the demand for properties. I still think that if I had money, I would buy a private property NOW, and let go for profit when the gov announced the 6milliong figure is reached! Make some money now while the population is still growing. Simon, This is exactly the million $ question for 80% of Singaporeans : IF ↡ Advertisement Link to post Share on other sites More sharing options...
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