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Old 27-07-2019, 08:06 AM   #1366
NiShiZhu
Senior Member
 
Join Date: Jan 2005
Posts: 1,141

Just curious that many commented that this is not the right time of entry and yet we see many buyers jumping in. Forced to buy? Why?
My Guess:
1) Getting used to it:
When new CMs was initially imposed, it just a matter of time for buyers to get used to it. So initially, u will see a period of tug of war between the buyers and sellers/Developers. (Also known as Knee jerk effect). But that does not mean all quit buying. Mindset takes time to change and adjust. In our Long chain of CMs imposed, did we see any major price correction so far?

2) human are forgetful and kiasu animals:
Didn’t we all learn from 2013 CM when TDSR and 7%ABSD was imposed? I always thought that’s the Mother of all CMs and would put the last nail into the property coffin. Never did I expect people are still buying with 7%ABSD, queuing up overnight at PC, RF and Stirling, thinking that they will get a good deal before 12%ABSD kicks in.

3) Genuine young home buyers:
Of course we can’t dispute there are such group buying for self stay.
Many singles I knew enjoys privacy and move out from parents. Instead of splurging money on depreciating items such as buying luxury cars or other luxury items, wouldn’t it be more practical to invest on something that has possibility of appreciating?

4) HDB upgraders:
Just like the American dreams, buying property is singaporean’s Dream. It’s already in our DNA. Many Singaporean aspired to upgrade from HDB to condos. Many felt that since they are already Working so hard, don’t they deserve some changes in life? Anyway, we only live once. Of course, this point is rather subjective. Different folks, different strokes. Some wants to be loan free as early as possible. That said, unless u really know how to make your money/savings work as hard to hedge against inflation and grant you an early/comfortable retirement plan. However, Not many are as savvy and equipped with such knowledge.

5) leveraging
Besides buying property, no other forms of investment mechanisms can get you a loan as high as you can get from bank. Many believes it’s the best way to hedge against inflation rather than letting money rot in bank.

Trying to understand from the psychological angle rather than just looking at the logical aspects probably will help u understand better why people are still buying. Recently, 3 of my ex colleagues just called me up to ask me details on decoupling as they all have fully paid off their property. All intend to buy their second.

Also interesting to note that the Florence thread recently has came back to life again.

People like me or those who are Long enough in property are not buying now has our own reason and rationale. But I know one person cannot talk up or talk down the property market. It is driven by public sentiments.
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Last edited by NiShiZhu; 27-07-2019 at 08:42 AM..
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