No more property discussions ?

[Mecisteus]

If it is really true that the number has said it all after the latest property cooling measure in 2018 (which is really no different from that of implemented in 2013, 2014, 2015, 2016, and 2017!), then there is really no need for latest property cooling measure in 2018 because the problem would have been cured long ago in 2013 after that first property cooling measure!

I guess the FED is so dumb to raise interest rates multiple times in a heated economy.

Since interest rates go up multiple times, it must be an ineffective tool to combat inflation.

 

[cscs3]

I guess the FED is so dumb to raise interest rates multiple times in a heated economy.

Since interest rates go up multiple times, it must be an ineffective tool to combat inflation.

As always, when economy become hot, it is the best time to raise interest to cool down to prevent bubble. Otherwise, more people will get burnt!

 

[Mergui219067]

New private home sales jump 42% in September
http://www.channelnewsasia.com/news/singapore/new-private-home-sales-jump-42-september-ura-10828422

 

[ELKYme]

No doubt property investment is still a great de-facto investment as what the link shows. Asians just loves to buy properties.

In fact, CapitaLand and SPH have also been actively buying up properties beginning this year:
http://theindependent.sg/temasek-holdings-and-gic-on-worldwide-buying-spree/

However, it is really unlikely (if not impossible) to get 25-30% compounded annualised return in property over the long-term as a forummer claimed, here’s why:
Assuming he bought a 100K property 25 years ago, he would need to sell it at 26.5 million today in order to have a 25% PA compounded appreciation.
Even Warren Buffett would want a piece of that action if it the gains are consistent for the long-term.

Perhaps the forummer that claimed he made 25%~30% profit, he did make those gains, but only for 2 or 3 years if he had bought the properties during the 1997 crisis.

New private home sales jump 42% in September
http://www.channelnewsasia.com/news/singapore/new-private-home-sales-jump-42-september-ura-10828422

 

[Mergui219067]

No 10-20% drop ?

 

[ELKYme]

Yes Bro, 10%~20% drop is always possible, similar to the stock market. However would not affect long-term investors at all (Have time & holding power).

Click on ‘max’ in the chart within, statistically it shows that holding on to Singapore properties have been profitable if one has a 20 year or more holding period.
https://tradingeconomics.com/singapore/housing-index

No 10-20% drop ?

 

[NewInvestor]

Yes Bro, 10%~20% drop is always possible, similar to the stock market. However would not affect long-term investors at all (Have time & holding power).

Click on ‘max’ in the chart within, statistically it shows that holding on to Singapore properties have been profitable if one has a 20 year or more holding period.
https://tradingeconomics.com/singapore/housing-index

Yes, has to be at least 20 years holding horizon. Then the chances of making money is good.

 

[Mergui219067]

Actually buying for own stay is fairly okay .

Imagine paying $2-4K rental monthly
( $24k-48k for your happy landlord a year! ) while hoping for a property crash which may never come at all .

 

[NewInvestor]

Actually buying for own stay is fairly okay .

Imagine paying $2-4K rental monthly
( $24k-48k for your happy landlord a year! ) while hoping for a property crash which may never come at all .

Property crash will eventually come. We just don't know when.

 

[SBC]

Is not easy to crash a market.
See stock Mkt last week, drops less than 5% only.

 

[revhappy]

I wonder US has raised rates so much already, what has been the impact on SG borrowers so far? Did you guys feel any pinch?

Sent from Dont Take Any Of My Statment As Investment Advice. Do Your Own Due Diligence. using GAGT

 

[xiaofan]

The interest is still low, actually mostly still below or similar to the HDB rate of 2.6%.

And with the new Cold War between US and China (more than a trade war now), the economy growth will slow down in Asia — interest rate in SG will go up a bit but not so much.

 

[Mergui219067]

See from someone who is renting one but eyeing a crash .

The cost of renting one since its peak a number of years ago + DON’T KNOW WHEN = happy landlords like you thanking them for your frequent Europe holidays.

Property crash will eventually come. We just don't know when.

 

[revhappy]

The interest is still low, actually mostly still below or similar to the HDB rate of 2.6%.

And with the new Cold War between US and China (more than a trade war now), the economy growth will slow down in Asia — interest rate in SG will go up a bit but not so much.

Does another 1% increase make any difference? I believe Fed will increase rates by 1% in the next 1 year

Sent from Dont Take Any Of My Statment As Investment Advice. Do Your Own Due Diligence. using GAGT

 

[Mergui219067]

HDB loan is 2.6% .
It has to move up sooner or later .

Bank loans will still be cheaper.

 

[xiaofan]

I do not believe the interests rate will not raise that much in SG, and unlikely in US too — they need to pay for the price with the trade war as well.

Anyway, I do not think most of the people will be really hit that much with 1% interest rate increase.

Rather those who rely on the rental will more hit by the MOM curb of EP/PR and the influx of new units.

 

[NewInvestor]

I wonder US has raised rates so much already, what has been the impact on SG borrowers so far? Did you guys feel any pinch?

Sent from Dont Take Any Of My Statment As Investment Advice. Do Your Own Due Diligence. using GAGT

Seriously, so far interest rate increase only feel like antbite. The increase in dollar terms is quite insignificant. And I do not think that rising interest rates will cause a property crash unless it goes to 8% or something like that. I doubt it will reach that level; I can see it going to something like 5% though - which will cause a strain but not a collapse.

It will have to be some other factors combined with rising interest rate which may cause a collapse.

One factor to note. Many people have been getting and will continue to get their en bloc monies until Q1 2019. About $10B into people's hands? Given current sentiments, it would not surprise me that people will generally downgrade or be otherwise conservative. Hence, there will be a lot cash held conservatively in bank FDs, SGS, etc.

You have to take these into consideration if you are waiting for a property crash.

 

[NewInvestor]

See from someone who is renting one but eyeing a crash .

The cost of renting one since its peak a number of years ago + DON’T KNOW WHEN = happy landlords like you thanking them for your frequent Europe holidays.

Hello. I am not renting. I own my own home. Lol. Don't be so hopeful.

 

[NewInvestor]

Does another 1% increase make any difference? I believe Fed will increase rates by 1% in the next 1 year

Sent from Dont Take Any Of My Statment As Investment Advice. Do Your Own Due Diligence. using GAGT

On a one million loan, 1% more means $10K per annum increase in payments. Not significant to the total monthly payment to bank........YET.

 

[xiaofan]

If there is another economy crisis, then probably there will be a crash (eg: 1998, 2009). And another crisis is really possible based on 10 year cycle...