Which Direction Will Property Prices Go ?

[drkcynic]

Whilst property may seem like a sure bet to park your money, it is often because owners don't explore other options.
Remember to add all kinds of costs and see if other options can deliver 2.5% and higher.
Otherwise even CPF will give you that.

Say your nett rental yield for a 1m property is 2.5%, it is 25k a year though, which you only need 250k cash/cpf + a housing loan to secure. Slightly more risk because you have a loan to service and all the considerations that comes with being a landlord.

Meanwhile CPF returns is only off 250k of CPF monies, returns is signficantly lower and of course CPF is subjected to government flip flops.

 

[Thanooors]

Seems like the moderator are not keen when people buy property for investment.

The market have no ears. Posting rubbish here no tangible effect on property prices.

Just make you feel shiok shiok

 

[Whatiff]

Say your nett rental yield for a 1m property is 2.5%, it is 25k a year though, which you only need 250k cash/cpf + a housing loan to secure. Slightly more risk because you have a loan to service and all the considerations that comes with being a landlord.

Meanwhile CPF returns is only off 250k of CPF monies, returns is signficantly lower and of course CPF is subjected to government flip flops.

Hello there, please educate me here. Is the 2.5% interest on CPF OA only up to the first 250k? Any cap on the 4% earned in SA?

 

[surferpunk]

Hello there, please educate me here. Is the 2.5% interest on CPF OA only up to the first 250k? Any cap on the 4% earned in SA?

lol.. he's just using the $250k as the outlay for either investment.

250k to buy a 1m property. rental yield of 2.5% is about 25k. so it's 25k out of 250k, brings about 10%!

but if park in cpf, that 250k will only bring about 2.5%.

 

[Afro69]

lol.. he's just using the $250k as the outlay for either investment.

250k to buy a 1m property. rental yield of 2.5% is about 25k. so it's 25k out of 250k, brings about 10%!

but if park in cpf, that 250k will only bring about 2.5%.

Don't forget If one uses CPF 250k, need to pay back sum+compunded interest for the period too, so it's not a 10% so simple.

 

[jackycar]

So funny，still got people dreaming thinking property price will drop.

U know hdb resale price is moving up?

U know enbloc owners looking to buy houses to replace the homes?

U know the effect of low interest rates?

Perhaps in your dream then prices will drop.
Already 20 years still got so many people dreaming. Wake up, dont ask obvious qns.

Must be salty agent

 

[wetdreamx]

Must be salty agent

Waiting Penrose 5 years later psf $800!!!

 

[IamLucy]

Wa... $800 or $1.8k

Waiting Penrose 5 years later psf $800!!!

 

[drkcynic]

Don't forget If one uses CPF 250k, need to pay back sum+compunded interest for the period too, so it's not a 10% so simple.

You don't have to pay it back until you sell your unit. Even when you do, it just gets added back to your OA for your next property purchase, or for your retirement.

 

[bolster]

You don't have to pay it back until you sell your unit. Even when you do, it just gets added back to your OA for your next property purchase, or for your retirement.

If you sell your house after 55 yrs old, do you still need to pay back if a person already has minimum sum?

 

[lockks]

Must be salty agent

U really dont know how to read sg property market. U can forget about buying 1. Stay in hdb please. Private please stay out.

 

[PropExpert]

If you sell your house after 55 yrs old, do you still need to pay back if a person already has minimum sum?

U can draw them out already, if you had meet the minimum sum.

 

[1993newbie]

Shoebox apartment market down on recession shakeout

https://www.businesstimes.com.sg/real-estate/shoebox-apartment-market-down-on-recession-shakeout

 

[bujingyun82]

https://dollarsandsense.sg/good-time-buy-condominium-4q2020/

 

[bujingyun82]

https://www.todayonline.com/comment...TxaqNykRzsBRxTH2C2Ay9XCDKzKqZRrLUS6Lri-PM1vkc

 

[Polar Bear King]

SG is progressing well going up
flat price will sure go up

when a country dying down then everything will down spiral don't need to ask

 

[1993newbie]

Private property prices up 0.8% in Q3: URA flash estimates

https://www.channelnewsasia.com/new...UvUelfAq9RQcpERwBRkiBXIjus_DGSDUsQr350pc9LRRc

 

[1993newbie]

HDB resale prices rise 1.4%: Flash data

https://www.straitstimes.com/singap...n=STFB&utm_source=Facebook#Echobox=1601515370

 

[petetherock]

https://www.channelnewsasia.com/new...erest-buying-property-car-bank-loans-13162720

Low interests will drive the excitement..
And most people can't find other instruments of investment easily..
Plus the people grabbing the units out there feel that the current crisis doesn't affect them.
And true enough, there are quite a few with deeper pockets and stable jobs.
The job attrition will hit 10-25% but that leaves a lot more people with money and they like property.

 

[d5dude]

Actually I agree with petetherock. Long term (10 years) quite likely to be up but short term don’t know. The trick is to invest for long term. It is also extremely important to find “good” tenants and property agents. Property is an over leverage segment. Government don’t want it to fail because it will affect their beloved banks. If property is like stock market (less leverage), government don’t really care. If investor die, then their problem

One can also easily make the argument that gov dun want property prices to skyrocket, so any upside will be capped, stocks OTOH, have no cap to upside.

I think regardless of short term or long term the days of big gains from property is long gone, the biggest increase in population was from early 2000s to mid 2010s, with the pandemic and rising anger over foreigners its hard to see such population spikes again. In fact I dun think the population will even be anywhere near 6.9m by 2030.

Property prices will likely continue to move sideways like its been for the last few years, this is my base case scenario, its predicated on the assumption that the pandemic will be going away soon (with a vaccine), things are a lot more grim if the pandemic stays with us for 5 or more years.