Current property price wil 'reduce' birth rate ofSingaporean

last SG · 2010-07-27T09:43:26+00:00

halo peng yew, combine income of $9K can't afford??!!!You buying 5-room condo in Orchard area ah??there are ppl whom combine income last than 2.5k hor..... h...

eagle SG

Told by a property agent just last night:

When foreigners come in as PRs, they buy the resale flat. Then when they get citizenship 1-5 years later, they apply for the new flat which is much cheaper coupled with subsidies. And they sell the old flat, making a handsome profit because of property prices rising like hell over the past few years. These are the ones who can pay a hefty COV and create an upward pressure on property prices.

Loophole? It definitely is.

The agent snook you la. They will be considered as 2nd timer applicants, assuming they took up the CPF housing grant, which mean an income ceiling of $8k.

The probability of getting a new flat from HDB recently as a 2nd timer is low too.

the Bear SG

apart from what eagle has said, if they can afford the initial COV and the payment monthly, good.. because for new PRs, the probably won't have any CPF

and if they can do that, and they go for the "BTO" place, they are put to the end of the queue..

and mostly if they could afford the initial COV and payments in the first place, you think their collective income is less than $8k?

eagle SG

When property price increases, there will always be two groups of people - Buyer and Sellers.

The Sellers are happy that they made a Handsome profit, while the Buyer will be unhappy that they need to pay more for a unit. Competition is very real in Singapore, there are people who are richer than you, in fact better than you. The "Welcome" policy of our government surely did not help the property prices as more Foreign/PRs compete in the Market.

At the end of the day, its the chicken and egg senario. No house, New couples will delay marriage thus risk having no children, on the other hand, Government wanted concrete population solution rather than "Forces of Nature" They decides to allow more New Citizens. New Citizens takes up properties as they call this place their HOME.

You are generalising. It's not necessary that the Buyer will be unhappy.

The Buyer can also be happy because they think they bought cheap. Paying more doesn't mean it's not cheap in their eyes. They will just think the Seller is dumb to sell at a small profit.

Juzathought SG

I doubt abt the 'Happy Buyer' part... because, ultimately, they have to calculate and pay and will realise 'woW' what an expensive house they have bought with their income (have to take like 30yrs to clear the loans and interests).. people who buy happily are probably people who speculate and think they'r able to sell at profit soon... but how soon, we don't know... heard dat private property sale is slowing... but HDB is still going strong.. if COV don't come down, it'll kill off people.. An agent told me some Chinese (from China) came and pay CASH upfront for down payment.. which is like telling everyone they're damn cash rich n buying our houses!

eagle SG

Ultimately, it depends on your goals, timeframe, horizon, strategy.

There's more to it than we can see on the surface. I'm fortunate to have been in contact with two millionaire property investors recently and understood their thoughts and mindsets, on top of 1 experienced property agent who shared something extra with me.

Ä«Õß:¸ïÀë SG

Its quite true..... my boss, China Nationality, both PR pay 45k~~50k COV to buy a 4-room flat. Although they grumble, but she told me its much more cheaper than buying a house in China! And since the agent is my friend, he have found some info that the couple is holding 100k cash, ready to throw in as COV!

Rock^Star SG

The agent snook you la. They will be considered as 2nd timer applicants, assuming they took up the CPF housing grant, which mean an income ceiling of $8k.

The probability of getting a new flat from HDB recently as a 2nd timer is low too.

Is that? Hmm icic....well, it was just a casual conversation. Just one of those catch up with singaporeans overseas about life back home thingy :) The way he was telling me, it was as if it's pretty easy to get the new flat for 2nd timers.

eagle SG

5 yrs ago, maybe

Now, many first timers also find it hard to get liao... Punggol Waterfront can be 18 times oversubscribed. Ulu places also 3 times oversubscribed.

the Bear SG

some of them, it's not their own money.. it's their extended clan's money..

they see it an investment...

the couple comes in, get PR, throw that money on a house.. and becomes the anchor where they slowly bring the whole clan over

that's the payoff for the clan

Arapahoe SG

With the massive printing of currencies, there could be massive inflation. In the long run, gold and property and other precious metals will rise.

There are some who says we are at the end of a 10 year property, yet there are also some who says we are at the beginning of a 20 year property cycle. Who to believe?

You don't have to look far i don't buy the property cycle. why....simple reason we are still not out of the Wood yet. Property value will go up so long as cheap financing and economics "Growth"

The Growth Factor may not last very long into next year. If N.A is not growing so is a slow down in Trade from Asia.

Cheap financing as you mention keep inflation low rise in interest rate.

overseas wealth fund park where the money is Safe. If we are not enjoying returned to cover the debt. The risk level look equally high.............

The biggest financial news story out of the Europe this summer is getting very little play in the U.S. mainstream press. However, it has the potential to torpedo the European Union (EU), and has disastrous implications for borrowing costs worldwide.

Basically, a miniature banking crisis is festering in Hungary. If it isn't contained, it could grow into a genuine crisis that infects the secondary lending markets around the world.

Ä«Õß:¸ïÀë SG

some of them, it's not their own money.. it's their extended clan's money..

they see it an investment...

the couple comes in, get PR, throw that money on a house.. and becomes the anchor where they slowly bring the whole clan over

that's the payoff for the clan

I agree in some points there, like the investment part.

She told me they won't stay long in SIN bcos the hubby can;t stand the hot weather, then i ask why buy the flat?

She say the flat can be rented out next time to help generate axtra $$$$$

That's really enlightment me!!

They are well prepared when coming over.......really fucking brilliant!!

Disman SG

I agree in some points there, like the investment part.

She told me they won't stay long in SIN bcos the hubby can;t stand the hot weather, then i ask why buy the flat?

She say the flat can be rented out next time to help generate axtra $$$$$

That's really enlightment me!!

They are well prepared when coming over.......really fucking brilliant!!

china house i unit in peiking, tianjing, shanghai - all 7 digit sing not rmb

these are the rich people

they can be very nice or very nasty to anyone

eagle SG

You don't have to look far i don't buy the property cycle. why....simple reason we are still not out of the Wood yet. Property value will go up so long as cheap financing and economics "Growth"

The Growth Factor may not last very long into next year. If N.A is not growing so is a slow down in Trade from Asia.

Cheap financing as you mention keep inflation low rise in interest rate.

overseas wealth fund park where the money is Safe. If we are not enjoying returned to cover the debt. The risk level look equally high.............

Sorry I don't understand your English:

Cheap financing as you mention keep inflation low rise in interest rate.

overseas wealth fund park where the money is Safe. If we are not enjoying returned to cover the debt. The risk level look equally high.............

Property cycle a not, it does not matter to me actually.

Arapahoe SG

well if your loan interest rate are low enough your property price will continue to go up. But as inflation creep up those low interest rate are going to evaporate thus property price may stall.

investment return ties to economics growth if they dried up. The long term debt vs liqudity look pretty risky....hence funds will move out of country.

While property cycle does not matter to you but currency depreciation will affect all.

eagle SG

if currency depreciates, it means it is more worthless, which in turn means your money is worth less and can buy less things.

That means inflation, and property prices will go higher.

Next, loan interest rate is one factor only. One of the major push factor is pple are cash rich. Why? Just look at the number of en blocs. One Farrer Court alone gives an en bloc amount of $2.1 billion, and turn >750 household into millionaire households. Multiply that by the number of en blocs, and you will know how cash rich Singaporeans are. This excludes foreigners coming in to buy >1 properties at one go. They do not need any loan to buy at all.

Property prices will only fall when pple urgently need $$, and need to sell off at fire-sale prices to get quick cash. Unless a credit crunch comes over to sg, else property prices will very usually be sticky downwards.

As a matter of fact, I do not have sufficient funds to buy a full property yet (especially when I want to go for a HDB first). I stand by my view and continue accumulate undervalued REITs because of my reasons. It has been rewarding so far.

Disman SG

well if your loan interest rate are low enough your property price will continue to go up. But as inflation creep up those low interest rate are going to evaporate thus property price may stall.

investment return ties to economics growth if they dried up. The long term debt vs liqudity look pretty risky....hence funds will move out of country.

While property cycle does not matter to you but currency depreciation will affect all.

very soon, we are going to watch "free show".

let's just wait patiently.

it is going to happen in mid 2011.

longGe SG

Anyone facing the same dilemma as me?

Going to get married in 2 years time but do not have a roof over your head because

- BTO must wait 3-5years

- Resale flat f*uking expensive

ditzy SG

Anyone facing the same dilemma as me?

Going to get married in 2 years time but do not have a roof over your head because

- BTO must wait 3-5years

- Resale flat f*uking expensive

Like me lor, ROM first loh, get key then ceremony lor.

longGe SG

Like me lor, ROM first loh, get key then ceremony lor.

Ya loh. Probably that's the only way out le...

Ä«Õß:¸ïÀë SG

si beh jia lat hor.....?

FT come here buy house bo la sa, we locals buy house think 10 times..... locals macham foreigners in their own land......

CHAM !!!!

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