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(21-07-2012, 12:44 AM)Big Toe Wrote: All this talk about making things affordable is total B.S.
You have 30yr leasehold 'affordable' factory space, you got cars that pay over 10 years, the maximum allowed on a usable life of a car.
Now you got 50yr housing loans. The point is not about whether a person qualifies for it or not,
it's about the direction in which we are heading. No one looks at the cost of the product anymore, they look at how much they need to fork out each month and this encourages reckless borrowing.
No one owns anything anymore, the bank owns everything.
And by the time you finish paying, it is probably near the end of its useful life or near end of your life.
Spot on!
I was discussing this trend with a friend some time back, and his perspective was that people look at items more from a cash-flow perspective and less from a "Liabilities" perspective, which is why such reckless borrowing is becoming more prevalent.
So it becomes the case where people can "afford" the monthly payments and you get 20+ year olds barely out in the workforce buying expensive cars and private housing with long loans. No one sees the loan itself as a liability, they merely assess the cash-flow effect of their financial decisions. In short, the Balance Sheets of such individuals have deteriorated significantly over the years.
And banks really do own everything, from your property's title deed all the way down to that spanking new BMW on a 10-year loan. As Blur said "Modern Life Is Rubbish".
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I always go back to the traditional asian values.
1. Dont have big head, don't wear big hat
2. Earn $1, spend < $1. Save at least 20cts, more and more when growing older
3. Buy based on NEED, not based on want
4. Go beyond the surface and the glamour and advertisements, look for the real SUBSTANCE & value
5. Compare and check multiple sources
6. Delayed gratification
7. I may be richer, but my lifestyle dont change much.
In today's world, the so-called traditional values are thrown out of the window.
Bank is more than happy to offer 50 yr loans, they make $$$ out of the borrowers.
When the gate becomes less and less stringent, the end result is a flood of hot pot of so called "foreign talents". Are they really talents?
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All this talk about making things affordable is total B.S.
You have 30yr leasehold 'affordable' factory space, you got cars that pay over 10 years, the maximum allowed on a usable life of a car.
Now you got 50yr housing loans. The point is not about whether a person qualifies for it or not,
it's about the direction in which we are heading. No one looks at the cost of the product anymore, they look at how much they need to fork out each month and this encourages reckless borrowing.
No one owns anything anymore, the bank owns everything.
And by the time you finish paying, it is probably near the end of its useful life or near end of your life.
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(21-07-2012, 12:44 AM)Big Toe Wrote: All this talk about making things affordable is total B.S.
You have 30yr leasehold 'affordable' factory space, you got cars that pay over 10 years, the maximum allowed on a usable life of a car.
Now you got 50yr housing loans. The point is not about whether a person qualifies for it or not,
it's about the direction in which we are heading. No one looks at the cost of the product anymore, they look at how much they need to fork out each month and this encourages reckless borrowing.
No one owns anything anymore, the bank owns everything.
And by the time you finish paying, it is probably near the end of its useful life or near end of your life.
I beg to differ. It looks like the banks own everything. But actually it's "BIG BROTHERS" running the show. We are mere digits. 
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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50 yrs loan to support over-priced properties!?
u must be kidding!! :O
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
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Because the general rule of thumb is not to incur debt repayments of more than 30% of one's monthly income, the powers that be have magically now made things more affordable with the stroke of a policy pen. My sympathies to those who have to work till their death just to pay off their bank loan(s).
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Seems sending mix signals.
On one hand we do not want to pass the burden to our younger generation while on the other hand lengthening the loan burdening the next generation to support their parents in addition to their owns.
'Kick the can down the road' policy ?
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(22-07-2012, 10:58 AM)corydorus Wrote: Seems sending mix signals.
On one hand we do not want to pass the burden to our younger generation while on the other hand lengthening the loan burdening the next generation to support their parents in addition to their owns.
'Kick the can down the road' policy ?
It's known as "Doublespeak". The Government encourages us to leave an asset for the next generation by buying property - what they didn't tell you was that it would come with an associated liability as well!
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22-07-2012, 12:00 PM
(This post was last modified: 22-07-2012, 05:52 PM by Temperament.)
(22-07-2012, 11:17 AM)Musicwhiz Wrote: (22-07-2012, 10:58 AM)corydorus Wrote: Seems sending mix signals.
On one hand we do not want to pass the burden to our younger generation while on the other hand lengthening the loan burdening the next generation to support their parents in addition to their owns.
'Kick the can down the road' policy ?
It's known as "Doublespeak". The Government encourages us to leave an asset for the next generation by buying property - what they didn't tell you was that it would come with an associated liability as well!
It's one way "BIG BROTHERS" ensure you will work the whole life plus your generations down the line. If you look at Japan, most Japanese don't think highly of their politicians. Japan changes their PM like you "changing your clothing". Why?
i have predicted before; our housing loans will soon be catching up with Japan. It takes more than a generation to service. Then the cycle repeat for the later generation; In Tokyo you can't afford even a "shoe-box" units. It's a luxury for a salary-man. That's why Japanese only go home very late at night after work; just for sleeping only.
When i went there for training many years ago, i felt or sensed their "frustrations". i even told them i think i know why they had the 2nd WW.
One day, we may be changing PM like the Japanese; Like "changing your clothing".
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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No policy could ever be enforced on the public if the public is sensible enough.
The point is, we ARE willing to pay for high prices of cars, we ARE buying expensive houses and even business
ARE paying high prices for land and paying tens of thousands of dollars just to rent a small shop from HDB.
The higher powers are running a very excellent business here. Of course the people running the show should be paid well.
But wait a second....is this a all-for-profit business we are talking about?
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(23-07-2012, 12:46 AM)Big Toe Wrote: No policy could ever be enforced on the public if the public is sensible enough.
The point is, we ARE willing to pay for high prices of cars, we ARE buying expensive houses and even business
ARE paying high prices for land and paying tens of thousands of dollars just to rent a small shop from HDB.
The higher powers are running a very excellent business here. Of course the people running the show should be paid well.
But wait a second....is this a all-for-profit business we are talking about? Yes, i bet it is almost is. When the situation is getting almost "unbearable", Big Brothers will give you back some money to help you to be more "bearable". Especially for those who are at the bottom of the rungs. Their votes are very important in every election.
And they pay themselves.
So of course they pay themselves well. So well, that only bread-crums are for the common people. 
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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