HDB resale prices fall 1.6%, private home prices dip 1.3%

[Freenasi]

In a way properties is always a game advantage for the super-rich. Holding power aside, they can together squeeze the small players out. Small investors are at the mercy as the rich players set the direction. The low taxes on the rich also give them more fire power and inject more liquidity to the market.

[Temperament]

Never say never. Much like the runaway prices and cooling measure, it took so many rounds to cool the market off.
Similarly, it will take more than lifting the curbs to stop a rapidly sinking property market if it happens.

When the drop in prices accelerates, fear sets in property investors. Add rising interest rates and a large supply, the picture does not look too rosy. At current prices, the rental yield is quite pathetic for nearly all types of property. Those who think that prices will fall slightly/government will step in should really re-look their property portfolio and stress test it. History says property would crash(or drop significantly) after a period of boom. A matter of time before it goes much lower....and a matter of time again before it recovers again.

Buy & Hold in any investment doesn't work as well as B&H FH property. Why the very rich even B&H just marsh land for generations to come. They have the money, the power and the visions for their next generation, next, next generation. They know fiat money is not really an asset that can hold through generations.
Wealth does not keep through 3 generations may be a myth to some very Powerful & Rich family.
So much for legacy and us (the ordinary working class).

Downsides of B&H FH strategy.

- Land acq by Govt (British & PAP Govt)
- Property tax
- Estate tax (repealed already in SG)
- Financing costs

People like to tell stories of ancestors owning big pieces of land in SG. If their parents held on to some, they 米桶 liao. Thats wishing thinking coz most people cannot get pass the downsides to hold on their land.

If you want real income redistribution, bring back estate taxes.

The only successful strategy of holding on land in SG is to have a operating business to provide cashflow, while sitting on the land. Like CK Tang.

Ahh.....if the Rich & Powerful clan gets too big, will the Law of Diminishing Return makes them lesser and lesser rich and powerful in the end? After how many generations, even becomes ordinary working class like us?

[chialc]

Look at 2008 GFC, no one ( when i say no one i mean majority) really complains against the gov for income, stock or property losses. Is only those who are vested that trying to smoke up the fear.

Who is vested? and who is trying to smoke up the fear?
1) current home owner - smoke up?
2) buyer - likely not!
3) current home owner who is a buyer - smoke up?
4) property agents - smoke up?
5) local banks(aka their bank CEO/executive) - smoke up?
6) mortgage servicing bankers(as in the person selling the mortgage loan) - smoke up?
7) developers - smoke up?
8) Conveyancing Lawyers - smoke up?
9) Renovation contractors - smoke up?
10) Property management company - smoke up?
11) General public who did not and could not own a HDB - smoke up?

This is not a exhausted list but I tried.
Play it like a game and ID who will smoke up and who will not?

Love Compassion

[corydorus]

How come I see more smokes. ;P
Don't need to think too hard. Just focus on the top 2 most impacted..

Property Agents (Good ones will continue to do well. Those who cannot make it will go through natural attrition)
Developers (Lower margins)

[chialc88]

more smoke?

oh, I see. because like many others. I am vested too.

I am a property investor.

I am always hunting for best deal:
1. best under value property

2. best rental return (any type - resi, industrial, commercial, office, retail shops, any thing)

Now, being a property agent, I am right in the frontline.

Everyday is a lovely day to me.
Where is the smoke?

Love Compassion



A Life not Reflected is a Life not Worth Living.

[opmi]

Without potential capital gains and lower LTV financing, better off leaving
money in CPF OA than go for low yield resi ( at current mkt price)

[chialc88]

opmi,
Make sense.
I says not just CPF OA.
Every one dollar $ that we earn are hard earn money $.

Love Compassion



A Life not Reflected is a Life not Worth Living.

[Tiggerbee]

With developers getting less aggressive in replenishing land bank and land sales fetching lower prices, the pressure for further price reductions had increased. The next crack in the property market will come from smaller developers cutting prices.

[nitro]

With developers getting less aggressive in replenishing land bank and land sales fetching lower prices, the pressure for further price reductions had increased. The next crack in the property market will come from smaller developers cutting prices.

no need wait for smaller developers to cut price

big developer Capitaland already cut price by 10%-15%
http://singhomes.net/sky-habitat-relaunc...er-prices/

[corydorus]

Wonder anyone who buy before the price cut will feel. And the developer still make money even after this cut ... there is lack of serious competition.