Investment condo now out of reach

[Musicwhiz]

Erm, maybe this lady should try being more conservative? She already has a 25-year loan (with about 16 years remaining) and she wants to take ANOTHER loan for an investment property? She herself said she does not have the cash to stump up for 40% of the purchase price....gosh.

Jan 15, 2011
property measures
Investment condo now out of reach

THE investment condo Mrs Rhoda Dinesen was all set to buy after years of saving has got that much more out of reach.

The new rules mean Mrs Dinesen, 42, has to stump up a much bigger upfront payment - 40 per cent instead of 30 per cent - as she still has an outstanding loan on her first home.

'Where in the world does anybody have 40 per cent waiting in the bank that is not used somewhere else? This rules out the middle class completely,' she said yesterday.

It has all come as a bitter blow for the director of a public relations agency.

In 2002 she took out a 25-year bank loan for a three-room condominium unit in Geylang.

Nearly 10 years on she felt it was the time to buy another property.

'I, like many others, want to get a bigger place as I'm trying to bring in my mother to live with us. I also want to leave this area and move to somewhere quieter like Kembangan.'

But now she fears she may have missed the boat.

'A few years ago, I could purchase only something up to $800,000, but my dream home was valued at $1.2 million. So I waited. Then the measures kicked in last year, and I waited again. (Thursday) was a shocker.'

If Mrs Dinesen, who still has an outstanding home loan, bought a house before yesterday, she would have needed to pay only 30 per cent of the price upfront and borrow the rest.

But now she would have to fork out 40 per cent - cash she just does not have.

Her focus now is to keep a lookout for properties overseas. 'For many of us, it's not about speculation, it's about retirement. If I can't buy in Singapore, I'll just buy overseas, because I have to think long term about what I will have when I retire.'

[arthur]

She's threatening to retire in other countries. That's what foreign investments in properties are all about.

This pretty much confirm what I said about liquidity of foreign capital if Singapore economy could not sustain herself at high GDP growth thru foreign talents imports.

[flinger]

She's threatening to retire in other countries. That's what foreign investments in properties are all about.

This pretty much confirm what I said about liquidity of foreign capital if Singapore economy could not sustain herself at high GDP growth thru foreign talents imports.

I just want to add to the comment. A lot of people would "Threaten" , complain , comment etc... but the one thing they all know or don't think about is , foreign countries are all that easy to live in based on the kind of lifestyle , environment etc..

Every country has its pros and cons. Unless, you have really lived there for a while and experienced living there with all its peculiarities, then you should make a decision.

If you went to foreign country looking to live like in Singapore, you will be having a big problem. Some places, there is no reliability of services, some security, some high tax regimes, some foreigner issues, some lack of places to eat food you can find in Singapore, etc...etc...etc..

Unless you are the type, who can adapt to the totally different living environment , easy to say , hard to do.

Just my 2 cents.

[tangoandrew]

She's threatening to retire in other countries. That's what foreign investments in properties are all about.

This pretty much confirm what I said about liquidity of foreign capital if Singapore economy could not sustain herself at high GDP growth thru foreign talents imports.

I don't think she was in anyway threatening to retire in other countries...but sounded more like resigning to a less preferred option.

[wsreader]

Property at one foreign location will see price adjustment. You can read the news report "Some S'poreans shocked by damage to their Brisbane properties" for the details at

http://www.channelnewsasia.com/stories/s...77/1/.html

not sure if it is a good place for retirement though.

[arthur]

I don't think she was in anyway threatening to retire in other countries...but sounded more like resigning to a less preferred option.

She has the option of choosing a less preferred retirement place while the citizens of this country don't.
Pretty much sums up what foreign talents ability to move out of this country anytime when they feel like it.

So much for having a red passport while struggling to compete with FTs for a roof over one's head to raise a family.