Me & My Money Series (Sunday Times)

[godjira1]

Opmi. Fair enough if the feeling is that one must own the home they stay in, and the biggest risk comes from throwing in the towel at the wrong time.

I might be in the minority here but I actually think home ownership is over-rated, to me it is just another asset class. I rented a place from 2007-2009 not because I was damn clever to see the cycle thru but because i needed a bigger house to take care of some relatives for a few years but overall financially it worked out great.

Would I have panicked if prices spiked then instead of collapsing? I think the concept of intrinsic worth - value versus rental yield type of calculations will let you keep your cool.

[egghead]

I believe we may be talking about different things here.

For most people, the roof over their head is a mortgage property so it does not make sense at all for them to try to use that to make profit.

For the HNW, who are likely to have the home fully paid, it makes sense to pay a rent of 2-3% and the proceed of selling the property to compound at say 10%. Likely they can come out well ahead especially if their reading of property cycle is right.

[godjira1]

Egghead - maybe i am coloured by my own family experience. I used to stay in a 5 room yishun flat as a kid and in 1995 moved to a condo. Given that was almost peak for property back then it took until 2010-2011 before the property got back to parity in nominal terms. So basically my parents paid more than a decade in interests and opportunity costs in pursuing the "singaporean" dream.

[chialc]

yes. Needs will drive the property market ... be it rent or buy...

I rented a place from 2007-2009 not because I was damn clever to see the cycle thru but because i needed a bigger house to take care of some relatives for a few years.

[chialc88]

Avid gardener nurtures a keen investment streak - ST Rachel Scully

Mr Dennis Khoo, UOB department head.

Q: Worst investment
E-Trade brought just before Lehman Brother crisis.
I'm still holding.
With the recovery of US market, I hope to minimize my losses.

Q: Best?
My PhD. I see it as an investment to open a third career for me.
Moneywise, it would be the house I I sold 3 years ago.

Love Compassion


A Life not Reflected is a Life not Worth Living.

[koh_52]

Hi san, for those keen in ppty investment, just release today Land cost at Geylang East going at $777 PSF...add $350 PSF for construction cost this is the current EC mini-cost , break-even come to aro $1127 PSF, bare minimum.

Award of Tender for Residential Site at Geylang East Avenue 1
http://www.ura.gov.sg/uol/media-room/new...14-09.aspx

PPty market in S'pore cannot die if you stay mid or long term, say 5 yrs .
Current weak market was due to the govt over regulated it, especially the recent ABSD (Additional Buyer’s Stamp Duty) and TDSR (Total Debt Servicing Ratio) ,well there also declining COV in HDB flats, all this will only last till end 2015, why? i think everyone know right '2016 GE'

Well ppty transaction dropped drastically but price still hold despite weakest volume, but this is not new it volume been tapering since end 2012.

Think by now we can discount on QE and predictions about the upward movement of interest rates, but I expected a nominal rise in interest rate in 2015 to ao 2%.
Is the red-hot property market approaching the crossroad? I personally do not think so, current weak market is a short term scenario, cos the govt and developer once there opportunity they will push the price upward further until we are on par with Hong Kong and Shanghai.... if you travel around you will conclude that there inflation everywhere and the the best way the hack inflation is Ppty...also I noticed that population in this world is growing very fast and take note 'population is closely co-related to Ppty.'

Ok, that my personal view nowadays i seldom follow up in the forums, so hope i am in the right thread.

[chialc]

Welcome back Koh, I'm now a property agent.
Hope to be able to serve you when the time is ripe!

恭喜发财


As a agent, I'm more tune in with the property market.
I agrees that GE2016 is suppressing the property price at this moment.

From Mr Khaw's blog yesterday:
Last year, there were 18,100 HDB resale transactions. Of these, 2,800 units came from such households who were in the process of moving to their new flats.

We expect this number to double to about 6,000 units each year for the coming three years. This does not include the number of HDB upgraders moving into newly completed private property and selling their HDB flats.

This will no doubt have an impact on the resale HDB market, starting from this year. We will be monitoring closely. I am sure flat hunters and sellers will too.

My instinct tells me that fire sell for HDB resales market is coming very very soon.
The beneficiary likely be HDB upgrader and (some) PRs !!!
The bulk of HDB owner (and private property) will suffer.

Is this what Mr Khaw wanted?

Your guess is as good as mine.

Love Compassion

[pianist]

my same tot, unemployment rate is low, economy I believe still doing well..URA master plan show exactly where are the future hot and cold spots, mrt lines keep expanding, so many wealthy and riches stay/buy property here, plus white paper already confirm 6.9 magic number, airport expanding, paya lebar airbase moving out for more expansion, so many buddies here made above average some even extraoridinary return on the stock market last yr, how low do u think ppty mkt can drop?

[funman168]

Yeah, I agree.
Quite a number of my frens, including myself are waiting for the dip n removal of the curbs to buy another ppty.

my same tot, unemployment rate is low, economy I believe still doing well..URA master plan show exactly where are the future hot and cold spots, mrt lines keep expanding, so many wealthy and riches stay/buy property here, plus white paper already confirm 6.9 magic number, airport expanding, paya lebar airbase moving out for more expansion, so many buddies here made above average some even extraoridinary return on the stock market last yr, how low do u think ppty mkt can drop?

[Bibi]

When the curbs are removed but interest rate jumps to 4-7%. How many here still interested to buy?