Is sg property cheap now?

[weijian]

hi dreamybear,

Housing is indeed a complex issue, especially in the case of public housing (and been "public" in nature, one cannot escape politics).

Since it is complex, it probably cannot be looked at from a singular perspective. Heck, maybe the holistic solution/s isn't going to come from housing too! Or maybe there will never be good enough solution/s for everyone. Someone will win, someone will lose in democratic capitalism (communism anyone?)

But one thing is for sure - on a net-net basis, it is better to have asset inflation than asset deflation for the general populace! If this is the system that we are left with and there are little choices, then one just have to find work-around solutions to it.

[specuvestor]

It's more complex taking into account psychological feedback and anchoring issues. Just look at Japan past TWENTY years. And there are also other factors like personal safety, safety of asset, traffic, tax, culture etc

land has to be part of the pricing else the gap between public and private is too wide and non competitive. It's like saying NTUC Fairprice dont have to pay rent.

hi dreamybear,

Housing is indeed a complex issue, especially in the case of public housing (and been "public" in nature, one cannot escape politics).

Since it is complex, it probably cannot be looked at from a singular perspective. Heck, maybe the holistic solution/s isn't going to come from housing too! Or maybe there will never be good enough solution/s for everyone. Someone will win, someone will lose in democratic capitalism (communism anyone?)

But one thing is for sure - on a net-net basis, it is better to have asset inflation than asset deflation for the general populace! If this is the system that we are left with and there are little choices, then one just have to find work-around solutions to it.

[dreamybear]

I wonder how prevalent is the practice and whether it is largely confined to new launches ...

Note that the 1st 2 below are for subscribers.

-----------------

Iras probes home buyers who used ‘99-to-1’ loophole to avoid paying ABSD
https://www.straitstimes.com/business/in...aying-absd
"....The Straits Times has learnt that letters are being sent to some first-time buyers of private real estate asking them to explain why they sold just 1 per cent of the same property to a relative barely a week after exercising the purchase option...."

Only first-time buyers can own homes in 99-to-1 shares from the start
https://www.straitstimes.com/business/in...-the-start
"Couples buying their first private property can own it in unequal shares of 99 to 1 from the start if they plan to pick up another one in the future. The additional buyer’s stamp duty (ABSD) does not apply to first-time buyers and so they can choose to hold their property in any manner...."

The risks of buying properties in 99-to-1 share
https://cos.sg/blog-post/the-risks-of-bu...o-1-share/

[CY09]

"....The Straits Times has learnt that letters are being sent to some first-time buyers of private real estate asking them to explain why they sold just 1 per cent of the same property to a relative barely a week after exercising the purchase option...."

This is a symptom of inequality in our country. Why relatives are roped in is because the relatives are the party able to service the loan of the original buyer. What I know is that it tends to be the parents who are the ones helping their children to own as first time private home buyers. Why is this prevalent? This is because property in Singapore is an excellent store of wealth with government immigration policies helping to sustain increased price increases. So rich families will do their upmost to help their children own their first private property; paying only 1% in ABSD/SD is a cheap price to pay in exchange for a property that appreciates about 4-5% per year.

Personally I'm for a policy where the property tax for private properties are increased. This will solve the inequality problem and improve tax revenue. However, what I am personally witnessing is that the increase to the property tax bracket for private properties is painfully slow (in my view) [Most condos will see their tax go up from 6% to 10% within the next 2 years, however, I feel it should be moving to 15% which is the approximate rates in other developed economies]

For those who are born poor, Im sorry that you are born here

[weijian]

For those who are born poor, Im sorry that you are born here

Hi CY09,

I think we have to put ourselves into a global context. Been born in a place that is absence of war, civil conflicts or natural disasters, I believe some of us already won the ovarian lottery. Maybe not 1st prize lottery as Warren Buffett suggests but it is a good enough prize.

If we look close enough, there are more than enough things to complain (uneven distribution of wealth, MRTs breakdown, where is the Swiss standards of living?). But when we look wide enough, there are more than enough things to give thanks for.

[propwise55]

https://www.straitstimes.com/business/in...ing-income

Came across a recent news article about over 280 landlords being caught by the Inland Revenue Authority of Singapore (IRAS) for under-reporting their income. The rental market is booming right now, and this serves as a critical reminder for all landlords to ensure that there is accuracy in reporting rental income and staying compliant with tax regulations even with the property hype in Singapore.