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MArkets go up and markets go down and thats hows things been working since the dawn of time.
Property is the bedrock of Singapore and the government will always be there to prevent things from going to far (50% of the population rely on their inflated HDB prices to stay happy, I really don't think the govt wants to piss them off in lieu of recent unhappiness we are seeing), rest assured if things go down as badly as the US everything in Singapore will go to the toilet. Even our job will be at stake. I am not saying there will not be a correction of some sort but I doubt anything like 97 will occur given how strong we have become financially since then. Your analogies only apply for those who do not have holding power and are already vested in something that’s over inflated. This likely does not apply to the first poster since he bought in a down markets I too own a property which I bought for 500K and now being valued at 850K (Commercial), I get Gross 3K a month rental for this which is about 2K nett. That's almost 5% per annum on my original investment. Given the rental returns on commercial now is about 3% now the 850K valuation is about right (I got ready buyers too). However I choose not to sell as I like a steady cashflow stream. Of course things may not stay rosy forever but I have holding power so its not a concerns of mine. Quote:
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Talking about property, my hubby and I were skeptical about buying our first property back in 1985 as we believed strongly then that prices will fall further following the 1985 recession. Back then, the social mood was very sombre and it felt like the end of the world for many families. However, we are lucky to have a strong and good government that turns things around. We saw the improvement in the economy and quickly bought our terrace house and never looked back since. The value of the terrace today is 10 times what we bought for.
In 2009, when the crisis hit us we saw that as a big opportunity as we know our government will turn things around because we have lots of reserves, and we bought a condominium unit, paying in full cash. True enough the unit appreciated in value and now it is worth 50% more than what we paid for. We are now retired and enjoy the rentals from this unit. You will not get wrong in Singapore property. The government will not crash the market but just ensure prices do not rise too fast. Now is in fact a good time to buy because prices has slowed down in appreciation. |
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Firstly congrats on you and your other for taking the plunge in 85, it has rewarded you greatly and I believe the terrace house brought benefits to your family as well.
I cannot wholeheartedly say that now is the best time to buy to be honest, the prices now in the market are pretty steep and do you see much room for more appreciation? Unless you are buying for self-stay I would caution you to be very wary if you are going to invest in this market at this point in time. It’s hard to fathom if you not lost money on property before but speak to those burnt by the 97 crash and learn from their wisdom (better than learning the hard way). I too believe the government will prevent a huge crash but we should be responsible for our own investments. This period with sky high prices and government cooling measures which robs you of your profit is probably the worse time to look for more property investments (In SG anyway). For example look at the below chart, you can see many government cooling measures before the 97 crash, if this is a reminisce of that why not wait till after prices come down and cooling measures are reversed before going in? Imagine you have to hold for 4 years with current stamp measures to make any gain which at current pricing is at most 20%? Be better to forego that and the risk of it not happening and make a surer bet if we do hit a down cycle. Don’t throw everything you worked hard for because of a gamble. Moneytalk: Property crash of 1996 Quote:
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However, property holds a special place for Asians, if not for many people the world over. It is something that anyone with money will want to acquire. The first home is always special, and when you have spare cash, acquiring a subsequent properties is a logical move. Unlike other countries, property developments in Singapore are of good quality and land is limited. If you have the ability to hold long term, property investment will not go wrong in Singapore. The value of money will decrease over time. On top of that big economies are now resorting to printing money to solve their economic problem flooding the world with their cheap money. For those with money where else to protect their wealth than to invest in some assets that can stand the test of time. |
next year will be 55.
Staying in 5 rm HDB (valued at $800K). Passive income as follows: Currently 1. Condo #1 : $56K pa (gross rental) Condo valued at $1.6M - paid up 2. Condo #2 : $42K pa (gross rental) Condo valued at $1.1M - paid up 3. Dividends : $20K pa Stocks & unit trust valued at $500K When reached 55, expecting to draw out $17K of interest pa from CPF (at $300K) When reached 65, expecting another $24K from CPF Annuity Life Should I retire? No, children still schooling, passive income not stable. Current family expenses more than $100K pa. |
Reply: Of The Great Divide (II)
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Dear Lady, I cannot understand your gripe because it seems to me , according to your theory, people should have higher/lower according to their IQ. First of all I would advice you to read some popular books like "outliers" , "freakonomics". It will help to instill you the basic ideas of economics and success in a particular field. Secondly, I strongly feel that IQ is a debatable form of measuring ones intelligence. There are so many factors in life which will shape the outcomes of your action, you can read "butter fly effect" from "chaos theory". And I still cannot understand why your are unhappy because your husband is earning more because just because your were better in schools. May be you should try examining and improving your emoitional state. Regards, Average IQ/EQ man. |
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