How much are you earning per annum?

Those hoping for substantial price correction in the property market may be disappointed with this report in Business Times: Quieter year seen ahead after 'tale of two halves', Singapore Property News, Singapore Property Guides & Articles - STProperty

With the economy and employment rate looking good for 2014, property prices may hold steady or even creep up. Property experts are saying that the government would be happy with sustainable price increase of 1 -2 % per quarter or 4 - 8% per year.

The government will step in either way - to impose further measures if price continues to climb wildly or to remove the measures if price dips substantially.

So how, to buy or not?

Originally Posted by Unregistered

Those hoping for substantial price correction in the property market may be disappointed with this report in Business Times: Quieter year seen ahead after 'tale of two halves', Singapore Property News, Singapore Property Guides & Articles - STProperty

With the economy and employment rate looking good for 2014, property prices may hold steady or even creep up. Property experts are saying that the government would be happy with sustainable price increase of 1 -2 % per quarter or 4 - 8% per year.

The government will step in either way - to impose further measures if price continues to climb wildly or to remove the measures if price dips substantially.

So how, to buy or not?

No one can tell you when to buy, as people's financial wealth differs from one another. Obviously from the G's perspective, it will be disastrous should the property market suddenly decline and crash. Therefore you can be sure the media will more often than not portray a positive picture of the property market to prevent that from happening.

My advise will be to see whether your property is for investment (i.e. rent them out) or for residential purposes. If it's the later, just choose a property that you're happy with, and that your financial capability allows. Having said that, my advice would be to wait it out till mid 2014 - early 2015 to see how the oversupply of properties affect the market.

If you're the former, then by all means be on the lookout for great bargains now even. Of course, you must have substantial wealth to be comfortable should you fail to rent your property out. Generally wait for all those new developments that are left those few units which they're unable to sell; you can get a great bargain for those units usually.

HDB COV already crash, next HDB prices will crash too. We now have oversupply. If you own a HDB flat, you can cash out now and rent. After the market crash by 50% or 60% as predicted by some, you can then buy a condo at half the current price. For example, if you sell your 5 room hdb flat now at $800k (no more loan), if price drop by 50%, you can then buy a Bukit Timah condo which is now valued at $1.6m today at $800k later. Wait patiently. Our oversupply glut is terrible, unless more FTs come in to rent.

You know what happened in 2008? That was supposed to be the world's worst economic crisis ever. So a lot of people sold off their only home hoping to re-enter the market later. They waited and waited, then within a short 1 year, even the price of their former homes sold earlier costed more than what they were sold at. I benefited from this period of madness because my tenant sold off his 5 room flat and was waiting for the property price to fall. He waited for 1 year but panicked when he saw that the price of the flat that he sold off now costed more.

Many then rushed back in to grab something before prices went out of their reach causing the run up of the property prices.

2008 was an external crisis while now there is no crisis. The current housing "oversupply" and current dip in COV are all due to internal intervention by the government.

Whichever way you look at it, the price will maintain. When the government introduces more cooling measures, it means the demand is still very healthy. The latest measure introduced is for the EC market. When the market softens, the measures will be removed to maintain stability. It is all internal control, and the government does not want to crash the market but to suppress the price gain to within a sustainable 3 - 4% per annum.

Originally Posted by Unregistered

HDB COV already crash, next HDB prices will crash too. We now have oversupply. If you own a HDB flat, you can cash out now and rent. After the market crash by 50% or 60% as predicted by some, you can then buy a condo at half the current price. For example, if you sell your 5 room hdb flat now at $800k (no more loan), if price drop by 50%, you can then buy a Bukit Timah condo which is now valued at $1.6m today at $800k later. Wait patiently. Our oversupply glut is terrible, unless more FTs come in to rent.

This is the dangerous game to play.
Assuming you sell and rent for next two years, and buy a property after 2 years, you will lose $3k/mth x 24 = 72k on rental, and 800k x 0.03 = 24k on stamp duty, 16k on agent fees, 5k lawyers fees.

So you are breaking even if property drops 15% in next two years.

The sibor interest rates will stay low at below 1% until 2016 or even 2017, so costs of holding on the properties are extremely low so many people will hold on even if rental yields are low.

Originally Posted by Unregistered

HDB COV already crash, next HDB prices will crash too. We now have oversupply. If you own a HDB flat, you can cash out now and rent. After the market crash by 50% or 60% as predicted by some, you can then buy a condo at half the current price. For example, if you sell your 5 room hdb flat now at $800k (no more loan), if price drop by 50%, you can then buy a Bukit Timah condo which is now valued at $1.6m today at $800k later. Wait patiently. Our oversupply glut is terrible, unless more FTs come in to rent.

Hi,

We are a millionaire couple, we retired 3 years ago at the age of 43 and 40. We have made a small fortune from our high flying jobs and decided to retire to focus on the spiritual. We live in a nice brand new condo, which we have paid in full. We have a decent stocks portfolio, which generates $180k annual dividends. We have no debt. Our conti is paid up. Since we don't have any debt, our expenses are not high, only $80k pa. Our net worth is growing steadily from stocks capital gains as well as growing savings and reinvestment.

Originally Posted by Unregistered

Hi,

We are a millionaire couple, we retired 3 years ago at the age of 43 and 40. We have made a small fortune from our high flying jobs and decided to retire to focus on the spiritual. We live in a nice brand new condo, which we have paid in full. We have a decent stocks portfolio, which generates $180k annual dividends. We have no debt. Our conti is paid up. Since we don't have any debt, our expenses are not high, only $80k pa. Our net worth is growing steadily from stocks capital gains as well as growing savings and reinvestment.

So what's ur point ?

Diploma holder, 26yrs 5.55k w/o bonus, include fixed bonus bring monthly gross to 6.9.. good? Aboves exclude PB.

Originally Posted by Unregistered

Diploma holder, 26yrs 5.55k w/o bonus, include fixed bonus bring monthly gross to 6.9.. good? Aboves exclude PB.

Your fixed bonus is pretty decent considering that it's not part of your PB. Additional 1.35k a month adds up to 16.2k in a year, which is close to 24% extra of your annual basic (excluding bonus).

May I ask what job are you holding? Is it a commission-based job?

Originally Posted by Unregistered

Diploma holder, 26yrs 5.55k w/o bonus, include fixed bonus bring monthly gross to 6.9.. good? Aboves exclude PB.

That's very high pay for diploma holder. Great achievement.