How much are you earning per annum?

If this indeed happens, it will present buying opportunities. But really, a 20% drop in prices is not drastic. If you read the many posts in this thread many brave and astute posters have made huge gains through snapping up properties during the 97/98 AFC, 2003 SARS period, 08/09 sub prime crisis. I would even consider the 08/09 subprime crisis as a minor blip as far as property prices movement here is concerned.

A few of my friends and I were waiting for the mother of all price drop to snap up properties but it didn't happen. The condo I had my eye on dropped by a mere $100k and before I knew it, the subprime crisis blew over, and now the condo is worth $800k more! It was a big big disappointment.

Anyway, since then, my investment war chest has grown quite substantial and I thought I had another chance when the property prices kept going up and up thinking that the bubble was forming and it would burst. But then our gahmen stepped in and removed all the froth.

With all the cooling measures, TDSR, MSR, the gahmen can play around to ease any sharp price movement. Many investors who bought properties after the cooling measures do not take that much loans, so their risk exposure is low, and most would have holding power. It does the gahmen no good to have a depressed property market, bankruptcies, unemployment etc.. What they want is steady and sustainable growth, including property prices because for the majority of Singaporeans, property represents their biggest lifetime investment.

So against this backdrop, I have told myself not wait for a huge price correction, and also at my age, I don't have that many property cycles to wait out. If the prices do indeed drop by 20%, I would probably go in!

Originally Posted by Unregistered

Guys, hate to splash cold water... Summing all the appended tip-of-ice-berg bad news. Unless you have got cash and low liability, those who over-valued their Condo and better buffer a discount on that... Think twice. unless your home is fully paid.... better dont lose your job in the next 3 years !!

Good luck !

RESIDENTIAL PROPERTY | Staff Reporter, Singapore Published: 27 Jun 14 - See more at: ://sbr.com.sg/residential-property/news/panic-selling-alert-mortgagee-sales-increase-75-in-1h14#sthash.A7K7s0mK.dpuf

Panic selling alert: Mortgagee sales increase 75% in 1H14

Blame tepid activity in the resale market.

Sales in the mortgage market are expected to continue increasing in the next two quarters, unless government curbs on the market are relaxed or removed, according to Colliers International deputy managing director Grace Ng.

256 properties were put up for auction sale in 1H14, of which 64 were listed by mortgagees. According to Colliers, the increase could be attributed to lacklustre activity level in the residential property resale market, which has been hit by consecutive rounds of government cooling measures.

Colliers adds that borrowers who default on their loans have been finding it increasingly difficult to find a buyer on their own in the resale market, as buyers are faced the twin hurdles of Additional Buyer’s Stamp Duty for their second and subsequent property purchases, and loan restrictions due to the Total Debt Servicing Ratio.

The rising number of properties put up for mortgagee sale could also be attributed to the increase in the number of bankruptcies.

______________________________________

Everything must go: Home prices to plummet by 20% in 2015

Brace yourselves for the big crash.

Homebuyers searching for cheaper houses will only need to wait a little longer. A significant drop in home prices is on the horizon, as residential prices are predicted to dip 10-20% over 2014-2015.

According to OCBC, demand is mounting for residential homes but buyers remain highly price-sensitive. .

“We forecast residential prices to dip 10%-20% over 2014 – 2015 but see a price crash in excess of 20% to be unlikely, even after accounting for the anticipated physical over-supply and interest rate uptrend ahead,” noted OCBC.

Here’s more from

- See more at: ://sbr.com.sg/residential-property/in-focus/everything-must-go-home-prices-plummet-20-in-2015#sthash.N6CGXNe6.dpuf

__________________________________________________ _____

ECONOMY | Staff Reporter, Singapore Published: 02 Jul 14 - See more at: ://sbr.com.sg/economy/news/singapore-faces-credit-meltdown#sthash.kAZRH4Ci.dpuf

Singapore faces a credit meltdown

Debt levels higher than the US pre financial crisis.

Singapore and other Asian countries could be facing an economic crisis of the same type as the US financial meltdown that put the world’s economies to its knees. Singapore and many Southeast Asian countries have already surpassed US debt-to-GDP ratio. There is no sign of that debt growth slowing down. This is eerily similar to the financial conditions that pre-dated the American collapse, and economists are deeply concerned.

According to Duncan Woolridge of UBS, “China, North Asia, Hong Kong, Singapore, Thailand, and Malaysia stand out based on levels of leverage alone as at risk. This trend appears unsustainable and a reversal on the horizon should be expected, though we do not claim to know the exact day that will unfold.”

- See more at: ://sbr.com.sg/economy/news/singapore-faces-credit-meltdown#sthash.kAZRH4Ci.dpuf

____________________________________________


HOTELS & TOURISM, RETAIL | Staff Reporter, Singapore Published: 25 Jun 14 - See more at: ://sbr.com.sg/hotels-tourism/news/glitzy-street-no-more-vanishing-chinese-tourists-leave-orchard-road%E2%80%99s-landlords-#sthash.kzUZoHrF.dpuf
Glitzy street no more: Vanishing Chinese tourists leave Orchard Road’s landlords hanging

Desperate owners are starting to get panicky.

The country’s posh shopping center is bearing the brunt of the sharp decline in Chinese tourist arrivals. According to Maybank Kim Eng, short-term headwinds are in the forecast for Orchard Road’s landlords.

The report stated that Orchard Road shops are dealing with a new Chinese law that bans “forced shopping” for tourists.

Hoteliers are also now focusing on corporate and transient segments as tour groups become more scarce.

“Our conversations with Orchard Road landlords suggest that the current headwinds may be short term in nature. Chinese visitors have been declining since last October, partly because of a new mainland law
that bans “forced shopping”, which prompted sharp rises in prices for outbound tours in China. In addition, many hotels along Orchard Road have progressively moved away from the wholesale customer segment (tour groups) to focus on the higher-yielding corporate and transient segments,” the report stated.

- See more at: ://sbr.com.sg/hotels-tourism/news/glitzy-street-no-more-vanishing-chinese-tourists-leave-orchard-road%E2%80%99s-landlords-#sthash.kzUZoHrF.dpuf

In the Straits Times today (5July) Tharman said a crash in property prices will not happen. He said the CM, TDSR, MSR had prevented a bubble from forming, and so crash not likely.

Besides the financial system is flushed with liquidity. Banks are flushed with money, with interests so low it is almost like you have to pay the banks to safekeep your money. US economy is picking up and employment is improving. Our economy is doing quite alright also. So can't see big drop in prices anytime soon.

Originally Posted by Unregistered

If this indeed happens, it will present buying opportunities. But really, a 20% drop in prices is not drastic. If you read the many posts in this thread many brave and astute posters have made huge gains through snapping up properties during the 97/98 AFC, 2003 SARS period, 08/09 sub prime crisis. I would even consider the 08/09 subprime crisis as a minor blip as far as property prices movement here is concerned.

A few of my friends and I were waiting for the mother of all price drop to snap up properties but it didn't happen. The condo I had my eye on dropped by a mere $100k and before I knew it, the subprime crisis blew over, and now the condo is worth $800k more! It was a big big disappointment.

Anyway, since then, my investment war chest has grown quite substantial and I thought I had another chance when the property prices kept going up and up thinking that the bubble was forming and it would burst. But then our gahmen stepped in and removed all the froth.

With all the cooling measures, TDSR, MSR, the gahmen can play around to ease any sharp price movement. Many investors who bought properties after the cooling measures do not take that much loans, so their risk exposure is low, and most would have holding power. It does the gahmen no good to have a depressed property market, bankruptcies, unemployment etc.. What they want is steady and sustainable growth, including property prices because for the majority of Singaporeans, property represents their biggest lifetime investment.

So against this backdrop, I have told myself not wait for a huge price correction, and also at my age, I don't have that many property cycles to wait out. If the prices do indeed drop by 20%, I would probably go in!

Millionaire, 52, retired, passive income 120k pa.
Luxury condo and luxury car paid up.

53
Net worth 6M
Income 750kpa
Typically middle class

2009 - Upturn is not sustainable
2010 - Prices will drop 10%
2011 - Prices will drop 15%
2012 - Prices will drop 15%
2013 - Prices will drop 20%
2014 - Prices will drop 20%

In reality,

2009 - Prices went up 20%
2010 - Prices went up 10%
2011 - Prices went up 10%
2012 - Prices went up 10%
2013 - Prices went up 5%
2014 - Prices remain firm
://forums.condosingapore.com/showpost.php?p=485756&postcount=3

Originally Posted by Unregistered

In the Straits Times today (5July) Tharman said a crash in property prices will not happen. He said the CM, TDSR, MSR had prevented a bubble from forming, and so crash not likely.

Besides the financial system is flushed with liquidity. Banks are flushed with money, with interests so low it is almost like you have to pay the banks to safekeep your money. US economy is picking up and employment is improving. Our economy is doing quite alright also. So can't see big drop in prices anytime soon.

I am 46, wife 35, non grad couple, $80k in total.
Hdb flat bought years ago, still got loan.
2 small children.
No car.
We are managing well but worried of retirement.
Our net worth is only $500k.
Are we ok?

Make sure to live within your means, and save for your children's education. As long as you and wife continue to work as long as you can, you should be alright. Don't have to copy the lifestyles of others. Having all those material things don't always equate to happiness.

Originally Posted by Unregistered

I am 46, wife 35, non grad couple, $80k in total.
Hdb flat bought years ago, still got loan.
2 small children.
No car.
We are managing well but worried of retirement.
Our net worth is only $500k.
Are we ok?

Late forties married couple with kids. Combined income 167k pa. Saves 30k pa.
We bought a condo now valued at 1m, we cleared the loan last year.
We drive an old car, no more loan.
Our net worth in total amounts to 1.5m.
How about you?

Originally Posted by Unregistered

Late forties married couple with kids. Combined income 167k pa. Saves 30k pa.
We bought a condo now valued at 1m, we cleared the loan last year.
We drive an old car, no more loan.
Our net worth in total amounts to 1.5m.
How about you?

We are in your age group and our combined income is $130k pa. We hope to sell our HDB flat and upgrade to a new condo. We want to upgrade our lifestyle while we are still young.

$30k pa savings is too low or rather your expenses of $137k pa is relatively high.

if you have no home loan, no car loan, annual expenses for a typical family with 2 - 3 kids should be around $80k pa. The expense will go up when your kids enter Uni, much more if overseas Uni.

My 2 kids currently in local Uni, the school fees is $7.5k pa per child. Throw in books, hostel fees and allowances it will add another $20k - $25k pa. My friend's son in US Uni is forking out $50k pa for fees, and lodging.

Our current expenses only $120k pa with 1 overseas holiday a year.

Originally Posted by Unregistered

Late forties married couple with kids. Combined income 167k pa. Saves 30k pa.
We bought a condo now valued at 1m, we cleared the loan last year.
We drive an old car, no more loan.
Our net worth in total amounts to 1.5m.
How about you?