How much are you earning per annum?

Originally Posted by Unregistered

In the first April 2015 COE bidding starting tomorrow, I predict COE prices will continue to rise. This is most likely so for Cat A COE as replacement demand is very, very high. We can expect the number of bids for Cat A (demand) to be more than 2000 whereas the number of Cat A COE available (supply) for bidding is less than 1000.

So, with demand so much greater than supply, Cat A COE will likely rise to $68 or more. Don't forget it was $90k plus in recent years. So, with high demand, expect prices to eventually go back to that level especially since there is no clawback announced thus far. I predict it will go to $100k by 2018. So, it is best to change to a new car now if your car is 4 years old or older. COE at $70k and below for Cat A is consider cheap, in my opinion.

Many families are richer today than 10 years ago. Many are also buying their second or third cars as their needs increases. For instance, the wife will want to buy a new car for herself for work convenience and the son will need a new car to go to Uni so he does not spend too much time traveling. So as family needs rise, so will demand for new cars. And with prosperity from higher family income, from gains in the stock market and property market, more people are richer and so demand for new cars will increase by a lot.

You're right. Must buy car. Will buy car! Now! Right now!

Cars nowadays are affordable if you buy the right new car.

If your HH income is $150k-$200k pa, just buy a $100k new car.

If your HH income is $400k pa, just buy a $200k new car.

If your HH income is $600k pa, just buy a $300k new car, don't buy a $500k new car.

If your HH income is $100k pa, just buy a resale car.

Originally Posted by Unregistered

Cars nowadays are affordable if you buy the right new car.

If your HH income is $150k-$200k pa, just buy a $100k new car.

If your HH income is $400k pa, just buy a $200k new car.

If your HH income is $600k pa, just buy a $300k new car, don't buy a $500k new car.

If your HH income is $100k pa, just buy a resale car.

How accurate... our HH income was about $400k pa last year and we did buy a $200k new car.... it felt affordable... and seems from your analysis that it is true!

Obviously you didn't read carefully, he has another properrty with outstanding loan of $400k, cash $500k, he could have fully for it and fulfil your statement of "at your age, you should already own a fully paid home". There is reason why some die poor, some get richer, no risk no gain. some are risk averse, they will prefer not to loan anything, then pay fully with cash, but history has taught us this term "missed the boat". How many boats would have been missed while waiting tl build up cash to fully pay investment house.

Originally Posted by Unregistered

You are overleveraged. At your age, you should already own a fully paid home. You have a huge $900k mortgage which depends on your salary to pay. In a worst case scenario of (1) you lose your job (those earning $100k pa and above 40 are at higher risk), (2) property market crash due to high interest rates and massive oversupply and (3) no rental income due to no tenant as flow of expats may drop significantly. If property market crash, the value of both your condos will plunge but your mortgage remains high plus your mortgage rates are high. Property is a very risky thing.

What you should do is to sell your investment property and use the net proceeds of $450k to pay down on your home mortgage. You can then use your savings to pay down further your home mortgage and clear it off fast. Then you build up you and your wife's CPF SA so that you can choose the best option to get $1750 pm each when you retire at 65.

Don't get caught in your desire to get rich but risking losing everything. Worse still, if you become jobless as you are the sole breadwinner. Don't listen to those people who say don't clear your mortgage but take more loan to buy investment property. These people will just paint a rosy picture but fail to advise the big downside. Our property market is dangerously oversupplied and mortgage rates are rising high.

Originally Posted by Unregistered

Obviously you didn't read carefully, he has another properrty with outstanding loan of $400k, cash $500k, he could have fully for it and fulfil your statement of "at your age, you should already own a fully paid home". There is reason why some die poor, some get richer, no risk no gain. some are risk averse, they will prefer not to loan anything, then pay fully with cash, but history has taught us this term "missed the boat". How many boats would have been missed while waiting tl build up cash to fully pay investment house.

He is not managing his risks properly. People like him will suffer the most in a bad economic situation. Trust me. I've seen it all.

LTA is going to announce 2015 May to July COEs quota. The number of COEs will likely to increase by around 30% more just the last announcement for Feb-Apr quota. Even the higher de-registration over past few months, it could surprise on the upside, could be even 50% more COEs. I rather wait than to join in the crowd as my car only expires next year end.

Originally Posted by Unregistered

In the first April 2015 COE bidding starting tomorrow, I predict COE prices will continue to rise. This is most likely so for Cat A COE as replacement demand is very, very high. We can expect the number of bids for Cat A (demand) to be more than 2000 whereas the number of Cat A COE available (supply) for bidding is less than 1000.

So, with demand so much greater than supply, Cat A COE will likely rise to $68 or more. Don't forget it was $90k plus in recent years. So, with high demand, expect prices to eventually go back to that level especially since there is no clawback announced thus far. I predict it will go to $100k by 2018. So, it is best to change to a new car now if your car is 4 years old or older. COE at $70k and below for Cat A is consider cheap, in my opinion.

Many families are richer today than 10 years ago. Many are also buying their second or third cars as their needs increases. For instance, the wife will want to buy a new car for herself for work convenience and the son will need a new car to go to Uni so he does not spend too much time traveling. So as family needs rise, so will demand for new cars. And with prosperity from higher family income, from gains in the stock market and property market, more people are richer and so demand for new cars will increase by a lot.

Originally Posted by Unregistered

LTA is going to announce 2015 May to July COEs quota. The number of COEs will likely to increase by around 30% more just the last announcement for Feb-Apr quota. Even the higher de-registration over past few months, it could surprise on the upside, could be even 50% more COEs. I rather wait than to join in the crowd as my car only expires next year end.

Yes. Me too waiting.
I pray it can drop to $30k by mid of 2016,
thats when my old Altis will expire.

Originally Posted by Unregistered

LTA is going to announce 2015 May to July COEs quota. The number of COEs will likely to increase by around 30% more just the last announcement for Feb-Apr quota. Even the higher de-registration over past few months, it could surprise on the upside, could be even 50% more COEs. I rather wait than to join in the crowd as my car only expires next year end.

Even if COE supply increase, demand will still be much higher. The higher COE supply is already expected to be 1300 or more but demand is 2000 plus. So with demand more than supply, price will rise.

Replacement demand is very high.

No point arguing.

We should live according to our income, and risk appetite.

What is clear is that even among people earning similar income, some will become richer than others. How come?

It is because those who became richer know something more and act on their knowledge while others are clueless, only worrying about paring down their loans.

What is important is that everyone, no matter what their station in life is happy.

Originally Posted by Unregistered

He is not managing his risks properly. People like him will suffer the most in a bad economic situation. Trust me. I've seen it all.

Originally Posted by Unregistered

No point arguing.

We should live according to our income, and risk appetite.

What is clear is that even among people earning similar income, some will become richer than others. How come?

It is because those who became richer know something more and act on their knowledge while others are clueless, only worrying about paring down their loans.

What is important is that everyone, no matter what their station in life is happy.

Indeed. There are many people who are clueless of what's going to happen ahead, blindly following the crowd. End up losing everything.