How much are you earning per annum?

Originally Posted by Unregistered

If the property prices retreat, it is still not easy to get another property nowadays. Due to the LTV, ABSD, TDSR. Those with an existing property loan will have to come up with a lot of cash as the allowable LTV is only 50%.

For a S$1M condo that is S$500K cash.
By the time I can save S$500K cash the property bust would have passed

Wrong. You need to cough up $600k. Remember the 10% ABSD that you'll have to pay IRAS.

Planning to sell my flat for $600k. Since it is fully paid, we will get $600k. Will use cash savings to settle transaction costs. Then will use $500k for downpayment of a $900k resale condo in OCR in the West (near our work place in Tuas) and will pay in full cash a Cat A car costing $100k.

Through these moves, we will now own a condo and a new car. Upgrade my social status instantly from living in a flat with no car to living in a condo with brand new car. With our combined income of $125k pa, we will have no difficulty servicing the condo loan.

Originally Posted by Unregistered

Planning to sell my flat for $600k. Since it is fully paid, we will get $600k. Will use cash savings to settle transaction costs. Then will use $500k for downpayment of a $900k resale condo in OCR in the West (near our work place in Tuas) and will pay in full cash a Cat A car costing $100k.

Through these moves, we will now own a condo and a new car. Upgrade my social status instantly from living in a flat with no car to living in a condo with brand new car. With our combined income of $125k pa, we will have no difficulty servicing the condo loan.

Very cheap BTOs make it possible for many people to flip their BTO flat after MOP. They make big profits and can buy new cars easily. Not surprising why COE prices will continue to rise further. Some more, now with cheap oil, it makes more sense to buy a new car than take a taxi. The cost of running a car is now so much cheaper.

I believe you are the same car salesman writing and answering your own posts over and over again. You must realise whether high COE or low COE, it is not your gain. It is the gahmen's gain.

The number of cars that dealers can sell is controlled by the gahmen, not the COE price. Although the number of cars being scrapped will go up in 2015/16, the COE quota will be controlled and spread over a longer period to prevent a repeat of 2005/06 situation of $10k COE prices.

From your posts, you seemed to be selling Korean cars. I have not owned a Korean car before only in taxis (sonatas). Think they are ok, but among my colleagues and friends who own Korean cars, they don't intend to buy another Korean car when they change car. On the other hand, those who own Jap cars are looking to replace them with newer but similar jap cars.

Originally Posted by Unregistered

Very cheap BTOs make it possible for many people to flip their BTO flat after MOP. They make big profits and can buy new cars easily. Not surprising why COE prices will continue to rise further. Some more, now with cheap oil, it makes more sense to buy a new car than take a taxi. The cost of running a car is now so much cheaper.

You are wrong. I'm not a car salesman. I just state the facts.

Originally Posted by Unregistered

I believe you are the same car salesman writing and answering your own posts over and over again. You must realise whether high COE or low COE, it is not your gain. It is the gahmen's gain.

The number of cars that dealers can sell is controlled by the gahmen, not the COE price. Although the number of cars being scrapped will go up in 2015/16, the COE quota will be controlled and spread over a longer period to prevent a repeat of 2005/06 situation of $10k COE prices.

From your posts, you seemed to be selling Korean cars. I have not owned a Korean car before only in taxis (sonatas). Think they are ok, but among my colleagues and friends who own Korean cars, they don't intend to buy another Korean car when they change car. On the other hand, those who own Jap cars are looking to replace them with newer but similar jap cars.

With oil prices plunging, petrol pump prices have also gone down. Our utilities bill will also go down. So we have more money in our pocket. This means it is now cheaper to buy a new car and use it than taking the taxi. Since taxi fares have not gone down, the benefits of lower petrol pump prices go to the taxi drivers. The taxi uncle is now richer.

You should therefore buy a new car now.

In the 2nd Dec COE bidding, we can expect Cat A to go to $72k while Cat B will go to $78k. Many people and families have just received their December bonus and now this weekend will go to car showrooms to buy brand new cars.

Interesting post. I believe the bulk of households are in Tier 5, so rightly Tier 5 covers the middle class. Those households with less than $1m networth will be the lower class.

Typically the middle class is further divided into upper middle, middle middle and lower middle.

Using the tiering below, I would classify the upper-middle class households as having net worth of $5m - $10m

The middle-middle class households having $3m - $5m net worth, and the lower-middle class households having $1m - $3m net worth.

For the upper and middle-middle income households, they are in a good position to sustain their lifestyle even in retirement if they invest their money wisely. For a household with $3m networth, if you take away $1m for the property they stay in, they will have $2m to invest. At 5% return, they could generate a steady passive income of $100k a year! For those with $5m household networth, you take away $2m for the property they lived in, they still have $3m to invest and generate $150k pa of passive income in their retirement without downgrading their lifestyle.

For the lower-middle, and lower class households, they might have to downgrade when retired to sustain their retirement. Alternatively, they could work for longer till 65 as encouraged by the government.

Originally Posted by Unregistered

How do you define rich?

Nowadays, you are nothing with $1m networth.

I read somewhere in this forum that there was an attempt to categorise the different wealth level in Singapore. I think there were roughly 5 tiers (family or HH networth):

Tier 1: > $250m (think there were 50 families)
Tier 2: $100m - $250m
Tier 3: $50m - $100m
Tier 4: $10m - $50m
Tier 5: <$10m

As you can see, the bandwidth gets narrower at the net worth gets lower. Even then there was a lot of debate in this forum to further subdivide tier 5 as follows:

Tier 5a : $5m - $10m
Tier 5b : $3m - $5m
Tier 5c : $1m - $3m
Tier 5d : <$1m

As far as I am concerned, only tier 4 and above people are rich. Tier 5 people are the middle and lower classes.

We are both working professionals, 48/49 years old. Our combined income is $200k pa. We live in a luxury condo worth $1.5m, fully paid. Our other assets is worth $500k. Our total net worth is $2m. Based on your theory, we are in the lower middle class group.

Is this correct? If what you say is correct, then 95% of Singaporeans are poor and destitute.

Originally Posted by Unregistered

Interesting post. I believe the bulk of households are in Tier 5, so rightly Tier 5 covers the middle class. Those households with less than $1m networth will be the lower class.

Typically the middle class is further divided into upper middle, middle middle and lower middle.

Using the tiering below, I would classify the upper-middle class households as having net worth of $5m - $10m

The middle-middle class households having $3m - $5m net worth, and the lower-middle class households having $1m - $3m net worth.

For the upper and middle-middle income households, they are in a good position to sustain their lifestyle even in retirement if they invest their money wisely. For a household with $3m networth, if you take away $1m for the property they stay in, they will have $2m to invest. At 5% return, they could generate a steady passive income of $100k a year! For those with $5m household networth, you take away $2m for the property they lived in, they still have $3m to invest and generate $150k pa of passive income in their retirement without downgrading their lifestyle.

For the lower-middle, and lower class households, they might have to downgrade when retired to sustain their retirement. Alternatively, they could work for longer till 65 as encouraged by the government.

Originally Posted by Unregistered

With oil prices plunging, petrol pump prices have also gone down. Our utilities bill will also go down. So we have more money in our pocket. This means it is now cheaper to buy a new car and use it than taking the taxi. Since taxi fares have not gone down, the benefits of lower petrol pump prices go to the taxi drivers. The taxi uncle is now richer.

You should therefore buy a new car now.

In the 2nd Dec COE bidding, we can expect Cat A to go to $72k while Cat B will go to $78k. Many people and families have just received their December bonus and now this weekend will go to car showrooms to buy brand new cars.

Yesterday WanBao newspaper mention that next quota revision will increase by 30%.
How can the Cat A continue to go up? Demand and Supply theory!!

Originally Posted by Unregistered

Yesterday WanBao newspaper mention that next quota revision will increase by 30%.
How can the Cat A continue to go up? Demand and Supply theory!!

Don't be a fool. The 30% increase in supply will be met with the car owners changing cars. In addition, there will be greater demand from increase in income and wealth of Singaporeans, families owning two cars or more (some families even own 5 cars), increase in population, flipping of properties especially BTO flats, etc. So while supply increase, demand also increase and increase by 100%! so by demand and supply theory, COE prices will rise.