Punggol East By-Election coming ? MP steps down
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The latest cooling measures involving lower loan-to-valuation and much higher cash downpayment indeed causes more people to be marginalized even if they can afford to buy now. The reason is very simple, I learnt this from another forum which I will copy and paste here and I believe the writer of the below has great foresight indeed and has suggested a better solution with no hidden agenda than what the govt/MND has come out with:
(the latest cooling measures) they force many more property buyers/owners to become marginal owners/buyers because they end up with less cash on hand! This is a fact! This shows that you are just not a season investor. Let me put it simpler to you:
1) You buy a property for $1m. You have $500k. You pay $200k, loan $800k (i.e 80% LTV), hold cash $300k. Your $300k CASH can last you for a long time without rental, regardless of amount of loan instalment (even if you spread the loan out for only 15 years and have super high loan instalment!). You are not a marginal owner.
2) You buy a property for $1m. You have $500k. You are forced to pay $500k and can only loan $500k (i.e. 50% LTV). You end up with $0 cash on hand and you immediately become very very marginal owner! No rental only you go fly kite regardless of amount of loan instalment (even if you spread loan over 50 years to have lower loan instalment also useless!). Sell your property cheap cheap to foreigners!
Now, you are saying govt has no choice? That is stupid reply.
I can tell you, if I am them and I genuinely want to rid out margin buyer, I say can still can loan 80%, but please get a bank letter stating that you have liquid assets (or cash) equivalent to 20% of the value of the property you are buying and the liquid asset has been with the bank/brokerage/(whatever institution) for at least 1 year (to avoid last minute transfer for show only). So my suggested policy will still rid out marginal buyers without disadvantaging Singaporeans via lower LTV right? What ABSD? For milking revenue rather than genuine cooling measure? Isn't my \"cooling measure\" more citizens-friendly and make most property owners happy to vote for me? You see, because my suggested \"cooling measure\" policy has no hidden agenda, not trying to milk extra revenue via ABSD, and do not disadvantage local property owners, make them instantly become marginal property owners/buyers...JannettLee:
See that is the problem with most people as they perceived that this is a bubble and they didn't know that it's a genuine demand! What do you expect the property demand when government allow almost 100K foreigners to come in every year now? Now you know why some people can be a property investor but some can't. You need to have foresight to make money :imcool:
I hate the ABSD.. but at this moment I believe and trust the judgement of the govt.limlim:
[quote=\"Irrelevant\"]
So how many% of Singaporeans will be affected? If you do not wish to pay the ABSD, what will you do? You reckon foreign buyers are happy to pay 15%+3% stamp duty? Property speculators like yourself are precisely the target of these cooling measures and rightly so. Otherwise, when the property prices come crashing down, folks like yourself will KPKB and say that it's the government fault!
It is better than kpkb when the bubble burst.. if it burst lah.. if not, then later kpkb abt the govt on the ABSD.. :evil: :evil:
Don't just take the face value of any policies!
As I said, these cooling measures are killing off all marginalized singaporean. Private property is going to be out of reach for most singaporean by looking at the trend.
It's none of my business la and just let people see from another angles... My offspring are well taken off anyway![/quote]3Boys:
Marginalized? The whole point is to strongly discourage those on borderline to plough their money into a bubble!
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JannettLee:
The point is to prevent the $1M dollar house from becoming a $1.2M house in a year from now.The latest cooling measures involving lower loan-to-valuation and much higher cash downpayment indeed causes more people to be marginalized even if they can afford to buy now. The reason is very simple, I learnt this from another forum which I will copy and paste here and I believe the writer of the below has great foresight indeed and has suggested a better solution with no hidden agenda than what the govt/MND has come out with:
(the latest cooling measures) they force many more property buyers/owners to become marginal owners/buyers because they end up with less cash on hand! This is a fact! This shows that you are just not a season investor. Let me put it simpler to you:
1) You buy a property for $1m. You have $500k. You pay $200k, loan $800k (i.e 80% LTV), hold cash $300k. Your $300k CASH can last you for a long time without rental, regardless of amount of loan instalment (even if you spread the loan out for only 15 years and have super high loan instalment!). You are not a marginal owner.
2) You buy a property for $1m. You have $500k. You are forced to pay $500k and can only loan $500k (i.e. 50% LTV). You end up with $0 cash on hand and you immediately become very very marginal owner! No rental only you go fly kite regardless of amount of loan instalment (even if you spread loan over 50 years to have lower loan instalment also useless!). Sell your property cheap cheap to foreigners!
Now, you are saying govt has no choice? That is stupid reply.
I can tell you, if I am them and I genuinely want to rid out margin buyer, I say can still can loan 80%, but please get a bank letter stating that you have liquid assets (or cash) equivalent to 20% of the value of the property you are buying and the liquid asset has been with the bank/brokerage/(whatever institution) for at least 1 year (to avoid last minute transfer for show only). So my suggested policy will still rid out marginal buyers without disadvantaging Singaporeans via lower LTV right? What ABSD? For milking revenue rather than genuine cooling measure? Isn't my \"cooling measure\" more citizens-friendly and make most property owners happy to vote for me? You see, because my suggested \"cooling measure\" policy has no hidden agenda, not trying to milk extra revenue via ABSD, and do not disadvantage local property owners, make them instantly become marginal property owners/buyers...
Why don't you get it??
How on earth are locals penalised? If they are buying for their own stay and dispose of their first property, they are not subject to the ABSD, are they?
It's not as if on if forced into buying a second property. If one has a place to stay or if one only wishes to upgrade, then the ABSD does not apply. The point is to discourage people in investing in property right now as the investment sentiment is too hot and there is a risk of a bubble, and that there may be people who enter in at LTV at 80% who may get burnt if the market turns.
The garment is telling the people, DON'T be that guy that spends 500k to buy a $1m house and leave yourself with $0! Don't do it! Don't buy! Then you don't have to sell at a loss? You are making is sound as if people are being FORCED to part with their money. If I decide to sit tight and watch prices slide, have i paid the garment a single cent of ABSD? Have I sold at any loss to any foreigner? Who knows if that $1m house might only be 800k in 1 years time? Good right, for first time buyers with no house to sell?
It is that simple, really. Even the opposition politicians did not hammer on this, why on earth do you think you are anywhere close to the truth?
Please link us back to the other forum where you got that post so we can all go over there and tell him what a dumb post it was. -
dont know how this thread strayed so off-topic going to property curbs and such le :scratchhead: .
As far as the curbs are concerned, the govt is doing the right thing. People are just barking up the wrong tree. When the market was at low levels in 2008 , you dont see govt restricting anyone from buying and all.
Why at these current levels, anyone still want to speculate or invest is beyond me. I have a roof over my head now, why should I consider buying another one at these CURRENT levels ?
Dont chase, most property trends are cyclic. Its all about timing, likewise the curbs will come when the trend is near the highs ( remember the curbs in 96 ? and the subsequent crash in late 97 and 98 ? )
Got too much money, go ahead. Most smart money already in the market since 2007/2008 and even 2010. soem are even selling now, why kpkb about the restrictions to buy now ?
Trying to save u guys, yet make noise about the life buoys/jackets too tight. :siao: -
You see, many singaporeans are sick, very sick. They expect the govt to spoon feed them, take care of them, nanny them, save them from taking risks, etc etc...
No wonder Korea has Samsung, LG, Hyundai, etc etc, but Singapore has what singaporean global corporations the like of Korea's Samsung etc that singaporeans can be proud of? See, singaporeans expect govt to take care of them and nanny them and they don't dare to take risks.....
Strparent:
dont know how this thread strayed so off-topic going to property curbs and such le :scratchhead: .
As far as the curbs are concerned, the govt is doing the right thing. People are just barking up the wrong tree. When the market was at low levels in 2008 , you dont see govt restricting anyone from buying and all.
Why at these current levels, anyone still want to speculate or invest is beyond me. I have a roof over my head now, why should I consider buying another one at these CURRENT levels ?
Dont chase, most property trends are cyclic. Its all about timing, likewise the curbs will come when the trend is near the highs ( remember the curbs in 96 ? and the subsequent crash in late 97 and 98 ? )
Got too much money, go ahead. Most smart money already in the market since 2007/2008 and even 2010. soem are even selling now, why kpkb about the restrictions to buy now ?
Trying to save u guys, yet make noise about the life buoys/jackets too tight. :siao: -
Strparent:
Why at these current levels, anyone still want to speculate or invest is beyond me.
So that the bank can force sell it later to me. :evil:
Seriously, the 15% ABSD for foreign buyers is because HK slapped the same thing on their market first, and the government does not want the hot money to come from HK to Singapore.
And what is :censored: wrong with the govt collecting some ABSD from foreigners and people with too much money? -
pirate:
Think the debate is at different level.. We are looking at the common man level, she is looking at a speculator level..... Maybe now market a bit kanna disturb, so fed up lor....Strparent:
Why at these current levels, anyone still want to speculate or invest is beyond me.
So that the bank can force sell it later to me. :evil:
Seriously, the 15% ABSD for foreign buyers is because HK slapped the same thing on their market first, and the government does not want the hot money to come from HK to Singapore.
And what is :censored: wrong with the govt collecting some ABSD from foreigners and people with too much money? -
JannettLee:
Finally finally finally, the truth is revealed. You are not writing because you care about the welfare of Singaporeans at all are you?You see, many singaporeans are sick, very sick. They expect the govt to spoon feed them, take care of them, nanny them, save them from taking risks, etc etc...
No wonder Korea has Samsung, LG, Hyundai, etc etc, but Singapore has what singaporean global corporations the like of Korea's Samsung etc that singaporeans can be proud of? See, singaporeans expect govt to take care of them and nanny them and they don't dare to take risks..... Strparent:
Trying to save u guys, yet make noise about the life buoys/jackets too tight. :siao:
You want a property bubble to develop so you can offload your properties I guess, with no regard for a potential future crash or general affordability for the public.
There is a property bubble due to cheap money, the moment interest rates climb, the market will correct. You know that as well as I do. Why do you want the poor chap trying to get yield on his savings to fall into that trap? The garment is trying to prevent excessive risk taking, what's wrong with that? -
pirate:
Nothing wrong at all! One only hopes that not too many foolish people will find themselves emptying their cash just to stump out for the down payment.Strparent:
Why at these current levels, anyone still want to speculate or invest is beyond me.
So that the bank can force sell it later to me. :evil:
Seriously, the 15% ABSD for foreign buyers is because HK slapped the same thing on their market first, and the government does not want the hot money to come from HK to Singapore.
And what is :censored: wrong with the govt collecting some ABSD from foreigners and people with too much money? -
Strparent:
:rotflmao:dont know how this thread strayed so off-topic going to property curbs and such le :scratchhead: .
As far as the curbs are concerned, the govt is doing the right thing. People are just barking up the wrong tree. When the market was at low levels in 2008 , you dont see govt restricting anyone from buying and all.
Why at these current levels, anyone still want to speculate or invest is beyond me. I have a roof over my head now, why should I consider buying another one at these CURRENT levels ?
Dont chase, most property trends are cyclic. Its all about timing, likewise the curbs will come when the trend is near the highs ( remember the curbs in 96 ? and the subsequent crash in late 97 and 98 ? )
Got too much money, go ahead. Most smart money already in the market since 2007/2008 and even 2010. soem are even selling now, why kpkb about the restrictions to buy now ?
Trying to save u guys, yet make noise about the life buoys/jackets too tight. :siao:
Noooo, they are reading the wrong forum :evil: -
pirate:
It's ok if govt wants to collect absd from foreigners but slapping a low loan to value on locals prevents genuine local investors from deploying their depreciating hard earned money. Tell me which asset other than a physical property is a good hedge of inflation? I am not trying to make a punt on properties but in the current high inflation environment with super low real interest rate I want to safeguard that little cash that I accumulated as a PMET. I want to invest in toyota vios that later can Cinderella into a Lexus LS460 as well but as a local the LTV works against me compared to some foreigners that can afford to pay for the property entirely with suitcases of cash. Don't ask me to spend my little savings in the casino or to buy a High COE car to drive, I want to live in a Lexus LS460!Strparent:
Why at these current levels, anyone still want to speculate or invest is beyond me.
So that the bank can force sell it later to me. :evil:
Seriously, the 15% ABSD for foreign buyers is because HK slapped the same thing on their market first, and the government does not want the hot money to come from HK to Singapore.
And what is :censored: wrong with the govt collecting some ABSD from foreigners and people with too much money?
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