Punggol East By-Election coming ? MP steps down
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sinoboy:
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. [/quote]Truth truth.. but what about the consequences if it happens that current situation is a bubble waiting to burst? What will happen to the hard earned money of the middle class?pirate:
[quote=\"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? -
Irrelevant:
I agree that we should not be so harsh on our own kind. In fact we should learn from these success stories. Like the govt I also want to earn money from these foreigners since I already subsized their housing, education for such a long time already and transport and given up my job to them. Someone give me a chance to earn my Lexus LS460.Harlequin
Don't be so harsh lah...
I honestly believe that if we get to know Janette, we will find that she is a very warm and friendly person. Peace
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Sidestepped every single pertinent question posed to her, taken the very narrow view of a property investor/speculator who will of course derive benefit from a frothy property market. Harping continuously on ABSD benefiting foreigners.
What complete bull!
If you are a first time buyer, are you affected by ABSD?
If you are a prudent buyer with 500K, would you bankrupt yourself by shooting for a 2nd property valued at $1M?
If you are a rich foreigner, who has made his money buy being prudent and careful with dollars, the ABSD is meaningless to you? Hint - The rich don’t get rich by throwing money away.
Made all sorts of wild assumptions, and in the meantime, berated Singaporeans for not being ‘risk taking’.
Take what risk? Just to put money into speculators pockets? The poor chap who saved 300K over 10 years for his dream investment, just to watch it lose value?
Jannette, people have read the same motives about you that I have, only that not many have said it directly to you.
The property market is a continuous one, from the topline $3000 psf condo down to the HDB 3-room. There is a continuum of prices, how can there not be? The only other alternative is a 2-tier market where private properties are completely disconnected from HDB. Don’t you get it? Then how do HDB owners upgrade?
Look at it from the point of view of first-time buyers and upgraders, the nett effect for them is a general lowering (or capping) of prices, and they are not so much affected by LTV or ABSD issues. Which it the INTENT, and a good one! -
limlim:
No one knows for sure at which formation stage the bubble is at. But looking at the money printing press in USA, Europe and Japan, I very very seriously do not think the bubble will prick in the next few years. The bubble will prick only when everyone is very confident. And until then the middle class just got to look after ourselves and take measures to prevent our savings from losing too much purchasing power.
Truth truth.. but what about the consequences if it happens that current situation is a bubble waiting to burst? What will happen to the hard earned money of the middle class?sinoboy:
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.
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Irrelevant:
Sigh, bei tahan lar... somehow I felt as though like being toyed?! And also for other decent n caring members that were all trying to \"enlighten\" her.Harlequin
Don't be so harsh lah...
I honestly believe that if we get to know Janette, we will find that she is a very warm and friendly person. Peace
Anyway, kudos to you good natures guys! -
JannettLee:
Tell that to the Lehman brother investors who kpkb abt the lack of control/supervision by the govt..... :evil: :evil: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: -
JannettLee:
Maybe same reason why SG & PR got to pay $100 to enter the casinos while others no need.....Do govt collect ABSD from foreigners only?
Are you saying the govt does not collect ABSD from the citizens?
So why marginalized the citizens?
Is this the reason why they lose so many more votes in Punggol East? :nailbite: -
3Boys:
Quite clear.. but always interesting to read more..
Help me out here guys, am I not explaining properly somehow??
:evil:
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pirate:
Another interesting reading....
In theory you are right. In practice, what happens given the current market exuberance is that the guy with $500,000 cash will not buy a $1m property, take a $800k loan and keep the $300k in the bank. What most will do is to buy a $2.5m property, take a $2m loan and have $0 in the bank.
That bank letter will not help. Because there is no telling what the guy is going to do with the money in the bank after he gets the mortgage. Of course, it's possible to require the bank to tie up that $300k by requiring it to be placed on FD with the bank and cannot be withdrawn. But then, you will be getting 0.5% interest on a 12 month FD on that $300k and paying 1.5% interest on that mortgage. Does that work for you?
And what happens to that 'prudent' investor if the value of that property drop from $1m to $500k? Maybe you haven't seen that happen before in Singapore, but I have. No, we don't need that systemic risk. Thank you very much. -
JannettLee:
I believe the bank will only call you when the property value drop BELOW the outstanding loan amt?By the way, I own many properties and for so many years even when at time the property prices drop by more than 30%, I have never for once been called up by any of the banks to top up my mortgage loan. So you see, the truth and the myth is so much different.
Harlequin:
JannetLee doesn't aware that the bank would call her to top up her mortgage loan margin if her property's price/valuation drop below her loan amount, lah.
Of course can loan, some countries can even loan up to 95%, that left bank with 5% buffer, property market crash or slide, bank will invite you go drink coffee already :evil:
Be patient with her, obviously she is quite fortunate in investing property.
Say, you loan $800k for $1mil property. You paid off $200k and the outstanding is $600k. If the value drop by 30% to $700k, will the bank call you?
I guess not.. since the value still greater than what you own the bank..
If they sell off your property, they may need not suffer a loss, so why would they wanna call you and incur unnecessary kopi expense.....? :evil:
I'm guessing only..
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