Punggol East By-Election coming ? MP steps down
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JannettLee:
I'm in this market long enough to see al kinds of problems and do not take hearsay for real. Those got calling was simply because they defaulted the loam payment.[/quote]When your outstanding loan is $2m and your property price has drop to $700k the bank won't be so happy just taking in your loan payment lar.
There were a heck of a lot of it in 2008-2009. And also in 1998-2000. There aren't any at the moment.pirate:
[quote=\"JannettLee\"]
Next time, if you have such as good lobang, please IM me. If successful, I can even offer you good commission. I'm only interested in D1,9,10 &11.
You have seen a 30% correction before. Good for you. I have seen a 60% correction before. The banks were definitely calling for top-ups when it happened. It was not pretty.
Even the bank's computer software will call you on behalf of the bank
Seriously, whether you like it or not (to know or not to know) that's the way how it is. -
If you are in this market long enough like you claimed, then this ABSD shouldn’t surprised you at all. Property investors, the real and savvy ones, have widely anticipated some “moves” would swing in anytime.
Those that left thronging the showrooms outside D9,10,11 are the very group that get caught off guard, which precisely the lousy gov you detest is trying to protect. -
This round of ABSD is “specially” for quenching the likes of $1700 psf condos in places like pair ris.
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Strparent:
Pirate already explained the current situation very clearly.JannettLee:
Resale HDB flats transacting at $800k-900k, isn't this a bubble or genuine demand? A bubble in HDB property market right? Are we seeing real effective cooling measures being implemented for HDB property market? The answer is obviously no. So why no? they are sleeping? Trying to put out \"perceived\" fire in 20% private property market when in fact fire is ragging in the 80% HDB property market!
[quote=\"pirate\"]The foreigners are not coming in to buy in any numbers. The softest segment of the market is the upmarket segment in the central districts and district 15. The strongest demand is for developer sales in the suburbs. Why? Because one only needs to plonk down 20% and then wait for the developers to build. Most of the buyers don't even know what they are buying. Wait till they get their keys then they will know. :evil:
Private resale market of completed units is not particularly strong.
The market is now perceived as genuine demand when it is in fact a bubble. If it is genuine demand, the restrictions on financing for 2nd and subsequent properties will have no impact on the market.
regarding your question on why no cooling measures for HDB and only on pte property ? Isn't it obvious ?
any cooling of pte property prices will naturally lead to cooling of HDB prices, its a dominos effect..... and it does not work both ways proportionally.[/quote]Pirate already answered himself but just need to see the whole situation clearly . Next, he has to ask himself why there are CM7 altogether! It's a genuine demand and none of the previous CMs had managed to curb and you still can see the restrictions have very little impact on the private property prices. To the point that you are giving a lot of discounts to rich foreigners now as most Singaporeans are no longer able to afford and and free up the demand to foreigners and foreigners can now pick up good deals. The ABSD is no longer material to them.
Cannot compared to Hong Kong la, Hong Kong has 80% private property so they are addressing the correct market (80% market!). Whereas, Singapore is now addressing the 20% of the market, you think they can solve by addressing 20% market? -
Harlequin:
[/quote]No, the bank will not call you to top up so long you serve your loan diligently. Anyway, you had exaggerated the case? Is this your real experience? I had never heard such case in singapore before! Please show data le, I would like to see the data.
When your outstanding loan is $2m and your property price has drop to $700k the bank won't be so happy just taking in your loan payment lar.JannettLee:
[quote=\"pirate\"]
I'm in this market long enough to see al kinds of problems and do not take hearsay for real. Those got calling was simply because they defaulted the loam payment.
Even the bank's computer software will call you on behalf of the bank
Seriously, whether you like it or not (to know or not to know) that's the way how it is. -
pirate:
Don't worry. There is not enough local liquidity to support current prices. The :censored: foreign funds will find an excuse to suddenly yank the liquidity out of the local market. They always do.[/quote]Let's see for the next 6 months!3Boys:
[quote=\"pirate\"]There aren't any at the moment..
Not yet..... :evil: -
pirate:
There were a heck of a lot of it in 2008-2009. And also in 1998-2000. There aren't any at the moment.JannettLee:
[quote=\"Harlequin\"]Every weekend there are many properties being auctioned by the banks.
Next time, if you have such as good lobang, please IM me. If successful, I can even offer you good commission. I'm only interested in D1,9,10 &11.
You have seen a 30% correction before. Good for you. I have seen a 60% correction before. The banks were definitely calling for top-ups when it happened. It was not pretty.[/quote]Show me the case and data, I have never seen 60% correction before! -
JannettLee:
:? Giving a lot of discount? Foreigner pay higher ABSD leh!
Pirate already answered himself but just need to see the whole situation clearly . Next, he has to ask himself why there are CM7 altogether! It's a genuine demand and none of the previous CMs had managed to curb and you still can see the restrictions have very little impact on the private property prices. To the point that you are giving a lot of discounts to rich foreigners now as most Singaporeans are no longer able to afford and and free up the demand to foreigners and foreigners can now pick up good deals. The ABSD is no longer material to them.
Cannot compared to Hong Kong la, Hong Kong has 80% private property so they are addressing the correct market (80% market!). Whereas, Singapore is now addressing the 20% of the market, you think they can solve by addressing 20% market?
Call your banker lar, it's a good day to view some distressed properties for your portfolio. You can start with D'Leedon, I sincerely think that's a good buy. -
JannettLee:
Let's see for the next 6 months![/quote]6 months is too short, my dear savvy investor!
Don't worry. There is not enough local liquidity to support current prices. The :censored: foreign funds will find an excuse to suddenly yank the liquidity out of the local market. They always do.pirate:
[quote=\"3Boys\"]
Not yet..... :evil: -
pirate:
If people die die want to buy, you can't prevent them. Even 0% LTV, you still can't prevent them from buying the property. But there will have side effect, you are driving these people to buy mickey mouse properties because of small quantum and deprive those people who really need it such as retiring people, young couple etc..JannettLee:
You don't seem to understand the illustration I qouted don't you? The illustration I quoted refers to a person who has enough money to pay 50% of the property by cash even after the latest cooling measures (while still able to loan 50%). But does the cooling measures help in making this buyer more stable and safer from financial disaster in the future if property prices drop? Isn't the purpose of any cooling measure is to ensure new property buyers are financially stronger to endure bigger property price drop? The answer is NO, big NO. In fact, the latest cooling measures makes him from a previously STRONG property owner to become a VERY WEAK MARGINALIZED property owner even though he is still able to buy a property after the latest cooling measures. So, the latest cooling measures will exacerbate more property buyers into financial disaster in the future (since it leaves them with little cash buffer on hand).
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.