Market issit bad now?

[ac_wong75]

Originally Posted by divespyder
I see colleagues all buying new merc C180 and condos when prices are at all time high. Office car park is filled with new mercs & bmws driven by low level executives on 10 year loans. All cite cheap interest rates & not wanting to miss the boat when prices rise further as reason for buying. Quite a few are contemplating taking 40 year mortgages.

My boss is asking why i'm not leveraging on cheap credit & mortgages to invest in property.. he has 9 condos & commercial properties in SG and 3 in Johore.. I'd like to see who is wearing pants when the tide recedes.

From the above description, it sorts of give us the sense that the macro environment here is starting to look like what is happening in US prior to 2008. Low interest rates high lerveraging by consumers to support lifestyles beyond them. Especially on the housing part, borrowing and leveraging to invest in real estate was one of the major root cause of the collapse in 2008..

[leslie]

From the above description, it sorts of give us the sense that the macro environment here is starting to look like what is happening in US prior to 2008. Low interest rates high lerveraging by consumers to support lifestyles beyond them. Especially on the housing part, borrowing and leveraging to invest in real estate was one of the major root cause of the collapse in 2008..

Bro. Spain in a mess now due to housing bubble as well.

[divespyder]

My big boss say housing will never collapse in SG. Govt won't let it happen. Anyways he said I was stupid to get stuck in housing slump in 1995-2005. I was stuck with a condo which I stayed in so I guessed it was ok as it was for own use for most part after I returned from overseas postings. I was suffering from rock bottom rental & high interest mortgage rates in 2001-03. Managed to sell that off in 2011. Boss said I'm stupid to have sold off so fast.

I also feel the situation in SG is like US bubble prior to sub prime crisis. Many Singaporeans r living on credit & I mean over extended credit. I also happen to know of some who remortgage their homes for credit and went on to buy super cars wIth the credit line. That's one of the most stupid things one can ever do I feel.

[problmchylde]

I see colleagues all buying new merc C180 and condos when prices are at all time high. Office car park is filled with new mercs & bmws driven by low level executives on 10 year loans....

I always believe in living within yr means......dats why i m driving a 7 yo subaru.......

[leslie]

My big boss say housing will never collapse in SG. Govt won't let it happen. Anyways he said I was stupid to get stuck in housing slump in 1995-2005. I was stuck with a condo which I stayed in so I guessed it was ok as it was for own use for most part after I returned from overseas postings. I was suffering from rock bottom rental & high interest mortgage rates in 2001-03. Managed to sell that off in 2011. Boss said I'm stupid to have sold off so fast.

I also feel the situation in SG is like US bubble prior to sub prime crisis. Many Singaporeans r living on credit & I mean over extended credit. I also happen to know of some who remortgage their homes for credit and went on to buy super cars wIth the credit line. That's one of the most stupid things one can ever do I feel.

This is usual reasoning that Singapore housing will not crash. Govt will not allow it. I will tell them 1997 pap did not form the govt meh? If one day rates increased alot of ppl are finished.

[wolfeyes1974]

This is usual reasoning that Singapore housing will not crash. Govt will not allow it. I will tell them 1997 pap did not form the govt meh? If one day rates increased alot of ppl are finished.

Agree. I've been checking out different properties ever since I sold off jan this year my condo that was bought during SARS. A 99 yr leasehold 3 bedroom ascentia sky (near to redhill mrt) going for over $2.2m! Based on current low interest rate, monthly mortgage is around $6.6k thereabouts. If the interest goes up by say 1%, monthly mortgage will be near $8k or more? I'm skeptical if an expat will pay $8k rental when central properties like river valley are asking about the same? Perhaps too many are over extending their credit, similar to U.S subprime bubble that popped! If it bursts, let's hope our policies and measures can provide some soft ground for the landing.

Meanwhile, It's a blessing to enjoy a debt free lifestyle with car and hdb home fully paid up. And perhaps some point in the near future, I can afford another 1-2 reasonably priced properties or an occasional irrational horology indulgence. I think it pays to be a little more conservative now but each to his own I guess

[leslie]

Agree. I've been checking out different properties ever since I sold off jan this year my condo that was bought during SARS. A 99 yr leasehold 3 bedroom ascentia sky (near to redhill mrt) going for over $2.2m! Based on current low interest rate, monthly mortgage is around $6.6k thereabouts. If the interest goes up by say 1%, monthly mortgage will be near $8k or more? I'm skeptical if an expat will pay $8k rental when central properties like river valley are asking about the same? Perhaps too many are over extending their credit, similar to U.S subprime bubble that popped! If it bursts, let's hope our policies and measures can provide some soft ground for the landing.

Meanwhile, It's a blessing to enjoy a debt free lifestyle with car and hdb home fully paid up. And perhaps some point in the near future, I can afford another 1-2 reasonably priced properties or an occasional irrational horology indulgence. I think it pays to be a little more conservative now but each to his own I guess

Even punggol condos selling at 1.3 million. 1% rates hike still OK. Scared is some freak events like sibor 9.5% in 1998.

[kqxrlovesSpeedmasters]

I'm playing it cautious too...me and fiancee were property shopping for our 1st house..unlike many of our peers who whacked 1mil+ new condos in pasir ris or pasir panjang, we bought a resale freehold apartment along dunman road 800kish....

Even punggol condos selling at 1.3 million. 1% rates hike still OK. Scared is some freak events like sibor 9.5% in 1998.

[Watcha]

It is a strange indeed.

Market sentiment not good. People bracing for crash as europe/us cannot ask money to drop from the sky, yet most EU unwilling to cut spending.

Yet the asking price for properties are sky high, rentals are sky high for commercial.

People are buying luxury properties and luxury cars without blinking.

The power of Number 1 millionaires ratio in the world.

My boat will only come when the crash comes.

[leslie]

I'm playing it cautious too...me and fiancee were property shopping for our 1st house..unlike many of our peers who whacked 1mil+ new condos in pasir ris or pasir panjang, we bought a resale freehold apartment along dunman road 800kish....

Ya lor. Dun anyhow play these days very scary. Loan out happily later anyhow hike rates.

[leslie]

It is a strange indeed.

Market sentiment not good. People bracing for crash as europe/us cannot ask money to drop from the sky, yet most EU unwilling to cut spending.

Yet the asking price for properties are sky high, rentals are sky high for commercial.

People are buying luxury properties and luxury cars without blinking.

The power of Number 1 millionaires ratio in the world.

My boat will only come when the crash comes.

Scary part is nobody knows when will it crash. Market pumped until high high just like 2007 then sudden death. Baltic dry index at 704 compared to 2007 12000. Means no shipping.

[jieming]

Guess market is really bad. Your D9 is such a good bargain, yet nobody snatch it up yet.

thats why, you guys should buy my freehold D9 property at a super fair price, tenanted at 3.5%pa yield.
pasir ris? punggol? 99yrs and at those prices? aiyoh.....no lah......

check out my fair deal at garage place - misc items and PM me if serious.
owner to owner discussion, honest and direct.
cheers.....

[Watcha]

I'm playing it cautious too...me and fiancee were property shopping for our 1st house..unlike many of our peers who whacked 1mil+ new condos in pasir ris or pasir panjang, we bought a resale freehold apartment along dunman road 800kish....

It looks very sound for a freehold.

Look at those suburb million condos.
Those near million hdbs which are technically never owned.
It's leasing contract which the property is never yours.

[jieming]

Just buy within your means. I would recommend first time buyer to get a new HDB flat(if you have not hit the income ceiling) so you could enjoy subsidized housing. Then plan for a 2nd private property.

[Ian Limm]

i remember last year all the financial reports said this year property will go down...well they are all wrong!
not only never go down... it went up and up!

this year all the expert gurus are again saying next year everything will go down....lets see.

what I learnt after so many years reading the reports of these experts is your guess is as good as theirs, so forget about "next year will be bad or bull coming once they solve the euro issues."

2008 didn't hit us so badly, I upgraded to a bigger property when the doomsayers predicted it was only the start of a decade of financial meltdown ...how wrong the experts were,stock and property markets recovered within a year plus and property prices doubled in some places!

this tiny island singapore is flooded with so many rich people and each family with their multi millions of dollars in their private bank accounts I only smell and see money everywhere .....ignore those who say the end of the world is coming or those who say the bulls are coming....

Rule No 1 for me now is "Hope for the best , prepare for the worst"

Rule No 2 you got stay invested no matter what, selling everything is also taking risks cos if market turns up, your cash shrinks further, remember money only gets smaller every year.