5% Cash Downpayment for propety. What is your opinion?
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Is this good for home buyer or is this a dangerous financial trap?
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this is the 4th thread on this issue.
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Originally posted by dragg:this is the 4th thread on this issue.
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but, IMO, the other thread sux leh. End up it becomes a gov-bashing thread..
Not much info with regards to how the policy will affect existing home-owners' decision whether to refinance their loans, or how it will affect new home owners.
I not homeowner yet so i can't comment much whether it is good or not.. but I'm holding DBS's stocks.. laughing like mad when i saw it's share price yesterday..
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you must be very loaded to afford DBS shares.
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Then read my post, I think it makes more sense....
http://www.sgforums.com/?action=thread_display&thread_id=143319 -
For blue chip like DBS, you dont need to in multiple of 1000 shares.Originally posted by dragg:you must be very loaded to afford DBS shares. -
You will be 10 times more happy if you have been holding Hyflux shares...Originally posted by k4korny:but, IMO, the other thread sux leh. End up it becomes a gov-bashing thread..
Not much info with regards to how the policy will affect existing home-owners' decision whether to refinance their loans, or how it will affect new home owners.
I not homeowner yet so i can't comment much whether it is good or not.. but I'm holding DBS's stocks.. laughing like mad when i saw it's share price yesterday.. -
i didnt know there are odd lots for dbs.Originally posted by Gazelle:For blue chip like DBS, you dont need to in multiple of 1000 shares. -
No lah.. actually i'm holding DBS warrants. and so the gains is even more amplified than the actual stock..Originally posted by dragg:you must be very loaded to afford DBS shares.
What I think about the new policy is that, the cons about the financial time bomb is quite obvious.
But the pro is that if you are getting a larger loan, more likely you are going to be able to negotiate for better interest rates or better packages for your loan. Instead of paying the downpayment, if you can invest that 5% elsewhere, where the returns are higher than the interest rates, then extra 0.x% u save on the interest rates will go a long way..
But nonetheless, responsibility should still be on the home owners to judge how they invest, and they should exercise prudence. The Gov is lowering the downpayment, doesn't mean that home owners MUST take it.. -
then you shd just shut the fark upOriginally posted by k4korny:but, IMO, the other thread sux leh. End up it becomes a gov-bashing thread..
Not much info with regards to how the policy will affect existing home-owners' decision whether to refinance their loans, or how it will affect new home owners.
I not homeowner yet so i can't comment much whether it is good or not.. but I'm holding DBS's stocks.. laughing like mad when i saw it's share price yesterday.. -
never see that i din participate in that thread meh?Originally posted by crazy monkey:then you shd just shut the fark up
Ok... maybe sux is too strong a word. But you should agree that most the post in that thread keeps talking about the same thing right? -> that gov cmi abt it's policies..
Wat I meant was that we need a separate thread where home owners can discuss fully how this will impact their home loans decision. -
if that means payin more... ppl will be less reluctant to "purchase" a flat..
our jobs are not secure, we can be given the boot anytime... to risk more debts would be the last thing on anyone's mind..
haiz.. -
u sure...then why i see ppl taking up 90% car loan / housing loan....having credit card debt....Originally posted by shinta:if that means payin more... ppl will be less reluctant to "purchase" a flat..
our jobs are not secure, we can be given the boot anytime... to risk more debts would be the last thing on anyone's mind..
haiz.. -
ok let me rephrase.. ppl who can see beyond the next 1 year... may be reluctant..Originally posted by Peppermint:u sure...then why i see ppl taking up 90% car loan / housing loan....having credit card debt.... -
that or they've considered for quite some time.. definitely not sth u decide on the spotOriginally posted by shinta:ok let me rephrase.. ppl who can see beyond the next 1 year... may be reluctant.. -
I believe Singapore property market is going to improve over the next few years, and this will definitely encourage banks will be very aggressive in offering loans to home buyer. With that, I would expect many young and ambitious home buyers to fall into the trap of buying beyond their means.Originally posted by shinta:if that means payin more... ppl will be less reluctant to "purchase" a flat..
our jobs are not secure, we can be given the boot anytime... to risk more debts would be the last thing on anyone's mind..
haiz.. -
what i'm earning plus the debts that i carry says i do not qualifyOriginally posted by Gazelle:I believe Singapore property market is going to improve over the next few years, and this will definitely encourage banks will be very aggressive in offering loans to home buyer. With that, I would expect many young and ambitious home buyers to fall into the trap of buying beyond their means.
earnin too little to pay my debts
imagine i earn just enuff to eat... n now, can manage to squeeze out the minimum repayment amt for my loan... so i'm payin off just the interest not the debt -
They are being financially stupid. They believe the economy will stablise, they believe that one day the PAP will bring back the good days and they believe that on projected earnings, they will be able to afford some more debt(because they will earn more to repay it).Originally posted by Peppermint:u sure...then why i see ppl taking up 90% car loan / housing loan....having credit card debt....
But nothing can be further from the truth- this are the same group of people who will be the hardest hit because they are the ones who are already in deep debt, whether is credit card debt or bank loan debts or mortgage payment debt...
If the property market only goes up for a short time, before falling back to its current position in 2-3 years time, then they will be the 1st ones to call for help. By that time, they have no-one but themselves to blame.
It's not like people like us here didn't warn them about falling into deeper debt. -
well, think about it, now u know it may not be very good with the new policy. so what? as long as property demand rises and the value goes up, you will stand to gain from others' foolishness.
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hit and run..Originally posted by leddy:well, think about it, now u know it may not be very good with the new policy. so what? as long as property demand rises and the value goes up, you will stand to gain from others' foolishness.
but there's a minimum period where you cannot sell the house right? That measure was there to prevent speculation. -
loan frm hdb.. 5 years..Originally posted by k4korny:hit and run..
but there's a minimum period where you cannot sell the house right? That measure was there to prevent speculation.
loan frm bank.. 1 year -
Government is telling u - time to buy. Our property prices are way below their true value. I just returned from Hong Kong. A 350 sq ft apartment (50-year lease) without a carpark space is going for HK$2,400,000 or about S$520,000. In the prime district, the same sized apartment is going for HK$6,000,000 or about S$1.300,000. They have to pay separately for a carpark. I visited 2 apartments and find that the kitchen has only standing space, the room is the size of our storeroom, and you can touch both walls with your outstreched hands. So we are really cheap for living in a prime city - for the moment. Our limited land space will guarantee sky high property prices in the future. So young men, dont miss out and lament to your children when you are 55 years old.
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Sorry. But I'm not in a position to exploit other people's foolishness- because I'm not a property agent or someone from a big property development company.Originally posted by leddy:well, think about it, now u know it may not be very good with the new policy. so what? as long as property demand rises and the value goes up, you will stand to gain from others' foolishness.
To above poster: Land and property prices here may be "cheap" as compared to HK but our prices are one of the pricest around ASEAN itself. Also most of the HDB flats' prices are already overinflated by the govt. While property market prices in HK are dictated by pure market demand and supply, the govt here has a huge say on how much a normal 3 room flat(on average) will cost for each Singaporean.
So in a way, when we compare the HK market wif ours, it's like comparing apples with oranges.
And here's an article from Financial Times.co.uk about the matter..
http://news.ft.com/cms/s/44568da4-f8af-11d9-8fc8-00000e2511c8.html -
Why not paste the whole FT article?
Singapore to relax property purchase rules
By John Burton in Singapore
Published: July 20 2005 01:21 | Last updated: July 20 2005 01:21
Singapore yesterday said it would relax rules on buying property in an effort to revive one of Asia's most sluggish markets.
Rules on property financing will be eased and investing in apartment units will be made simpler for foreign buyers.
Singapore has suffered a 37 per cent drop in property prices since 1996 because of an oversupply of housing, home ownership rates of nearly 90 per cent and a volatile economy.
Property prices in Singapore have increased by only 1 per cent in the past year compared with 50 per cent in Hong Kong and 40 per cent in Shanghai.
ooo.. so is Singapore going to experiene the same 40/50 % increase in property prices by next year? Better go stock up on my popcorns and see how many people go bankrupt in 2 years time.
The Singapore index of property shares yesterday rose by 7.4 per cent its biggest gain since late 2001 while bank shares alsoperformed well on expec-tations of increased lending.
The measures appear to be intended to increasepurchases in public housing estates, where most Singaporeans own homes.
Cash downpayments will be cut to 10 per cent from20 per cent, with buyers allowed to use more of their state pension funds to buy property.
Foreigners can now buy any unit in an apartment block, except for upscale condominium units, instead of being limited to buildings that are six or more floors high. But restrictions remain on buying houses because of the small size of Singapore.
This is not the first time the government has intervened in Singapore's property market.
Property prices climbed sharply in the early 1990s before the government introduced restrictions to curb speculation, such as imposing heavy taxes on profits from units that were bought and quickly sold. The Asian financial crisis in 1997 further depressed the market.
The burden has fallen heaviest on those living in public housing estates.
The fall in property prices has meant that few have been willing to sell apartments that were bought during the property boom. Perversely, this has helped to create an oversupply of housing as new private apartments have been built to meet demand from new buyers.
Limits on allowing single people to buy public housing units and a falling birth rate have curbed demand.
Singapore has relied increasingly on foreigners to bolster the property market in recent years. Indonesians, worried about instability at home, have been among the biggest property buyers in recent years, accounting for up to 70 per cent of condominium units sold.
Singaporeans have been encouraged by the government to buy homes to produce a “stakeholder” society. But since most of thepurchases have been partly financed by an individual's state pension, it has resulted in a population that is “asset rich but cash poor”, according to economists.
Note: Economists are not the smartest with their money. It should be liability rich and cash poor. Owning only 1 property which you have to live in is never an asset. Refer to Rich Dad Poor Dad.
With the population aging, a pensions crisis could loom unless the government finds ways to revive property sales and enable owners to recover some of their investments.