Originally posted by oxford mushroom:
Go back to school and learn some economics, kid and follow up your statements with some evidence, for goodness sake...
Prices in the housing market are determined by market forces. The resale market is buoyant and private property prices have shot up recently, pushed up the the good economy and news about the coming IR. Prices in the resale market has a close and direct bearing on the value of new property and vice versa. In fact, it is not in the interest of the government to have high property prices because it strips Singapore of our competitiveness.
The problem is that many Singaporeans aspire to a lifestyle they cannot afford. Too many kids fresh out of poly or Uni take up car loans and housing loans as if there is no tomorrow. It might be good for the government to turn more of a nanny state and restrict Singaporeans to the type of housing they are allowed to buy based on their income. Why should a fresh grad earning $2000 a month be allowed to take a car loan and buy a private car? That's the problem with respecting civil liberties.....rights without responsibility leads to disaster.
The estate upgrading covers more than the storeroom. How conveniently have you ignored the lift landings, the covered walkways, renovations to the loo and other improvements to the common areas

You need some lessons in English Comprehension. I did not say the economy is doing badly now. I said it is not in the interest of the banks to foreclose bad loans especially if the economy is not doing well because they cannot sell off the property. Ever heard of the Joseph cycles? We are moving towards the end of the years of plenty...the bull run in the stock market cannot go on forever. As one ST journalist said, the bear might come earlier than you think. Banks are not daft....they do not want to end up with armfuls of property when the economy turns for the worse with no customers in sight for the long, lean years to come.
For the banks to foreclose on bad debts, they must be convinced that the debtor is not willing or will never be able to pay.
Yet you have shown us how well you understand economics. Like your previous understanding of "when interest rates rise, bond prices will increase" because more people will buy it as it pays better rates.
When you have a managed floating foreign exchange regime, you are indirectly affecting the price of interest rates. Therefore the interest rate is not determined by the market forces. You don't even know what is the parity involved. Don't think it's my responsibility to teach you, I should let you remain an imbecile.
Why are always repeating the same points like a damaged record? About people living beyond their means, I have heard it like a million times.
Are all your posted relevant to what I commented? Read my posting again and understand.
Originally posted by oxford mushroom:
The estate upgrading covers more than the storeroom. How conveniently have you ignored the lift landings, the covered walkways, renovations to the loo and other improvements to the common areas
Common areas are public areas, you cannot attribute it's usage to any particular household. What about strangers using the common areas? Don't they have to pay then? Next you will be justifying them charging a portion of the development cost to swimming pools and sports stadium, after all they are common areas. When you buy the apartment, do they allocate those common areas to you? Do you have the right and ownership of the common areas? If you don't have, what right have they to make you pay for it? In simple terms, it's just government's way of hoodwinking you to paying for other cost.
Originally posted by oxford mushroom:
Incidentally, it is not in the interest of commercial banks to foreclose on housing loans lightly. Especially when the economy is not doing well, the last thing the bank wants is to end up with lots of HDB flats that nobody wants to buy. They would rather restructure the loan and keep the financial stream alive. They foreclose only because it is obvious the owner is never going to be able to repay the loan....and that person shouldn't have bought the property in the first place.
Huh? You did not say that the economy is doing badly? I must be in the twilight zone or sumthing. I don't even know whether you are trying to tell us economy is good or bad right now.
I wonder how many of the forumers think OM needs some basic English lessons?