Even celebrity must take 30 yr housing loan

[2009k]

banks are not stupid. if valuation drop, they margin call lor. it happened during the last downturn.

 

 

Margin call on properties will not occur again. Trust me...

[Soya]

Margin call on properties will not occur again. Trust me...

 

 

why?

[Ngck]

margin call will die faster

[2009k]

why?

 

 

Back in 1997 the margin call left a very bad real estate and banking sector was laden with lots of real estates to be auction off.

 

...

 

Asian growth story disappear overnight, some people started throwing properties, but it was manageable still, but when the banks started recapitalizing and lowering their risk, they had to do margin call and that led to the massive and deep spiral.

 

The real estate and construction sector then went into a 8 year downtrend. Imagine 8 years of stamp duties, property tax, company tax...

 

 

Do you think the govt will allow the same thing to happen again?

 

 

...

 

Cheers.

Edited April 3, 2012 by 2009k

[Donut]

why?

 

because they already learned the lesson from the '97 saga, and had covered all holes.

 

i can tell you, even if China economy crashed today, our property market will not even sneeze.

 

In our SG context, who is controlling the property market? Its our garment..... they control by the HDB market. and other properties follow the HDB market. And HDB market will never crash. why? Coz 80% of us are staying in HDBs. only 20% are in private properties.

 

If you look at the recent developments of HDB flats. Now they started to ramp up new HDB flats, build more to offer to those new buyers. You can see the effect of this new supply of new flats. The resale HDB and even private property are being affected by these new supply of new HDB flats and ECs.

 

Got new supply of HDB flats and ECs, lesser ppl will be buying resale and private properties. Prices are stablised.

 

Garment can easily manipulate the property market prices through supply of HDB flats. If they want to increase resale and private property prices in future, they just stop building more new HDB flats.

[Windwaver]

A place he can call home

 

By Gerald Goh

The New Paper

Wednesday, Mar 28, 2012

 

"It's been reported recently that a person who earns less than $1,000 a month is able to own a two-room Housing Board flat.

 

"That may be technically possible, but I imagine he or she will have to spend almost every cent of their remaining income just to meet daily expenses.

 

"Will the person have anything left over to save? "

 

Is this article trying to SUAN somebody?