Tharman: Singapore Home Prices Need To Cool Further

[Fuelsaver]

So you are right.

Those who invested in the 70's, 80's would have made loads of money and they should roll they earning to their next generation.

They sould not expect to keep their earning and expect their next gen to make the same windfall.

 

New citizen, who just landed here would have to pay the new price without past earning.

 

 

actually... those who invested in private property in the 70's 80's made much more than those who got HDB.

Probably that y the angmo came out w csr concept, benefitting community, business n environment.

So then, is it the future generation's right to demand the earnings to be accorded to them in proportionate amount.

Haiz.......when prices were high, ppl kpkp. Now something is done to correct the market with cooling measures, ppl kpkp.

 

When houses were sold at huge profits, who pocketed the profits? Isn't it citizens who saw the opportunity to be greedy and kept up up their selling price and end up either into bigger housing debt with new longer loan repayments when they should be happy with that one roof instead of getting a pricier house? Then when govt stepped in to prevent a balloon waiting to happily shock those still flip flip flop, its the govt's fault, as usual.

 

We are blessed with at least the basics like a roof and yet there are those who say it's too flat, must be angled or slopping roof better still if studded with gold or diamonds.

 

There are more young ppl and families getting their BTOs or resale now at prices they can afford. How much is affordability is subjective and seriously the speculators are kept at bay till the next circle creeps up.

 

I am personally happy that the right small thing is done now. Could be better ways? Of cos! Everyone has an idea or threes of what is better. I think it is better for everyone to have a roof over their head that they will stay in till death. That way, no need to worry abt high or low prices.

 

Just my thoughts.....Hehe.

 

good weekend guys and safe ride.

 

Cheers

Greed knows no bound..

[Jamesc]

Whats wrong with property cycles?

 

Cycles are good. Just buy when its low and sell when its high.

 

The problem with people is they see others buying a bigger place and they

 

also must buy a bigger place and that causes the cycles.

 

Then the price comes down and they complain.

 

Having a mortgage that is 25 or 30 years is not a problem at all.

 

The only problem is when prices rise so fast people cannot

even put down a deposit and the price goes up again like in China.

Paying interest for the next 30 years is also not a problem.

Inflation will just eat up the interest. If someone has 1 million 30 years ago.

Do you think they are smarter to put that money in the bank or buy a million

dollar property?

[Tigerwoods]

Haven't you realized that this is exactly the purpose of making HDB prices high, and holding back the CPF payout? To force both husband and wife to work till they die..... then no need to worry about funding them during their retirement years.

 

Retirement age already increased from 55 to 62 to 65 to 67, and eventually they will be able to predict when one will die and just implement retirement age = D-3yr.

Wow first time read D-3 year. If this is the formula then I only have 3 yrs to " enjoy" my CPF ?

If this is true, our mathematician scholars really know how to "Count Dead Straws". Sng Kau kau..

[Ktglfc]

Whats wrong with property cycles?

 

Cycles are good. Just buy when its low and sell when its high.

 

The problem with people is they see others buying a bigger place and they

 

also must buy a bigger place and that causes the cycles.

 

Then the price comes down and they complain.

 

Having a mortgage that is 25 or 30 years is not a problem at all.

The only problem is when prices rise so fast people cannot

even put down a deposit and the price goes up again like in China.

Paying interest for the next 30 years is also not a problem.

Inflation will just eat up the interest. If someone has 1 million 30 years ago.

Do you think they are smarter to put that money in the bank or buy a million

dollar property?

So, to summarizes, it's due to ppl greed and envy.

Man like to be greedy, want to have bigger unit, want to buy low and sell high... Want everything at basically low cost or best, no cost

If see ppl earn a lot, envy follow by buay song... Then start to complain ...

How to satisfy everyone's greed and envy and yet at the same time allow younger generation to buy affordable housing? Headache

[Fuelsaver]

Whats wrong with property cycles?

 

Cycles are good. Just buy when its low and sell when its high.

 

The problem with people is they see others buying a bigger place and they

 

also must buy a bigger place and that causes the cycles.

 

Then the price comes down and they complain.

 

Having a mortgage that is 25 or 30 years is not a problem at all.

The only problem is when prices rise so fast people cannot

even put down a deposit and the price goes up again like in China.

Paying interest for the next 30 years is also not a problem.

Inflation will just eat up the interest. If someone has 1 million 30 years ago.

Do you think they are smarter to put that money in the bank or buy a million

dollar property?

Last time less people have the means n r less informed / educated, this time info is more easily avail n people r more informed / educated.

 

There needs to be a significant chg in investment methodology or policy to counter ill effects of herd syndrome that causes bubbling. Controlled inflation / return may be one way.

Otherwise, we may b looking at or hoping for stagnation of housing prices for the next 2 decades.

[Wt_know]

property prices skyrocketed and nose dived good what

 

otherwise, how to make money to buy porsche and rolexs?

Edited November 2, 2014 by Wt_know

[Chowyunfatt]

Whats wrong with property cycles?

 

Cycles are good. Just buy when its low and sell when its high.

 

The problem with people is they see others buying a bigger place and they

 

also must buy a bigger place and that causes the cycles.

 

Then the price comes down and they complain.

 

Having a mortgage that is 25 or 30 years is not a problem at all.

The only problem is when prices rise so fast people cannot

even put down a deposit and the price goes up again like in China.

Paying interest for the next 30 years is also not a problem.

Inflation will just eat up the interest. If someone has 1 million 30 years ago.

Do you think they are smarter to put that money in the bank or buy a million

dollar property?

HDB & Private Property ... No Same ... No Same ...

 

They should never be categorized together ... One is Subsidized one is not ...

[Throttle2]

property prices skyrocketed and nose dived good what

 

otherwise, how to make money to buy porsche and rolexs?

Hhhhmmmmm, by slogging and working hard? [surprise]

[Ben5266]

HDB & Private Property ... No Same ... No Same ...

 

They should never be categorized together ... One is "So Call Subsidized" one is not ...

[Evillusion]

So, to summarizes, it's due to ppl greed and envy.

Man like to be greedy, want to have bigger unit, want to buy low and sell high... Want everything at basically low cost or best, no cost

If see ppl earn a lot, envy follow by buay song... Then start to complain ...

How to satisfy everyone's greed and envy and yet at the same time allow younger generation to buy affordable housing? Headache

in life when there is a winner there will be a loser.....somebody needs to lose for someone else to gain....in stock..in property and in business. Even in toto and 4d the winners actually takes the money from those who bought but didnt win. Best is not involved or just buy what one can afford not what one thinks that he can afford......but then its quite difficult to resist the temptation of making big bucks in the shortest time possible.

[Throttle2]

in life when there is a winner there will be a loser.....somebody needs to lose for someone else to gain....in stock..in property and in business. Even in toto and 4d the winners actually takes the money from those who bought but didnt win. Best is not involved or just buy what one can afford not what one thinks that he can afford......but then its quite difficult to resist the temptation of making big bucks in the shortest time possible.

Bro, its depends on what you mean by win or lose.

 

It is mathematically, theoretically, and realistically possible for everyone to make money.

This is especially so for the property market which is base on valuation.

On the flip side, What this means also is that, it is possible for everyone to lose money.

 

In fact, it is exactly becos in recent times everybody made money from properties as valuation stayed high. So the next buyer continued to gain. Nobody lost. (Whether on paper or otherwise) However once sentiments turn and valuations follow, not everybody will make. This scenario is already in play as several folks liquidate with losses.

 

People often overlook that if one can make big bucks in a short time, one can also lose big bucks in that same amt of time.

 

Anyway, my bet is there will be many more losses to come.

And my bet has a very good historical track record.

 

Heh

Edited November 2, 2014 by Throttle2

[Chowyunfatt]

The Subsidies are very Real ... Electricity ... Water ... Gas ...

 

Some get "Living near Parents Subsidies" ... Etc ...

 

Private Properties do no have any of the above ...

Edited November 2, 2014 by Chowyunfatt

[Meanmachine]

WAD THARMA literally means is buy two bags of ice and cool them in yur chiller room, once it melted... Voila,

 

it's time to engage the valuer to sell again, when will tt happens, ( if you ask me ) I oso don't know, 2016 maybe the year when all ' Mothers of all nature will be given literally by word of mouth, U knw wad i mean . . .

[Lala81]

 

Yes, COST is the main issue. Other than that, SG is a much better place than all our neighbours. But I can't agree on "ulu" since Singapore is so small, prices are more or less as expensive wherever you go. In other countries, their suburbs can be very isolated and prices can be a few hundred % cheaper. In SG, cheap sembawang also not that cheap lar. 300k HDB compared with 500k HDB cheap meh? In MY, if you're poor like sh** you can thatch a hut for free even when a condo in KL costs a few hundred k. My point is other countries have alternatives but Singapore doesn't so prices should not runaway from average income levels.

 

Yes, I agree they can't go back to a clean state. I know they are doing something. But should they be praised for making a mistake then correcting it? I doubt so. They make a mistake, we die. They correct their mistake, we also die. Jialat liao lar, now we have to live with their mistake! If there's anyone to praise, I would praise Tharman for not being afraid to correct PAP's mistake (a moderator indeed). Tharman for PM!

 

We can't run away from space being a premium like what you said. In cramped Singapore, that's a reality. Trying to ignore that fact is just being an ostrich.

For better or worse, if you're poor in Singapore. U buy a 2 room or max 3 room flat. That's why there's the 5k limit on the nonpremium BTO 3 room flats.

 

I don't really know how much a 2 room flat really costs if u qualify for the the additional grants. At least there are grants available.

 

On a sidenote, I think Tharman will be considered too old when LHL steps down. Singapore likes their PM to stay at least for 10 yrs. Frankly other than Tan Chuan Jin, who else"looks" the part. Kee chiu looks silly at times. Heng swee keat is destined for at least DPM role? But he's also on the older side.

 

[Tigershark1976]

mark my word.... if the HDB price slump, the whole nation will kpkb again.

 

Its not as simple as many think. Many Singaporean throw in their entire life savings into HDB. Even with ultra low interest rates. The gross investment into the HDB will be easily 50% more than the purchase price after adding in 20 to 30 yrs worth of interest rate. So, those people already owned a HDB will suffer like mad and and their retirement plan will be affected.

 

Best approach will be stabilising the current pricing and let it grow at a minimal rate to ensure that the investment into HDB is sufficient to cover the interest rate.

 

 

[Jamesc]

HDB & Private Property ... No Same ... No Same ...

 

They should never be categorized together ... One is Subsidized one is not ...

 

I agree one is subsidized and one is not.

 

But what is your point?

 

Subsidized property should not have property cycles?

 

A lot of people say we should sell cheap flats to young couples.

 

When a person sells their 3 room flat to upgrade to a bigger flat

 

they are most welcome to sell at a lower price to a young couple.

 

But how many people choose to sell to a young couple at a price

 

below market price? Everyone will just sell to the highest bidder.

 

Very easy to say should sell cheap flats to young couples but how

 

many people actually do it when they sell their flats?

 

I propose that everyone that bought a new flat from HDB

 

sell to a young couple at the same price they bought it.

 

Edited November 2, 2014 by Jamesc

[Jamesc]

property prices skyrocketed and nose dived good what

 

otherwise, how to make money to buy porsche and rolexs?

 

Only the people that buy low and sell high.

 

Some greedy pigs bought high and forced to sell low

 

and then complain!

 

I have no sympathy for them.

 

[Ben5266]

 

Only the people that buy low and sell high.

 

Some greedy pigs bought high and forced to sell low

 

and then complain!

 

I have no sympathy for them.

 

There is another group...

 

High price no money buy.

Price come down...dare not buy. Hoping price go down further.

Then ship gone. KPKB ask ship to come back.

Ship come back... dare not buy again. Thinking ship will wait.

Ship gone again. KPKB again....

 

.

.

.

Pap's fault. or the 60%'s fault.