Property tips, observations, and actual experiences

[Throttle2]

Muayhahahahaha. 

 

Huat ah!

Edited April 1, 2020 by Throttle2

[Philipkee]

41 minutes ago, Icedbs said:

You are spamming this thread with all your advertising post.  Please stop doing it.

If you are a agent, contribute your experience and insights or something of value to the readers here.  You are not suppose to  self promote by putting your property links here

Perhaps you should tell the mods like @Carbon82

Having said that, I was discussing with a friend.  During the GFC 10 12 years plus ago, my cousin bought a mansionette for $100k in Hougang plus and a condo was about $300k.  My friend told me that is impossible or one off BUT if it happens this time round, don't buy cos its probably haunted cos the owner would have committed suicide...

Property price can drop.  But if it crashes too much, those overleveraged should would be in deep deep trouble and MANY are overleveraged..

[Icedbs]

2 hours ago, Philipkee said:

Property price can drop.  But if it crashes too much, those overleveraged should would be in deep deep trouble and MANY are overleveraged..

This is a good point, but I have my own opinion on this.

I feel for this crisis, property prices will be more resilient than previous crisis simply because of the following

- Gov requested banks to defer the mortgage payment. This prevented fire sale for anyone who losses their jobs due to covid.

- Gov allows the ABSD remission period for Sporean couples to be extended from 6 months to 1 year. This again, prevented fire sales for their 1st home

- ABSD remission timeline for developers extended by 6 months.  Project completion timeline also extended by 6 months, This way developers don;t need to lelong off their new launches.

- There are too many safeguards built into the system over the last 5 years.  For example : ABSD, TDSR, LTV,  and even increase in stamp duty (for property above $1m).  TDSR is calculated based on 3.5% interest rate but the interest rate has never reach that level over the last 5 years.  So there is already a lot of buffer built in to ensure people can afford to take the loan.

Having said the above,  some drop in prices is not unlikely, but I don't think it will be a crash. 

Edited May 25, 2020 by Icedbs

[RadX]

16 minutes ago, Icedbs said:

This is a good point, but I have my own opinion on this.

I feel for this crisis, property prices will be more resilient than previous crisis simply because of the following

- Gov requested banks to defer the mortgage payment. This prevented fire sale for anyone who losses their jobs due to covid.

- Gov allows the ABSD remission period for Sporean couples to be extended from 6 months to 1 year. This again, prevented fire sales for their 1st home

- ABSD remission timeline for developers extended by 6 months.  Project completion timeline also extended by 6 months, This way developers don;t need to lelong off their new launches.

- There are too many safeguards built into the system over the last 5 years.  For example : ABSD, TDSR, LTV,  and even increase in stamp duty (for property above $1m).  TDSR is calculated based on 3.5% interest rate but the interest rate has never reach that level over the last 5 years.  So there is already a lot of buffer built in to ensure people can afford to take the loan.

Having said the above,  some drop in prices is not unlikely, but I don't think it will be a crash. 

In future, just tag the mods

 

DUN quote the entire post as it adds on to what he had already posted

[Icedbs]

25 minutes ago, RadX said:

In future, just tag the mods

 

DUN quote the entire post as it adds on to what he had already posted

Yes , got it. 

But I dunno how to "tag",  so I use the "report post" function.

[RadX]

Just now, Icedbs said:

Yes , got it. 

But I dunno how to "tag",  so I use the "report post" function.

Oso can

 

Tag means u put a @ in front of our nick and make sure the name appears automatically 

[Icedbs]

12 minutes ago, RadX said:

Oso can

 

Tag means u put a @ in front of our nick and make sure the name appears automatically 

I see...ok.....thanks....learn something new today.. 

[Philipkee]

46 minutes ago, Icedbs said:

This is a good point, but I have my own opinion on this.

I feel for this crisis, property prices will be more resilient than previous crisis simply because of the following

- Gov requested banks to defer the mortgage payment. This prevented fire sale for anyone who losses their jobs due to covid.

- Gov allows the ABSD remission period for Sporean couples to be extended from 6 months to 1 year. This again, prevented fire sales for their 1st home

- ABSD remission timeline for developers extended by 6 months.  Project completion timeline also extended by 6 months, This way developers don;t need to lelong off their new launches.

- There are too many safeguards built into the system over the last 5 years.  For example : ABSD, TDSR, LTV,  and even increase in stamp duty (for property above $1m).  TDSR is calculated based on 3.5% interest rate but the interest rate has never reach that level over the last 5 years.  So there is already a lot of buffer built in to ensure people can afford to take the loan.

Having said the above,  some drop in prices is not unlikely, but I don't think it will be a crash. 

I think the assumption here is that any crisis will resolve in 6 months plus.  All the measures seem to point toward 6 months.  I wonder if this is optimistic.  

I am just thinking that why there are no mass retrenchments now is because 

1) companies are opening up from June so people can wait and see if they can still earn money then.  If they cannot, they can retrench

2) any company who has difficulty in functioning in June can wait for July for phase two and if still cannot earn they can retrench in Aug.

3)  it is bad "form" to retrench when people are working from home.  I don't know if it is socially acceptable to deliver a pink slip in the form of an email...  Also many might be in no pay leave so no loss to companies to keep them for the time being.

The best indication will be here for property prices will be this

Is there a spike in retrenchments or unemployment in July to Aug?

If by Aug there is no spike in retrenchments or unemployment, I think we are safe because the economy should have largely adapted or recovered by then. 

 

 

[Icedbs]

16 minutes ago, Philipkee said:

I think the assumption here is that any crisis will resolve in 6 months plus.  All the measures seem to point toward 6 months.  I wonder if this is optimistic.  

I am just thinking that why there are no mass retrenchments now is because 

1) companies are opening up from June so people can wait and see if they can still earn money then.  If they cannot, they can retrench

2) any company who has difficulty in functioning in June can wait for July for phase two and if still cannot earn they can retrench in Aug.

3)  it is bad "form" to retrench when people are working from home.  I don't know if it is socially acceptable to deliver a pink slip in the form of an email...  Also many might be in no pay leave so no loss to companies to keep them for the time being.

The best indication will be here for property prices will be this

Is there a spike in retrenchments or unemployment in July to Aug?

If by Aug there is no spike in retrenchments or unemployment, I think we are safe because the economy should have largely adapted or recovered by then. 

Good point. Retrenchment not so much at this time because a lot of stimulus help.....75% wage subsidy for locals is a big life saver.  For foreigners they probably happy to  take  pay cut first since the wage subsidies not extended to them. 

I think maybe another round of help coming tomorrow. 

[Throttle2]

@PhilipkeeRetrenchment confirmed coming in big numbers, watch for it bro!  Q4, you will see the wave. Q12021 confirm some people here join my Brotherhood.   🤭

[Volvobrick]

1 hour ago, Throttle2 said:

@PhilipkeeRetrenchment confirmed coming in big numbers, watch for it bro!  Q4, you will see the wave. Q12021 confirm some people here join my Brotherhood.   🤭

When erections come, after that will be mass retrenchments.... now just pumping all the glucose infusion into the dying patient, put on life support at all costs. As long as doesn't die before erections.

[Philipkee]

31 minutes ago, Volvobrick said:

When erections come, after that will be mass retrenchments.... now just pumping all the glucose infusion into the dying patient, put on life support at all costs. As long as doesn't die before erections.

Maybe within 6 months? Assuming phase one is one month and phase 2 is two months.  That's three months. Hopefully economy recover and they can hold elections within three months of phase 3 before situation worsens again...

Edited May 26, 2020 by Philipkee