boonhat_91 6th Gear October 10, 2018 Share October 10, 2018 Starting a thread for noob questions you always wanted to ask, but didn't dare to or didn't know how to. Let me start the ball rolling. Why does property appreciate? Does it not experience wear and tear like any other material possession? Is it because of demand vs supply and inflation? ↡ Advertisement 1 Link to post Share on other sites More sharing options...
Jman888 Moderator October 10, 2018 Share October 10, 2018 title amended, please be more specific in the thread title. Link to post Share on other sites More sharing options...
SuPerBoRed Twincharged October 10, 2018 Share October 10, 2018 Starting a thread for noob questions you always wanted to ask, but didn't dare to or didn't know how to. Let me start the ball rolling. Why does property appreciate? Does it not experience wear and tear like any other material possession? Is it because of demand vs supply and inflation? saturated finite space... increasing population size... Link to post Share on other sites More sharing options...
Showster Twincharged October 10, 2018 Share October 10, 2018 What happens when (starting) incomes keep growing but property prices stagnate or drop? Link to post Share on other sites More sharing options...
boonhat_91 6th Gear October 10, 2018 Author Share October 10, 2018 oops ps, I thought specific enough being parked in the Property Buzz section title amended, please be more specific in the thread title. When will property prices stagnate or drop here in sg? Also, incomes don't seem to be growing at the same rate as property prices. What happens when (starting) incomes keep growing but property prices stagnate or drop? Are we always screwed? As long as I buy a resale property, not only do I pay an appreciated price, I also have to contend with inevitable maintenance costs further down the road. saturated finite space... increasing population size... Link to post Share on other sites More sharing options...
Showster Twincharged October 10, 2018 Share October 10, 2018 Where incomes are concerned, the largest variable is household income. That variable is growing faster than property prices actually. https://www.singstat.gov.sg/-/media/files/publications/households/pp-s24.pdf Another way to answer your question is that property prices did drop in 2009 as well as from 2013 to 2016. As for price stagnation, we can see stagnation these couple of months, and probably slower growth in the year ahead (or stagnation). Still another way to answer your question is that property prices (for ageing properties) will depreciate (drop) towards the last 30 years of their lease, as a borrower cannot use CPF to finance the purchase, and also banks are not able to loan. When will property prices stagnate or drop here in sg? Also, incomes don't seem to be growing at the same rate as property prices. Link to post Share on other sites More sharing options...
Acemundo Supercharged October 10, 2018 Share October 10, 2018 can be explained as part of demand and supply factors affecting demand (income, age, status of buyer, pricing, location, development potential age etc)factors affecting supply (cost and development charges, land supply, development/marketing potential)as for depreciation, it is not directly affecting demand or supply or even prices. but indirectly it does because newer property is always more attractive, freehold will generally sell for more than leasehold 99 in the same area same age. unlike cars, where the price offered has strong correlation to the straight line depreciation of the asset. Link to post Share on other sites More sharing options...
Kurumanbo 3rd Gear October 10, 2018 Share October 10, 2018 Starting a thread for noob questions you always wanted to ask, but didn't dare to or didn't know how to. Let me start the ball rolling. Why does property appreciate? Does it not experience wear and tear like any other material possession? Is it because of demand vs supply and inflation? Yes, it does experience the same wear and tear like any other material possession, however, we also have to take account of the appreciation of the intrinsic value. If the intrinsic value (land value) appreciates more than your wear and tear, you have a positive investment. Just like cars, not all cars has zero value at the end, certain models become collectibles and even see their values go up. An extreme example just to illustrate a point. Imagine you bought this piece of land that has 99 year leasehold in a third world country, say 500k dollars. Technically, at the end of 99 years, it should be zero. But imagine during this 99 years, may be at the 50th year, this third world country developed into a first world, and so happens that your land is now in the middle of its CBD... Link to post Share on other sites More sharing options...
Jamesc Hypersonic October 10, 2018 Share October 10, 2018 Buy land it will always go up in value because God stopped making it years ago. 2 Link to post Share on other sites More sharing options...
Meanmachine 6th Gear October 10, 2018 Share October 10, 2018 May I suggest merge the these thread into the more popular one . No ending merry-go-round Qs. 1 Link to post Share on other sites More sharing options...
Wt_know Supersonic October 10, 2018 Share October 10, 2018 (edited) yalor. next i will start a new thread why T2 cannot buy EC ... lol May I suggest merge the these thread into the more popular one . No ending merry-go-round Qs. Edited October 10, 2018 by Wt_know 1 Link to post Share on other sites More sharing options...
boonhat_91 6th Gear October 10, 2018 Author Share October 10, 2018 So those people who famously bought resale at popular areas like Queenstown, Bishan, Toa Payoh - paying prices like 800k-1m.. can they expect to sell at even higher in future? Or are they stuck? What is T2 ar? yalor. next i will start a new thread why T2 cannot buy EC ... lol 1 Link to post Share on other sites More sharing options...
Tiger1 6th Gear October 10, 2018 Share October 10, 2018 May I suggest merge the these thread into the more popular one . No ending merry-go-round Qs.Ya la. Same issues n questions on property ma. Why create new thread to ask the same questions? 1 Link to post Share on other sites More sharing options...
RadX Moderator October 10, 2018 Share October 10, 2018 Ya la. Same issues n questions on property ma. Why create new thread to ask the same questions? only cos some ppl refuse to search too? i have since given up and my BP has come down to a decent level hahahahahaha 1 Link to post Share on other sites More sharing options...
Friendstar Supercharged October 10, 2018 Share October 10, 2018 (edited) title amended, please be more specific in the thread title.Hehehe what was the initial thread title? only cos some ppl refuse to search too? i have since given up and my BP has come down to a decent level hahahahahaha Ok la... I feel most people are careful about creating threads these days. It's getting better . So those people who famously bought resale at popular areas like Queenstown, Bishan, Toa Payoh - paying prices like 800k-1m.. can they expect to sell at even higher in future? Or are they stuck? What is T2 ar? Depends on the age of the property. If below 20 years, yes possibly. If above;20 years, unlikely T2 is Singapore's Warren buffett Edited October 10, 2018 by Friendstar 1 Link to post Share on other sites More sharing options...
RadX Moderator October 10, 2018 Share October 10, 2018 Hehehe what was the initial thread title? Ok la... I feel most people are careful about creating threads these days. It's getting better . initial title: noob Qns duh! Agree bro. Most do their due diligence save for a few strawberries hahahha 1 Link to post Share on other sites More sharing options...
Friendstar Supercharged October 10, 2018 Share October 10, 2018 initial title: noob Qns duh! Agree bro. Most do their due diligence save for a few strawberries hahahha You should be happy strawberries are joining the forum mah. Rejuvenation of the mcf population . Bleah! Link to post Share on other sites More sharing options...
RadX Moderator October 10, 2018 Share October 10, 2018 You should be happy strawberries are joining the forum mah. Rejuvenation of the mcf population . Bleah! hahahah... ↡ Advertisement Link to post Share on other sites More sharing options...
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