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Thread: One Reason Why Recent Adjustments to Cooling Measures are Bad Signs for SG Buyers

  1. #21
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    Mar 2009
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    In case you don't know, that kind statistics mask a lot of things.........
    Otherwise if you look at the chart, it looks like OCR are terribly overpriced since its index is much higher than CCR! Like that OCR sure crashed lah!


    Quote Originally Posted by Kelonguni View Post
    杀鸡何须用牛刀?



  2. #22

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    Quote Originally Posted by Kelonguni View Post
    Many people forget that TDSR was the straw that broke the camel's back in 2013. Nobody has any real clue why then. Now, with the revisions to the TDSR principles, most still see the impact as marginal. Most of these are thankfully invisible to most.
    The impact may be great. For example, if I have a $2m property that is fully paid. I can draw out $1m. With this $1m, I can buy and fully pay a $1m property and draw out $500k. With a fully paid $500k property, I can draw out $250k and fully pay a $250k property and draw out $125k. Total loan becomes:

    1. $2m property, draw out $1m. Loan $1m.
    2. $1m property, draw out $500k. Total loan $1.5m.
    3. $500k property, draw out $250k. Total loan $1.75m.
    4. $250k property, draw out $125k. Total loan $1.875m.

    So, I now have total 4 property ($2m+$1m+$500k+$250k = $3.75m) and have total loan of $1.875m.

    So this relaxation of TDSR can give me the chance to buy 3 more properties, but each subsequent one being half the price of the earlier one.



  3. #23
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    Mar 2009
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    So, it is clear that this TDSR changes is a relaxation of property cooling measures?

    But why Gov claimed that the changes is not a relaxation of property cooling measures?

    By allowing people to loan more, it is a property loan relaxation measures!

    Quote Originally Posted by Pynchmail View Post
    The impact may be great. For example, if I have a $2m property that is fully paid. I can draw out $1m. With this $1m, I can buy and fully pay a $1m property and draw out $500k. With a fully paid $500k property, I can draw out $250k and fully pay a $250k property and draw out $125k. Total loan becomes:

    1. $2m property, draw out $1m. Loan $1m.
    2. $1m property, draw out $500k. Total loan $1.5m.
    3. $500k property, draw out $250k. Total loan $1.75m.
    4. $250k property, draw out $125k. Total loan $1.875m.

    So, I now have total 4 property ($2m+$1m+$500k+$250k = $3.75m) and have total loan of $1.875m.

    So this relaxation of TDSR can give me the chance to buy 3 more properties, but each subsequent one being half the price of the earlier one.



  4. #24
    Join Date
    May 2012
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    3,655

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    2009 is actually close to a decade ago.

    Soon the index will all be re-based to a different year, maybe 2018, 2020, whatever. When that happens, it will be the time of the new equilibrium and fresh starting points.

    Identify the ground conditions, and one will always be able to find the best deals. You yourself concluded that the statistics mask a lot of things, but by and large, the largest gains by proportion in the last 10 years still belong to the OCR.

    If you study the entry level small car prices versus the large luxury car prices the same situation can be observed.


    Quote Originally Posted by teddybear View Post
    In case you don't know, that kind statistics mask a lot of things.........
    Otherwise if you look at the chart, it looks like OCR are terribly overpriced since its index is much higher than CCR! Like that OCR sure crashed lah!
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.



  5. #25
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    May 2012
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    Quote Originally Posted by teddybear View Post
    So, it is clear that this TDSR changes is a relaxation of property cooling measures?

    But why Gov claimed that the changes is not a relaxation of property cooling measures?

    By allowing people to loan more, it is a property loan relaxation measures!
    The TDSR from the beginning is a severely unfair policy for those vested early in the property market, especially the part about not being able to refinance.

    A property also has value or is an asset only if it's value can be unlocked in times of need. I feel the relaxation is more to fulfil it's natural asset function rather than to allow loaning more, even though some owners will also utilise that. The psychology of the relaxation is more impactful than the owners going for maximum loan, and I can't be sure how many will take it up.
    The three laws of Kelonguni:

    Where there is kelong, there is guni.
    No kelong no guni.
    More kelong = more guni.



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