Originally Posted by chestnut Many look at property prices and say "wah, go up so much"... Have they factored in inflation than see how many % it has gone up???? Look at this http://mycpf.cpf.gov.sg/CPF/my-Cpf/r.../Reach55-2.htm Now do a computation on inflation on housing from this inflation calculator http://www.mas.gov.sg/monetary-polic...alculator.aspx https://secure.mas.gov.sg/calculator...dservices.aspx Choose the year and compute. Remember to hedge against inflation... Over a short period, there will be ups and downs.... Over the long run, inflation always WINS. That is right. So what should be the baseline and the price now?
Originally Posted by phantom_opera there is a new term called low-flation (inflation is perceived to be too low so more QEs needed) i believe this is unique to Japan, and not typical of most developed economies
History lesson on asset price bubble from low interest rates and the consequences of a bubble burst http://en.wikipedia.org/wiki/Lost_Decade_%28Japan%29
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