New CM = Mai Tu Liao

**Ringo33** · 08-10-12, 15:39

After talking for a few people about this, I think this new cooling measure might create some panic buying in the short term because potential buyers might be forced to rush in to take up mortgage loan because of their age.

**nav14** · 08-10-12, 15:45

Originally Posted by Ringo33

After talking for a few people about this, I think this new cooling measure might create some panic buying in the short term because potential buyers might be forced to rush in to take up mortgage loan because of their age.

They may rush in in fear of more CMs but not because of their advancing age. Afterall, a year later not going to make much difference in loan installments. But i am sure resale transactions will decline and prices may go up simply because of the reduced supply.

**flxcat** · 08-10-12, 15:54

Originally Posted by nav14

They may rush in in fear of more CMs but not because of their advancing age. Afterall, a year later not going to make much difference in loan installments. But i am sure resale transactions will decline and prices may go up simply because of the reduced supply.

Agreed regarding 1 year will not make much difference.

However, could be panic sellers lower price as less buyers can buy.

**Ringo33** · 08-10-12, 16:05

Originally Posted by nav14

They may rush in in fear of more CMs but not because of their advancing age. Afterall, a year later not going to make much difference in loan installments. But i am sure resale transactions will decline and prices may go up simply because of the reduced supply.

Its very hard to say. Those who have already own property, will not sell because they are unable to get 35 years financing due to their age, unless they got a good offer.

Also for someone in their 40s or 50s, who is looking for investment property, 1 or 2 years difference is going to cost them a few hundred dollar difference.

Assuming a 50 years old looking to take up a $1m loan for 15 years. the difference between 14 and 15 years loan at 1.2% is around $500 per month difference. For someone looking for passive income, or cash flow $500 could mean positive or negative cash flow.

**Amber Woods** · 08-10-12, 16:34

The headlines below might restrain people from buying now.

Heard many companies are not renewing their contract staff or retrenching them. Many manufacturing plants are operating lesser days. This CM is to deter the older investors from their planned purchases in case the economy get worst which is a likely case.

Published October 08, 2012

Singapore likely in recession on expected Q3 GDP drop

print |email this article

SINGAPORE - Singapore's economy probably contracted further in the third quarter because of poor demand for its manufacturing exports, tipping the island into a recession and reinforcing expectations of policy easing by the central bank at its meeting next Friday.
Gross domestic product likely shrank by 1.8 per cent in July-September, worsening from the 0.7 per cent quarter-on-quarter seasonally adjusted and annualised drop in April-June, according to a median estimate of 12 economists polled by Reuters.
From a year ago, the economy probably grew by 1.0 per cent, slower than the second quarter's 2.0 per cent expansion, reflecting the impact of the slowdown in the big export markets of Europe, United States and China on the trade-reliant city-state.
Advance estimates for third quarter gross domestic product will be released at 8:00 am local time (0000 GMT) on Friday, at the same time the Monetary Authority of Singapore (MAS) issues its half-year monetary policy statement.

**avo7007** · 08-10-12, 16:43

A slowing economy might be the best CM.

**auroraborealis** · 08-10-12, 16:56

depends... slowing economy with higher inflation or lower inflation

if higher... property px & rental shld go up in tandem
if lower... mayb cooling

Originally Posted by avo7007

A slowing economy might be the best CM.

**Ringo33** · 08-10-12, 17:23

Originally Posted by auroraborealis

depends... slowing economy with higher inflation or lower inflation

if higher... property px & rental shld go up in tandem
if lower... mayb cooling

when you invest in a property in Singapore you will need to have a long term view because of the SSD and ABSD. So those seasoned investor will not let all these "noise" on GDP to affect your long term plan.

What you need to do however is to ensure that your investment property can generate a good enough yield so that it can buffer the shock if economy go south. having said that, I always tell people that, dont ever believe what the agent tell you about rental yield for BUC project. If you want rental yield, buy completed project.

**phantom_opera** · 08-10-12, 17:30

brothers and sisters ... everybody heard of cry wolf story ... first time CM ... everybody very kancheong (including me), 2nd CM people still take it seriously, 3rd time everybody start to yawn, this time ...the effect may be over in just 1 week

but for sure those 40+ and still thinking hard, time is running out, so super kancheong style buying may just happen ... and MAS botak may start to scratch his head

**kane** · 08-10-12, 17:35

there's a term for no growth with inflation. it's called stagflation.

**Allthepies** · 08-10-12, 17:40

Originally Posted by kane

there's a term for no growth with inflation. it's called stagflation.

Does this apply to a country which import most of her resources. The world is growing but this poor country is not growing which leads to stagflation. ??

**Ringo33** · 08-10-12, 17:40

Originally Posted by kane

there's a term for no growth with inflation. it's called stagflation.

Singapore or asia no chance for stagflation lah. It is either deep recession or soft landing. If asia go into stagflation, US and Europe will be depression liao

**kane** · 08-10-12, 17:53

whatever the permutations, it is painful to be in a rising price environment with no income growth.

**Secretariat** · 08-10-12, 18:00

Originally Posted by phantom_opera

brothers and sisters ... everybody heard of cry wolf story ... first time CM ... everybody very kancheong (including me), 2nd CM people still take it seriously, 3rd time everybody start to yawn, this time ...the effect may be over in just 1 week

but for sure those 40+ and still thinking hard, time is running out, so super kancheong style buying may just happen ... and MAS botak may start to scratch his head

Scratch until it bleeds

**radha08** · 08-10-12, 18:02

Originally Posted by Secretariat

Scratch until it bleeds

bro u 50 years old ahh...wanted to buy ahhh...

**Secretariat** · 08-10-12, 18:05

Originally Posted by radha08

bro u 50 years old ahh...wanted to buy ahhh...

Sell when the time comes...

Long way leh...

**minority** · 08-10-12, 18:21

Originally Posted by Ringo33

Its very hard to say. Those who have already own property, will not sell because they are unable to get 35 years financing due to their age, unless they got a good offer.

Also for someone in their 40s or 50s, who is looking for investment property, 1 or 2 years difference is going to cost them a few hundred dollar difference.

Assuming a 50 years old looking to take up a $1m loan for 15 years. the difference between 14 and 15 years loan at 1.2% is around $500 per month difference. For someone looking for passive income, or cash flow $500 could mean positive or negative cash flow.

Ur assumption is 1.2% forever in event int go to 3% or 4% in next 15 yrs the guy have to factor that.

**phantom_opera** · 08-10-12, 18:24

Originally Posted by minority

Ur assumption is 1.2% forever in event int go to 3% or 4% in next 15 yrs the guy have to factor that.

don't worry .... as long as he is around ...

**Secretariat** · 08-10-12, 18:29

Originally Posted by phantom_opera

don't worry .... as long as he is around ...

Should be in white...The White Swan

**Ringo33** · 08-10-12, 18:32

Originally Posted by minority

Ur assumption is 1.2% forever in event int go to 3% or 4% in next 15 yrs the guy have to factor that.

if its 3 to 4%, it will only make more sense for them to buy now.

**maisonjai** · 08-10-12, 20:15

Originally Posted by phantom_opera

don't worry .... as long as he is around ...

+ Like
His eyes rolled over "The World is Fiat" further right "The World is also Fiak" hahaha.

**wind30** · 08-10-12, 20:29

Originally Posted by Ringo33

Its very hard to say. Those who have already own property, will not sell because they are unable to get 35 years financing due to their age, unless they got a good offer.

Also for someone in their 40s or 50s, who is looking for investment property, 1 or 2 years difference is going to cost them a few hundred dollar difference.

Assuming a 50 years old looking to take up a $1m loan for 15 years. the difference between 14 and 15 years loan at 1.2% is around $500 per month difference. For someone looking for passive income, or cash flow $500 could mean positive or negative cash flow.

I don't understand your logic.... if you are 50 years old, there is more chance that the new CM will stop you from buying. Before this CM, your plans are probably like 20/25 year loans. Now all of a sudden it is 15 year loans. The net effect for 50 plus people is definitely less buyers because it effectively removed a lot of potential old buyers

**phantom_opera** · 08-10-12, 20:33

This Dr Ng who bought 2 units @ The Hillier for children must be laughing now

**Ringo33** · 09-10-12, 00:38

Originally Posted by wind30

I don't understand your logic.... if you are 50 years old, there is more chance that the new CM will stop you from buying. Before this CM, your plans are probably like 20/25 year loans. Now all of a sudden it is 15 year loans. The net effect for 50 plus people is definitely less buyers because it effectively removed a lot of potential old buyers

to be honest, I am not exactly sure what you are saying. Can you please elaborate in simple english.

**Rysk** · 09-10-12, 10:39

Originally Posted by Amber Woods

The headlines below might restrain people from buying now.

Heard many companies are not renewing their contract staff or retrenching them. Many manufacturing plants are operating lesser days. This CM is to deter the older investors from their planned purchases in case the economy get worst which is a likely case.

Published October 08, 2012

Singapore likely in recession on expected Q3 GDP drop

You are too late..

Thousands of headlines in SUPER BIG RED FONT by MR B.. from 2008 over at sghouse.. till now 2012 at condosg..

"Restrain people from buying" when Luxus Hills 1.6-mio.. "Restrain" till now Luxus Hills 2.9-mio.. still "Restraining"

**Secretariat** · 09-10-12, 11:00

Originally Posted by Rysk

You are too late..

Thousands of headlines in SUPER BIG RED FONT by MR B.. from 2008 over at sghouse.. till now 2012 at condosg..

"Restrain people from buying" when Luxus Hills 1.6-mio.. "Restrain" till now Luxus Hills 2.9-mio.. still "Restraining"

It is not about price, but cost of funding and returns.

Who is Mr B?

**Rysk** · 09-10-12, 11:23

Originally Posted by Secretariat

It is not about price, but cost of funding and returns.

Who is Mr B?

Super long long story.. provide you have time to read

http://forums.condosingapore.com/showthread.php?t=12285

**roly8** · 09-10-12, 11:28

Originally Posted by avo7007

A slowing economy might be the best CM.

i think this is what gonna happen...

anyway, buy within your reach..
don't let greed makan you

**Secretariat** · 09-10-12, 11:33

Originally Posted by roly8

i think this is what gonna happen...

anyway, buy within your reach..
don't let greed makan you

Hold all your houses (horses) until you see inflationary pressure in US...

**kane** · 09-10-12, 22:42

Originally Posted by Secretariat

Hold all your houses (horses) until you see inflationary pressure in US...

then what's your game plan?

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