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Thread: Car Loan impact on Property

  1. #1
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    Default Car Loan impact on Property

    As a 5Cs nation, I have this feeling that the recent measures on car loan will have a very significant impact on property market because potential upgraders might have to postpone their property purchase in order to fulfill the down payment for their car purchase.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    Quote Originally Posted by Ringo33
    As a 5Cs nation, I have this feeling that the recent measures on car loan will have a very significant impact on property market because potential upgraders might have to postpone their property purchase in order to fulfill the down payment for their car purchase.

    that will be pretty silly of them to focus on a depreciating asset first rather than an appreciating asset. but that's vanity for some.

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    Quote Originally Posted by kane
    that will be pretty silly of them to focus on a depreciating asset first rather than an appreciating asset. but that's vanity for some.
    very hard to say, when people get used to certain lifestyle it will be very difficult for them to lose it, especially when they dont want to be seen down grading from say a bimmer to a Hyundai because they cant afford the down payment.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    Quote Originally Posted by Ringo33
    very hard to say, when people get used to certain lifestyle it will be very difficult for them to lose it, especially when they dont want to be seen down grading from say a bimmer to a Hyundai because they cant afford the down payment.
    they can continue to drive a beemer till scrap lor. if not buy a second hand one but maybe bigger cc to try and gain more "face" value if they are that vain. lol.

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    Quote Originally Posted by Ringo33
    As a 5Cs nation, I have this feeling that the recent measures on car loan will have a very significant impact on property market because potential upgraders might have to postpone their property purchase in order to fulfill the down payment for their car purchase.
    Another channel of impact is that potential car buyers give up idea of owning a car, which is a liability. Save bullet to buy condo near mrt. Between owning an asset and a liability, many may choose the former. Of course those condos not near any mrt jialat.

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    if 50% down for those nice car, i might as well put down for a small condo unit.

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    Some will buy the car first because the COE bubble is busting.
    Property will likely sideway and will take a longer time to correct. So no hurry to buy property right now.

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    Quote Originally Posted by timmy
    Another channel of impact is that potential car buyers give up idea of owning a car, which is a liability. Save bullet to buy condo near mrt. Between owning an asset and a liability, many may choose the former. Of course those condos not near any mrt jialat.
    Cannot afford even a car, can buy Condo near MRT meh?

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    Quote Originally Posted by kane
    if 50% down for those nice car, i might as well put down for a small condo unit.
    And pay 7% ABSD?...

    I think the reverse is true... the policy makers suspect that the CM measures for housing has gotten many stuck with cash. The potential for dumping it in a car is very high. This can only drive up the COE... hence the CM for cars.

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    If the discount by the developers are seriously good. Then I guess why not?

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    Quote Originally Posted by Ringo33
    As a 5Cs nation, I have this feeling that the recent measures on car loan will have a very significant impact on property market because potential upgraders might have to postpone their property purchase in order to fulfill the down payment for their car purchase.
    Fully agree with your feeling, I have the same feeling in 2006. After returning from 30 months stay in US, almost all of them go and buy a car. Some of them even ask me why I did not buy a car and still take BMW (Bus MRT Walk). I told them I can't afford but did not tell them I just brought a 2 Bedroom for SGD 535000 and down 20%. A week after I brought the 2 Bedroom, an agent ask me if I am interested to sell. I told her a Toyota Wish will do, lucky the buyer did not offer me the Toyota Wish.

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    Stay away from car market first.. When prices re-stabilize, many people will realize gahmen has done an awesome job bringing the car mkt down..

    In turn this makes it more affordable for ppl to purchase cars again but, But, BUT.. Many of us too impatient only want to see quick results..

    So can't appreciate what gahmen does and only want to get quick fix and buy car asap.. Haiz when will ppl learn ya?

    hehehe

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    Quote Originally Posted by Ricade
    Stay away from car market first.. When prices re-stabilize, many people will realize gahmen has done an awesome job bringing the car mkt down..

    In turn this makes it more affordable for ppl to purchase cars again but, But, BUT.. Many of us too impatient only want to see quick results..

    So can't appreciate what gahmen does and only want to get quick fix and buy car asap.. Haiz when will ppl learn ya?

    hehehe
    regardless of COE price, buying cars luxury car now will require alot more cash upfront than before, so for those who have limited budget thinking o buying 2nd or 3rd property will have to choose between putting the money in the car and postpone the property purchase or put the money in property and take public transport.

    If we use our head, of course we will buy a property, but something people do follow their hearts more than their mind.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    Actually it's the other way round for me.... Already game over for property purchase... So saving up for car instead.

    50% down for car, 100k for a 200k car, can't get any property for 100k with all the CMs... Last time still got chance...

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    Quote Originally Posted by sh
    Actually it's the other way round for me.... Already game over for property purchase... So saving up for car instead.

    50% down for car, 100k for a 200k car, can't get any property for 100k with all the CMs... Last time still got chance...
    Cars is the 2nd biggest ticket items in the list of must have for more Singaporeans. I think it will be very difficult to convince them not to own a car and just take public transport.
    "Never argue with an idiot, or he will drag you down to his level and beat you with experience."

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    Personal experience: it really takes a lot of mental discipline and cooperation within the family to not have a car when you have a new born. We thought we could do it as well but with more frequent quarrels and at time pure inconvenience even when trying to call a cab on Friday or weekend evenings and no one wants to pick up really takes the cake and eventually got a small car.

    The government intention behind this car cooling measure might be well founded - but the general blunt approach adopted to apply to all Singaporeans without sparing a thought for a more nuanced approach, made by scholars at their ivory tower - really created more hardships for their middle or sandwiched families which formed the bulk of citizenship in Singapore

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    Quote Originally Posted by timmy
    Another channel of impact is that potential car buyers give up idea of owning a car, which is a liability. Save bullet to buy condo near mrt. Between owning an asset and a liability, many may choose the former. Of course those condos not near any mrt jialat.
    I tend to agree with you. That why garments mentioned that by 2030 most household should be within x distance from a nearby mrt, etc.. the increase mrt coverage is to address those moving ppl from buying a car.

    The only thing is instead of chasing after house near mrt, perhaps wait for method time be built near your place..

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    Quote Originally Posted by UltimateAro888
    I tend to agree with you. That why garments mentioned that by 2030 most household should be within x distance from a nearby mrt, etc.. the increase mrt coverage is to address those moving ppl from buying a car.

    The only thing is instead of chasing after house near mrt, perhaps wait for method time be built near your place..
    couples with new born now, will find that their kids would have reached tertiary education by the time the full transport network is ready. but at least we're making a start. no overnight solution for infrastructure i guess.

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    Wait till there are elderly parents at home who are physically challenged. Worst than having baby. SMEs who needs vehicle to operate their businesses is another problem otherwise cost will pass down to consumers. Garment has to really deliberate on this issue next week.
    Quote Originally Posted by danguard
    Personal experience: it really takes a lot of mental discipline and cooperation within the family to not have a car when you have a new born. We thought we could do it as well but with more frequent quarrels and at time pure inconvenience even when trying to call a cab on Friday or weekend evenings and no one wants to pick up really takes the cake and eventually got a small car.

    The government intention behind this car cooling measure might be well founded - but the general blunt approach adopted to apply to all Singaporeans without sparing a thought for a more nuanced approach, made by scholars at their ivory tower - really created more hardships for their middle or sandwiched families which formed the bulk of citizenship in Singapore

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    Why would car loan affect property? Lots of people take minimal loan for cars in the first place.

    Quote Originally Posted by Ringo33
    As a 5Cs nation, I have this feeling that the recent measures on car loan will have a very significant impact on property market because potential upgraders might have to postpone their property purchase in order to fulfill the down payment for their car purchase.

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    The problem today is ppl tend to complain about what they want and not what they need...cannot get new car if really need a car, then get a old one. Brand new car cost 120k but a eight yr old car cost say 25k with much lower depreciation...Cannot afford a BMW then get a Toyota or Hyundai. Things can be work out but thinking that it is garmen faults will not help, and this is the prob today, why should garmen think about the first timer who really needs a car?? There are more pressing important issues to settle...What is needs and what is wants I think ppl have forgotten., there is a hokkien saying, 饿饱吵, hungry make noise, full also make noise!...

    Quote Originally Posted by danguard
    Personal experience: it really takes a lot of mental discipline and cooperation within the family to not have a car when you have a new born. We thought we could do it as well but with more frequent quarrels and at time pure inconvenience even when trying to call a cab on Friday or weekend evenings and no one wants to pick up really takes the cake and eventually got a small car.

    The government intention behind this car cooling measure might be well founded - but the general blunt approach adopted to apply to all Singaporeans without sparing a thought for a more nuanced approach, made by scholars at their ivory tower - really created more hardships for their middle or sandwiched families which formed the bulk of citizenship in Singapore
    Last edited by lajia; 03-03-13 at 10:48.

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    Young execs expect that they should be able to afford a beemer perhaps.

    They rather splurge on the car for face value than save up for a house.

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    Quote Originally Posted by kane
    Young execs expect that they should be able to afford a beemer perhaps.

    They rather splurge on the car for face value than save up for a house.
    Wish to been seen as "the rich and the famous" gen

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    Quote Originally Posted by lajia
    The problem today is ppl tend to complain about what they want and not what they need...cannot get new car if really need a car, then get a old one. Brand new car cost 120k but a eight yr old car cost say 25k with much lower depreciation...Cannot afford a BMW then get a Toyota or Hyundai. Things can be work out but thinking that it is garmen faults will not help, and this is the prob today, why should garmen think about the first timer who really needs a car?? There are more pressing important issues to settle...What is needs and what is wants I think ppl have forgotten., there is a hokkien saying, 饿饱吵, hungry make noise, full also make noise!...
    Dun think pple are expecting the garment to help them to get a car .... any notion of this nature is definitely misguided. What I am driving at is that the approach seems to be more of a "shock theory" than anything.

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    Quote Originally Posted by jwong71
    Wish to been seen as "the rich and the famous" gen
    it will be their own undoing. young ones need to plan carefully their finances for their first house. otherwise, it'll only get further and further away from them.

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    All in all.. Stay away from car market, be patient and you will see the prices drop.. Buy when the price makes more sense lah. Alamak..sibei kiasee always scared ppl buy more car than you.. Say only the rich wil buy lah.. Car price won't drop coz the rich will keep buying lah.. Kanasai it's the people with no $ but keep buy buy buy that caused car price to keep going up..

    I was at 2nd hand car dealer recently and I saw Merz e250 just 8 mths old 2012 registration but already end up in dealer. Make a guess what happened to the car?

    Kns.. Without proper finance planning, even buying a plate of rice is a bubble!!!
    Never pay more than what you can't afford my friends

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    Quote Originally Posted by danguard
    Personal experience: it really takes a lot of mental discipline and cooperation within the family to not have a car when you have a new born. We thought we could do it as well but with more frequent quarrels and at time pure inconvenience even when trying to call a cab on Friday or weekend evenings and no one wants to pick up really takes the cake and eventually got a small car.

    The government intention behind this car cooling measure might be well founded - but the general blunt approach adopted to apply to all Singaporeans without sparing a thought for a more nuanced approach, made by scholars at their ivory tower - really created more hardships for their middle or sandwiched families which formed the bulk of citizenship in Singapore
    bro, a good car and a decent car - two very different things. if you now have a new born, you can throw 150k to get a VW jetta (oops).

    alternatively, you can throw 30k to get a 7yr old altis.

    outcome is the same, granted safety level higher for the jetta. dun even tell me the altis got more maintenance prob. if you get one with genuine mileage and well maintained, likelihood is you will visit workshop less on that altis.

    doesn't it then boil down to expectations? strawberry generation have too high expectations that does not commensurate with their current position in society.
    There is no good or bad location. There is only good or bad price.

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    Quote Originally Posted by Ricade

    I was at 2nd hand car dealer recently and I saw Merz e250 just 8 mths old 2012 registration but already end up in dealer. Make a guess what happened to the car?
    quite possible that he traded up for a newer car. the COE bubble has fueled "free car upgrade" for the last 2-3 yrs now. just dun be the last man standing when it crashes.

    if holding ppty, still can earn rental (high or low nvm). and it wun depreciate. holding a car that you can't sell is another story.
    There is no good or bad location. There is only good or bad price.

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    Quote Originally Posted by Wild Falcon
    Why would car loan affect property? Lots of people take minimal loan for cars in the first place.
    I think u are right for last year when COE is high. Last time when COE is low, many marginal car buyers take 80-90% or even $0 driveaway scheme at one stage.

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