5-10% borrowers over-leveraged on property purchases: MAS

[indomie]

I saw posters dared this dared that.

You think that the market is a place where a bunch of kids playing daring games? The market is a wolf pack; you know how wolves would corner the prey, circle it, tire it, before moving in to kill. Boom!

The most guarded property market in the world, is also where one of the lowest mortgage rates in the world,, if not the lowest. Sibor tracking the FED fund rate? Then explain why the mortgage rate in US is about 4.4%.

Cheers!

Because US is a debitor nation and SG is creditor nation. SG is drowning in cash. USA is drowning in debt.

[Amber Woods]

precisely ...

highly leveraged =/= highly vulnerable if they hv high cash buffer on hand.

lowly leveraged = highly vulnerable if they hv no cash reserves and hv high expenses.

hence I feel tat MAS definition of high risk investors .... tsk, tsk .... sounds superficial to me

In this case, it does appear to me that there are more than the estimated 10% who are highly leveraged and vulnerable and lowly leveraged and still vulnerable. If thing should take a turn, I think there are more than the reported 9000 new home owners in dire straits.

[chestnut]

In this case, it does appear to me that there are more than the estimated 10% who are highly leveraged and vulnerable and lowly leveraged and still vulnerable. If thing should take a turn, I think there are more than the reported 9000 new home owners in dire straits.

Bro, life is about hedging leh... If scared interest rate shoot up, what do u do???? Call the ghost busters... Hahahaha

Aiyo, just convert to fixed rate soon lor

Here lies the clue.... U think the top 20% don't know wat to do???? Hahahaha

[chestnut]

If interest rate to up, the long dated bond holders who are leveraged should be the worried folks...

[Amber Woods]

Bro, life is about hedging leh... If scared interest rate shoot up, what do u do???? Call the ghost busters... Hahahaha

Aiyo, just convert to fixed rate soon lor

Here lies the clue.... U think the top 20% don't know wat to do???? Hahahaha

It is the 80% trying to be the 20% that can get into a lot of trouble.

[chestnut]

Because US is a debitor nation and SG is creditor nation. SG is drowning in cash. USA is drowning in debt.

Indomie, your articulation is superb.... Hahaha

From the time I 'knew' u to now, I see a totally different person leh... U are like a sponge...

[chestnut]

It is the 80% trying to be the 20% that can get into a lot of trouble.

That's why 12 k and below buy ec. 10k and below buy hdb. We are not a nanny state leh

So u think govt should restrict those family earn less than 10k/mth from buying private. Hahahaha

[Amber Woods]

That's why 12 k and below buy ec. 10k and below buy hdb. We are not a nanny state leh

So u think govt should restrict those family earn less than 10k/mth from buying private. Hahahaha

It is the PC market that is in question.

[indomie]

It is the PC market that is in question.

Over leveragers are a dying breed (not literally). In the next 10 years, there will none of them left, because almost all of them will crossed the 50% ownership threshold.

[Amber Woods]

Over leveragers are a dying breed (not literally). In the next 10 years, there will none of them left, because almost all of them will crossed the 50% ownership threshold.

In any property cycle, the early movers will gain even if they are highly leveraged. The late buyers whether highly leveraged or lowly leveraged & highly vulnerable will persist.

[mcmlxxvi]

taggy..hdb upgrader for own stay all the more shud buy resale rite. no need to wait long long for top nor pay absd.

[mcmlxxvi]

Amber...persist or perish? persistently perish?

[Amber Woods]

Amber...persist or perish? persistently perish?

Persistently perish sounds right!

[Secretariat]

Because US is a debitor nation and SG is creditor nation. SG is drowning in cash. USA is drowning in debt.

You missed the question totally.

Sibor tracks Fed fund rate. Almost the same.

In US, lowest Fed fund rate, about 4.4% mortgage rate.

In Singapore, Sibor tracks Fed fund rate, one of the lowest mortgage rate in the world, if not the lowest. Why?

Interest rate is the cost of money. FED is printing plenty of money.

Cheers!

[chestnut]

You missed the question totally.

Sibor tracks Fed fund rate. Almost the same.

In US, lowest Fed fund rate, about 4.4% mortgage rate.

In Singapore, Sibor tracks Fed fund rate, one of the lowest mortgage rate in the world, if not the lowest. Why?

Interest rate is the cost of money. FED is printing plenty of money.

Cheers!

Read this

http://www.economist.com/news/financ...spread-besting

[chestnut]

It is the PC market that is in question.

Do you believe people buy HDB also take private loan???? to save money??? you mean, this people will not be affected with their lower salary

[Secretariat]

Read this

http://www.economist.com/news/financ...spread-besting

Are we talking about US mortgage rate here?

No one knows why the Singapore mortgage rate is lower than the US mortgage?

Nevermind, all you need to know is that Sibor could be cranked up by the one holding the key to the CMs,,TDSR.

Which is MAS.

Track does not mean the same. HKD is pegged to USD, is HIBOR the same rate as FED fund rate?

Cheers!

[Amber Woods]

Do you believe people buy HDB also take private loan???? to save money??? you mean, this people will not be affected with their lower salary

The resale HDB market will be affected as well.

[taggy]

No one knows why the Singapore mortgage rate is lower than the US mortgage?

actually i have been puzzled by this for a long time, i really like to understand how come sg mortgage rate can be much lower than other places (us, hk, china, etc)? can u kindly shed some light

[Secretariat]

actually i have been puzzled by this for a long time, i really like to understand how come sg mortgage rate can be much lower than other places (us, hk, china, etc)? can u kindly shed some light

I would find a time to write something; check your mailbox.

Cheers!

[taggy]

I would find a time to write something; check your mailbox.

Cheers!

thanks in advance

[Amber Woods]

Are we talking about US mortgage rate here?

No one knows why the Singapore mortgage rate is lower than the US mortgage?

Nevermind, all you need to know is that Sibor could be cranked up by the one holding the key to the CMs,,TDSR.

Which is MAS.

Track does not mean the same. HKD is pegged to USD, is HIBOR the same rate as FED fund rate?

Cheers!

I am just as curious as to why Singapore's mortgage rate is lower than US's mortgage despite the Fed setting interest rate to near zero? Is MAS holding the key?

[indomie]

actually i have been puzzled by this for a long time, i really like to understand how come sg mortgage rate can be much lower than other places (us, hk, china, etc)? can u kindly shed some light

Sg long term treasury (30 years) is lower than US. Because in the long term US is perceived to be a higher risk than SG.

[taggy]

Sg long term treasury (30 years) is lower than US. Because in the long term US is perceived to be a higher risk than SG.

ic. like that, since HK is also having higher home loan rate than SG, means lower risk to invest in SG prop than HK ?

[kane]

I am just as curious as to why Singapore's mortgage rate is lower than US's mortgage despite the Fed setting interest rate to near zero? Is MAS holding the key?

market demand and supply, banks can try and charge 3% and they will huat big big, question is will you take the loan with the bank that charges you 3%.

[teddybear]

Simple, too much depositors' cash stashed in the banks!

In order to loan out cash, banks need to get from depositors.
If bank want to loan out at 3%, they need to pay depositors say 2%. If they pay 2%, even more depositors head to the banks to deposit cash!
Let say they loan out $1b at 3%, pay depositors 2%, end up attract $2b depositors cash. So they loan out $1b at 3% to earn $30m a year but end up paying $40m a year to depositors as interests! So?!
So, loan interest rate cannot go up lor so that depositors are incentivised to put their cash else where!

I am just as curious as to why Singapore's mortgage rate is lower than US's mortgage despite the Fed setting interest rate to near zero? Is MAS holding the key?

[Secretariat]

Sg long term treasury (30 years) is lower than US. Because in the long term US is perceived to be a higher risk than SG.

What perception?

You think all the swaps taking place everyday is based on PERCEPTION?. You think that Nobel prices are given out to market pricing models, risk models developed based on PERCEPTION.

I suppose your investment approach is all based on PERCEPTION.

Don't make me laugh.

[Secretariat]

2 years ago, I felt that was the right strategy based on my analysis. Today, the results luckily was as expected(remember ah, u need luck also hor). 3 years time, I don't know... But I re-evaluate my portfolio very constantly and try to max it... Sometimes right/ sometimes wrong... How to get every time right? So long as total portfolio increase, me happy liao

Then don't come here to talk about MISSTEP, when you had the stumble.

Forfeiting Botannia rental incomes to buy Waterview, AND pay the stamp duties for it. Don't make me laugh.

You ASS LionKing first, and when he ASS you back, you plead don't ASS YOU

[Secretariat]

Brudder, u know who will be impacted most or not....

Those who are over leverage holding long term bonds hor.... HAHAHAHAHAHAHAHA

Even those short dated bonds paying 4% and maturing in 3 years time... What will happen when interest rate hit 4.5%.... HAHAHAHAHAHAHAHA

I think u better engage Vic in this topic.... I quite mountain tortoise leh.... All this too cheem for me leh... Economist, where are u???? Please tell me my theory sala or not.... Hahahahahaha

If I correct, I will boast... If I wrong, I will say I being sarcastic lar...

Hahahahahaha win-win for me lar....

U know why they impacted or not... Interest up, bond price drop... Top up call hor.... HAHAHAHAHAHAHAHA this group will die with u know what standing.... Hahahahahah

So u think this group interested to know when interest rate will go up or just know the impact.... Hahahahahaha

You have been engaging Vic for over a year but DONT KNOW what he is doing?

The Waterview you bought is not LEVERAGED and LONG-DATED?

[chestnut]

You have been engaging Vic for over a year but DONT KNOW what he is doing?

The Waterview you bought is not LEVERAGED and LONG-DATED?

What has Vic got to do with this????

This guy warned about long dated bonds...

Oh, share some news with u

http://www.bloomberg.com/news/2013-0...last-week.html



Can u change your fond colour??? As accountant trained, red makes me sick...