Most people are waiting for a crash, if not all?

[mermaid]

For 1st timers, MTBs & new citizens, they welcome crash with open arms & legs.

For existing hdb owners, it makes them easier to own a 2nd pty or upgrade to pte ppty.

For existing owners with more than 1 ppty, a crash would give them a chance to buy another property, even though their current portfolio will be temporarily be devalued. But since a rebounce after a ppty crash will result in a steeper gradient than before, it is also to their best interest to look forward to a crash.

Only owners who have bought properties at high price & has no more bullets to purchase another ppty dun wish the market to crash. But as long as this group of people r not overly leveraged, a crash would not have much negative impact to them if they are taking a long term view.

The only category of people who do not wish for a crash would be the rulers of the country.

What do you think?

[peterng8]

There are different type of reasons that can cause a crash ...some of the reasons that can cause a crash are definitely not welcomed not even by garmen but also by many commoners...so be careful of what u wish for...

[elmo]

People who had sold all (or left with one) their properties recently will wish for a crash.

[phantom_opera]

in 2005,
1 SGD = 5000 IDR
now
1 SGD = 8,111.3916 IDR

go figure out ...

[chestnut]

in 2005,
1 SGD = 5000 IDR
now
1 SGD = 8,111.3916 IDR

go figure out ...

Check this out

http://www.indexmundi.com/xrates/gra...=SGD&days=7000

[indonesian]

Rupiah is a joke

in 2005,
1 SGD = 5000 IDR
now
1 SGD = 8,111.3916 IDR

go figure out ...

[indonesian]

Those with cash, will hope property crash.

[mcmlxxvi]

When ppty crash to that extent attractive enough for you to jump in, are you sure you can still keep your job?

If you are rich enough to pay cash, you dont need a crash to jump in.

[mermaid]

If you are rich enough to pay cash, you dont need a crash to jump in.

a person may be juz be still short of the 20-30% cash in which he is no longer eligible for a bank loan & tis is one area which he badly nid a crash

[mcmlxxvi]

a person may be juz be still short of the 20-30% cash in which he is no longer eligible for a bank loan & tis is one area which he badly nid a crash

Your first post does warrant some merit and logic is there.
Everyone theoretically should rejoice at a crash.

But people are still buying at high prices. What do you think is in their head?

As long as the gls and developer launches continue, crash will not come anytime soon... the intrinsic trigger lies with the govt method of pricing land and bid expectation.

Dont forget the plot at payalebar longkang where UOL bid was deemed too low and rejected.

[mermaid]

But people are still buying at high prices. What do you think is in their head?

ppl r still buying at high prices because they dun believe a crash will come. me too, has bought at high price recently, but I do hope for a crash so tat I can cont'd to buy.

Dont forget the plot at payalebar longkang where UOL bid was deemed too low and rejected.

the fact tat govt is unwilling to sell a piece of land cheaper than previous goes to show tat they do not want the price to fall at all! they merely wanna stablise the price (but tis is not wat we wan)

I believe tat at the end of the day, we will not be able to witness a decent crash, cos I feel tat govt will manipulate & try to minimise the effect of a crash (shd it happen) by manipulating the rate of the new immigrants intake. As long as there is equilibrium in dd & ss, a crash cant do much harm to existing owners.

[phantom_opera]

the fact tat govt is unwilling to sell a piece of land cheaper than previous ..

How else garmen can recover all the MRT / express-way massive investment ... there is bond interest to pay

LKY: so we invested in expressway, MRT lines ... so PROPERTY MUST GO UP

[mermaid]

How else garmen can recover all the MRT / express-way massive investment ... there is bond interest to pay

LKY: so we invested in expressway, MRT lines ... so PROPERTY MUST GO UP

becos 人是他，鬼也是他

[mcmlxxvi]

ppl r still buying at high prices because they dun believe a crash will come. me too, has bought at high price recently, but I do hope for a crash so tat I can cont'd to buy.




the fact tat govt is unwilling to sell a piece of land cheaper than previous goes to show tat they do not want the price to fall at all! they merely wanna stablise the price (but tis is not wat we wan)

I believe tat at the end of the day, we will not be able to witness a decent crash, cos I feel tat govt will manipulate & try to minimise the effect of a crash (shd it happen) by manipulating the rate of the new immigrants intake. As long as there is equilibrium in dd & ss, a crash cant do much harm to existing owners.

You are so right. So what are you going to buy next?

[mermaid]

You are so right. So what are you going to buy next?

I may be wrong, tis is afterall my reasoning, there are many external factors tat r beyond our control.

Im gg to buy mm unit, big units will be hard to sell 20 yrs down the road as the quantum is no longer affordable

[mcmlxxvi]

I may be wrong, tis is afterall my reasoning, there are many external factors tat r beyond our control.

Im gg to buy mm unit, big units will be hard to sell 20 yrs down the road as the quantum is no longer affordable

Welcome to the club.

MM (MerMaid) loves MM!

[mcmlxxvi]

Chewren knows best.

http://www.channelnewsasia.com/tv/it...ds/760840.html

[heehee]

Waiting for the big crash!
I have no job...., no difference.........

When ppty crash to that extent attractive enough for you to jump in, are you sure you can still keep your job?

If you are rich enough to pay cash, you dont need a crash to jump in.

[4wheels]

the fact tat govt is unwilling to sell a piece of land cheaper than previous goes to show tat they do not want the price to fall at all! they merely wanna stablise the price

The developers are not willing to have a crash as they always bid higher and higher.

[Sandiwara]

Cause ---> Effect

Economy Crisis ----> High unemployment rate

Economy Crisis -----> Property Crash

Economy Crisis -----> Many bad thing hapen

[3C]

Hijack a bit from the topic.
Instead of predicting crash or not
Anyone can share how are they preparing for the unfortunate event of a crash.

I am preparing sandbags of cash.
If interest goes up, is it advisable to use cash to
1. lower the loan quantum to reduce monthly repayment?
2. Use the cash to buy another cheap sale unit?
and tahan the interest all the way?

Any advice from Lao jiao chestnut or anyone?

[azeoprop]

I also stocking up sandbags of cash. Hopefully will be enough for the next tsunami.

Be careful of what we wish for, the epicenter of the next financial tsunami might be Asia. And it may be a long road to recovery.

[mcmlxxvi]

While waiting for crash, go keep yourselves entertained.

[mermaid]

The developers are not willing to have a crash as they always bid higher and higher.

if given a choice, which developer would wanna bid high?
one cant rule out the possibility tat a strong developer would prefer a crash, cos it means there will be lesser competitors, no?

Waiting for the big crash!
I have no job...., no difference.........

got diff de ...
after a crash, the rich get richer n the poor get poorer

[indomie]

Hijack a bit from the topic.
Instead of predicting crash or not
Anyone can share how are they preparing for the unfortunate event of a crash.

I am preparing sandbags of cash.
If interest goes up, is it advisable to use cash to
1. lower the loan quantum to reduce monthly repayment?
2. Use the cash to buy another cheap sale unit?
and tahan the interest all the way?

Any advice from Lao jiao chestnut or anyone?

Get greedy when there is blood on the street, especially your own.

[chestnut]

3c, there are so many variables at play.... My way may not be the right way. Why??? I don't know your loan amount of existing investment prop, I don't know rental amount, I don't know your age (loan tenure at play), I don't know your income - tdsr @ play here. So only u know best... Please don't reveal here hor...

Ok, my way
1. I will not pay up for investment property loan... Why? For my case, I can find instruments that can beat interest rate easily... So why pay up??? But to achieve that, I have lost quite a fair bit of money during the learning stages...
2. When times are bad, cash is king... Nothing else matters... U can get great bargains during such times
3. Your income will determine your loan quantum
4. If your investment property can get rental which can cover your mortgage, why pay up??? Your spare cash can be used to generate better interest right... Give example... Loan amount 500k. Current interest 1%. You put into bonds, 250k @ 4%. You are still better off right??? You can keep the 250k in cash... D your own computation to get what I am talking about... The interest earned from bonds and fd is better than the interest from the loan.... If interest rate goes up to 4%, bonds should hit 7% or more to make it attractive and fd will hit 3%.
5. When to buy is an art... You really must read and understand the economy and the cycle... A clue is - stocks are forward looking...
6. Open your eyes, there are many other instruments but dabble a bit first but u must be prepared to pay tuition fee.
7. Always know your goal... Accumulation or preservation mode???
8. Do your sums for worst case scenario and keep some cash for loss of job or etc...
The list goes on...

This time, I am going hibernation for awhile because I am starting my traveling again and rev up the biz...

Cheers... This is just a rough guide... Use what you think fits your profile, modify, add, subtract and come up with a plan u are comfortable with...

Hope this helps...

[mermaid]

Cause ---> Effect

Economy Crisis ----> High unemployment rate

Economy Crisis -----> Property Crash

Economy Crisis -----> Many bad thing hapen

let me ask u a qn. if u r a student, would u prefer an exam to be hard or easy?
most would prefer easy.

no doubt tat during a hard exam, a gd student will not be able to maintain his previous score. but do note tat others will fare worser.

do u see the moral behind my analogy?

[indomie]

let me ask u a qn. if u r a student, would u prefer an exam to be hard or easy?
most would prefer easy.

no doubt tat during a hard exam, a gd student will not be able to maintain his previous score. but do note tat others will fare worser.

do u see the moral behind my analogy?

That's what I mean. If you are hurting, other must hurt even more. Don't pay up your loan. Look for the great bargain.

[smartboy2]

3c, there are so many variables at play.... My way may not be the right way. Why??? I don't know your loan amount of existing investment prop, I don't know rental amount, I don't know your age (loan tenure at play), I don't know your income - tdsr @ play here. So only u know best... Please don't reveal here hor...

Ok, my way
1. I will not pay up for investment property loan... Why? For my case, I can find instruments that can beat interest rate easily... So why pay up??? But to achieve that, I have lost quite a fair bit of money during the learning stages...
2. When times are bad, cash is king... Nothing else matters... U can get great bargains during such times
3. Your income will determine your loan quantum
4. If your investment property can get rental which can cover your mortgage, why pay up??? Your spare cash can be used to generate better interest right... Give example... Loan amount 500k. Current interest 1%. You put into bonds, 250k @ 4%. You are still better off right??? You can keep the 250k in cash... D your own computation to get what I am talking about... The interest earned from bonds and fd is better than the interest from the loan.... If interest rate goes up to 4%, bonds should hit 7% or more to make it attractive and fd will hit 3%.
5. When to buy is an art... You really must read and understand the economy and the cycle... A clue is - stocks are forward looking...
6. Open your eyes, there are many other instruments but dabble a bit first but u must be prepared to pay tuition fee.
7. Always know your goal... Accumulation or preservation mode???
8. Do your sums for worst case scenario and keep some cash for loss of job or etc...
The list goes on...

This time, I am going hibernation for awhile because I am starting my traveling again and rev up the biz...

Cheers... This is just a rough guide... Use what you think fits your profile, modify, add, subtract and come up with a plan u are comfortable with...

Hope this helps...

Thanks for sharing Chestnut bro,
I agree with 3C, instead of thinking or trying to time the market, make sure u have adequate funds to support the pillar in times of need.

[3centsworth]

I don't think that there will be a deep crash of the property market. The fundamentals of the global economy are improving gradually although the US, EU and even Japan still to be sustained by large doses of liquidity through their central banks' monetary easing policy. Singapore should be able to weather the global shocks if there is from the major economies. I don't foresee US going back into recession after coming out of one in 2008.

There will be a moderation of property's price down the road, but it will not bethe kind that will create the kind of crash as seen in 2008/2009. The crash in 2008 is due to external event in US, followed by Euro zone.
Much of the price moderation will also be controlled. The Singapore government will not allow the market price to dip by a big margin as to create political backlash. They will pull the right levers to exact a stability of prices in the market. Too much is at stake if the government will to let the market crash. Our property market is not case of sub-prime crisis. It is a case of managing interest rates , income affordability and controlled price increases.