TDSR, MSR and maximum loan quantum ensuring the sub-prime mortgage crisis never happen within our borders. Doom and gloom?
Property market picking up. Doom and gloom?
The possibility of Feds raising interest rates due to the potential recovery of US economy. Doom and gloom?
You need to switch off the HYPE and listen to THE MARKET. The market rewards those who act on her signs. The market abandons all those who ignore her warnings and her gifts. You need to be serious about your money and talk to professionals with skin in the game, and listen closely to the signs from the MARKET!!!
I've been seeing a lot of such posts since yesterday. These are the same entities that had no idea that the sub-prime crisis was looming, and have no idea what causes the financial collapse in 2008 and who were running around like headless chickens when the public demanded answers.
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See folks, this is what I have been talking about all these years. You need to stop listening to news and hype. Watch some self-help videos on youtube and listen to the advice of the richest people in our world. They all say the same thing: do not watch the news. Those guys know what's up. They know they drive the economy with their businesses, and people in offices have no clue about the market and they know the news hype up things to earn their viewership.
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Before you let the fear get to you, ask yourself these:
1) What is TDSR?
2) What is MSR?
3) Is there a limit to the amount of money you can borrow for a property?
4) Why were these 3 things put in place?
When you are done asking yourself these questions, google for the answers.
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This "risk" we are talking about is actually just the Feds raising interest rates, which is a sign that the economy is recovering. If an improving economy is a risk, what isn't a risk for you? And if you are done finding the answers to the above questions you might find yourself wondering why is this article even written this way.
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This is shoddy reporting, plain and simple. It is MAS' duty to inform the public of a possibility of raising interest rates when the US economy is looking to improve. So what's the big deal right? What could be affected? Loans can be affected by the impending raising interest rates. That's all there is to it.
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The problem of locals over-leveraging is very minuscule, with the clever TDSR and MSR that was implemented over the past years. The maximum loan quantum also set a further safeguard. With these measures in place, you basically have around 20-30% of your property already paid down in cash/CPF. And in case you have not found the answer yet, those 3 things are Singapore's answer to the sub-prime mortgage crisis.
So anybody who talks about over-leveraging when you have 20-30% of the property paid up in cash does not know anything about money or financing.
http://www.straitstimes.com/business...ime=1480461965