View Full Version : Cheap loan is here to stay?
It has been several years that analyst have warn about the rising interest rate. And as time passes, rate has stubbornly continue to remain at record low and we are hearing less and less of people talking about rising interest rate. But instead, Helicopter Ben are being talk about more often.
With Singapore being a financial hub, world central banks continue to pump in money to bail themselves out, and asian government trying to boost domestic consumption, do you think that Singapore mortgage rate will continue to remain low for many years to come?
And if YES, do you think property will continue to be the prefer investment to hold for cash rich investors and price is unlikely to see a major correction in the near term?
I had read report that the interest will remain to be low. It could last through 2016 which many experts had predicted.
I saw articles saying that the banks are preparing policies for Greece to leave Euro as Germany cannot afford to help Greece which they foresee.
As for property in Singapore, i think we need to see how Europe handle the crisis. If big recession really comes, prepared for the worst as Mr B always said that it drop >50%. There is a possibility as most companies would retreat from Singapore and most companies might retrench so many people would be out of work. In this kind of situation, property will sure drop like nobody business. If you do not have enough saving to manage this situation, prepare to be bankrupt. So be prudent.
Nobody can really predict the future so can only prepare for the worst. If the worst do not come then prepare for the harvest!
I had read report that the interest will remain to be low. It could last through 2016 which many experts had predicted.
I saw articles saying that the banks are preparing policies for Greece to leave Euro as Germany cannot afford to help Greece which they foresee.
As for property in Singapore, i think we need to see how Europe handle the crisis. If big recession really comes, prepared for the worst as Mr B always said that it drop >50%. There is a possibility as most companies would retreat from Singapore and most companies might retrench so many people would be out of work. In this kind of situation, property will sure drop like nobody business. If you do not have enough saving to manage this situation, prepare to be bankrupt. So be prudent.
Nobody can really predict the future so can only prepare for the worst. If the worst do not come then prepare for the harvest!
I actually have a different opinion. With the problem happening in Europe and USA, more and more MNCs companies would be focusing their growth strategy and investment towards Asia because Asia is and will continue to be the growth engine for many years to come.
I actually have a different opinion. With the problem happening in Europe and USA, more and more MNCs companies would be focusing their growth strategy and investment towards Asia because Asia is and will continue to be the growth engine for many years to come.
That's a misconception.
MNCs still have headquarters In Europe US.
And Asia is already slowing down.China and India are not the world saviors anymore.
Infact during recession US might do better this time with everyone rushing to safe heaven.
with amount of supply coming in 50% fall is very possible if mass retrenchment starts again.
Especially most of people on sidelines have gone in too.very few mr B remains in the market.
That's a misconception.
MNCs still have headquarters In Europe US.
And Asia is already slowing down.China and India are not the world saviors anymore.
Infact during recession US might do better this time with everyone rushing to safe heaven.
with amount of supply coming in 50% fall is very possible if mass retrenchment starts again.
Especially most of people on sidelines have gone in too.very few mr B remains in the market.
you are right that Asia is slowing down, but they are slowing down from high growth While Europe and USA, they are going through contraction. Plus with EURO situation, it will make more sense for European and even American companies to remain engage to Asia than to pull out. ultimately, no one dare to dispute the Asia will remain the growth engine for the world economy for many years to come
I agree with you that Asia is a new engine for growth but limited without US and Europe.
The dollar for US is depreciating which might be advantage to US as they will compete with China. Hope that it would not lead to currency war.
Allthepies
07-06-12, 19:05
i got a non traditional view, the deeper the us and uk economies r in trouble, the longer the party will last
This is a good boaster for me to leverage on 1.3 to 1.5 mil SGD venture in Mt sinai private property searching.
ikan bilis
07-06-12, 19:43
"Cheap loan is here to stay? "
how about the spread ?... anyone knows which bank and what is the lowest spread (after the 3yr lock in period) ?...
sibor might stuck at ~0.5% until 2016... but the spread is like 1.5% or 3 times of sibor... any idea if the spread is coming down or will never ??... :beats-me-man:
"Cheap loan is here to stay? "
how about the spread ?... anyone knows which bank and what is the lowest spread (after the 3yr lock in period) ?...
sibor might stuck at ~0.5% until 2016... but the spread is like 1.5% or 3 times of sibor... any idea if the spread is coming down or will never ??... :beats-me-man:
I got the s+0.65 thru out, one month ago, not sure if the current pkg is still the same... :rolleyes:
"Cheap loan is here to stay? "
how about the spread ?... anyone knows which bank and what is the lowest spread (after the 3yr lock in period) ?...
sibor might stuck at ~0.5% until 2016... but the spread is like 1.5% or 3 times of sibor... any idea if the spread is coming down or will never ??... :beats-me-man:
BOC has a spread that is +0.72% there after. Of course thing might change, but i doubt it will happen because that will definitely bring the singapore economy to its knees.
This is a good boaster for me to leverage on 1.3 to 1.5 mil SGD venture in Mt sinai private property searching.
You are right, but there are many ways to play it. IMO, the best option for you is to buy a Mt Senai unit and rent it out instead of staying. That to me will make more sense, less stressful and yet you still enjoy the fruits of rental income and potential capital appreciation.
Should learn to enjoy the journey of making money rather than just going after that final destination because one you get there, it will no longer be as fun
ikan bilis
07-06-12, 20:08
wow... 0.65% !!... that's good... mine 1.5%...
when lock in time over me will re-finance to some loan with <1% spread and stick to it until 75yo liow... :(
like that future mortgage interest rate could be stuck at of 0.5(sibor)+0.5(spread)=1%...
last time... $200K, 5.75% interest, $11,500 interest/yr
in future... $1mil, 1% interest, $10,000 interest/yr
:scared-4:
China will be lowering their interest rate.. beware of inflation.
wow... 0.65% !!... that's good... mine 1.5%...
when lock in time over me will re-finance to some loan with <1% spread and stick to it until 75yo liow... :(
like that future mortgage interest rate could be stuck at of 0.5(sibor)+0.5(spread)=1%...
last time... $200K, 5.75% interest, $11,500 interest/yr
in future... $1mil, 1% interest, $10,000 interest/yr
:scared-4:
My Hdb refinance at s+0.75 for first 3 yrs, thereafter +1... Also around 1 mth ago...:cool:
You are right, but there are many ways to play it. IMO, the best option for you is to buy a Mt Senai unit and rent it out instead of staying. That to me will make more sense, less stressful and yet you still enjoy the fruits of rental income and potential capital appreciation.
yowetan, I agree with polo, that why I also stay in Hdb, rent out pc...
But u also can say I can't afford to stay in pc lah :D
ikan bilis
07-06-12, 20:18
My Hdb refinance at s+0.75 for first 3 yrs, thereafter +1... Also around 1 mth ago...:cool:
wow-lau... hdb loan very small quantum of few 100Ks, right?... they also give you so good rate...
think this world is really flooded with too much $$.... :banghead:
wow-lau... hdb loan very small quantum of few 100Ks, right?... they also give you so good rate...
think this world is really flooded with too much $$.... :banghead:
To be frank I myself was rather surprise... Below 300k, bank still entertain...reprice from s+1.25 down to +0.75
Call their helpline, their banker call me on same day, speak to recorder "yes, I take up pkg..."
Hustle free, no signatures needed from me and wife...
Cheap loan is scary. Interest rate should be higher to reduce inflation and property bubble.
Cheap loan is scary. Interest rate should be higher to reduce inflation and property bubble.
the central banks around the world have no choice but to keep the banking industry going in order to avoid a total collapse.
the central banks around the world have no choice but to keep the banking industry going in order to avoid a total collapse.
Strange world. Crazy prices.
China already drop interest rate by 0.25% point.
Unprecedented, make full use of this....:D
China already drop interest rate by 0.25% point.
hi... can share how does this affect sibor and sor? :)
hi... can share how does this affect sibor and sor? :)
no effect, since both are pegged to US' rates
loan is cheap but the property price is not cheap..
what for risk so much for such expensive property? :scared-3:
loan is cheap but the property price is not cheap..
what for risk so much for such expensive property? :scared-3:
the flipside is to contend with non-action, like Mr B
Imagine those who bought earlier with low spreads of interest rate and low $psf.
loan is cheap but the property price is not cheap..
what for risk so much for such expensive property? :scared-3:
thomastansb
08-06-12, 16:12
Economy so unstable now. QE3 already on the table. I don't think rates is going to go up in the next few years. 1 QE will have an effect of about 2-3 years, depending on the amount. So 2009 till now is just 4 years. QE1 + QE2 will last until 2013 to 2015.Which is why interest rate still low. Add another QE3, I would expect rates to stay low until at least 2014/2015.
It has been several years that analyst have warn about the rising interest rate. And as time passes, rate has stubbornly continue to remain at record low and we are hearing less and less of people talking about rising interest rate. But instead, Helicopter Ben are being talk about more often.
With Singapore being a financial hub, world central banks continue to pump in money to bail themselves out, and asian government trying to boost domestic consumption, do you think that Singapore mortgage rate will continue to remain low for many years to come?
And if YES, do you think property will continue to be the prefer investment to hold for cash rich investors and price is unlikely to see a major correction in the near term?
loan is cheap but the property price is not cheap..
what for risk so much for such expensive property? :scared-3:
the question is with so much liquidity pumping into the market will property price ever get cheaper.
Economy so unstable now. QE3 already on the table. I don't think rates is going to go up in the next few years. 1 QE will have an effect of about 2-3 years, depending on the amount. So 2009 till now is just 4 years. QE1 + QE2 will last until 2013 to 2015.Which is why interest rate still low. Add another QE3, I would expect rates to stay low until at least 2014/2015.
That is only QE3, what about Europe central bank, China? I heard China is preparing a massive money supply as well.
Imagine those who bought earlier with low spreads of interest rate and low $psf.
yes. these are the true winner during this property boom.
can sell one condo and retire ..millionaire instantly + maybe another condo to rent out as passive income..
HUAT ah!
these group of people are usually within the 40-50+ age category..:D
the question is with so much liquidity pumping into the market will property price ever get cheaper.
an emphatic no. let me use an analogy,
i have a tub that can contain 1.5 liters of water and it is currently filled with 1 liter. one fine day, i decide to pump in another 1 liter and guess what the tub is filled and the excess has to flow somewhere. if i use containers to hold the overflows, the content is captured in a vessel.
in parallel, these containers would be investment instruments - be it hard/soft commodities, currencies, properties, gold, etc. unless these new monies are sucked out of the financial system, inflation is here to stay.
the question we need to answer is what kind of container we are getting. if it is Mr B, he is just sitting by the corner, watching all the excess overflow into someone's container and doing nothing. except trolling forums and casting doomsday prophecies.
yes. these are the true winner during this property boom.
can sell one condo and retire ..millionaire instantly + maybe another condo to rent out as passive income..
HUAT ah!
these group of people are usually within the 40-50+ age category..:D
sell the condo and see the value of cash get eaten up by inflation? not too wise a move. if cash out, must stay vested in another instrument to hedge against inflation.
Like 'Sales promo' - buy more to save alittle.
loan is cheap but the property price is not cheap..
what for risk so much for such expensive property? :scared-3:
sell the condo and see the value of cash get eaten up by inflation? not too wise a move. if cash out, must stay vested in another instrument to hedge against inflation.
no..
sell one at the high. collect cash
keep another one for passive income.
when market crash, hoot another few more condo w/ your million dollar cash. :D:D:D
life is good! :p
If you read this thread it resembles what US property market was like befores crash. Easy loans. Everyone just buy because no need to pay no matter how high the price is.
I think the prices has already gone up to factor in the low interest rate. For it to go higher ithink the interest rate must drop further...
How much further can interest rate drop?
That is why i dont see much upside but plenty of downside. I think the government feels that way too. Keep asking people not to buy. When property crash, which it will as it is only a matter of time like kbw says, i wonder will singaporeans kbkb
If you read this thread it resembles what US property market was like befores crash. Easy loans. Everyone just buy because no need to pay no matter how high the price is.
I think the prices has already gone up to factor in the low interest rate. For it to go higher ithink the interest rate must drop further...
How much further can interest rate drop?
That is why i dont see much upside but plenty of downside. I think the government feels that way too. Keep asking people not to buy. When property crash, which it will as it is only a matter of time like kbw says, i wonder will singaporeans kbkb
You are wrong here. In US, subprime mortgage rate are not low, they are high and but they can borrow almost 100% even without looking at your income statement. And not to forget that US is a sunset economy and land are aplenty.
no..
sell one at the high. collect cash
keep another one for passive income.
when market crash, hoot another few more condo w/ your million dollar cash. :D:D:D
life is good! :p
really depends on what property you have. If its a good unit with good facing and still giving your decent rental yield, it will be better to keep it than to sell it as you dont want to miss the golden opportunity of the low interest rate. Plus when you sell and buy back, you will have to pay additional 3% ABSD, could be 10% later on if KBW decided it, and will also be stuck with the SSD for 4 years.
In today property play, one has to look at rental yield to hedge inflation and long term capital appreciation (FH)
Wonder why you start this thread and post those questions when you are already firmed on your own answers? :doh:
Wonder why you start this thread and post those questions when you are already firmed on your own answers? :doh:
I think you got it wrong here, I am not here to glorify about how much I made or what car i drive, I am just here to discuss about subjects that property investors are interested in.
For home owner like you, it shouldn't matter too much because you are already fully leveraged.
ikan bilis
08-06-12, 21:01
sorry, OT a bit....
can any loan guru help ??... let's say...
- husband + wife own an hdb, joint tenancy, housing loan outstanding of may be 300-500K
- they cannot afford another pte condo, bcoz 2nd loan LTV=60%
- next, they could re-finance the hdb, and let wife paying the loan alone
- since the husband got no loan now, he can go and get a pte condo at LTV=80% ??...
- and lagi-more, bank allows up to 100% of his monthly income as instalment bcoz that's is his 2nd property....
some loophole ??... :scared-4: ... think mas should make it flat LTV=60% for 2nd residential property (than 2nd housing loan)...
.... and me not the one looking for any loophole hor... pls don;t flame me... ;)
Properties are bought to be kept and earn passive income for early retirement. ;)
yes. these are the true winner during this property boom.
can sell one condo and retire ..millionaire instantly + maybe another condo to rent out as passive income..
HUAT ah!
these group of people are usually within the 40-50+ age category..:D
sorry, OT a bit....
can any loan guru help ??... let's say...
- husband + wife own an hdb, joint tenancy, housing loan outstanding of may be 300-500K
- they cannot afford another pte condo, bcoz 2nd loan LTV=60%
- next, they could re-finance the hdb, and let wife paying the loan alone
- since the husband got no loan now, he can go and get a pte condo at LTV=80% ??...
- and lagi-more, bank allows up to 100% of his monthly income as instalment bcoz that's is his 2nd property....
some loophole ??... :scared-4: ... think mas should make it flat LTV=60% for 2nd residential property (than 2nd housing loan)...
.... and me not the one looking for any loophole hor... pls don;t flame me... ;)
I think HDB must have two names. Might not be able to loan 80%, as joint tenancy implies liability for the husband.
Better check with lawyer first. Don't try halfway stuck.
sorry, OT a bit....
can any loan guru help ??... let's say...
- husband + wife own an hdb, joint tenancy, housing loan outstanding of may be 300-500K
- they cannot afford another pte condo, bcoz 2nd loan LTV=60%
- next, they could re-finance the hdb, and let wife paying the loan alone
- since the husband got no loan now, he can go and get a pte condo at LTV=80% ??...
- and lagi-more, bank allows up to 100% of his monthly income as instalment bcoz that's is his 2nd property....
some loophole ??... :scared-4: ... think mas should make it flat LTV=60% for 2nd residential property (than 2nd housing loan)...
.... and me not the one looking for any loophole hor... pls don;t flame me... ;)
I think HDB must have two names. Might not be able to loan 80%, as joint tenancy implies liability for the husband.
Better check with lawyer first. Don't try halfway stuck.
ikan bilis
08-06-12, 22:03
I think HDB must have two names. Might not be able to loan 80%, as joint tenancy implies liability for the husband.
Better check with lawyer first. Don't try halfway stuck.
thanks!, :cheers4:
ummm....
mas regulation only as 2nd housing loan, or must not already have a housing loan...
not so sure about liability... how that works?...
things like...
- as guarantor for other people's mortgage loans
- already has few commercial mortgage loans
also liability mah ??...
~~~~~~~~
or... how about....
convert to, or adjust hdb ownership shares as in "tenancy in common", such that wife hold 100% share and husband 0% share but he still got a name in hdb or co-own it, (mainly as "occupant")...
like that husband still got no hdb loan ??.. possible ??...
~~~~~~~~
sorry ah... me could be asking some dumb questions as above...
pls see me as a piranha die die must dig a hole at the bottom of the boat and sink it... ;)
The only solution is divorce n each can own a hdb
thanks!, :cheers4:
ummm....
mas regulation only as 2nd housing loan, or must not already have a housing loan...
not so sure about liability... how that works?...
things like...
- as guarantor for other people's mortgage loans
- already has few commercial mortgage loans
also liability mah ??...
~~~~~~~~
or... how about....
convert to, or adjust hdb ownership shares as in "tenancy in common", such that wife hold 100% share and husband 0% share but he still got a name in hdb or co-own it, (mainly as "occupant")...
like that husband still got no hdb loan ??.. possible ??...
~~~~~~~~
sorry ah... me could be asking some dumb questions as above...
pls see me as a piranha die die must dig a hole at the bottom of the boat and sink it... ;)
Economy so unstable now. QE3 already on the table. I don't think rates is going to go up in the next few years. 1 QE will have an effect of about 2-3 years, depending on the amount. So 2009 till now is just 4 years. QE1 + QE2 will last until 2013 to 2015.Which is why interest rate still low. Add another QE3, I would expect rates to stay low until at least 2014/2015.
What if Ben decided to flip the table? The can is too far down the road. He cannot be seen to support any one particular party even if its election year.
And if the economy flips, yes, there will be retrenchment. But there will be even more people flowing to asia and SG. Why ? Because they park their head count here where the growth is. So cut head count in US and park here. It has always been that way, Just that no one wants to rock the boat and stand up and say to to the policy.
So we will continue to see investment coming into SG. But thats just me.
You are wrong here. In US, subprime mortgage rate are not low, they are high and but they can borrow almost 100% even without looking at your income statement. And not to forget that US is a sunset economy and land are aplenty.
I did not say the interest rate was low in us. I say easy money. People borrow with no intention or capability to pay when conditions change.
Same here in singapore. People are expecting ultra low interest rate as norm. In us people expect houing price will always rise. Bottomline is can you service the loans when conditionschange
The only solution is divorce n each can own a hdb
did you divorce before? :confused::confused::confused:
that's why can own a HDB despite still single.. now..?
I did not say the interest rate was low in us. I say easy money. People borrow with no intention or capability to pay when conditions change.
Same here in singapore. People are expecting ultra low interest rate as norm. In us people expect houing price will always rise. Bottomline is can you service the loans when conditionschange
Singapore 80% and 60%LTV is no easy money and we are no way near US subprime mortgage in terms of risk.
did you divorce before? :confused::confused::confused:
that's why can own a HDB despite still single.. now..?
Don't be such an idiot, and will you just stop pestering me? Another way to own a hdb at young age is parents die. I hope your next qns will not be asking if my parents are still alive
Don't be such an idiot, and will you just stop pestering me? Another way to own a hdb at young age is parents die. I hope your next qns will not be asking if my parents are still alive
ok..
:o:o
me straight guy ...not gay..
so always like to talk to girl on forum meh :p
I did not say the interest rate was low in us. I say easy money. People borrow with no intention or capability to pay when conditions change.
Same here in singapore. People are expecting ultra low interest rate as norm. In us people expect houing price will always rise. Bottomline is can you service the loans when conditionschange
Example:
If someone brought a 2 Bedroom for 500K and 4 years later his 2 Bedroom is 1500K. What would you suggest, sell and keep the cash, continue collect rental, cash out and buy another and collect another rental.
Example:
If someone brought a 2 Bedroom for 500K and 4 years later his 2 Bedroom is 1500K. What would you suggest, sell and keep the cash, continue collect rental, cash out and buy another and collect another rental.
So bottomline is how much rental can the 1.5mil property generate? 4k/month?
Ultimately I always believe we should pegged the rental yield to 1.5million as that is what the condo is worth. I think todays rental yield is probably like 2-3%?
Frankly, looking at Singapore, the government has already repeated the prices are way too high. Sooner or later the cooling measures are going to bite and the government will allow the housing to adjust back to "normal" levels like what is happening in China.
If me, I will sell the condo and invest the 1.5million in a mixture of other stuff. There should be other kind of "stuff" to hedge against inflation. I am no expert though.
If you want to leverage, technically you can refinance the condo at an interet rate of 1%.... you can probably use the money to generate more returns than 1%...
Singapore 80% and 60%LTV is no easy money and we are no way near US subprime mortgage in terms of risk.
?? If 1% interest rate is not easy money, I don't see how much easier it can get.
In a way, it is easier than US as our rates are much lower. Seriously, I am tempted to refinance my property to get 1million dollars at 1% interest rate per annum.
People are willing to accept a higher property price and thus lower rental yield mainly because interest rates are at 1%. If it rises to 3%, a lot of people relying on rental to service their loans will immediately sell their houses because they are just bleeding money every month.
?? If 1% interest rate is not easy money, I don't see how much easier it can get.
In a way, it is easier than US as our rates are much lower. Seriously, I am tempted to refinance my property to get 1million dollars at 1% interest rate per annum.
People are willing to accept a higher property price and thus lower rental yield mainly because interest rates are at 1%. If it rises to 3%, a lot of people relying on rental to service their loans will immediately sell their houses because they are just bleeding money every month.
Agree, If..... the interest rises to 3% but what factor can cause the interest rate to rises to 3%. I have been thinking of this for a long time still cannot find how, care to enlighten everyone.
Bendigoand Adelaide Bank cuts interest rates 6.90pc
http://www.heraldsun.com.au/business/bendigo-bank-cuts-home-loan-rate/story-fn7j19iv-1226390392919
http://www.tradingeconomics.com/chart.png?s=rbatctr&d1=20100101&d2=20120610
?? If 1% interest rate is not easy money, I don't see how much easier it can get.
In a way, it is easier than US as our rates are much lower. Seriously, I am tempted to refinance my property to get 1million dollars at 1% interest rate per annum.
People are willing to accept a higher property price and thus lower rental yield mainly because interest rates are at 1%. If it rises to 3%, a lot of people relying on rental to service their loans will immediately sell their houses because they are just bleeding money every month.
Thats not call easy money, thats low cost money. Cheap to borrow, even cheaper to put in the bank.
Agree, If..... the interest rises to 3% but what factor can cause the interest rate to rises to 3%. I have been thinking of this for a long time still cannot find how, care to enlighten everyone.
Frankly, i dont know. Maybe government feels that prices is getting too high and decide to raise interest rates. Just the thret of rising interest rates willl scare off a lot of people like u bankingon extended period of ultra low interest rates.
Bottomline is i dont think it is wise to commit to any new property now since prices has already priced in the low interest rates. Just look at people here, 3% many will die. So how much higher can the price go? Even if interest rates remain at 1%...
Frankly, i dont know. Maybe government feels that prices is getting too high and decide to raise interest rates. Just the thret of rising interest rates willl scare off a lot of people like u bankingon extended period of ultra low interest rates.
Bottomline is i dont think it is wise to commit to any new property now since prices has already priced in the low interest rates. Just look at people here, 3% many will die. So how much higher can the price go? Even if interest rates remain at 1%...
Do you know where HDB get it money to build HDB nowadays.
Do you know where HDB get it money to build HDB nowadays.
Selling HDB sure make money one, if not the HDB will just publish its actual cost like what it did many years ago. The maintenance of HDB also makes a lot of money, if not Town Council where got money to invest in Lehman Bro? So no need to worry about HDB getting money or financing it.
Selling HDB sure make money one, if not the HDB will just publish its actual cost like what it did many years ago. The maintenance of HDB also makes a lot of money, if not Town Council where got money to invest in Lehman Bro? So no need to worry about HDB getting money or financing it.
http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/34509C754E60D57E4825790D0030EB7C?OpenDocument
If you put your money in the bank and the bank brought the bond by HDB, S$12 billion Multicurrency Medium Term Note ("MTN") Programme then you are building the HDB. When interest raise the bond interest will also raise. Do you think they want it to raise.
I have a few friends each with a few hundred thousands sitting in the bank with HDB fully paid, when I explain to them how they are begin rob everyday without they doing anything and right under their nose they don't believe me.
HDB is just finding it cheaper to borrow money from bond buyers now. It doesn't matter if interest rate is higher, it is either lesser profit margin for HDB or higher price for its BTO. There is not much alternatives for most people.
http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/34509C754E60D57E4825790D0030EB7C?OpenDocument
If you put your money in the bank and the bank brought the bond by HDB, S$12 billion Multicurrency Medium Term Note ("MTN") Programme then you are building the HDB. When interest raise the bond interest will also raise. Do you think they want it to raise.
I have a few friends each with a few hundred thousands sitting in the bank with HDB fully paid, when I explain to them how they are begin rob everyday without they doing anything and right under their nose they don't believe me.
I dont get it. I thought once the bond is issued the rate is fixed? Even if interest rate goes it does not affect previous issues what. Or am i wrong? Not too sure about such things. Once interest rate goes up demand for housing will die. Hdb no need to built so many flats so no financing issues.
That is the good thing about hdb. They can issue bonds which practically locked their loans interest rates. Normal people relying on sibor loans will be killed.
If i can release bonds at 1% I also want to.
Come to think of it, hdb is very smart. Sell bonds at 1-2% , then raise interest rates. Lock in their cheap financing. By the time five, ten yearsis up, the flats aRe built and they can collect the full payment from flat buyers.
I dont see why government will not try to increase interest rate slightly to rein in prices
give scholarship to singaporean to harvard economy stuff...
of course must come back to help make govt make $$$ ;)
no free lunch la :banghead::banghead::banghead:
Frankly, i dont know. Maybe government feels that prices is getting too high and decide to raise interest rates. Just the thret of rising interest rates willl scare off a lot of people like u bankingon extended period of ultra low interest rates.
Bottomline is i dont think it is wise to commit to any new property now since prices has already priced in the low interest rates. Just look at people here, 3% many will die. So how much higher can the price go? Even if interest rates remain at 1%...
It is true that property prices are high, but it i most unlikely the Singapore government will play the interest card this time around to purposely crash it because of with uncertainty over European and US economy, any move to raise interest rate will not just hurt the housing market, but also businesses as borrowing cost will rise and so will the strength of S$.
It is true that property prices are high, but it i most unlikely the Singapore government will play the interest card this time around to purposely crash it because of with uncertainty over European and US economy, any move to raise interest rate will not just hurt the housing market, but also businesses as borrowing cost will rise and so will the strength of S$.
They dont have to raise a lot. The government wants property price to moderate. The act of raising interest rate by 0.2% isenough to scarea lot of people. I think the threat of rising interest rate is enough
Example:
If someone brought a 2 Bedroom for 500K and 4 years later his 2 Bedroom is 1500K. What would you suggest, sell and keep the cash, continue collect rental, cash out and buy another and collect another rental.
based on your past posts, I think u r referring to your own situation.. and seemed that u hv obtained term loan to buy another one.. and seemed optimistic to even do it again if u can.. and your posts on news is clear that u hv placed few bets on prop by borrowing more at current low int rate and believed it will continue to remain low.
so i m just pondering whether your question is to seek assurance on your opinions or to let us wonder. hmmm...
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