View Full Version : Maybank KE speaks out on next possible CM
from sbr, read closely. twice if necessary.
Home sales in Singapore hit an 11-month low
But guess which developer made the biggest sale?
According to Maybank Kim Eng, excluding Executive Condos (ECs), developers sold 1,087 homes sold in Nov, which was an eleven-month low. It was a 44% decline from the previous month.
Here’s more from Maybank Kim Eng:
In fact, the units launched by developers reached a 3-year low at 773 units, as they exercise caution a month after the government introduced new measures to curb the tenure of home loans. This brings the number of new homes sold to 21,288 units YTD, on track to reach our estimated 22,000 units for the full year.
With the new restrictions on home loan tenures, it appears that activity largely surrounded the projects where there is perceived value. The best-selling project was Eco Sanctuary, a project by Malaysia-listed SP Setia. 140 units were sold at a median price of SGD1050 psf, which was slightly below the median price of SGD1120 psf for units transacted at Foresque Residences nearby.
This was followed by CapitaLand's D'Leedon, where 300 new units were released for sale, of which 133 were sold at a median price of SGD1431 psf, slightly lower than the YTD median transacted price of SGD1,519 psf. In the high-end segment, the unlisted Far East Organisation still managed to sell another 10 units at The Scotts Tower for >SGD3,000 psf each. Their median price was SGD3,459 psf, which suggests that high-end property prices remain fairly firm.
We see signs that the marginal buyers are increasingly trading down, potentially turning their attention to the EC segment if they satisfy the monthly household income eligibility of not more than SGD12,000 per month. The various cooling measures are also turning investors' attention to projects where value appears to be surfacing, such as those mentioned above.
However, as it is merely a couple of months since the last round of cooling measures, it may be too early to suggest that the property market has effectively cooled to the government's satisfaction. Looking forward, we expect the government to remain steadfast in ensuring ample supply via the Government Land Sales (GLS) programme unless developers start to put in tepid bids. Just last week, the 1H13 GLS programme was announced, with the government putting up sites sufficient to yield ~14,000 homes. The 13 sites on the Confirmed List can potentially yield 6,935 residential units, out of which 3110 will be for ECs.
We are not ruling out further rounds of cooling measures, especially if the demand rebounds significantly without a corresponding improvement in economic conditions. In our view, one possible measure would be to restrict existing HDB owners from buying private property if they want to still hold on to their HDB units, even if they have fulfilled their Minimum Occupation Period (MOP) of five years. YTD, purchasers of new non-landed private property with HDB addresses make up 54% of all transactions, up from 48% in 2011 and 38% in2010. There are a few implications and potential impact from such move, if implemented.
Firstly, it will prevent Singaporeans from being overly exposed to the property market by owning both HDB and private property. Secondly, as HDB units are generally accepted to be the affordable option for the general public, compelling owners to sell their HDB units if they wish to upgrade to private property may potentially free up more HDB units in the resale market.
Hence, resale prices and cash-over-valuation may come down over time to more affordable levels. Last but not least, as a matter of principle, many buyers of HDB units obtain various grants which effectively subsidise their HDB purchases at the point of purchase. By subsequently upgrading to private property and renting out their old HDB units, this could be perceived as inequitable as the owner would have benefitted from the original government subsidies and now making attractive investment returns by renting the unit out.
Overall, we still expect the mass market segment to face the greatest downside risks, correcting by up to 10% in 2013, while high-end property prices should hold firm as more investors seek out relative value.
compare what Maybank said to OCBC.
at odds.
Mass-market home prices to rocket up to 5% in 2013
On the flip side, posh home prices will dip.
According to OCBC, as indicated in its last residential sector report dated 26 Jun 2012, there is deep value embedded in high-end developer stocks.
Here's more from OCBC:
Year to date, we have seen ~20.9K new homes (excluding landed and EC) sold by developers, of which the bulk (74%) are mass-market (OCR) units.
As interest rates remain low, we believe that continued monetary liquidity in the market would underpin demand for mass-market units.
We forecast for mass market property prices to appreciate 0%-5% in 2013. For high-end property, we expect prices to dip 0% - 10% in 2013, due to the impact of recent cooling measures.
We expect continued strength in the mass-market segment in FY13.
Trust only yourself because most analyst = anal list.
Trust only yourself because most analyst = anal list.
Precisely, can't trust them at all.
do yr own research, and make yr own judgement
Should have a report card.
SInce 2008 till now, which year and which analyst or research group has been accurate in their projection.
In Dec 2011, projected fall in property prices for 2012 ranged from 5 to 30%.
So who has accurately projected a rise of 5-8% of prices in 2012?
Trust only yourself because most analyst = anal list.
Yes! Agreed on that..
The proposed CM by MB will be one of the ultimates. :scared-3:
phantom_opera
19-12-12, 12:08
they will not ban HDB owner to buy private one lah ... at most is cannot keep HDB
Should have a report card.
SInce 2008 till now, which year and which analyst or research group has been accurate in their projection.
In Dec 2011, projected fall in property prices for 2012 ranged from 5 to 30%.
So who has accurately projected a rise of 5-8% of prices in 2012?
nobody. that's why they are now busy predicting for 2013 lol
they will not ban HDB owner to buy private one lah ... at most is cannot keep HDB
those who already bought and or renting out hdb will be grinning face to face
that's why everything 快手快脚 always win
like bro radha will be ha ha ha ha ha ha!
those who already bought and or renting out hdb will be grinning face to face
that's why everything 快手快脚 always win
like bro radha will be ha ha ha ha ha ha!
bro wear NIKE and JUST DO IT..:D
But i am Also afraid is there any possibility government can FORCE those who ALREADY own hdb and pc to SELL their HDB...:confused::scared-3:
phantom_opera
19-12-12, 12:51
bro wear NIKE and JUST DO IT..:D
But i am Also afraid is there any possibility government can FORCE those who ALREADY own hdb and pc to SELL their HDB...:confused::scared-3:
cannot force sell lah ... it will piss too many people ... at most it can say is restricting holding period e.g. if own > 2 private properties and HDB at the same time, HDB can only rent out for 10y in whole life (leave it empty loh)
buttercarp
19-12-12, 12:53
bro wear NIKE and JUST DO IT..:D
But i am Also afraid is there any possibility government can FORCE those who ALREADY own hdb and pc to SELL their HDB...:confused::scared-3:
I think that possibility is low.
Don't worry lah.
bro wear NIKE and JUST DO IT..:D
But i am Also afraid is there any possibility government can FORCE those who ALREADY own hdb and pc to SELL their HDB...:confused::scared-3:
No lah. but may restrict PR to buy HDB.
Either convert citizen or sell HDB
those who already bought and or renting out hdb will be grinning face to face
that's why everything 快手快脚 always win
like bro radha will be ha ha ha ha ha ha!
Well, sadly this grin wont be forever. Reason being the hdb would be due for ser in 15-20 years time. By then, sell pte if want ser.
cannot force sell lah ... it will piss too many people ... at most it can say is restricting holding period e.g. if own > 2 private properties and HDB at the same time, HDB can only rent out for 10y in whole life (leave it empty loh)
10 yrs no need to worry. by then the next downturn come, all CM will convert into HM. heating measure. coz no demand.
cannot force sell lah ... it will piss too many people ... at most it can say is restricting holding period e.g. if own > 2 private properties and HDB at the same time, HDB can only rent out for 10y in whole life (leave it empty loh)
I think it might be politically sensitive. Too many people will be pissed off. HDB landlords as well as tenants.
they will not ban HDB owner to buy private one lah ... at most is cannot keep HDB
Could increase MOP to 10 yrs if you want to retain and rent out HDB but if want to sell HDB and buy private then existng MOP will continue to apply. This will habe quite an impact.
Could increase MOP to 10 yrs if you want to retain and rent out HDB but if want to sell HDB and buy private then existng MOP will continue to apply. This will habe quite an impact.
This would tighten the HDB resale market even further no? Tot gahmen would wanna make more resale HDB go into the market...
cat slept on my keyboard..... so double post sorry
cat slept on my keyboard..... so double post sorry
wahahaaha...u a PUSSY lover ah...so am i...:D:D:D
wahahaaha...u a PUSSY lover ah...so am i...:D:D:D
yeah :cheers1:
It's not that bad an idea if it materialize.
Private demand suffers huge dip. Developers bid low or stop bidding.
Private prices drop - chance to upgrade. All happy except people collecting revenue from land sales and property.
Trust only yourself because most analyst = anal list.
Ya,all analyst are journalist.
It's not that bad an idea if it materialize.
Private demand suffers huge dip. Developers bid low or stop bidding.
Private prices drop - chance to upgrade. All happy except people collecting revenue from land sales and property.
How to upgrade when HDBee price also fall? Everything is inter-linked :tsk-tsk:
How to upgrade when HDBee price also fall? Everything is inter-linked :tsk-tsk:
can upgrade as long salary no drop
can upgrade as long salary no drop
Bro, I teach u a solid strategy....
When prices are all low - UPGRADE
When prices are high - downgrade
Think about it....
Bro, I teach u a solid strategy....
When prices are all low - UPGRADE
When prices are high - downgrade
Think about it....
Good strategy. The only problem is that determining when prices are "high" or "low" is quite a big challenge and those of us with little experience may not get this right.
For e.g., in 2010, prices are climbing, a lot say prices are "high", for those who downgraded, may have missed opportunities. Same thing repeated in 2011 and 2012.
So in 2013 and beyond, still quite a tough call.
True... This applies when u have a couple of units... So when u think prices are high, u downgrade 1 and cash out a bit, but still hedge - just in case.
Easier for stocks because can average... Properties his to average:confused: :doh:
Hahahaha
Good strategy. The only problem is that determining when prices are "high" or "low" is quite a big challenge and those of us with little experience may not get this right.
For e.g., in 2010, prices are climbing, a lot say prices are "high", for those who downgraded, may have missed opportunities. Same thing repeated in 2011 and 2012.
So in 2013 and beyond, still quite a tough call.
the buying mood today is very similar to the 90s, where people believe that prices of property will continue to rise indefinitely. If MND do implement this cooling measure, all hell will break loose for mass market condo..
Having said that I doubt government will do that as they are currently enjoying the windfall from GLS.
How about hdb must be fully paid n fulfill mop before buying 2nd property?
How about hdb must be fully paid n fulfill mop before buying 2nd property?
i am in that category but still every day wake up shivering scared to read straits times headlines...:scared-1:....in case i see headlines...LATEST CM...all HDB owners must....:scared-3::scared-3::scared-3:...siao liao
Bro, policy tends to protect current situation and impacts new situations....
SSD, MAS - loan quantums, purchase of resale hdb not allowed if have private, etc... Existing situation typically not affected.
So relax bro....
:cheers4:
i am in that category but still every day wake up shivering scared to read straits times headlines...:scared-1:....in case i see headlines...LATEST CM...all HDB owners must....:scared-3::scared-3::scared-3:...siao liao
Relax. 天塌下来当被盖。no point constantly worrying about this and that.
Bro, policy tends to protect current situation and impacts new situations....
SSD, MAS - loan quantums, purchase of resale hdb not allowed if have private, etc... Existing situation typically not affected.
So relax bro....
:cheers4:
tks bro tommorow morning i shall wake up and embrace the...."STRAITS TIMES"....:D:D:D:cheers4:
buttercarp
19-12-12, 22:58
tks bro tommorow morning i shall wake up and embrace the...."STRAITS TIMES"....:D:D:D:cheers4:
Actually I hardly have time to read the papers and I get my info mainly online.
My straits times usually end up in my guinea pigs' cages.
bakasa2002
19-12-12, 23:21
tks bro tommorow morning i shall wake up and embrace the...."STRAITS TIMES"....:D:D:D:cheers4:
Bro, obi WAN normally break the news around 4pm or later so that to give stock mkt and developer some time to consolidate and align their response. By the time u pick up the papers the next day, it will be old news...:D
How about hdb must be fully paid n fulfill mop before buying 2nd property?
I thought most would need to fulfill both conditions nowadays to buy 2nd property? i.e pay up the hdb so as to avoid 60% max loan limit.
Bro, I teach u a solid strategy....
When prices are all low - UPGRADE
When prices are high - downgrade
Think about it....
yes, this is right strategy. my ex-director.. last crash. sold his 2m semi det for a big loss... and bot a 3m bungalow. now the 3m bungalow already 10m and higher. good decision. :D
i am in that category but still every day wake up shivering scared to read straits times headlines...:scared-1:....in case i see headlines...LATEST CM...all HDB owners must....:scared-3::scared-3::scared-3:...siao liao
yes bro, me same situation.
actually with the 60 LTV CM, already weed out marginal buyers. now most buyers quite solid already. so.. this CM not much use leow. have to come down harder. i also hope no CM on HDB, else headache.
Am very scared that with the year-end bonuses, there will be a buying spree with the upcoming launches and trigger more CMs.
What to do....if obi-wan clamps down on HDB and private joint ownership, we will have to sell and put it back into a 99LH....
Actually I hardly have time to read the papers and I get my info mainly online.
My straits times usually end up in my guinea pigs' cages.
Same here!
Sometimes I think the pets ordered the newspaper for their use.
Haha!
DKSG
Am very scared that with the year-end bonuses, there will be a buying spree with the upcoming launches and trigger more CMs.
What to do....if obi-wan clamps down on HDB and private joint ownership, we will have to sell and put it back into a 99LH....
And the hdb pc gap would widen.
Am very scared that with the year-end bonuses, there will be a buying spree with the upcoming launches and trigger more CMs.
What to do....if obi-wan clamps down on HDB and private joint ownership, we will have to sell and put it back into a 99LH....
I think your worry came too late!
People already did the Singaporean Style already ...
Didnt you hear the COE prices last night ? The buying has started some weeks back already.
Go showflats and take a look, you can easily spot those who bought partly because they got hubby bonus and wife bonus combined, buy Eco Sanctuary hoping to earn even bigger bucks but am clueless what happens if interest rates goes up to 4%.
DKSG
Am very scared that with the year-end bonuses, there will be a buying spree with the upcoming launches and trigger more CMs.
What to do....if obi-wan clamps down on HDB and private joint ownership, we will have to sell and put it back into a 99LH....
actually, assuming the matured audience of 30+ or 40+.. mostly HDB fully paid. if garmen force me sell hdb, easily take back 300-400k or more.. throw into 2BR PC OCR.. not difficult. there will be other ripple effects. i not expert. leave it to experts to plan. i just follow lor.
I think your worry came too late!
Didnt you hear the COE prices last night ? The buying has started some weeks back already.
DKSG
hopefully buy more cars, less house. leave us alone. :D
actually, assuming the matured audience of 30+ or 40+.. mostly HDB fully paid. if garmen force me sell hdb, easily take back 300-400k or more.. throw into 2BR PC OCR.. not difficult. there will be other ripple effects. i not expert. leave it to experts to plan. i just follow lor.
Yah, super shiok. 3-400k even if prices of HDB fall (benchmarked to new flats).
Can exchange for 2 MM or 1 condo of choice or 1 landed with 70-80% loans, not forgetting private prices will drop 30% or so.
Perfect for a group of people. The question is, what is really in it for HDB to want prices to crash?
Relax. 天塌下来当被盖。no point constantly worrying about this and that.
Sure. But '下雨天'盖了会重伤风!
Am very scared that with the year-end bonuses, there will be a buying spree with the upcoming launches and trigger more CMs.
What to do....if obi-wan clamps down on HDB and private joint ownership, we will have to sell and put it back into a 99LH....
this will further stoke PC prices, and anti-PAP sentiments. unless the formula of valuating property prices change, it is going to be an endless spiral
Bro, I teach u a solid strategy....
When prices are all low - UPGRADE
When prices are high - downgrade
Think about it....
Sounds logical. but upgrade downgrade upgrade downgrade in the end back to square one.
Unless you upgrade few levels and downgrade only one or half level each time.
this will further stoke PC prices, and anti-PAP sentiments. unless the formula of valuating property prices change, it is going to be an endless spiral
yah, coz the average sinkie aspires to upgrade to PC. if PC largi out of reach, largi more anti PAP sentiments.
actually the start of it all was when they converted from cost plus to mkt value for new HDB. after that cannot U-turn leow, becoz you can't allow overall prices to drop too drastically due to policy changes.
this will further stoke PC prices, and anti-PAP sentiments. unless the formula of valuating property prices change, it is going to be an endless spiral
nothing will change until land bids taper down both in volume and price.
govt wanna build 3rd cashinnow wanna do this wanna do that. need to get the more money some where...
actually, assuming the matured audience of 30+ or 40+.. mostly HDB fully paid. if garmen force me sell hdb, easily take back 300-400k or more.. throw into 2BR PC OCR.. not difficult. there will be other ripple effects. i not expert. leave it to experts to plan. i just follow lor.
This analysis is wrong.
First, you get back 300-400K. If many force to sell and demand = 50% of supply, prices will spiral downwards incontrollably.
The rest, I dont think I need to analyse for you all.
So, forcing ppl to sell HDB is out of the question.
Making it impossible for HDB owners to buy PC is possible.
DKSG
Sounds logical. but upgrade downgrade upgrade downgrade in the end back to square one.
Unless you upgrade few levels and downgrade only one or half level each time.
real life example:
semi det (1.5m) upgrade to bungalow (3m) during downturn.
now bungalow 10m+, downgrade can split into 1 semi det again (4m?) plus 2 OCR condos (1.5m each), plus spare change. or 2 CCR smaller condos with less spare change.
ok leh...
This analysis is wrong.
First, you get back 300-400K. If many force to sell and demand = 50% of supply, prices will spiral downwards incontrollably.
The rest, I dont think I need to analyse for you all.
So, forcing ppl to sell HDB is out of the question.
Making it impossible for HDB owners to buy PC is possible.
DKSG
there won't be such a big imbalance between dd and supply because not THAT many pple own HDB+PC wor. i think 5% of total HDB population right?
that's why i say there are many ripple effects. sometimes the herd instinct is beyond the control of garmen. garmen can only predict the likely outcome of policies, but it may not end up the way they predict.
anyway i am one of those vested HDB+PC. why would i want this policy to come true?
even asking HDB owners to not to buy condo.. also cannot. you are killing upgrade aspirations of average sinkie. which politician would do that?
the gentler way is to milk more tax from those who are making good money from HDB rental. it allows life to go on, no major upsets in the plans of each group of pple. collect extra tax revenue. or even more draconian is to disallow renting. then a small group will sell, another small group will just leave it empty, etc. yet another small group will just rent out 1 or 2 room (legal or not legal dun say lah), but as long as they dun 'force' u to sell, there will not be severe dd/ss imbalance.
actually, assuming the matured audience of 30+ or 40+.. mostly HDB fully paid. if garmen force me sell hdb, easily take back 300-400k or more.. throw into 2BR PC OCR.. not difficult. there will be other ripple effects. i not expert. leave it to experts to plan. i just follow lor.
Yup yup will take back the cash and park into 1 or 2 BR OCR. Lucky I managed the CPF acct so that there was little coming out from the CPF for the HDB and so there will be v little need to go back into CPF. MY HDB loan is paid by CASH solely.
Those who paid for the HDB mostly by CPF will be jialat. If they sold their HDB, the $$$ will be STUCK in CPF.
This is another advice for those who want to buy HDB and can afford to pay by cash please pay by cash and don't use your CPF. "Empty" your CPF acct before the purchase of the HDB by putting the cash in FD, insurance or whatever other means. You will thank me for this advice when you want to sell your HDB and you can get back the proceeds in cash. You will need to cash to pay DP if you are upgrading.
For those who NEED the CPF to pay for the HDB deposit or loan installment, ignore the above paragraph.
Those who paid for the HDB mostly by CPF will be jialat. If they sold their HDB, the $$$ will be STUCK in CPF.
This is another advice for those who want to buy HDB and can afford to pay by cash please pay by cash and don't use your CPF. "Empty" your CPF acct before the purchase of the HDB by putting the cash in FD, insurance or whatever other means. You will thank me for this advice when you want to sell your HDB and you can get back the proceeds in cash. You will need to cash to pay DP if you are upgrading.
this is good advice. but hor.. actually even if cash go back to CPF, as long as you have fulfilled the minimum sum, still can take out everything for the next house. but need 5% DP cash lah. that one, no difficult lah. if 5% also cannot, better dun buy
With control on PR renting out of their HDB, already more PR are selling HDB and stay in PC if they were holding HDB+PC.
I believe nothing will change on Singaporean renting out their HDB until supply of PC increases and level the rental asking price to an affordable level to where tenants currently renting HDB do have the option to tent PC when HDB rental is stopped.
Maybe that is why GLS on going and CM and constant remainder no to over geared in view rental might drop over time.
Do share your view. :)
Sounds logical. but upgrade downgrade upgrade downgrade in the end back to square one.
Unless you upgrade few levels and downgrade only one or half level each time.
Not really, the change in property prices are quite uneven for different types of housing.
Even if percentage increase or drop is the same, 4% of 2 million is very different in absolute figures for 4% of 500k.
Yup yup will take back the cash and park into 1 or 2 BR OCR. Lucky I managed the CPF acct so that there was little coming out from the CPF for the HDB and so there will be v little need to go back into CPF. MY HDB loan is paid by CASH solely.
Those who paid for the HDB mostly by CPF will be jialat. If they sold their HDB, the $$$ will be STUCK in CPF.
This is another advice for those who want to buy HDB and can afford to pay by cash please pay by cash and don't use your CPF. "Empty" your CPF acct before the purchase of the HDB by putting the cash in FD, insurance or whatever other means. You will thank me for this advice when you want to sell your HDB and you can get back the proceeds in cash. You will need to cash to pay DP if you are upgrading.
For those who NEED the CPF to pay for the HDB deposit or loan installment, ignore the above paragraph.
Nowadays cash and bank loan seems much better. HDB loan interest quite high.
Nowadays cash and bank loan seems much better. HDB loan interest quite high.
Agree.
I regret having used CPF to purchase property. When I look at the amount that would have to be returned to CPF if I sell, it is a HUGE amount (the accrued interest compounded over more than 10 years is a LOT). It is more or less like borrowing from yourself at an interest rate of 2.5%. In the past when bank interest was 5%, it was quite a good deal. These days, when bank interest is around the 1+%, it is not a good deal.
Only use CPF to finance property purchase if you need the cash flow. Otherwise paying everything by cash allows you more flexibility to en-cash the proceeds (profits) when in future you want to sell.
It is always more useful to have ready cash for any future property purchase than having it "locked up" in CPF.
real life example:
semi det (1.5m) upgrade to bungalow (3m) during downturn.
now bungalow 10m+, downgrade can split into 1 semi det again (4m?) plus 2 OCR condos (1.5m each), plus spare change. or 2 CCR smaller condos with less spare change.
ok leh...
that's not called downgrade. its diversification.
Agree.
I regret having used CPF to purchase property. When I look at the amount that would have to be returned to CPF if I sell, it is a HUGE amount (the accrued interest compounded over more than 10 years is a LOT). It is more or less like borrowing from yourself at an interest rate of 2.5%. In the past when bank interest was 5%, it was quite a good deal. These days, when bank interest is around the 1+%, it is not a good deal.
Only use CPF to finance property purchase if you need the cash flow. Otherwise paying everything by cash allows you more flexibility to en-cash the proceeds (profits) when in future you want to sell.
It is always more useful to have ready cash for any future property purchase than having it "locked up" in CPF.
if you sell the property that used cpf, return with interest, you can still use again for next purchase right?
so even if you pay yourself interest, its still your money
so even if you pay yourself interest, its still your money
except the minimum sum that keep increasing every year. altho' still your money, but dunno can live to use finish or not. maybe temasek help you spend first.
except the minimum sum that keep increasing every year. altho' still your money, but dunno can live to use finish or not. maybe temasek help you spend first.
Don't worry, they will not spend it. By their accounting methods, every single investment makes profits, even if the original investment was ten times the final sum returned.
It's perfectly safe.
By their accounting methods, every single investment makes profits.
errr.. accounting methods.. a la olam?
errr.. accounting methods.. a la olam?
Not just...
Read this article:
http://www.todayonline.com/Hotnews/EDC121212-0000039/SIA-sells-49-stake-in-Virgin-Atlantic-for-S$440m
Then read the third paragraph in this article:
http://www.straitstimes.com/breaking-news/money/story/singapore-airlines-sells-49-stake-virgin-atlantic-delta-20121211
Everybody... Huat arh!
auroraborealis
20-12-12, 11:42
we max our cpf for 1 property, which is for own stay
the rest just use to pay stamp duty :D
Agree.
I regret having used CPF to purchase property. When I look at the amount that would have to be returned to CPF if I sell, it is a HUGE amount (the accrued interest compounded over more than 10 years is a LOT). It is more or less like borrowing from yourself at an interest rate of 2.5%. In the past when bank interest was 5%, it was quite a good deal. These days, when bank interest is around the 1+%, it is not a good deal.
Only use CPF to finance property purchase if you need the cash flow. Otherwise paying everything by cash allows you more flexibility to en-cash the proceeds (profits) when in future you want to sell.
It is always more useful to have ready cash for any future property purchase than having it "locked up" in CPF.
Not just...
Read this article:
http://www.todayonline.com/Hotnews/EDC121212-0000039/SIA-sells-49-stake-in-Virgin-Atlantic-for-S$440m
Then read the third paragraph in this article:
http://www.straitstimes.com/breaking-news/money/story/singapore-airlines-sells-49-stake-virgin-atlantic-delta-20121211
Everybody... Huat arh!
accounting 101 - a loss can be written off as profit
...
Not just...
Read this article:
http://www.todayonline.com/Hotnews/EDC121212-0000039/SIA-sells-49-stake-in-Virgin-Atlantic-for-S$440m
Then read the third paragraph in this article:
http://www.straitstimes.com/breaking-news/money/story/singapore-airlines-sells-49-stake-virgin-atlantic-delta-20121211
Everybody... Huat arh!
wah biang.. diff between shitty times and today.
but this is not quite an accounting issue. it's actually how the news paper selectively report lor. the earlier write off has been against earlier year profits, so no big deal. this is management of earnings. quite logical if mgt deem that the goodwill cannot be suitably recognised against current revenue, or perhaps they had an aggressive amortisation rate.
accounting 101 - a loss can be written off as profit
...
:doh:
Richard Branson (Virgin's boss) is a somewhat interesting character. Google his past. If it were me, I would not choose to do any joint venture or buy any business from him. :scared-1: I was actually surprised that Singapore inc had decided to take on Virgin Atlantic. Richard Branson should be grinning all the way to the bank. And Singapore inc??? :banghead: I am not surprised at this outcome. I would have thought it was easily predictable, even as a non-business non-financial person.
:doh:
Richard Branson (Virgin's boss) is a somewhat interesting character. Google his past. If it were me, I would not choose to do any joint venture or buy any business from him. :scared-1: I was actually surprised that Singapore inc had decided to take on Virgin Atlantic. Richard Branson should be grinning all the way to the bank. And Singapore inc??? :banghead: I am not surprised at this outcome. I would have thought it was easily predictable, even as a non-business non-financial person.
yes, I totally agree with u on this.
In fact, the scholars heading the GLC are not sharp enough,
NOL, SIA, DBS.....
u look at DBS, in HK, in thailand.....
We need big sharks if want to have international plays in M&A
yes, I totally agree with u on this.
In fact, the scholars heading the GLC are not sharp enough,
NOL, SIA, DBS.....
u look at DBS, in HK, in thailand.....
We need big sharks if want to have international plays in M&A
you shld have those super big shot self made entrepreneurs (eg ng teng fong-type) on the board or investment committee.. that is, if they are willing to do national service. coz what they advise to temasek, they cannot buy themselves. :banghead: :banghead:
these bosses make decisions based on macro view. and typically they are faster with their brains than one whole room of scholars churning numbers.
yes, I totally agree with u on this.
In fact, the scholars heading the GLC are not sharp enough,
NOL, SIA, DBS.....
u look at DBS, in HK, in thailand.....
We need big sharks if want to have international plays in M&A
Not sharp enough? LOL :spliff2:
Have you read about Richard Branson's history?
I fear we may be being laughed at by people in the UK. :tongue3:
I think I read this deal was done on a piece of paper or a napkin by Richard Branson with one of Singapore inc's big honchos.
so, 700mio of OUR money just like that gone wit the wind?
The problem with GLCs is that they are always under scrutiny from the media and public to be PAP company, hence whoever who runs it will have to a very clean background in order to avoid any political repercussion from netcitizen and media.
So be the best thing for government is to engage someone who is being groom from within.
so, 700mio of OUR money just like that gone wit the wind?
Its just written off. Still considered profit.
Allthepies
20-12-12, 19:45
I find it strange not to use your cpf to pay your house. Pump it all into your house, tat the only way to optimally use your cpf money. You leave the money in cpf no use right??:confused: :confused:
Am very scared that with the year-end bonuses, there will be a buying spree with the upcoming launches and trigger more CMs.
What to do....if obi-wan clamps down on HDB and private joint ownership, we will have to sell and put it back into a 99LH....If he forbids joint ownership, then there'll be a sudden injection of thousands of units into the market and this will pull down resale prices and many who are not joint owners but looking to upgrade will also be affected... next GE sure suffer de... must handle with care... With absurd COE prices and unreliable public transport (1 yr on and SMRT still breaking down ever so frequently), will Singapore still be attractive? :cool:
so, 700mio of OUR money just like that gone wit the wind?
Not that I want to defend SIA for this deal, but, seriously, in business you win some, lose some.
The person that did this deal is the same person that ran SIA with good profit for years, you can't say he is not competent.
Sometimes shit happens.... Look at HP acquisition write offs. 2 big ones within a year. Multi billion write off.
As an outsider I remain positive on SIA's management. Look this is prob the only airline that have never recorded a full yr loss even in 2009. And today, while almost every other airline is dying, SIA is still investment grade.
Btw to get rid of this asset at 300mil is not a bad deal, for what it is now.
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