What if loan interest goes up to 4% up to 7%?

[Arcachon]

Our previous conservative government was in power for about 10 years. During that time our economy strengthened immensely on the back of a resources boom brought about by China's growth. During that time, the government paid off all the foreign government debt that had accumulated under the previous socialist regime and brought in a strong run of surplus budgets.

It was during this time also that because the of increased ability of the government to stimulate economic growth, unemployment was at record low levels, home ownership and wealth accumulation was subsequently on the increase. Dropping interest rates was not necessary to stimulate the economy as the economy was on a good roll.

Also, our borrowing laws are a lot tighter than other countries. Many of the fringe lending and debt buying nonsense undertaken by credit supplying institutions in the US particularly are illegal here in Australia, hence, loan defaulting isn't as prevalent.

All these things combined to put Australia in a strong position and able to cope better with the world economic downturn. Our last quarter is the first time we have had negative growth and only -0.5% at that (with 0.5% error) whereas other economies have been in recession for a year or more.

Having room to move on interest rates leaves us in a better position than other countries if the economy needs to be stimulated. The problem in the US and UK is they can't use interest rates to stimulate the economy so they have resorted to the worst possible solution..printing more money. It might bail them out in the short term but it will bite them in a couple of years.

http://au.answers.yahoo.com/question...2214029AA6H0vg

Singapore do not have any natural resources.

[Arcachon]

Malaysia interest rate.

I still remember when I was young, lots of Tour bus from Malaysia use to park at old Airport Road Market, the exchange rate between Singapore and Malaysia is 1:1. Now the exchange rate is 1:2.4753. Will you put money in Malaysia or Singapore. They have oil, natural resource and water, why is their currency drop from 1:1 to 1:2.4753.

[kane]

If interest rates are at 4-7%, what would be the economic realities then?

[DC33_2008]

It is like in the uk too on the 30 days money back guarantee in the 90s.

" Not necessarily also as US property prices crashed because of subprime and remain low even as rates are low."

Subprime is not just a word, to equate Subprime and Singapore Property market is like comparing apple and orange.

Before the Subprime in the US you don't need to qualify for loan, it is given to you. You don't have to pay a deposit to buy property.

They don't believe in saving and the more they spend the more they think they save.

I was in US from Mar 2002 till Dec 2005 and really enjoy spending money. They have money back guarantee, 30 days no question ask return policy, customer satisfaction is their top policy and even give you money when you buy car call cash back policy.

If you buy an item and a year later found you don't like it you can return the item and they give you a voucher of the same value of the item you return.

If US is orange than Japan will be call a pear. In Japan they build highway to nowhere.

[CCR]

I dare predict that Property loan rates will stay below 3% for the next 5 years....

now till 2014 confirm below 1%, after 2015, 0.25% increase per quarter max... so you need 2 years to increase to 3% hence 2017...

Homeowners are practically getting free money from the bank from 2009 till now man.... if it last till 2015 then 7 years of free money!!!!!!!

[Trapping-bird]

I dare predict that Property loan rates will stay below 3% for the next 5 years....

now till 2014 confirm below 1%, after 2015, 0.25% increase per quarter max... so you need 2 years to increase to 3% hence 2017...

Homeowners are practically getting free money from the bank from 2009 till now man.... if it last till 2015 then 7 years of free money!!!!!!!

Only you will think it's free money...

[Arcachon]

Only you will think it's free money...

Bought a 2 Bedroom for $535,000 in Southbank paid 20% = $107,000 + Stamp duty. Rent out since TOP for 2 years $96,000. Valuation during TOP is $1,550,000. If this is not free money I don't understand what is free money.

[buttercarp]

Bought a 2 Bedroom for $535,000 in Southbank paid 20% = $107,000 + Stamp duty. Rent out since TOP for 2 years $96,000. Valuation during TOP is $1,550,000. If this is not free money I don't understand what is free money.

Wah, u really huat ah!

[Arcachon]

Wah, u really huat ah!

Only if I sell then can say Huat, now only paper gain.

There are 197 owner in Southbank. Some of the owner have 5, agent told me got one buy 18 unit. The one with 18 unit Huat big time.

[buttercarp]

Only if I sell then can say Huat, now only paper gain.

There are 197 owner in Southbank. Some of the owner have 5, agent told me got one buy 18 unit. The one with 18 unit Huat big time.

Wah..... that one must be a foreigner?
Ya, huat 18 times.... good number somemore!

[Arcachon]

Wah..... that one must be a foreigner?
Ya, huat 18 times.... good number somemore!

Don't think is a foreigner. The project before launch all the 3 Bedroom sold out, within 1 week all 1 and 2 Bedroom sold out.

[Arcachon]

http://www.youtube.com/watch?v=E3fFg8XIS0k

Take note of the clothing the student wear from 1 to 4.

Printing money is an art, we have to thank him. For those who still yet to understand how to print money, please at least spend some time watching the video.

[yjcai]

Thursday he will talk about economy again. Lets all gather here and listen

[Blue]

like in those bad old days?

Possible?

If that happens, property prices will DIVE. Might not be in the near future but maybe in 3 or 4 years time? Everyone is so used to the low rates now its kinda scary.

Property prices will dip for a while as highly leveraged owners cannot afford to service loan instalments, resulting in banks auctioning the houses. For those who weather through this short term dip, they are in for a good price appreciation as property prices will eventually adjust itself upwards to reflect the higher cost of money aka higher interest.

At the end of the day, interest rate does not determine property prices. It's supply and demand.

[DC33_2008]

Have gone through such times and it is worth it to hold on. Still believe properties are bought to be kept especially good ones that are FH, CCR/City fringe, Condo/landed in particular, less than 8 minutes walk to mrt stn, etc.

Property prices will dip for a while as highly leveraged owners cannot afford to service loan instalments, resulting in banks auctioning the houses. For those who weather through this short term dip, they are in for a good price appreciation as property prices will eventually adjust itself upwards to reflect the higher cost of money aka higher interest.

At the end of the day, interest rate does not determine property prices. It's supply and demand.

[groggy]

Our previous conservative government was in power for about 10 years. During that time our economy strengthened immensely on the back of a resources boom brought about by China's growth. During that time, the government paid off all the foreign government debt that had accumulated under the previous socialist regime and brought in a strong run of surplus budgets.

It was during this time also that because the of increased ability of the government to stimulate economic growth, unemployment was at record low levels, home ownership and wealth accumulation was subsequently on the increase. Dropping interest rates was not necessary to stimulate the economy as the economy was on a good roll.

Also, our borrowing laws are a lot tighter than other countries. Many of the fringe lending and debt buying nonsense undertaken by credit supplying institutions in the US particularly are illegal here in Australia, hence, loan defaulting isn't as prevalent.

All these things combined to put Australia in a strong position and able to cope better with the world economic downturn. Our last quarter is the first time we have had negative growth and only -0.5% at that (with 0.5% error) whereas other economies have been in recession for a year or more.

Having room to move on interest rates leaves us in a better position than other countries if the economy needs to be stimulated. The problem in the US and UK is they can't use interest rates to stimulate the economy so they have resorted to the worst possible solution..printing more money. It might bail them out in the short term but it will bite them in a couple of years.

http://au.answers.yahoo.com/question...2214029AA6H0vg

Singapore do not have any natural resources.

Does that mean Singapore also will have less flexibility as interest rates are already so low?

[Arcachon]

Does that mean Singapore also will have less flexibility as interest rates are already so low?

If you have a bank and people are pouring money into your Bank. What will you do, raise interest rate so that they don't pour money.

Where will you park your money if you can only bank it.

[phantom_opera]

Investors hedged against global financial and economic crisis, heading for havens such as the benchmark 10-year Japanese government bond whose yield fell below 0.80 percent to its lowest since July 2003

[groggy]

If you have a bank and people are pouring money into your Bank. What will you do, raise interest rate so that they don't pour money.

Where will you park your money if you can only bank it.

I thought the other way round? If too much liquidity, banks will lower interest rates. With interest rates so low, and if there is rampant inflation in the future, Singapore probably have to raise interest rates which makes property investment less profitable. On the other hand, if economy slows down, there is little room for rates to go down.

[ikan bilis]

I thought the other way round? If too much liquidity, banks will lower interest rates. With interest rates so low, and if there is rampant inflation in the future, Singapore probably have to raise interest rates which makes property investment less profitable. On the other hand, if economy slows down, there is little room for rates to go down.

he forgot to put two '?'... read his post again with 2 additional '?'...

[Arcachon]

he forgot to put two '?'... read his post again with 2 additional '?'...

Thanks, I no good in English. Did not get a grade beyond E8 for English "O" level. Lucky nowadays got auto correction and Google to help but no auto punctuation mark and grammar.

[groggy]

If you have a bank and people are pouring money into your Bank. What will you do, raise interest rate so that they don't pour money.

Where will you park your money if you can only bank it.

No matter where I put the punctuation, still does not make sense. You mean banks dun have to raise interest rates because flushed with liquidity?

[ikan bilis]

No matter where I put the punctuation, still does not make sense. You mean banks dun have to raise interest rates because flushed with liquidity?

don't know leh... but somehow i read as:

If foreigners are pouring money into sgp banks. What will sgp govt do,.. raise interest rate so that they don't pour money ?
and say, if wishes to take a big of risks than receiving near zero interest, where would you park your money next if only bank deposit is capital protected ?

[phantom_opera]

Singapore rate is pegged to US, period

Unlike Europe

[Blue]

I thought the other way round? If too much liquidity, banks will lower interest rates. With interest rates so low, and if there is rampant inflation in the future, Singapore probably have to raise interest rates which makes property investment less profitable. On the other hand, if economy slows down, there is little room for rates to go down.

MAS or Singapore banks cannot anyhow suka suka raise interest rates as it is linked to the outside world. If they raise, all the other countries investment funds will flow into Singapore for deposits. Then what can the Singapore banks do to pay these funds interest? Take $$ from its people who borrowed housing loans to pay off these funds? Kill your own kids to pay ransome to others?

Interest rate hike happens when economy is overheated and need to contract abit.

With all the crisis around the western world, do u think our economy needs to contract?