Is low interest rate the key to asset bubble?

[chestnut]

I was hoping to be able to retire young, but I still need my day job to keep up with inflation. My children now grown.... They probably need their own place, so the properties will goes to them one day. So all the achievements of today will probably be tomorrow necessity.

Bro, only give your props only when the last surviving spouse kick e bucket. When alive, derive income from it lah....

If children want their props, help w downpayment lah... They can buy hdb wat. Then when u pass on. U can pass them the props wat....



Oops, I read Somemore, I try to understand... U are saying, at the end, the property can only provide u the same lifestyle u have today? Is it?

If yes, I say already great already.

Assuming say your pay 10k and. Can derive 10k from rental, bro, this is super good already....

[Shanhz]

When one is young, better to choose investment and live modestly. By the time you are older, you should be able to live in a bigger house and still have your investments growing.

Somehow, it is difficult to try to live modestly in todays' competitive world especially when your "value" is measured by where you live, which school you came from and what car you drive

quite agree. question is what age is old and what age is young?

fortunately i don't hang around with pple who look at what house or what car i drive. those pressures are not the reason for me to get a better house or car. if fact, i am challenging myself to drive my current 5-yr car to the 10-yr mark.

frankly from all perspectives, living in HDB makes more sense. renting out the more expensive ppty is better from tax planning perspective.

sometimes, it is really difficult to choose between the heart and the mind.

[roly8]

quite agree. question is what age is old and what age is young?

fortunately i don't hang around with pple who look at what house or what car i drive. those pressures are not the reason for me to get a better house or car. if fact, i am challenging myself to drive my current 5-yr car to the 10-yr mark.

frankly from all perspectives, living in HDB makes more sense. renting out the more expensive ppty is better from tax planning perspective.

sometimes, it is really difficult to choose between the heart and the mind.

good post.

[kane]

Low interest rate AND money supply expansion causes assets bubbles. And there is no geographical restriction on where the bubbles may show up.

[lkm]

better don't anyhow follow... arcachon got a very solid iron bowl.... umm.... i think is steel type...

May I know what kind of rice bowl? sori me a little slow in following.

[Arcachon]

If you need to go for two years theory training, two years on the job training, qualify as License Aircraft Engineer, train by Italian contractor, US Army and work for 28 years and get paid $44,000 a year. The rice bowl should be made of gold.

[lkm]

If you need to go for two years theory training, two years on the job training, qualify as License Aircraft Engineer, train by Italian contractor, US Army and work for 28 years and get paid $44,000 a year. The rice bowl should be made of gold.

Cool. With RSAF or SIA?

It's amazing how you made use of leverage to your advantage! With income of less than $44K in 2006, how you manage to persuade UOB to loan you $428,000 to buy SB? I presume 30-year loan when you were 42 that year. So monthly installment come out to about $1800-2000 (estimate) assuming interest at around 4% in 2006 period, which is a huge chunk of your income! Did you still have any outstanding loan for your 5-rm HDB at that time??? How you get UOB to loan you the $???

Btw how come your income at $44K with 28 years. Assuming 1 year salary increment is $100 (average), 28 years increment would be $2800. Add 3 months bonus. And the total annual would be $42K already. Doesn't even include the starting salary. You got no increment for many years or you got no bonus?

Great to learn experience from 前辈们in this forum.

[roly8]

If you need to go for two years theory training, two years on the job training, qualify as License Aircraft Engineer, train by Italian contractor, US Army and work for 28 years and get paid $44,000 a year. The rice bowl should be made of gold.

wah bro!
you really got gold balls.

[hyenergix]

wah bro!
you really got gold balls.

I think SAF gives generous overseas allowance and contract maturity lump sum. Plus rental income, actual net income should be much much higher.

[Arcachon]

I think SAF gives generous overseas allowance and contract maturity lump sum. Plus rental income, actual net income should be much much higher.

SAF use to pay well, but not now because the retirement age change from 50 to 60 now.

In 2005 yearly income is 60k plus a bit and with my wife income I get a 2 Bedroom at Southbank in June 2006.

In 2007 my wife stop working and follow me to France and my yearly income went for free fall.

Overseas allowance known as Cost of Oversea Living Allowance COLA is enough for you for your 3 meal, if 3 meal eat at McDonald then you need to top-up.

Housing allowance is only good for basic housing, House with garden and garage you need to top-up also.

Rental income is enough for you to repair your house after you have rent out a number of years.

After years oversea, wife become true blue housewife.

[Arcachon]

Cool. With RSAF or SIA?

It's amazing how you made use of leverage to your advantage! With income of less than $44K in 2006, how you manage to persuade UOB to loan you $428,000 to buy SB? I presume 30-year loan when you were 42 that year. So monthly installment come out to about $1800-2000 (estimate) assuming interest at around 4% in 2006 period, which is a huge chunk of your income! Did you still have any outstanding loan for your 5-rm HDB at that time??? How you get UOB to loan you the $???

Btw how come your income at $44K with 28 years. Assuming 1 year salary increment is $100 (average), 28 years increment would be $2800. Add 3 months bonus. And the total annual would be $42K already. Doesn't even include the starting salary. You got no increment for many years or you got no bonus?

Great to learn experience from 前辈们in this forum.

The Bank loan me 28 years using my wife age, which is 5 years younger. Monthly mortgage about 1700 for 428000.

Yearly income about 60K for mine plus wife income.

HDB outstanding loan about 100K.

Last monthly salary is about 4.1k.

Starting salary with the other pocket is too low to mention.

Working for a monthly salary need to stop some where or reduce, else at retirement when the salary stop the money tap start to leak instead of filling the basin.

[hyenergix]

SAF use to pay well, but not now because the retirement age change from 50 to 60 now.

In 2005 yearly income is 60k plus a bit and with my wife income I get a 2 Bedroom at Southbank in June 2006.

In 2007 my wife stop working and follow me to France and my yearly income went for free fall.

Overseas allowance known as Cost of Oversea Living Allowance COLA is enough for you for your 3 meal, if 3 meal eat at McDonald then you need to top-up.

Housing allowance is only good for basic housing, House with garden and garage you need to top-up also.

Rental income is enough for you to repair your house after you have rent out a number of years.

After years oversea, wife become true blue housewife.

Tot you have kids to support also. Are they also in France?

[roly8]

bro, how's life in france?

any big difference in term of weather, air , people, food & surrounding?

[Shanhz]

The Bank loan me 28 years using my wife age, which is 5 years younger. Monthly mortgage about 1700 for 428000.

Yearly income about 60K for mine plus wife income.

HDB outstanding loan about 100K.

Last monthly salary is about 4.1k.

Starting salary with the other pocket is too low to mention.

Working for a monthly salary need to stop some where or reduce, else at retirement when the salary stop the money tap start to leak instead of filling the basin.

lots of discipline. hats off to you. bet you are doing much much better than most of your (equivalent) colleagues

[Arcachon]

Tot you have kids to support also. Are they also in France?

One wife, one kid, parent, one in-law, one 2 Bedroom, one 5 Room, and one 3 bedroom PH coming soon to support.

[Arcachon]

bro, how's life in france?

any big difference in term of weather, air , people, food & surrounding?

Weather is getting cold, lots of rain, daylight shorter, leaf falling.

Air is fresh all year round, pine tree burning smell start to get stronger.

Boring and expense food compare to US.

Lot of new housing, still don't understand why anyone here in France chose to buy instead of rent. Price of house the same for the last 5 years.

[Arcachon]

lots of discipline. hats off to you. bet you are doing much much better than most of your (equivalent) colleagues

Still remember my colleagues ask me why I did not buy a car after returning from US, I told them I am a poor man with lot of mouth to feed. 5 years later invited my colleagues to my 2 Bedroom, my colleagues ask me why I did not share the good buy with them, I ask them will they hold their cash to buy an apartment instead of buying a car, they remain silent.

[hyenergix]

One wife, one kid, parent, one in-law, one 2 Bedroom, one 5 Room, and one 3 bedroom PH coming soon to support.

Better take good care of yourself also...

[Arcachon]

Better take good care of yourself also...

Try to eat less nowadays, no OT unless necessary.

[Shanhz]

Still remember my colleagues ask me why I did not buy a car after returning from US, I told them I am a poor man with lot of mouth to feed. 5 years later invited my colleagues to my 2 Bedroom, my colleagues ask me why I did not share the good buy with them, I ask them will they hold their cash to buy an apartment instead of buying a car, they remain silent.

respect!
still alot to learn from you guys.
sometimes, it just need someone/something to trigger the thought. if someone had triggered my thought in 2007, i already buying my 3rd unit now. but then, still buying stocks, thinking houses beyond my reach. now that i think back, actually i could have afforded a small 2BR (by today's standard, considered very big leow)

do you think.. if 5 yrs ago, you mentioned this to someone, that someone might have benefitted? no right or wrong answer. just thinking. me, for one, would indeed forego a car purchase to buy a house, becoz i am fully aware of the time value of money.

[lkm]

The Bank loan me 28 years using my wife age, which is 5 years younger. Monthly mortgage about 1700 for 428000.

Yearly income about 60K for mine plus wife income.

HDB outstanding loan about 100K.

Last monthly salary is about 4.1k.

Starting salary with the other pocket is too low to mention.

Working for a monthly salary need to stop some where or reduce, else at retirement when the salary stop the money tap start to leak instead of filling the basin.

Is your son and parent staying in the 5-rm HDB or you currently rent out also? You also planning to rent out your Terasse in future? How many total apartments you renting out in total including HDB? How much is your total rent now beside SB $4200?

Of all new launches in 2006, what make you choose SB? Pure luck or you know something for it? How do you know whether SB undervalued or not at that time?

Trying to understand your way of thinking may help me in future when I commit to buying.

[Arcachon]

Is your son and parent staying in the 5-rm HDB or you currently rent out also? You also planning to rent out your Terasse in future? How many total apartments you renting out in total including HDB? How much is your total rent now beside SB $4200?

Of all new launches in 2006, what make you choose SB? Pure luck or you know something for it? How do you know whether SB undervalued or not at that time?

Trying to understand your way of thinking may help me in future when I commit to buying.

Parent housing sad story.

Still thinking of what to do next.

Wet market and food-court the main consideration, near water, not among the building, staying at French Road rental apartment in the 80's and 90's.

[roly8]

thx for sharing your story..

really eye opening

[Sandiwara]

quite agree. question is what age is old and what age is young?

fortunately i don't hang around with pple who look at what house or what car i drive. those pressures are not the reason for me to get a better house or car. if fact, i am challenging myself to drive my current 5-yr car to the 10-yr mark.

frankly from all perspectives, living in HDB makes more sense. renting out the more expensive ppty is better from tax planning perspective.

sometimes, it is really difficult to choose between the heart and the mind.

Most of the time we need to solved the financial problem our self. So no need worry so much about what other people think about our financial decision. Each person have their own luck. We just need to being honest with ours.

[Arcachon]

http://forums.condosingapore.com/showthread.php?t=18321

[mermaid]

We are fortunate that MAS has been taking preemptive actions to prevent a bubble with various cooling measures to discourage corporations and consumers from highly leveraged particularly in real estate.

[SIZE=3][COLOR=#000000][FONT=Times New Roman]Question we need to ask is can MAS alone prevents an asset bubble?

a very insightful article indeed

wrt yr qn above, I highly doubt so. Future increase in population & high buying sentiment is the main obstacles to the success of CMs here. look at HK n China. their ppty prices had increased more significantly than ours. hv their market crash?

[DC33_2008]

Do not underestimate the increasing number of middle class in china.

a very insightful article indeed

wrt yr qn above, I highly doubt so. Future increase in population & high buying sentiment is the main obstacles to the success of CMs here. look at HK n China. their ppty prices had increased more significantly than ours. hv their market crash?

[mermaid]

Do not underestimate the increasing number of middle class in china.

I did not.
in fact this huge wave of investors from china is a 2 edged sword; when they inject funds into spore, our ppty market prosperous. but should they leave one day, spore ppty mkt will oso crash.

[Arcachon]

I did not.
in fact this huge wave of investors from china is a 2 edged sword; when they inject funds into spore, our ppty market prosperous. but should they leave one day, spore ppty mkt will oso crash.

If they leave, where can they go.

http://www.straitstimes.com/breaking...study-20120926

[mermaid]

If they leave, where can they go.

http://www.straitstimes.com/breaking...study-20120926

another market which hv been suppressed for long/higher potential for growth.