With CM7, what should we do now?

[stiook]

Ltv for 2nd property is reduced from 60 to 50%. I do not think the min 25% cash downpayment is critical when ltv is already at 60% previously.

Most of their cpf should be locked up in their 1st property anyway.

Many hdb upgradders would opt to fully pay up their hdb loan before purchasing another condo.

So in my opinion, 7% absd is the main stumbling block for hdb upgradders now which i believe forms the main bulk of purchases in the recent red hot ocr projects.

Agree. I think the consideration for these people is whether to deploy all the cash. Also now with 7% ABSD, the sunk cost is now higher. Probably comparing whether the investment still make sense.

[kane]

Coming with 50% equity is a beat feat with today's escalated prices.

[star]

CM7 will be solved with QE5.

[Rosy]

Coming with 50% equity is a beat feat with today's escalated prices.

loan tenure cap at 65 is critical and spells the end for those above 50. Used to be able to stretch till 75-80.

[kane]

Don't raise your hopes on further QE. US economy is on the mend.

Those above 50 was probably shut out in the last CM as it is.

[star]

QE is highly possible just need one europe country to come out with really bad news or debt ceiling raising rejected if not how market make money if everyone on the same side. For your info the amount of money injected to stock market is at its highest now.

[star]

Highest amount of money injected to stocks:
http://m.cnbc.com//id/100373188

[minority]

moving forward for investment all will go cheong MM in the OCR... 7% or 10% still managable.

[kane]

Highest amount of money injected to stocks:
http://m.cnbc.com//id/100373188

Even more so, if there is a flood of liquidity into financial assets, the need for further QE gets less and less.

[kane]

moving forward for investment all will go cheong MM in the OCR... 7% or 10% still managable.

True. $1m is $70k or $100k extra. Ouch.

[star]

Even more so, if there is a flood of liquidity into financial assets, the need for further QE gets less and less.

When market get ugly QE comes in. It will not be now. It will need more people to buy stocks.

[kane]

With this wall of liquidity. We'll probably need a few more years. But I do believe the next ugly downturn will be very ugly.

[Allthepies]

To TS: just buy a big nice 5 room HDB to house your family. It is definitely cheaper better than a similarly size condo. You will have peaceful nights sleeping in your HDB.

[ekl2ekl2]

True. $1m is $70k or $100k extra. Ouch.

agree, hard to cheong. For foreigners thats 180k for 1m ppty.

For local investors, have to come out with about $700k for 1m ppty. Only for the rich.

[kane]

agree, hard to cheong. For foreigners thats 180k for 1m ppty.

For local investors, have to come out with about $700k for 1m ppty. Only for the rich.

And those who buy 3rd property and want to borrow more than 30 years. They need to stump out almost 90+% of the property value. We can copy some of the fpreigners and buy property in cash.

[Leeds]

To TS: just buy a big nice 5 room HDB to house your family. It is definitely cheaper better than a similarly size condo. You will have peaceful nights sleeping in your HDB.

Thank you for your advice.

The intent of the thread is to obtain a more diverse view from different group of people to better appreciate their thinking. It was not intended to solicit advice.

[phantom_opera]

if it is your first home or you intend to sell HDB and upgrade ... of coruse ... get a TRIO, QUADRUPIA or PENTAKEY unit !!!!

[Leeds]

agree, hard to cheong. For foreigners thats 180k for 1m ppty.

For local investors, have to come out with about $700k for 1m ppty. Only for the rich.

Heard that foreigners who marry local girls are using their wives' names to buy PCs. Very smart of them or maybe the girls?

[eng81157]

the foreigners will still get hit, if they put their names down on the lease documents.

[eng81157]

my take is - just sit back and drink a pina colada, relax and wait till the dust and panic settles, and market will be back up again

[PropertyNewbie]

Find 1 corner, relax there and come out 3 years later

[cnud]

Waiting for black swan to swim here.

[joelx]

What will be the impact to Singapore economy if our government keep on pushing away foreign investment and FT out of Singapore? While all foreign investment and expatriate flow to our neighboring country (M'sia, Philiphine, indonesia, Thailand….) will these move actually slow down our growth? I am more worried that if economy down turn and without much existing foreign investment within the system to support. Liquidity will be vary fast dry up if we never fatten it now. interest rate will shoot up, unemployment will spike (due to less foreign co setup).

[minority]

What will be the impact to Singapore economy if our government keep on pushing away foreign investment and FT out of Singapore? While all foreign investment and expatriate flow to our neighboring country (M'sia, Philiphine, indonesia, Thailand….) will these move actually slow down our growth? I am more worried that if economy down turn and without much existing foreign investment within the system to support. Liquidity will be vary fast dry up if we never fatten it now. interest rate will shoot up, unemployment will spike (due to less foreign co setup).

well currently the electorate have growing majority that don't care. They are more concern on what they see right in front of them. If things go bad later. then just cry foul and want blood. They rather throw the baby out with the bath water if they dont get what they want.

Sad to say thats the current state of mindset. All focus on personal gains n wants.

[RCT]

Actually I think the move will actually promote investment... It will actually stop investment into our property sector which really does not help the economy at all....

Now a lot of foreigner are unwilling to come to Singapore to work or company dun want to come Singapore for investment as the cost is really high... And the primary cost of this high cost in property prices

If the property price went down, the cost of investing in Singapore in terms of setting up a office or factory is lower.. So more company will come to set up office/factory means better employment and higher income for the people...

[buttercarp]

Actually I think the move will actually promote investment... It will actually stop investment into our property sector which really does not help the economy at all....

Now a lot of foreigner are unwilling to come to Singapore to work or company dun want to come Singapore for investment as the cost is really high... And the primary cost of this high cost in property prices

If the property price went down, the cost of investing in Singapore in terms of setting up a office or factory is lower.. So more company will come to set up office/factory means better employment and higher income for the people...

Wow!
You have a point there!
You are looking at the broader aspect ie attract the big investors and those with the capital to start an industry.

[RCT]

Just my humble view... Property Market have nothing to do with the economy.. It is a result of economy growth but will not generate economy growth...

If you are setting up company, cost is very important too.. Higher property cost will directly means higher rental, higher salary, higher cost of goods.

A simple example. If you are a foreign company and want to set up a branch in Singapore, you will need to send your own management over to Singapore.. So the first thing is their expat package which includes rental of accommodation. Property price increase- > Rental Increase This result in higher cost..

Another example. If property price is higher, the expected salary of the people in the country will be higher.. Why you cannot earn only $500? As it is not enough for you to survive.. A higher property pricing mean shops rental is higher=>result in the things they sell is higher... housing price is higher=>result you need more money to have a place to stay.... This result in higher overhead for the company...

[joelx]

Wow!
You have a point there!
You are looking at the broader aspect ie attract the big investors and those with the capital to start an industry.

How about the FT that requires to run business? Can they easily get an employment pass? if they are promoting foreign investment, govt should be sending out cooling measure on office/industrial building/rental market not residential.

[RCT]

How about the FT that requires to run business? Can they easily get an employment pass? if they are promoting foreign investment, govt should be sending out cooling measure on office/industrial building/rental market not residential.

Aren't the government doing this now... Industry property is included to CM7.... And also the residential property is the key factor as it directly linked to the salary range of your workers..

The government is having problem with increasing the FT in Singapore due to Singaporean's objection (You can see in the last election) and also our infrastructure (Look at the MRT, Bus, roads, etc), Singapore really cannot handle that much more people anymore now without seriously affecting the life of Singaporean now..

But we still need to attract investment and the key point is the cost... We need to control cost... If the price of property keep going up, the salary of the people will have to go up.... You cannot expect a house cost 1 million and ask your people to draw 1k salary right? But if a house only cost 100k and you ask your people draw 1k salary.. Maybe it is still ok...

Just my humble view

[minority]

Just my humble view... Property Market have nothing to do with the economy.. It is a result of economy growth but will not generate economy growth...

If you are setting up company, cost is very important too.. Higher property cost will directly means higher rental, higher salary, higher cost of goods.

A simple example. If you are a foreign company and want to set up a branch in Singapore, you will need to send your own management over to Singapore.. So the first thing is their expat package which includes rental of accommodation. Property price increase- > Rental Increase This result in higher cost..

Another example. If property price is higher, the expected salary of the people in the country will be higher.. Why you cannot earn only $500? As it is not enough for you to survive.. A higher property pricing mean shops rental is higher=>result in the things they sell is higher... housing price is higher=>result you need more money to have a place to stay.... This result in higher overhead for the company...

Then we need low cost labour dont we? why we suddenly create our own labour crunch?