Heard there might be a CM8 on this Friday is it true ?

[mcmlxxvi]

100k divide by 12 times 30% = $2500

Then you take interest rate of 4.5% (some banks use 4%, some use different % but usually, between 4 to 4.5%) and 30 years loan (assuming you are below 35) and work out the amount. Most banks use their board rate so I know for OCBC, it is 4.5%.

Based on 100k income, it worked out to $493,400 loan amount or 616k purchase price. A rather low purchase price based on a monthly income of $8,333.

So someone who is on a 90th percentile income or top 10% earner in Singapore (around 7k a month only) cannot even buy a 600k house. That is sad. And 600k can barely get a MM nowadays. Even in OCR.

TOPd one or soon only SG smallest mm 258sf asking 500k.

Else launching soon Treasures @ G20 420sf 490k still have.

[Shanhz]

Yup. CM usually come out without anyone knowing. CM8 (if any) is no exception. From CM1 to CM7, I haven't heard of a single news spreading before the release of the news. Not even 2 hours before the announcement. So I guess MAS is good at keeping secret. Anyway, let's see.

If CM8, there won't be much sales. At 90th percentile, the income is around 7k only. 30% DSR is around 2.1k which translate to about 500k property purchase. That is assuming the person do not have any car loan, no other loan which is unlikely.

Is HDB resale (with bank loan) subjected to 30% DSR? If so, I am wondering how those people buy 850k HDB. They must be earning like > 10k a month and downpayment of 200k.

i got a fren earning 6k+ and loan rejected, bank only allow 350k loan. i think he was buying a hdb costing 590k. that's quite funny because at 2% i/r, repayment per mth is $1,300 (30 years), which is 21% only. either he was not telling me the truth, or the banks have gotten really stringent.

[Shanhz]

Does that mean HDB upgraders with family income about 100k+ with fully paid up HDB loan will not be able to upgrade to a 2br OCR condo?



IS this a political suicide?

if they allow a bridging period to sell the hdb, i think shld be ok bah? actually LTV is intertwined with DSR.. if you have a low enuff LTV you can stretch the loan long enuff (assuming you are not too old), then the DSR become palateable right?

[mcmlxxvi]

i got a fren earning 6k+ and loan rejected, bank only allow 350k loan. i think he was buying a hdb costing 590k. that's quite funny because at 2% i/r, repayment per mth is $1,300 (30 years), which is 21% only. either he was not telling me the truth, or the banks have gotten really stringent.

He may have car loan, personal loans, study loans, whatever outstanding or a bad credit history.

[babyt]

where is the smallest MM unit in sg?

[Lemonlaw]

Wow...new measures will spoilt dreams of owners trying to own 2 properties.

[thomastansb]

For HDB, different story. That one by law 30% DSR. Actually, for banks, 30% DSR is very safe already. Most don't mind 50% DSR one, if they can. So I see no reason why banks don't lend.

Anyway, he/his wife might have other loans. Like car loan for example. You buy a 130k Vios, one month repay about 1.3k for a 100% 10 years loan.

1.3k out of say 6.5k = 20% liao. Left 10% income to service debt.

And also other loans like renovation loan, personal loan, education loan etc.

Lastly, credit worthiness also. If he miss any credit cards/credit lines more than 30 days, that record will be there for the next 3 years. Btw, paying minimum sum is considered as missing payment. So if you have a 1k credit card bill, you pay $100 and the remaining $900 roll over to next month, your credit worthiness just went down. This also applies to loans. You miss $1 payment for 30 days, then your rating will go down for 3 years.

i got a fren earning 6k+ and loan rejected, bank only allow 350k loan. i think he was buying a hdb costing 590k. that's quite funny because at 2% i/r, repayment per mth is $1,300 (30 years), which is 21% only. either he was not telling me the truth, or the banks have gotten really stringent.

[mcmlxxvi]

where is the smallest MM unit in sg?

Guillemard rd.

[Ringo33]

Guillemard rd.

258

not the address, its floor area.

[babyt]

ok managed to find out its Suites@ Gulliemard.

[Shanhz]

For HDB, different story. That one by law 30% DSR. Actually, for banks, 30% DSR is very safe already. Most don't mind 50% DSR one, if they can. So I see no reason why banks don't lend.

Anyway, he/his wife might have other loans. Like car loan for example. You buy a 130k Vios, one month repay about 1.3k for a 100% 10 years loan.

1.3k out of say 6.5k = 20% liao. Left 10% income to service debt.

And also other loans like renovation loan, personal loan, education loan etc.

Lastly, credit worthiness also. If he miss any credit cards/credit lines more than 30 days, that record will be there for the next 3 years. Btw, paying minimum sum is considered as missing payment. So if you have a 1k credit card bill, you pay $100 and the remaining $900 roll over to next month, your credit worthiness just went down. This also applies to loans. You miss $1 payment for 30 days, then your rating will go down for 3 years.

not sure about the specific circumstances. but it is a single with no car, frugal lifestyle, civil service job. sounds to be like super safe borrower.

[chiaberry]

Anyway, he/his wife might have other loans. Like car loan for example. You buy a 130k Vios, one month repay about 1.3k for a 100% 10 years loan.

1.3k out of say 6.5k = 20% liao. Left 10% income to service debt.

And also other loans like renovation loan, personal loan, education loan etc.

The cash flow is so tight.

There goes the dream of car, condo out of the window.

The "sandwich" class just got made into toast.



There will be many unhappy people in similar situation. Next election PAP has just lost some more supporters for their CMs. Do you think this group of people can see the "perceived" advantage of these CMs for the overall benefit of the economy as a whole? What they see is that it hurts their pockets and dashes their aspirations.

[thomastansb]

I heard many civil servants are getting into trouble with credit cards/lines. But anyway, 30% DSR is fixed and really have to ask him why banks don't want to lend him the money. Only he knows best.

not sure about the specific circumstances. but it is a single with no car, frugal lifestyle, civil service job. sounds to be like super safe borrower.

[thomastansb]

Actually I feel it is the other way round. Most people earn less than 4k and they usually stay HDB. CM actually brighten up their day because it give them hope that one day, prices will drop and they can buy. That is a big majority of citizens in Singapore.

The small minority of rich people votes won't affect much. Also, rich people know best who to vote for

The cash flow is so tight.

There goes the dream of car, condo out of the window.

The "sandwich" class just got made into toast.



There will be many unhappy people in similar situation. Next election PAP has just lost some more supporters for their CMs. Do you think this group of people can see the "perceived" advantage of these CMs for the overall benefit of the economy as a whole? What they see is that it hurts their pockets and dashes their aspirations.

[RCT]

Actually I feel it is the other way round. Most people earn less than 4k and they usually stay HDB. CM actually brighten up their day because it give them hope that one day, prices will drop and they can buy. That is a big majority of citizens in Singapore.

The small minority of rich people votes won't affect much. Also, rich people know best who to vote for

How much can 4k per month person loan if 30% MSR? And if price is to fall, all scared to buy.. Just like 2009 stock market so cheap no one buy, now STI so high all rushing in to buy... People normally buy on up trend.. If price going south no one will buy even can afford

[chiaberry]

Actually I feel it is the other way round. Most people earn less than 4k and they usually stay HDB. CM actually brighten up their day because it give them hope that one day, prices will drop and they can buy. That is a big majority of citizens in Singapore.

The small minority of rich people votes won't affect much. Also, rich people know best who to vote for

With the MSR and car loan % tightening, they STILL can't buy.

[RCT]

Yes.. Last time can borrow money and buy.. So even don't have money also can buy.. Now with all the cooling and restriction on loan, those who earn a lot and have cash wins

[chiaberry]

If I were in the PAP, I would fear for the next GE. Despite so many measures, but it hasn't really improved the lot of the "majority" who live in HDB flats. Now it's even harder to buy a car and upgrade the next property.

[minority]

How much can 4k per month person loan if 30% MSR? And if price is to fall, all scared to buy.. Just like 2009 stock market so cheap no one buy, now STI so high all rushing in to buy... People normally buy on up trend.. If price going south no one will buy even can afford

aiyah for the group they will never buy up or down. up run away prices. down.. fear. its those who brave the fear buy only. no guts no glory.

[minority]

If I were in the PAP, I would fear for the next GE. Despite so many measures, but it hasn't really improved the lot of the "majority" who live in HDB flats. Now it's even harder to buy a car and upgrade the next property.

ah kong only can gurantee help on roof. want car want condo all these are considered luxury. must work for it. nothing fall from sky 1.

[minority]

Yes.. Last time can borrow money and buy.. So even don't have money also can buy.. Now with all the cooling and restriction on loan, those who earn a lot and have cash wins

anywhere in the world those with lots of cash always win. any time also win. not just here.

[teddybear]

Govt is making it difficult for the laymen people from investing in some instrument that has the best long term value with all the cooling measures!
So much so for the betterment and for the goodness of the people!

After a while...people will run out of children and other relatives whose name can be "borrowed" for getting a housing loan.

In any case MSR makes it difficult to use other peoples' names anyway. The banks will have to run v. stringent checks on borrowers from now on. Cannot anyhow declare income. They will check and double check.

Goodness gracious.....Govt already send signal not to touch property unless you have the cash.....don't get the message ah?

[Stevie]

Shin MIN news also got rumours on cm8

izit coming so fast ???

[thomastansb]

I don't think majority of the people want to buy a car and upgrade to condo. Those earning below 4k form the majority so it is hard to service a car and a condo at the same time. It is quite impossible. But some people will never be happy. They buy a car, buy a condo, they will be complaining they not enough $ to buy a yacht.

If I were in the PAP, I would fear for the next GE. Despite so many measures, but it hasn't really improved the lot of the "majority" who live in HDB flats. Now it's even harder to buy a car and upgrade the next property.

[Lemonlaw]

Fake one lah, where got cooling measures announcement give us hint?

Usually will be a surprise shocked to us.

[PropertyNewbie]

Any bookie accepting bets on whether this CM will come out tomorrow evening?

This red eye syndrome is getting ridiculous. Everyone should be thinking hard about upgrading themselves or thinking of ways to increase their earning power instead of asking the govt to artificially suppress prices so they can afford one. There's already the ECs for that.

Anyway, now that this CM looks like its imminent, let's now talk about the effects this coming CM will have.

My guess, CCR not affected unless additional foreign ABSD kicks in.
RCR takes a pounding and overnight asking prices to reduce 10-15%.
OCR neutral or might even see an upward tick as suddenly everyone can only afford OCR.

[thomastansb]

If I am the PAP, I will be doing my best. If I lose, seriously, I don't really care. If I am the MP, my allowance is already 1.2M in 5 years. If I am the minister, my salary is in the region of 10M and above. If people vote me out despite me doing my best, then I say good luck and good bye. With 1M, I can take citizenship almost anywhere I like.

That is why I hear a lot of people say PAP fear you. I am like huh? Why fear? It is a tough job. Cannot go luxury restaurant, cannot smoke, cannot go Geylang, cannot eat "Mango", cannot this, cannot that. And salary also not really that fantastic. I mean look at George Yeo. He is enjoying his life and earning millions as well and now, he go Geylang also no one can say anything. He has nothing to lose and all to gain. The losers are Singaporeans who lost a good foreign minister.

You want a Government that give you cheap car, cheap condo, rent out HDB to service your condo, high salary, work life balance? Let me know where because I also want.

If I were in the PAP, I would fear for the next GE. Despite so many measures, but it hasn't really improved the lot of the "majority" who live in HDB flats. Now it's even harder to buy a car and upgrade the next property.

[bargain hunter]

ok, sennett sold 50% of all units within 5 hours from 5pm today. maybe there's a chance tomorrow 5pm could see cooling measures. LOL!

[august]

If I am the PAP, I will be doing my best. If I lose, seriously, I don't really care. If I am the MP, my allowance is already 1.2M in 5 years. If I am the minister, my salary is in the region of 10M and above. If people vote me out despite me doing my best, then I say good luck and good bye. With 1M, I can take citizenship almost anywhere I like.

That is why I hear a lot of people say PAP fear you. I am like huh? Why fear? It is a tough job. Cannot go luxury restaurant, cannot smoke, cannot go Geylang, cannot eat "Mango", cannot this, cannot that. And salary also not really that fantastic. I mean look at George Yeo. He is enjoying his life and earning millions as well and now, he go Geylang also no one can say anything. He has nothing to lose and all to gain. The losers are Singaporeans who lost a good foreign minister.

You want a Government that give you cheap car, cheap condo, rent out HDB to service your condo, high salary, work life balance? Let me know where because I also want.

good foreign minister? maybe to you... thankfully not all sporeans think the same as u.

[thomastansb]

Then at least we have low unemployment, stability, good security, affordable food, affordable housing. And shitty transport but not everything can be perfect sometimes. So these are things being taken for granted by a lot of people and I think that is a great achievement for a country without natural resources.

good foreign minister? maybe to you... thankfully not all sporeans think the same as u.