Do property prices always recover to go up higher?

[walkthetiger]

The incomes of people around me are steadily rising. I think they are waiting to catch up with the prices. Many of them are waiting for the opportunity. To me, it's obvious and rather simple. When your income reaches the right level, you can reach the desired TDSR and prices will continue northward.

Agreed partially. Glad to hear the people around you having steadily rising income. The mentioned phenomenon had been foreseen sometimes back.... Next GE result will be crucial.

[Arcachon]

In the last 7 years, prices have moved much faster than incomes have. The two were strongly correlated, although economic cycles do have an impact. In a year with high income (and I dare say also GDP), it is also possible to have recession, SARS etc that trigger short term fluctuations.

But by and large, affordability has to be closely tied in with income. Runaway prices detached from incomes mean either that rich foreigners are buying, or locals are loaning amounts they cannot actually service if interest rises dramatically.

The incomes of people around me are steadily rising. I think they are waiting to catch up with the prices. Many of them are waiting for the opportunity. To me, it's obvious and rather simple. When your income reaches the right level, you can reach the desired TDSR and prices will continue northward.

TDSR is for low income group, high income group not affected.

When I buy my first HDB, CPF not even 20%. 1988

When I buy my second HDB, need to borrow SGD 20,000 for the deposit. 1995

When I buy my first condo, blur blur use 20% (SGD 108,000) and DPS. 2006

When I buy my second condo, borrow 110%. 2011

[Kelonguni]

TDSR is for low income group, high income group not affected.

When I buy my first HDB, CPF not even 20%. 1988

When I buy my second HDB, need to borrow SGD 20,000 for the deposit. 1995

When I buy my first condo, blur blur use 20% (SGD 108,000) and DPS. 2006

When I buy my second condo, borrow 110%. 2011

TDSR is also relevant for the high income group when they buy multiple properties. ABSD also comes into the picture.

[teddybear]

ABSD? I thought that is only revenue-earning tactic?

TDSR is also relevant for the high income group when they buy multiple properties. ABSD also comes into the picture.

[Arcachon]

TDSR is also relevant for the high income group when they buy multiple properties. ABSD also comes into the picture.

My friend pay ADSD and buy under TDSR, got money better to buy property than Gold.

TDSR is here to stay, got money put in the bank wait for price to drop not very wise.

If bank can loan me money to buy, I will still buy.

[Werther]

My friend pay ADSD and buy under TDSR, got money better to buy property than Gold.

TDSR is here to stay, got money put in the bank wait for price to drop not very wise.

If bank can loan me money to buy, I will still buy.

Bro Arcachon

Really? pay ABSD to buy property?

My friend mentioned buy in trust of children can avoid absd....do you know anything about this?

[Kelonguni]

My friend pay ADSD and buy under TDSR, got money better to buy property than Gold.

TDSR is here to stay, got money put in the bank wait for price to drop not very wise.

If bank can loan me money to buy, I will still buy.

My friend did the same too. The ABSD paid can be used as full deposit for entry level condo. It scares the hell out of me actually. Luckily not everyone has that kind of firepower.

[Sandiwara]

If you can not be rich with property....your children will

Only if the children is having more than one. Expensive property is only good for minority but not good for majority. Because Majority have only one property.

[Arcachon]

Singapore property well regulated, price goes down, government reduce GLS, remove CMs, price goes up increase GLS add CMs.

TDSR, ABSD, SSD etc was consider good measure by a number of country, problem with those country not doing is because of self interest.

If the Bank can loan me money I will still buy.

http://www.srx.com.sg/cooling-measures

[Yuki]

This is very interesting. Can't wait for part 2!

[Arcachon]

1 to 10, enjoy.

https://www.youtube.com/watch?v=QtK8...HxzY_Ofyj1wV8I