The title - "Singapore is living on debt"
It all depends on which generation you are in.
For example, I met a taxi driver. In our conversation, he told me that he bought his private appartment 27 years ago at $200k. Yes, he was on loan just like most people unless you are borned with a golden spoon. Fast track to 2013, he was offered $1.6m to sell his house. He is no longer on debt as of today as he had already repaid all his debts. He is driving taxi not because he needs to make ends meat but to pass time, to meet people, as well as to have some pocket money for his daily expenses. He also told me that he would sell his house for $1.6m and buy a studio appartment for $700k should he decides to quit as a taxi driver. Moreover, all his children are married and moved out. There is no need to stay in a big house anymore. He will use the balance of his sale proceeds for his retirement fund.
Therefore, if you belong to the older generations, chances that we are debt free. Only the XYZ generations onwards will feel the heat. However, all is not lost, if your grandparents / parents build the assets for you, you may not be "jialat".
Rising household debt in S'pore worrying: MAS - Channel NewsAsia
wtf...............housing loans is 45% of GDP?!
Property you have no choice... but yet, Singaporean are so willing to chain themselves to the mountain of debt just to own a Car.....
I don't really care if the property burst or not... I don't own 1 house to stay and 2 condo for investment... either am I over stretched in loan for Cars or Credit. If the individual person isn't doing their loan calculation properly... or invest without a backup plan... then each and everyone will have to answer for themselves....
Scuba & Father... For Life
Dudes, 1/3 to 1/2 of our economy is based on a bubble!
Now isn't that interesting?
Govt want 7 mil people to sustain the property market. Lets see if these 7 mil can help revive the economy to sustain/back up the bubble or not.
I can tell you it wouldn't. In fact, sg economy is in a downslide already.
Last edited by ArchRival; 25th July 2013 at 09:52 PM.
In my opinion the 7 million target is a terrible mistake. But as usual, it will not be admitted until after the harm has been done.