Asset inflation can only be supported by corresponding increases in the buying power of the public or by increasing the pool of people who can afford such price increases. Doling out long term loans only smudges the problem. If inflation cannot be supported by actual buying power, you have a bubble.
Sigh. All these changes. All I want to do is able to buy a place that I can call home and start a family without being "chopped" here and there.
If I have to pay at the current market price then so be it, but I never like the idea people profiteering ABOVE market price.
This will be my home, not investment.
[This space is available for rent]
Well said, the country is run like a business, and we the citizen are clients. Not shareholders.
That is why when the country makes more money, it goes to the shareholders. Not to the clients. Just like Any other big corporations.
When Singapore Inc gets better return it also means the clients pay more.
And who are the clients?
In other words, the Singapore style welfare state is here to stay.
The property market has, and has always been, something of an addictive drug for countries. Governments get to get high tax revenues from property sales, and people get to reap the benefits of inflation. However, all this must be founded on the idea that people's wages increase correspondingly, and the system does not get abused by excessive speculation by external and local operators.
A shining example of what not to do would be Ireland. 50% of government revenue came from property. The fun started when the bubble popped and the banks collapsed.
Last edited by NazgulKing; 14th March 2014 at 04:42 PM.