Last edited by scanner; 17th September 2009 at 01:30 AM.
Wow, you guys amaze me.
I mean you don't expect to be jobless for 10 years and be able to pay off your housing loan right???? but with some savings, you should be able to be jobless for 6 months without seriously affecting your housing loan.
If you insist on spending your every last cents and no savings, then what are you complaining about? It is those new generation americans who have so little savings that are having problems with housing loans when the going gets bad.
Last edited by alantkh; 17th September 2009 at 06:40 AM.
but to be frank,
I am curious about those saying HDB is affordable, are you looking for your FIRST hdb flat now or have you bought your hdb flat a few years back or are living in private now?
I am not looking to buy my first HDB now so maybe I that is why I can so easily say it is affordable
That is the crux of the problem facing ***. People who have took the plunge 5-10 years ago will support the rising prices. People who have zero property are in a fix as with the same amount of money, they have to lower their expectations and get a smaller flat or more ulu place.
That is hardly an encouraging mentality. For my case, I paid off my EC 2 years back. Both my cars are fully paid so I was loan free for sometime until one week ago.
but now I am saddled with another housing loan because I upgraded to a freehold landed. I think the general population will always want to upgrade.
Although I hope that the landed property will be like what it was 4 years back, I basically made a decision on how much can I afford and just bought what I can afford. 4 years back I can probably afford 2300sqft land with my money in hand. now it is 1800 sqft.
I think life is like that. Either you EARN more then you can buy more. If you cannot earn more, then lower your expectations. Or you can wait for a downturn patiently. Or you can petition to the government.
Last edited by alantkh; 17th September 2009 at 10:04 AM.
To be able to quit job and to be "jobless for long period, one must either have a pocket deep enough or must have some financial mechanism to keep one afloat during this period. He/she will be at a better position if he/she do not have any outstanding loan.
Back to housing issue, one of the reason property is popular among Singaporean is because it is one of the best bet to beat inflation. Well, that is true, but at what expense if oneself is taking up hugh loan? The interest might kill oneself if not careful.
Nevertheless, I believe in share market is one of the best bet for investment (if you know how the game is played). At least, no interest to the bank,no property tax and etc. At least for local share market, there is no capital gain tax.
Anyway, it looks like you are doing very well. Well done!
Its all about choices. If you choose to live in Singapore, you have to choose whether it is more economical to rent or to buy, in the short, medium and long term. If you commit to buy, then its a matter of 'beg steal borrow' and of course work your butt off to pay for it. This applies to the majority of property owners in Singapore.
The pitfall is you are committed and if the property market goes south or you lose your job, the good luck to you. The upside is of course property prices goes up, then you are sitting pretty. Capital appreciation over the last 20 - 30 years have been fantastic so those who have made the decision to buy are now laughing all the way to the bank. They could jolly well sell off their property and migrate, or downsize and have no financial worries about their remaining years. Those who have not purchased a property meanwhile find that their money is growing smaller, property prices keep going up so much so that what they could afford few years back are now out of reach. Coupled with the fact that rental is not cheap.
Economics wise, if your parents dont have a home for u to stay in and you have to pay rent, then assuming a 'for argument sake rental of $1k per month', over the course of 30 years, the person would have paid 360k (simple maths) in rental. If u had bot a flat, this amount is invested in your flat, and u could either sell it or live in it for remaining years without paying any more installment. If you chose to pay rent, then its pure cash outflow and you are still contributing to flat ownership, your landlord's to be exact. He is laughing his way to the bank cause you are paying off his mortgage, and you are still complaining about property prices. The mouth can keep complaining about property prices whilst the pocket suffer like crazy