Singapore is living on debt


hanzohattori

Senior Member
Apr 16, 2010
999
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#5
I think the point is property debt is not productive in a way..
 

diver-hloc

Moderator
Staff member
Apr 17, 2007
5,213
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Somewhere North
#6
I think the point is property debt is not productive in a way..

If you have the abilities to pay everything in one lump sum... who's stopping you ??

For mere mortals like the majority of us... loaning from Govt or Banks is the only way to go. Debt by itself isn't really a bad thing... its borrowing way beyond your ability and/or overspending that is the main problem.

Example - Borrowing huge amount from bank to buy Condo for 'Investment'... with the hope that by renting out the condo, could cover part or all of the bank loan... but should the market crash, as some people hoped... this are the people that will most be affected, along with the Bank. See US Subprime Mortgage Crisis - https://en.wikipedia.org/wiki/Subprime_mortgage_crisis.

My own example...

No Car Loan (because I don't think I need a car nor afford one)
No (extra) Housing Loan for investment
No Credit Card Loan (thank god I could control my spending)
No Credit Card Debt (saw real life example of how credit card debt destroy families... in the form of my father)

HDB loan (currently, still owe $17+K, with $5+K in my CPF).. Again, no way I could afford my own place without taking up this debt.
 

kei1309

Senior Member
Apr 12, 2010
7,312
23
0
Earth
www.facebook.com
#7
If you have the abilities to pay everything in one lump sum... who's stopping you ??

For mere mortals like the majority of us... loaning from Govt or Banks is the only way to go. Debt by itself isn't really a bad thing... its borrowing way beyond your ability and/or overspending that is the main problem.

Example - Borrowing huge amount from bank to buy Condo for 'Investment'... with the hope that by renting out the condo, could cover part or all of the bank loan... but should the market crash, as some people hoped... this are the people that will most be affected, along with the Bank. See US Subprime Mortgage Crisis - https://en.wikipedia.org/wiki/Subprime_mortgage_crisis.

My own example...

No Car Loan (because I don't think I need a car nor afford one)
No (extra) Housing Loan for investment
No Credit Card Loan (thank god I could control my spending)
No Credit Card Debt (saw real life example of how credit card debt destroy families... in the form of my father)

HDB loan (currently, still owe $17+K, with $5+K in my CPF).. Again, no way I could afford my own place without taking up this debt.
yup. greed leads people to do things, as well as hopes of a "better life".

as for me, i better start planning because when i hit 30 my mum will kick me out of the house :bsmilie:
 

hanzohattori

Senior Member
Apr 16, 2010
999
5
18
#8
yup. greed leads people to do things, as well as hopes of a "better life".

as for me, i better start planning because when i hit 30 my mum will kick me out of the house :bsmilie:
You can live in Starbucks outlet :bsmilie:
 

Shizuma

Senior Member
Mar 19, 2012
2,557
25
0
#9
I think the point is property debt is not productive in a way..
it is good debt if your property can be rented out and have a positive cashflow when the rental exceeds bank installments.
Then can take the positive cashflow and pay for another...and another...and another. Rich Dad Poor Dad style.
 

diver-hloc

Moderator
Staff member
Apr 17, 2007
5,213
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38
Somewhere North
#10
it is good debt if your property can be rented out and have a positive cashflow when the rental exceeds bank installments.
Then can take the positive cashflow and pay for another...and another...and another. Rich Dad Poor Dad style.

I believe Moody is warning about this issue... over borrowing to buy property...:sweat:
 

hanzohattori

Senior Member
Apr 16, 2010
999
5
18
#11
That means too many ppl read Robert Kiyosaki.. lol
 

ahsamhui

New Member
Apr 12, 2006
382
0
0
#13
People nly find ways to get in but never consider how they can get out.
 

Big Kahuna

Senior Member
Dec 15, 2004
2,126
1
38
Singapore, Singapore, Singapor
#14
When many people cannot affort a home or rented one.....that's when the problem arise....at this moment.....still hard to see that....thats why gov have so many cooling measures......but that's is only temporary. ...people with spare cash will buy property in neighbouring country.....so better start earlier if u can....ii missed out so many and I won't want to look back when I am 60 and say....I should have done this or dine that :)
 

ricohflex

Senior Member
Feb 24, 2005
3,353
8
38
sing
#15
Don't anyhow buy property overseas. It can be a snake pit.

Don't anyhow buy local private property if you cannot afford it.

Have met too many yaya people who boast and act like they can afford to buy various condos here and there.
 

daredevil123

Moderator
Staff member
Oct 25, 2005
21,645
63
48
lil red dot
#16
it is good debt if your property can be rented out and have a positive cashflow when the rental exceeds bank installments.
Then can take the positive cashflow and pay for another...and another...and another. Rich Dad Poor Dad style.
Do you want to know how Kiyosaki made his money?

Personally, I think he is BS.
 

kei1309

Senior Member
Apr 12, 2010
7,312
23
0
Earth
www.facebook.com
#17
Do you want to know how Kiyosaki made his money?

Personally, I think he is BS.
rich people will never share much on how they got rich...

but to get even richer they'll print books on "how to get rich" and people will snap them up quickly to learn how to get rich too.

and that's how he got richer :bsmilie:
 

UncleFai

Senior Member
Mar 10, 2010
4,448
36
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Singapore
#18
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