Singapore is living on debt


I think the point is property debt is not productive in a way..
 

hanzohattori said:
I think the point is property debt is not productive in a way..
Click to expand...


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.
 

diver-hloc said:
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.
Click to expand...

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:
 

kei1309 said:
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:
Click to expand...

You can live in Starbucks outlet :bsmilie:
 

hanzohattori said:
I think the point is property debt is not productive in a way..
Click to expand...

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.
 

Shizuma said:
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.
Click to expand...


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

That means too many ppl read Robert Kiyosaki.. lol
 

People nly find ways to get in but never consider how they can get out.
 

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 :)
 

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.
 

Shizuma said:
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.
Click to expand...

Do you want to know how Kiyosaki made his money?

Personally, I think he is BS.
 

daredevil123 said:
Do you want to know how Kiyosaki made his money?

Personally, I think he is BS.
Click to expand...

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:
 

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