People here have funds idling in the bank acounts, and there are no outlets for investments other than properties and the stock markets. Very much less people have trust in the investment vehicles provided by local and foreign FIs. At least there bicks and mortar to hold in our hands as compared to total loss of moneys when investments go bust.
They believe that property prices will not go down in Singapore because a lot of CPF money is involved, most life savings to say the least.
Pray hard that the bubble does not burst like in Japan a decade and a half ago. At least the Japanese do not have all their retirement funds tied to their homes. We do, and it will be totally devastating, painful and distressing.
Suppliers and housing agents are telling people to "buy now, can mortage it and pay over 30 years."
This is ridiculous. But the gahmen is happy with this idea of 'buy now, pay slowly'. The banks are happy.
So the price of property will keep going up because people are buying a controlled limited supply of property with money from willing lenders, i.e. banks that have the ability to create money in the short run.
People here have funds idling in the bank acounts, and there are no outlets for investments other than properties and the stock markets.
ReplyDeleteVery much less people have trust
in the investment vehicles provided by local and foreign FIs.
At least there bicks and mortar to
hold in our hands as compared to
total loss of moneys when investments go bust.
Is it ethical to accept blank cheques?
ReplyDeleteThey believe that property prices will not go down in Singapore because a lot of CPF money is involved, most life savings to say the least.
ReplyDeletePray hard that the bubble does not burst like in Japan a decade and a half ago. At least the Japanese do not have all their retirement funds tied to their homes. We do, and it will be totally devastating, painful and distressing.
Wish them luck ! Cheers !
ReplyDeleteSuppliers and housing agents are telling people to "buy now, can mortage it and pay over 30 years."
ReplyDeleteThis is ridiculous. But the gahmen is happy with this idea of 'buy now, pay slowly'. The banks are happy.
So the price of property will keep going up because people are buying a controlled limited supply of property with money from willing lenders, i.e. banks that have the ability to create money in the short run.
Indeed , the excess liquidity from other countries (like US and China) is finding its way into Singapore?
ReplyDeleteHow can any resonable person think it's not a bubble when in 2006, a $1mil property can become a $2mil property in 2009.
But have your total annual pay package increased 100% during these few years?
This is not the first time, nor will it be the last time such things happen.
ReplyDeleteSo like they say, history repeats itself and lessons will never be learnt, even after the hard way.